Monday, at a Sotheby’s auction, a 1962 Ferrari sold for approximately $52 million. Six million dollars less than they expected. the price was the second highest for an auctioned auto.
Collectible Cars
As a new car in 1964, the cherry red Ferrari GTO (in our featured image) went for close to $6,000. Based on the BLS Inflation Calculator, its $6,000 price tag would be $59,741.94 today. Meanwhile, in 1985, the seller bought the car for $500,000 (now, approximately $1.4 million).
The car’s history and its scarcity added to its value. As one of the two GTO models that Ferrari’s Scuderia Ferrari raced between 1962 and 1964, it was in the Tour de France Automobile. Then, adding to its rare provenance, only 34 had ever been produced.
As a result, it is in the stratosphere for collectibles. Looking at the top prices in the past, the averages are between $19 million and $30 million for cars that included a 1995 McLaren F1, a 1955 Jaguar D-type, and a 1954 W196 Mercedes-Benz. Stunning, the McLaren had a center driver’s seat and could travel at 240 mph. As for the other two, their top speeds were close to 185 mph.
Taking the next step, we have to climb to $142 million for the 1955 one-of-a-kind Mercedes-Benz 300 SLR Uhlenhaut coup. In 2022, it was the most expensive collectible car sold at auction:
Our Bottom Line: Price
In a market economy, price provides information. We know, for example, that when supply and demand say a t-shirt should sell for $10, its quality is questionable. Leaping to the other extreme, we can assume that a $60 million projected price for a car reflected a slew of assumptions. It could indicate prior sales and activity in other collectibles categories. Surely, they also considered prevailing taste, and like a painting, the “masterpiece effect.” Also like a painting, we have a good whose value can be based on a socially created reality that “one-of-a kind” and market participants can elevate.
So, whether wondering about a $10 t-shirt or a $52 million car, we can think about how the market is a process that determines price.
My sources and more: Thanks to my Axios newsletter for alerting me to the Ferrari sale. From there, for more detail, WSJ, here and here had the facts. But, to truly experience the allure of car collectibles, this five minute video is a pleasure.
