It is hard to believe this.

But one collector has managed to lose within a little more than one year (17 months) more than half a million dollars on a blue chip collector car.  Yes- he lost money. You read that correctly. How on earth is this possible? Let us explain.

In 2013 in Monterey, a rare Jaguar D-type (see main picture) was auctioned by RM for $3.9m including buyer’s premium. This is what the buyer paid for the car. It was a high price but one which was not extra-ordinary. The Jaguar d-type is a very rare car (only 54 were made). What the 250 GTO is to Ferrari, the D-type is to Jaguar.

A very successful racing car that won Le Mans in 1955 and came second a year earlier -the D type was one of the most successful racecars for Jaguar. The D-type is also one of the most beautiful Jaguars ever made and today are highly sought after by collectors. The car above chassis XKD 530 is one of the 54 cars made for private customers who wanted to race.

This specific D-type has a controversial history which perhaps explains why the original owner who bought the car in 2013 has managed to lose money. Sometime during the 1980s as the car was going through a re-build, the original engine, the original monocoque body and the gearbox were separated from the car and sold.

As a result  in the 1990s there were two Jaguar D-types that were claiming to be XKD 530. One collector realized that the true identity would never be revealed and decided thus to purchase both D-types cars and essentially create one D-type Jaguar XKD 530. Confusing? Sure it is.

Despite the controversial history of XKD 530, one brave collector paid nearly $4m in 2013 to buy this now ‘famous Jaguar D-type’ with an unclear history. Fast forward 17months later and just this month Chassis XKD 530 was sold by RM for $3.34m (before buyers premium). The brave collector who almost paid $4m just a year earlier now received $3.34m.

Within 17 months he lost more than $500′ooo on this D-type Jaguar- or a loss in percent of almost 15%.

This is even more astounding since the past 17months have seen classic car prices rise strongly. So within a bull market for classic cars one collector managed to lose 15% on a blue chip collector car. Quite an amazing feat.

As my mother always tells me: timing is everything in life. This collector has learned the ‘timing’ lesson the hard way.

(Credit for main picture- GT Spirit)

by Edmond Saran