Re: How depressed is the market in our cars?

Posted by Tim Cole On 2011/10/22 12:54:25

Hi Dave:

Yes the high end cars seem to defy gravity. But I knew Noel Thompson for years and he took a bath on some high end Duesenbergs. The sky high prices people pay for Bugattis leaves me scatching my head. And like VanGoughs I simply do not understand why tycoons want to pay so much for paintings by deceased starving artists. I suppose part of the thrill is denial by proxy of a person's value.

I suppose it is entirely possible for prices on some cars - like the Type 41 Bugatti Royale - to remain aloof indefinitely. But I don't think that people will necessarily be making money on them. If you paid $30 million for the Binder Coupe Deville and your estate sells it for $25 million. That is a huge loss.

Another thing is that today's new money is very selfish. Out in Hollywood People like Jack Benny used to give part of their fortunes to fund a retirement home for supporting actors. It closed down a few years ago because today's overpaid Hollywood bums would rather blow their dough trying to impress each other.

So yes some of these cars may always sell for a bundle, but I think as much money will be lost due to greed as made.