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NOTE: This article does not necessarily reflect the viewpoint of HSCA or its members.
For some people that sold at B-J this year, their bubble already went BLAM! While the value of many types of vehicles that crossed the block this year generally increased, some appear to have leveled off. Rare, very desirable, and well documented mint examples of classics and muscle cars are higher than ever. Such as the many Mopars, Shelbys, and ever-present Corvettes that were featured by B-J this year. Recreations of rare classics are gaining ground and "Resto-Mods" (nicely restored classics with late model drivetrains, suspensions, and brakes) are getting more popular too. But it seems the average, undocumented, run of the mill classics, muscle cars and street rods maybe weren't any more valued as in the past. That would certainly not be happy times for those that buy and sell those there, just trying to make a buck. Also, Craig Jackson and his band of greedy hucksters may have pushed their luck a little too far this year. If you noticed cars being pushed off the block in what seemed to be too little time there, you're not the only one. Lawsuits are being threatened by sellers whose cars sold too quickly (in their estimation) and for less than top dollar as a result. Some sellers buy back their own vehicles rather than take a bath due to the no reserve. Then there were the many high dollar cars that seemed to be on the block too long, while Jackson and his people hyped them to the max to get higher bids. Why the disparity? Of course it's almost certain that there's some shill bidding is going on as well. Did you know B-J sells some of its own vehicles at the auction? It's true. Think they might get a little extra time and hyping?
Greed? This year both buyers and sellers fees were raised from 8% to 10% of the high bid and 12% buyers fee for absentee bidders (phone and internet bids). That's 20% to 22% of total sales (many millions) to B-J. The bidders' registration was also raised from $400 to $500. Total sales set a new high again this year. Add in the TV contract, general admission in the $25 to $55 range depending on day, vendor fees, concessions, etc., and it's easy to see why Mr. Jackson is known as a very "prominent" businessman in the Phoenix area.
Some buyers do OK, not bidding more than they believe a vehicle is worth and scoring the occasional bargain. Others let their egos and the excitement of the moment take over, or don't inspect the vehicle close enough, and get stung. The free cocktails available to bidders loosen up some wallets too. And obviously some buyers buy what they want, price be damned. So like any auction, it's "bid at your own risk" and "buyer beware". Some sellers get a nice surprise though when bids keep going beyond their expectations.
For those of us that tune in to the Speed Channel every January to witness this spectacle, it's great entertainment and a televised car show, if you can stand to see the ridiculous amounts some cars go for. Even some celebrities show up to buy and sell. I've never been there but plan to go one year just to experience the circus-like atmosphere and see the cars and stars.
Is the bubble about to burst? For B-J I don't think so. They always seem to be on top of the latest trends and push what's hot. As long as car collecting is "in" among the well heeled, they'll show up and offload some excess cash. But for the average muscle cars, street rods, and classics it appears it may be about to pop and I for one sure hope so. That's a whole 'nother subject (see Editor's Corner on page 5 for more).
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