Auction ActionThere are several companies that hold impressive automotive collector car auctions many times a year, including Barrett-Jackson, Kruse International, and Russo and Steele. The one that has garnered the most attention recently is the Scottsdale, Arizona, Barrett-Jackson auction last January where the company sold 744 cars for a total of $38.5 million dollars, as well as leveraging 15 hours of live airtime on the Speed Channel. The list of high-dollar sales is staggering, with one of the big sellers an impressive red and white '55 Chevy with a custom tube chassis, C5 Corvette suspension, 550hp 502 Rat motor, and a six-speed that went for an incredible $226,000! Resto musclecars were also hot, with a '70 Boss 429 Mustang attracting $126,900.
One key to understanding what's happening here can be found in a quote from Hagerty Insurance's spring '04 newsletter. In referencing a '70 Hemi 'Cuda that sold for an astonishing $216,000, Hagerty's newsletter quoted Keith Martin of Sports Car Market magazine: "Part of the high value can be explained by continued musclecar madness, but even more of it came because the car was sold during the section of the auction that was televised live by Speed Channel. It seemed like every time the TV lights went on, the prices soared, as guys with dough wanted their buddies back home to see them on TV, spending big bucks to get their dream car."
We also spoke to American Chevelle Enthusiasts Society (ACES) club president and ex-Car Craft staffer Chuck Hanson, who has been swimming in the deep end of the Chevrolet musclecar pool for almost three decades. Hanson thinks that auctions accomplish two things-they escalate interest in musclecars and they escalate the prices. "Let's put this into perspective," Hanson said. "Here are people with money who want a car and they're willing to pay for it." He went on to say, "I think ego is driving a lot of this. The auctions are a lot like Vegas-you see these guys with gold chains around their necks and hot women on their arms ... they're being a hero to their own ego. But you have to give kudos to the Barrett-Jackson organization for making this thing work."
Most of the examples of cars that are going for "stupid money" are the most rare cars like the Hemi 'Cuda convertibles. But this also contributes to a continuing escalation of the value of more commonplace musclecars. Part of the reason for this increase is the simple fact that mid-'60s to early-'70s cars are now 30 to 40 years old and the pool of available cars is rapidly diminishing. This makes even mundane cars worth more money. As an example, our sister magazine Mustangs & Fords reported in their July '04 issue on a bone-stock '72 Maverick Grabber with a 140hp 302, automatic and 49,500 miles on the clock. While hardly a prized rare musclecar, this car went for $20,100 on eBay.
Futures MarketSo where does this leave the budget-strapped car crafter? All the news is not necessarily bad. Every crystal ball we tried was, at best, translucent. But many enthusiasts, including Chuck Hanson, believe that this current price explosion won't last. "I think the market is overheated a bit right now and the pendulum will swing the other way. Average musclecars have increased in value 13 to 15 percent in the last 2 years, but it can't continue."
The lure of a big-block musclecar that can smoke the tires for as long as you want to keep your foot in it while simultaneously enjoying that Hollywood cool factor appears to be part of what's pushing the musclecar movement right now. Once all the investors and fashion followers bail out in search of a new trend to dive into, it's possible that prices will stabilize. But you might as well get used to higher prices for your favorite musclecar. It appears to be the way of the world.
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