Among the rumors making the rounds in Hershey last weekend was one purporting to put RM Auctions in Monaco in 2010.
An essentially blank page in the "Automobiles of London" page which arrived today confirms an upcoming announcement of a new 2010 RM auction in Europe. The profile of a palm tree that is the page's only graphic element gives little clue to the mystery's solution.
No one from RM would, it should be noted, categorically deny the question, "Are you having an auction in Monaco next year?" That's probably a better clue that the palm tree.
Further, it is now widely known, if not officially, that RM/Sotheby's will be holding the Legenda e Passione auction at Ferrari in Maranello every other year.
One year in Maranello, the next in Monaco? That seems like a good bet.
RM Hershey was a resounding, epic, success. They're reporting a 94% sale rate and something like $9.1 million in total sales (detailed results haven't been published yet.)
I was in Hershey scribbling until there were 14 cars left, then took off about 9PM to drive home. At that time the hammer bid on 21 of the 120 cars offered to that point had exceeded their high estimate. That is a remarkable result [despite the fact that 79 of the 120 were under their low estimate.]
Some of the results, like the supercharged Miller 91 engine for $270,000 hammer, $310,500 with the 15% buyer's commission charged for "automobilia", were heroic.
RM astutely tailored its Hershey consignment to the interests of Hershey's hordes of collectors who appreciate intriguing, interesting, challenging projects. The underbidder on the Miller engine has a re-creation project which perfectly suited this engine. He was nearly in tears after pursuing it to a hundred large over its high estimate and coming up short (the successful bidder on the Miller engine also bought the Bellanger Special Champ Car for $175,000, $197,500 with commission.)
Twenty-two of the cars brought hammer bids over $100,000 but in contrast to many RM sales, the top transaction was [only] $470,000 hammer, $517,000 with commission for a concours restored Marmon V-16 Convertible Coupe. 24 lots observed while I was there changed hands under $20,000 and several of them were very nice cars bought for very reasonable prices.
That was RM Hershey. They understand their market, tailor consignments to their bidders and make the market sing.
I spent two days at RM's Hershey, driving home on Friday night after the auction, then catching the Barrett-Jackson action on SPEED Channel Saturday night.
It's still going on, but some thoughts are inescapable.
Barrett-Jackson is absolutely unexcelled at building excitement;
They are the best at combining charity sales, celebrities and great experiences on the auction block to create a series of experiences;
SPEED's commentators are conditioned by old B-J auction results (which are the bounds of their experiences) in their consideration of sale results;
You gotta love Carroll Shelby.
It's no accident that Barrett-Jackson bills itself as an "experience" and an "event". It is all of those things, a calculated and stupendously successful combination of cars, showmanship, celebrities and cars. It is as exciting as anything in the world.
If you haven't been, you owe it to yourself to go. Take part if you can (or want to), but go and get a piece of the experience.
Craig Jackson, Steve Davis, Gary Bennett, Phil Neri, Patrick Van Den Bossche and their team have developed a unique system. It's their system, and, boy, does it work.
The Barrett-Jackson Auction company issued the following press release today (9/23):
“Barrett-Jackson Auction Co. LLC announced today that it has engaged ‘Big 4’ global professional services and auditing firm, Deloitte & Touche LLP (‘Deloitte & Touche’), to conduct an independent examination of Barrett-Jackson’s management’s assertions relating to its auction practices for the company’s 2008-2009 auction season.
“Deloitte & Touche will examine the assertions made by Barrett-Jackson’s management related to certain practices followed in the conduct of the auctions and then render its opinion on the validity of those assertions based upon Barrett-Jackson’s recently completed 2008-2009 auction season. This examination and attestation will include the company’s inaugural Las Vegas, Nevada auction in October 2008, as well as the January 2009 auction in Scottsdale, Arizona and the April 2009 auction in Palm Beach, Florida. The examination will include testing key management assertions and criteria impacting the conduct of each Barrett-Jackson auction, including: the consignment process; bidder qualification and registration procedures; documentation of and adherence to the contracted terms of sale; conformity to the commission structure and commissions charged; proper calculation and timely payment of seller proceeds; and general adherence to documented auction practices.
“‘We have engaged a well respected firm to examine our practices and we look forward to sharing their results,’ said Craig Jackson, Chairman and CEO of Barrett-Jackson. The company anticipates Deloitte & Touche will issue its Independent Accountant’s Report by October 1, 2009.”
That’s a tantalizing prospect: a major auction company which sells cars worth tens of millions each year without reserve exposing its – often skeptically viewed – transactions, procedures and conduct to one of the world’s leading auditing firms.
The press release was like a dripping, fresh, red shank of cow hanging outside the cage of a hungry lion. A call to Scott Black at B-J’s PR firm set up a phone call this evening with B-J’s President Steve Davis and Chief Operating Officer Patrick van den Bossche.
The background:
·Deloitte & Touche is not B-J’s corporate auditor. There has never been another assignment or relationship between the two. It’s a case of first impression;
·There was no specific case or controversy leading to the project;
·Deloitte’s assignment has been completed except for the delivery of its final report;
·Barrett-Jackson at this time has no knowledge of the final report’s contents or conclusions.
Steve Davis said, “We tried to find out what we can do to come out with something that verified and validates, our efforts to represent buyers and sellers on a level playing field.”
The controversies have been endless, as anyone observing the auction market knows. From the GM Futurliner (in which I was directly involved and know to have been the real deal) through the Ramcharger “3-minutes” dispute in 2007 to the GM Heritage Collection, B-J’s ability consistently to sell hundreds and hundreds of cars, many at handsome prices, has excited conspiracy theorists whose bias, unsubstantiated claims and rants have made interesting but inconclusive reading on the Web.
Davis also noted, “We represent Barrett-Jackson results as a snapshot of the collector car market. … From a million-dollar car to one that sells for twenty thousand, we want everyone to know they’re getting a fair shake, getting everything they contracted for. … We’re selling at no reserve. The outcome of our sales is critical to the marketplace.
“This exam is centered on the statements of our management team and whatever they [Deloitte] find is going to be public record.”
It’s a daring – in fact unprecedented – move from the highest profile collector car auction, a promise of a breath of fresh air.
The results are due in just a week and I’ve been promised a complete, un-redacted, copy of the report as soon as it’s issued.
While this year's Auburn, Indiana auctions were nothing if not a disappointment the larger story in September is very different.
The uncertainty surrounding Kruse International's cash flow problems cast a pall across the week in Auburn and left even Worldwide -- which regularly pays its bills and consignors promptly -- hanging in the balance.
In Auburn, Worldwide, all credit to them, has posted their results. They're not pretty, but at least they have the courage of their convictions. Kruse International -- despite promises of a comprehensive results list -- has yet to deliver any substantive information at all.
Worldwide closed 33 out of 81 lots offered, 40.7% for a total of $2,446,290. Last year in their first Auburn Auction they sold 52 of 77, a 67.5% sale with a total of $9,764,684.
Just a few days later Branson's Fall auction presented a more clear picture of the collector car auction market, free of liquidity concerns [Branson proudly pays consignors the day of the sale.]
The Fall Branson auction last year, shifted forward a month from its usual early October date, sold 123 of 240 cars, a 51.25% sell-through with a total of $2,736,888. This year's Fall Branson auction sold 135 of 272 cars for a 49.63% sale rate and a total of $3,449,762, up nearly 3/4 of a million bucks.
On the same weekend as Branson Bonhams held their annual sale at the Beaulieu Autojumble in England, peddling 100 of 110 cars offered, a stunning 90.9% sale rate and a $3,158,780 total [including, it should be noted, the effect of a strong UK £]. At the same time Bonhams were also hawking cars up in the Pacific Northwest at the LeMay Museum in Tacoma, Washington. Powered by a whole bunch of no reserve cars [and trucks and tractors] from the Le May collection, they kicked off this first-time auction with sales of 147 of 168 cars offered, 87.5% and a total of $2,244,359.
Factor in the extraordinary sale of the Hibbard & Darrin Duesenberg at the ACD Museum previously noted here and the underlying story is that the collector car market is vibrant and healthy.
Some froth has been skimmed off the top, but that's not a bad thing at all. The core of the collector car hobby is still going strong.
Occasional examples of exceptional cars bring record prices.
Hundreds of cars ranging from projects to meticulously restored former concours winners are changing hands at prices that satisfy both buyers and sellers.
This is a functioning market, with ample liquidity, strong demand, good supply of quality consignments and, most important of all, plenty of agreement between buyers and sellers about value.
