Ferrari Sale Sets Auction Record

About a week ago I posted a market report from the Financial Times on collector cars (click HERE to read the post). On August 20th a 1957 Ferrari became the most expensive car sold at auction, bringing a cool $16.4 million at Gooding & Co. This is also after a week or two of chaos in the financial markets.

The sale reinforces the prevailing activity of high net worth individuals willingness to spend on collector property and are willing to invest in alternative investments such as luxury goods and collector cars which are now seen been many as safe and tangible assets. One expert in a Bloomberg article about the Ferrari sale states that the best property is easy to sell and will bring top dollar in todays marketplace. Many recent collector car auctions and sales have been bringing excellent prices, and the demand and willingness to pay top dollar for the best property is just as strong.

Bloomberg reports

“In an era when cash returns practically less than the rate of inflation, investing in tangible assets like automobiles brings you better returns,” said Dave Kinney, contributor to Automobile magazine. “And they give you more satisfaction.”

The top lot at Bonhams, a 1957 BMW 507 Roadster with its engine rebuilt by Motion Products Inc., sold for $1 million, reaching its presale high estimate.

One of the star lots, a 1925 Rolls-Royce New Phantom, custom-designed for the Bengal tiger hunting expeditions of India’s Maharajah of Kotah, failed to sell. It was expected to bring $750,000 to $1 million.

Also unsold was a 1963 Rolls-Royce Silver Cloud III Drophead Coupe owned by Sammy Davis Jr., which was expected to bring between $475,000 and $550,000.

At Gooding, a 1931 Duesenberg, which was expected to fetch as much as $7 million, sold for $10.34 million, topping the $4.5 million auction record for a “Duesy.”

To read the full Bloomberg article, click HERE.