Drivers Wanted!
Last Friday was spent sitting on a “Flixbus” heading from Salt Lake City to Las Vegas. My purpose was be an additional set of critical eyes and a return driving companion for my son. His intention was to buy an Audi SQ5 in Nevada. The bus ticket fit his budget as last minute one-way airfares were nuts- especially considering that we may have needed to return the same way, if the car was not what it was expected to be. The risk of it being a bust had been minimized by a true PCA “It’s about the People” story. Prior to our visit a Las Vegas Region PCA member had provided tremendous assistance before we made the 500 mile trip. But that cool story is for another edition of this monthly tome.
Settling into the eight hour Wi-Fi enabled bus ride, I stumbled onto a live Hagerty panel discussion, sponsored by RM Sotheby’s. The discussion included three panelists among which was our own Panorama editor, Rob Sass. I was particularly interested in the discussion, as I had been reading and watching highlights of various auctions throughout the week. Yes, this was during that magical Scottsdale week in January when you can choose your auction coverage according to your real or fantasy budget, from Barrett-Jackson to RM Sotheby’s.
The panel discussion was of particular interest because each panelist chose “the one” Porsche that they would choose to have in their garage, if they had to choose only one. Discussions covered the 911 air-cooled era, 928’s, water-cooled 996 turbo’s and the first generation Boxster Spyder. To my delight most of the very colorful discussion described everyday use and practical enjoyment. Toward the end of the seminar, the topic began to include more recent trends in collectability, specifically since the introduction of the 918 and the associated VIP program. The conversation then narrowed even further to the introduction of the 911R, the aftermarket price bubble that ensued in the year(s) following, and then finally the market cool off to a lower level following the introduction of the GT3RS model. At that point, a question went back to the moderator from RM Sotheby’s who was asked (paraphrasing) – what is the one key variable in the creation of collectability. The answer was “scarcity”. So apparently, as there are only 991 of the 911R models, they are limited, but not totally scarce. Then the next question was related to what he would look for before accepting a 911R to be a part of an RM Auction. The answer was….and I kid you not…triple digit miles on the odometer.
For most of us, I’m assuming that owning a Porsche is primarily about driving it, and also about the experiences and memories that we make as we do. I don’t know about you, but when I pick out a next Porsche, the first criteria is that I’m going to love to drive it. While not the primary factor, another criteria might be to mitigate the downside depreciation risk. So for me limited production does have some sway, but not to the point of “scarcity”. The panelists in the discussion all seemed consider some of same decision process by either buying a newer car that has SOME scarcity appeal (Spyder), OR by finding a really iconic older Porsche that may be at or near the bottom of its depreciation curve (996TT or last of the air-cooled). Not one of the panel members seemed to aspire to going out and speculating on a “car as art” model to be put away simply for the sake of someday being sold for more.
It’s now two days following the close of last week’s auctions. It may be my imagination, but of the various models that I tend to watch, well beyond just Porsches, the results seemed soft in terms of price. The top, non-charity price at Barrett-Jackson was about $1.5M for a 2017 Ford GT40 with 141 miles. Yep- triple digit miles. The top Ferrari of the week was a 1995 F50 sold at Gooding for $3.2M. Softer than the $10-$20M Ferraris at past auctions, but still one of only 349 made. Yep- rarity. But the shocker of the week was lot #116 at RM Sotheby’s, sold within a day of, or actually ON the day of the panel discussion that was happening at the Biltmore Hotel. That lot was a 2019 Porsche 911 Turbo S Exclusive Series Cabriolet. The car had 12 miles on the odometer and was one of only 200 made. Scarcity AND less than triple digit miles. The car had an MSRP of $338k and sold for $280k inclusive of auction fees. I guess that REALLY makes the case for getting your enjoyment from driving the car. Someone, got a smart buy. And I’m curious to know if that person will treat the car like Certificate of Deposit with a bent toward collectible art, or like the performance automobile that the Zuffenhausen employees would love to see enjoyed!