We are still digesting the big number.

No, not the Ferrari 275 NART spider (we leave that to the other blogs and press). We find another record much more interesting and relevant. A Porsche 356 Speedster from 1956 sold for $1.4m. This is a record for a Speedster which normally sells for around $250-300’000. What on earth happened? 

Believe it or not- but the price of $1.4m for a speedster in this case makes sense.

The yearly auctions at Monterey 2013 are over but because they are the biggest and most important yearly auctions- they set the tone of the classic car market going forward. The press will report numerous records. Most paid ever for an F1 McLaren ($8.5m). A record for a Ferrari 250 TDF ($9m). Records are fun to talk about but and make good headline news but we leave that to the mainstream press. Something more interesting happened which our readers should pay attention to.

In a strong classic car market where almost any classic car is selling based on its age alone- collectors clearly differentiated at Monterey. They paid handsome prices for originality and condition.

Lets take a look at some examples. 

The Porsche Speedster selling for $1.4m? Sure it was rare (it carried the sought after 4cam engine) but it was very original. The engine was completely original, the doors, hood and deck lid still carried the original stampings on it. Even the dry sump had the stampings on it. Tires? Yes even they were the original Dunlop tires from when the car left the factory in 1955. The car even still had the original service book and original drivers manual. The chances of finding another speedster in such condition and originality?

Close to zero. That explains the $1.4m price tag.

Another car worth talking about:  A 1955 300SL Gullwing Mercedes sold for $1.7m. This is a new record for a ‘normal 300SL Gullwing’. The Clark Gable car sold for more but because of provenance. What made this car fetch such a high sum? Once again condition and originality. The car was delivered with ‘Rudge wheels’ when it left the factory. The car had one owner from 1966 to 2010! Additionally the car was restored by Paul Russell who along with HK Engineering are the worlds top specialists in restoring 300SL. For more information on the 300SL click here.

Everyone is trying to guess the future of the classic car market.

Will it continue to break records? Can these high prices last? Will a correction come this year? We don’t know the answers but one thing we are sure of. The best cars that are in superb condition and are completely original will continue to break records-even in a falling market.

Like we have said in one of our previous posts, you can never overpay for trophy assets (see the post here). 

by Edmond Saran