If you`re into collecting cars, there are a few prizes that would make you the object of envy-such as a Duesenberg or a Packard.
But the car that collectors and would-be investors really want to get their hands on is a Schwarzkopf-any vehicle the Persian Gulf general would be willing to part with.
”I don`t care if it`s his everyday car and it`s a Yugo. The type of car doesn`t matter a bit because anything associated with Gen. (Norman)
Schwarzkopf is the hottest thing going,” said Mitchell Kruse, president of Kruse International, the noted auction house.
”I want to get one of his cars, and so does everybody else. I don`t care what the car is-and neither does anyone else,” Kruse said.
”There also have been reports that a Saddam Hussein limo confiscated by the government three months ago is still somewhere in the United States. I have people looking for that car, too,” Kruse said.
Though he hasn`t gotten his hands on a Schwarzkopf or Hussein, Kruse will sell a Mansfield to the highest bidder next weekend when Kruse and his chief auctioneer and father, Dean, will be holding court at the 19th annual Greater Chicagoland Auto Auction on the grounds of the Volo Museum on Illinois Highway 120 a half mile north of Illinois Highway 12.
The Mansfield is a 1954 Cadillac Eldorado convertible purportedly once owned by Jayne, the late actress. By the way, if you end up buying the car, keep in mind Mansfield was killed in an auto accident.
The `54 Mansfield convertible-it`s not the car that was involved in the accident-is one of more than 400 vintage, antique or collectible cars that will go on the block at the event, which will run Friday through Sunday.
Some of the more prominent machines lined up for the auction include a fully restored 1960 Chrysler 300 F convertible (could sell for $85,000); a 1970 Chevrolet Chevelle convertible, one of only 17 built ($175,000); and a 1934 Rolls-Royce limo with an open front for the chauffeur ($250,000).
Other cars lined up for sale are a `72 Hurst-Olds convertible Indy pace car, one of 500 built; a pink 1959 Cadillac Series 62 convertible; a 1941 Chrysler New Yorker convertible; a 1957 Ford Thunderbird Sport; and a 1958 Chevy Impala convertible, to name just a few.
The Volo auction will help test the collectible car market, which has been experiencing softness in recent months as a result of the recession and the fact that people like to keep cash on hand during an economic downturn rather than bet it on an old car that could take years to appreciate in value. ”It`s still a buyer`s market,” Kruse said. ”There`s still a lot of money out there, but the money is in fewer hands. A lot of sellers are trying to dispose of their cars in order to raise cash.”
In an economic downturn, the old buggy stored in the garage or barn suddenly becomes a means of coming up with some quick cash. The more cars offered for sale, however, the greater the supply exceeds demand, and prices soften.
A year ago, for example, lines formed whenever someone tried to sell a muscle car. Today that market has weakened.
”It`s all tied to the economy,” Kruse said. ”Often the muscle car went to the first-time collector, the person who owned one or wanted to own one when he was in high school but couldn`t afford it. Those who paid premium prices for muscle cars a year ago have taken it on the chin this year. There`re a lot of Pontiac GTOs out there now selling for $5,000 to $6,000, for example. Big-block Corvettes going for $80,000 to $90,000 a year ago are now selling for $40,000 to $50,000.”
”The muscle car market has tumbled,” added collector Joe Bortz of Highland Park. ”The intrinsic value of a muscle car depends on its authenticity, and it`s too easy to manipulate those cars by putting in a different engine, so that the car looks authentic but isn`t,” he said.
”A lot of people who bought muscle cars with illusions of grandeur later found when they went to sell them that they`d been fooled,” said Bill Grams, who with brother Greg owns the Volo Museum and is sponsoring the upcoming auction.
”The car didn`t have the original engine because the engine had been swapped or changed and now the car isn`t worth the big money they once thought it would be,” Grams said.
It wasn`t just muscle cars that softened.
”Cadillac Eldorado convertibles from the `50s that were selling for $60,000 to $75,000 a year ago can now be bought for $45,000 to $50,000,” said Grams.
Bortz, who tours the country attending car auctions, said he`s seen even more vivid examples of values collapsing. ”I`ve seen people who paid $300,000 for an old Ferrari a year ago willing to sell it for $125,000 now, and those who paid $900,000 willing to sell for $450,000 now,” Bortz said. ”There was a Japanese investor who bought a Ferrari for $14 million last year who I doubt could get $4 million for it now.”
”A lot of the problem comes from the fact people went out and overpaid for cars because they weren`t aware of what they were buying at the time. They just wanted to buy a car,” Grams said.
Bortz agreed.
”A year ago there were five people in line for some cars, but those who paid too much have been brought to their knees, and now many of them have decided to wait it out until there`s a recovery rather than sell at today`s lows,” Bortz said.
”A couple of years from now, after there`s been a recovery, I imagine someone saying: `I can remember two years ago when I could have gotten a $14 million Ferrari for $4 million.` It`s a buyer`s market now, and some of the smart money will take advantage of that,” Bortz said.
For those who were buried in the price decline, Kruse offers some comforting words: ”Time heals all wounds among collectors. Cars have staying power and you`ll never get hurt-if you keep the car long enough.”
Grams said some investors were burned by their lack of knowledge of the product.
In recent months some would-be investors/collectors have been scouting for the Pontiac Fiero or Buick Reatta now that the two have been discontinued. The thinking is that a Fiero or Reatta can be purchased cheaply but will appreciate sharply now that none are being made.
”The Fiero hasn`t gone up in value yet,” Kruse said. ”It may go up, but it will take a few years for that to happen because you can still find a lot of Fieros in the $2,000 to $4,500 range. The Reatta should take at least 10 years before its value goes up at all.”
And that old DeLorean in your garage?
”The car was temperamental, it didn`t handle very well, the engine didn`t run very well, and it`s difficult to keep a DeLorean running, so you can`t drive it. It`s very impractical,” Kruse said. ”Then, too, the gull-wing doors aren`t easy to open in a garage. It will take quite a while for the car to be worth anything,” he said.
Still strong are the convertibles. The adage is that once the top goes down the value goes up, and that`s proved to be true for decades among ragtops. Also proving to hold their value are some of the luxury cars, the
`50s Cadillacs and two-seater Mercedes-Benz roadsters. Of late the Mercedes 190SL and 280SL have commanded lots of interest, especially among women.
Not only does the auction serve as an outlet to buy and sell old cars, it provides an indication as to what`s hot and what`s not among collectors for the coming year. Plus, even if you don`t have the funds to obtain one of the machines, the cars to be sold are displayed on the grounds for all to admire before being sold.
In case you`ve never attended an auction, there typically are two highlights. The first is when Dean or Mitchell Kruse start the fast-paced mumbo-jumbo auction chatter that sounds just like your friendly ”L”
conductor calling out the stops. Before you realize what`s going on, somebody has just paid $100,000 for a car.
The other moving experience is when you see what you consider a prize from the `30s or `40s rolled up to the block for sale. You sit on your hands so as not to make any untoward gesture that may obligate you to purchase a $100,000 memory from the past. Then one minute later one of the Kruses hollers ”sold” and you realize that the car you considered more expensive than your current house just became the possession of the guy sitting next to you in the Spandex shorts for a lousy $3,000.
The auction starts at 6 p.m. Friday and 10 a.m. Saturday and Sunday. Closing time will depend on how many cars are auctioned and how quickly the cars cross the block.
Admission is $8 for adults and $3 for children under 12. For details call 815-385-8408.
Notes
The latest rumor is that Chrysler Chairman Lee Iacocca will retire by year-end. There`s also talk the Chrysler board is getting anxious for Iacocca to set a date. The board`s feelings were bruised when word got out that Chrysler took over the chore of selling a house and condo for Iacocca at a hefty profit to Lee in order to allow him to devote full time to running the company without the worry about selling real estate. Iacocca meets with the Chrysler dealer body in August to recap what happened this year and provide an outlook of what is expected to take place next year. The occasion would be a perfect backdrop for Iacocca to announce his retirement.
The latest word on William Hoglund, the General Motors Corp. executive who reportedly was asked to jump ship and join Chrysler to succeed Iacocca, was that he was offered a five-year, $5 million contract.
Ford plans to increase output of its Explorer utility vehicle by 20,000 units in the 1992 model year in order to meet demand, according to Ward`s Automotive Reports.
Chevrolet will redesign the compact S-10 Blazer utility vehicle for 1993. A high-performance 200-horsepower version of Chevy`s 4.3-liter V-6 will be offered. It will be the S-10`s first major styling change since it was introduced in 1983. The new design features sloping hood and fenders.
GM will revise its warranty coverage for the 1992 model year. GM will waive the $100 deductible that was charged for warranty work after the first 12 months of coverage. The 1992 warranty will cover the entire vehicle for 36 months or 36,000 miles. Warranties for the current model year provide 36 months or 50,000 miles of coverage, but have a $100 deductible after the first 12 months or 12,000 miles.
Neither Ford nor Chrysler has announced any changes for their 1992 warranties. Ford now offers 12-month/12,000-mile bumper-to-bumper warranty coverage with no deductible and a 48-month/50,000-mile warranty on the powertrain with a $50 deductible after 12 months or 12,000 miles. Chrysler offers a bumper-to-bumper warranty without deductibles ranging between 12 months/12,000 miles to 60 months/50,000 miles, depending on the vehicle. All of Chrysler`s cars and Jeep utility vehicles also have an 84-month/70,000-mile powertrain warranty with varying deductibles.
Mark your calendar for the 21st annual Midwest Antique Car Show, Swap Meet and Flea Market sponsored by the Midwest Chapter of the Model T Ford Club from 8 a.m. to 4 p.m. Sept. 8 at the Kane County Fairgrounds in St. Charles. More than 700 cars will be on display. For details call 708-554-0244.
