During the 2023 Monterey Car Week, a 1962 Ferrari 250 GT SWB Coupe was successfully auctioned, adding to the excitement of the event. The car, sold by Gooding & Company, received credit for its impeccable design and performance.
While this particular Ferrari fetched a staggering $30 million, the classic-car market as a whole experienced a slight slowdown. According to Hagerty, a renowned classic-car insurance company, total sales for the auctions held at Monterey and Pebble Beach reached $397 million, making it the second-highest total in auction history. However, this figure reflects a 16% drop from the record-breaking $473 million total from the previous year.
It appears that factors such as inflation, higher interest rates, and market volatility have contributed to this decline in the classic-car market. Hagerty stated in a report that the cooling market, which has been observed for the past 15 months, has finally made an impact on the Monterey auctions. The report further attributed this decline to increased discipline in the higher-end market, weakening demand from new collectors, and higher prices that have deterred buyers at the upper end.
Knight Frank’s recent report revealed that classic cars have been among the worst-performing collectible assets in 2023. Their values have fallen by 7% so far this year, while the values of art have increased by 12%. Jewelry and watches have also seen an increase in value.
The rise of online auction sites poses an additional challenge to live classic-car auctions like Monterey. Platforms such as Bring a Trailer have gained popularity as alternative options for classic-car enthusiasts. In the first half of 2023 alone, sales at Bring a Trailer reached an impressive $841 million. Last year, online collector-car auctions garnered around $1.9 billion, just shy of the $2.4 billion generated by live auctions, according to Hagerty.
One significant indication of weakness during Monterey Car Week was the sell-through rate, which measures the percentage of cars that sold for their reserve prices or minimum bids. This year, the sell-through rate dropped to 68%, a significant decrease from the previous year’s rate of 78%. This means that nearly one-third of the auctioned cars failed to sell at their minimum prices.
The auction block witnessed a few high-profile flops, including a 1964 Ferrari 250 LM sold by RM Sotheby’s. Despite an expected sale price between $18 million and $20 million, the highest bid only reached $17 million, falling below the reserve price. Similarly, a 1960 Ferrari California Spyder failed to sell at auction, with the highest bid reaching $8.25 million. However, RM Sotheby’s later disclosed that the car was sold via a private sale, but the price was not revealed.
Even the most expensive car sold, a 1967 Ferrari 412P, fell short of its anticipated range. Bonhams successfully sold it for $30.25 million, making it the fourth most expensive Ferrari ever sold. However, the unofficial expected sales price was over $40 million, and the bidding for the car was not as intense as anticipated.
Despite these setbacks, Hagerty noted that the top end of the classic-car market has remained resilient until recently, except for slowing prices of Ferrari prototype racecars from the 1960s.
Experts speculate that the classic-car market, including events like Monterey Car Week, may be facing an oversupply issue. Older collectors, particularly from the baby boomer generation, are now starting to sell their entire collections as they age. It remains unclear whether the new wave of younger collectors shares the same appetite for similar classic cars or prefers more modern vehicles from the 1990s and 2000s.
According to K500, the classic-car intelligence firm, the abundance of cars, auctions, and venues were among the factors contributing to the challenges faced during Monterey Car Week.
To wrap up, here are the three most expensive cars sold during the event:
1. 1967 Ferrari 412P Berlinetta
Sold for $30.25 million by Bonhams
Considered the road version of Ferrari’s renowned 330 P3 and P4 race cars, only four 412P Berlinettas were originally built. This particular car, the second in the original lineup, has a rich racing history at the highest level.
2. 1957 Jaguar XKSS Roadster
Sold for $13.2 million by RM Sotheby’s
The XKSS was created when Jaguar decided to transform its D-type racers into customer road cars after retiring from racing in 1956. With only 16 remaining out of the original 25, these cars are highly sought after in the classic-car world.
3. 1962 Ferrari 250 GT SWB Coupe
Sold for $9.5 million by Gooding & Company
This 250 GT SWB Berlinetta achieved victories at prestigious races like Le Mans and Sebring. With only 165 SWB Berlinettas produced between 1960 and 1963, this particular car’s remarkably original condition, without any major restorations, adds to its rarity and value.
Overall, despite some challenges faced by the classic-car market, the allure of these iconic vehicles remains undiminished.
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