48 Hours: Pedal to The Metal Part 2

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We are back talking cars with Richard Sloan of Sloancars.com

In part one”>part one we covered the early days of the Barrett-Jackson Auction and the phenomenal rise in the value of American muscle cars.

How many of you sold your prized beater years ago? That car, properly restored, might be worth more than your retirement savings.

Do you want to salivate over a muscle car worth $5 million? Read on…

When did you first get involved in buying and selling muscle cars?

In the early 1980’s...the market was certainly a lot different!

What is fueling the extraordinary appreciation of American muscle cars?

It is a combination of 55-year old guys who grew up with the cars and finally have the wherewithal to afford them and wealthy collectors who are diversifying their holdings and buy them strictly for investment purposes. Muscle cars are rolling art. You can sit in it, drive it, show it...and be proud of it.

Is there some spillover from the financial markets?

Sure, but those buyers are not as passionate as the die-hard enthusiasts. From what I see it is 60% enthusiasts who will actually drive the cars, and 40% collectors who are strictly investing and pretty much park ‘em.

Just how heated is the muscle car marketplace?

It is a circus. What we are seeing happened once before.  The market was crazy from 1986 to 1991 and then crashed. Prices are nuts right now...I think they will eventually flatten out and pull back from these levels. Caution is warranted....the market for “clones” might be a warning sign of sorts.

Can you explain what a “clone” is?

Sure...Making a clone starts by taking a base car like a 1970 Cuda coupe with a 6-cylinder engine, automatic transmission and high mileage...and usually rust.  You can buy these cars on the cheap and fix them up.  You can buy a new “crated” 426 Hemi engine for $3,500 and buy additional components and turn it into a Hemi ‘Cuda coupe clone. It might take an investment of $50,000...and you can sell it for maybe $125,000. But the car is not “original”, the serial numbers don’t match, the color codes are wrong. Original cars with impeccable provenance will always command top dollars.

Are there any cars you could highlight at this years auction? What cars will see the most spirited bidding?

Anything with a big block engine...the sweet spot is 1967 to 1971. Despite my caution I think these cars will see increases of 15%-20% at this years auction.

This car should get ‘em going. A two-owner ‘70 Dodge Challenger R/T.

The Hemi’s are king...but they are really expensive. These are the next best thing...anything with a 440/Six-Pack is in demand.

Mid-year Corvettes

like this ‘65 convertible. It has matching numbers and is a nice car. The ‘67 is more desirable though.

I would love to have this

1968 Shelby GT 500 Fastback. The miles are high but the car is pristine.

Here is a rare

1966 Dodge Hemi Coronet that I have rarely run into. Only 204 made.

Chevelle’s never go out of favor.

This ‘69 SS 396 Convertible also has matching numbers. It seems to be documented and and nicely restored. If it had a manual transmission and the 375 horsepower engine it would command even bigger dollars.

I know you love the ‘69 Z28’s

This one has a dealer installed cross-ram and is one of 56 with the JL/8 option. Nice!

This ‘71 Cuda

hardtop is interesting. It is not a Hemi...but only two of these 383’s were made and it has been authenticated by experts.

Read on ....

Speaking of Cuda’s can we talk about the car that got all the attention last year?

Yes the ‘Cuda market is off the charts. The ‘’Cuda convertible sold last year at Barrett-Jackson got a lot of press, but there are other auctions that fly under the radar screen that pull even bigger numbers on rare cars.

Such as?

The 2005 Rand/Workman auction.

Never heard of it.

‘Cuda strikes again. A white ‘71 Hemi Cuda convertible sold for $4.1 million. It was the last one to roll off the assembly line. It was originally shipped to Europe and is the real deal...fully documented in the Chrysler registry.

Get outta here.

Yes it was one of eleven cars and one of two with the “billboard stripes”.

The Mother of all Mopars?

No, not really. The upcoming RM auction in Scottsdale, AZ will be held on January 19th. The blue Hemi ‘Cuda pictured below might crack the $5 million barrier. That would be on the high side of current estimates. But it should be a cinch to fetch $4.5 million.

I guess I am in the wrong business.

This car has only 282 miles on it.  It also has a shaker hood and is one of three built with a four-speed manual transmission.

I am speechless. Did they change hands at all in the 80’s when you started following muscle cars?  If so, how much did they go for?

A Hemi ‘Cuda coupe would have changed hands in the early 80’s for $25,000...and $650,000 today. The eleven 1971 Hemi ‘Cuda convertibles went for about $20,000 in the early 80’s...and we are on the verge of $5 million.

That is insane. I know you are old school but I gotta ask.

Shoot.

Which movie do you prefer? The Fast and the Furious with Paul Walker and Vin Diesel or Bullitt with Steve McQueen?

I like all car movies...except Gone in 60 Seconds!

Understandable.

Alright it is time to mop up and get out of here.

Everyone is welcome to join us next weekend as we finally get around to talking about Richard’s latest passion...Porsche.

This should whet your appetite...Richard’s 911 collection

The content contained represents the opinions of 1440 Wall Street. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author.

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