Not Ranked
Shelby: Muscle car auction prices "stupid"
A former customer of mine made a wad of money with a very simple business plan: being on the cutting edge of nostalgia- another example follows:
Muscle-car remakes pump up prices
By Earle Eldridge / USA TODAY
The Hemi is back. The Pontiac GTO is back. There is talk of bringing back the Dodge Charger. As automakers dip into their nostalgic goody bag to sell new versions of classic muscle cars, sale prices of the original models are skyrocketing.
Though auction sales of 1960s and early-1970s muscle cars have been booming for a couple of years, the recent buzz generated by advertising for new versions has pushed prices for the older ones even higher. Auction prices for restored Detroit muscle cars have grown anywhere from 4% to 50% in the past year, according to Sports Car Market magazine's 2004 price guide.
What haven't climbed are auction prices for classic European sports cars. (Photo gallery: Cars go retro)
Prices for cars such as Porsche 911 Targa, Ferrari 365 GT4 and Mercedes 450 SL have been flat or even fallen.
Hemi-mania hits auctions
Particularly prized among the American muscle cars: rare Hemi-powered models, which are hitting new highs.
A 1971 Hemi-powered Plymouth Barracuda convertible — one of only seven built — recently sold for $1.5 million.
The new models "only drive more people into the market for the originals," says Richard Lentinello, editor in chief of Hemmings Muscle Machines magazine.
On the other hand, Detroit automakers are smartly trying to capitalize on the surge in classic car sales that has been going on at least two years, he says. "Those names — GTO, Hemi, Charger — have magic," he says.
Helping push the prices: Those who remember the original muscle cars are at the peak of their earning power, says Thomas duPont, publisher of duPont Registry, a buyers' guide to luxury and exotic cars.
In the 1960s and early 1970s, Detroit automakers pumped out dozens of muscle-car models, some merely souped-up versions of family cars ready for the drag strip.
American muscle cars of that era were often lightweight vehicles with big V-8 engines packed with enough horsepower to burn rubber in an attention-grabbing scene at stoplights.
Dodge and Plymouth 426 Hemi-powered cars such as Plymouth Roadrunner, Dodge Charger and Dodge Challenger were popular on racetracks and weekend drag strips across the nation during that time.
Hemi refers to the hemispherical shape of the engine's combustion chamber. Chrysler says that helps it crank out more power with less weight than comparable V-8s.
In 2002, Chrysler Group introduced a new version of the Hemi V-8 engine on the 2003 Dodge Ram pickup. Recently, Dodge has run entertaining television commercials promoting the new Hemi.
The Hemi now is also available on the 2005 Dodge Magnum RT sports wagon and Chrysler 300C sedan. And Dodge plans to build a Hemi-powered sedan next year likely to be called Charger, according to Automotive News.
All of that has given the older Hemis a shot of recognition. "Everybody knows about Hemi cars right now," says Colin Comer, owner of Classic Auto in Milwaukee.
Beyond that, Comer says, sales of Camaros and Mustangs and Dodge and Plymouth performance cars from the 1960s and early '70s have soared at his store the past two years.
"Some people are dismayed because they are getting priced out of the market," he says.
In March, Fred Smith of Rochester, Mich., paid $77,000 at an RM Auction in Florida for a rare 1966 Plymouth Belvedere I HP2 Hemi.
It's one of the first Hemi-powered muscle cars, so early in production that Plymouth put an HP2 emblem on the fender because Chrysler had not fully developed the Hemi logo.
When new, the 1966 Belvedere had a base price of $2,700, and the Hemi was a $1,105 option. The base price plus Hemi option would equal about $21,600 in today's dollars.
Smith's car had been restored and carefully pampered by its previous owners and has only about 4,000 miles on it.
Smith, a semi-retired CEO of a machine tooling company he founded, has about a dozen classic cars. Through the years, he has owned at least six Hemi-powered cars.
"There was another Hemi that came up during the auction," Smith says. "If I wasn't in the bathroom at the time, I would have bought it, too."
New GTO shines on old
The buzz from Pontiac about its GTO has revived interest in the originals. Prices have as much as tripled for GTO convertibles in the past year, Comer says.
Classic GTOs from model years 1964 to 1972 have been selling for as much as $66,000 the past year, according to Sports Car Market magazine.
Dan Peters, a firefighter in Abilene, Kan., feels lucky. He was able to buy a 1967 Pontiac GTO for sale at Valenti Classics in Caledonia, Wis., for $17,800.
Peters spent several months searching the Internet to find the GTO after he sold a 1968 Pontiac Firebird that he cherished for 20 years.
He says he bought the GTO because it has more room for his wife and two sons than the Firebird.
He wanted an original GTO that wasn't customized. "This will be my daily driver in the summer," Peters says. "It's got the power, it's got the big engine, and it came straight from the factory ready to run."
Pontiac officials say bringing back the GTO helps revive Pontiac as a maker of exciting performance cars.
"It was to get back to our core of pure power, handling and performance," says Mark-Hans Richer, director of marketing at Pontiac.
Some legends of the muscle-car era can't believe the recent buzz and skyrocketing prices for the classics.
Carroll Shelby, creator of the original Cobra and frequent consultant to Detroit automakers on hot rods, was dumbfounded by recent auction prices for rare muscle cars.
"They're selling for more than $300,000," he says. "One sold (recently) for $240,000. That's stupid. They wore out 40 years ago."
Contributing: James R. Healey
__________________
I just wanna drive my car.
|
Linear Mode
