Adios 2014: The Year of Spending Extravagantly (Post # 73)

In the movie Raiders of the Lost Ark renegade French archaeologist Rene Belloq tells Indiana Jones  

Look at this [a pocket watch]. It's worthless. Ten dollars from a vendor in the street. But I take it, I bury it in the sand for a thousand years, it becomes priceless! Like the Ark.

Metamorphosis

Fifty-nine years ago some guys in Italy built 39 examples of a limited-production race car.  One of those examples in its fateful trajectory crossed my path and we bonded.  It wasn't an easy road to travel.  I was 21 years old and The Alfatross was only 14.  Too young to marry, but I like to think that the relationship was beneficial to us both . . . most of the time.  Like all relationships, it was always a work in progress.  It was on my "bucket list" for decades, but 2 years ago it rose to the top. I hope 2015 will be the year I can finally strike it off the list.

The Alfatross for sale in 1965.  Asking price: $2,250. Pat Braden.

So now we are entering the third year of its restoration. I have no way of even estimating the amount of time I have spent working on it, but what does it matter? Every second spent was fun and I always looked forward to the next time I could get to work on it and always regretted having to quit. In the beginning it was an exciting project that could piddle along in the rhythm of my life, providing an excuse to hide in the "flow state" for a while. 

But nothing stays the same. It is important to stop and reassess from time to time, particularly if the process is taking decades to resolve itself. Eventually, it became apparent to me that my original plans for The Alfatross had to be scrapped. Somehow, over the decades, while wrapped in its car cover cocoon in a dark corner of my garage, it metamorphosed from a kinky old foreign car into something else. I was no longer just the person who owned it but the Steward of an Historically Important Automobile. Along with that revelation came the realizations that (a) its restoration had to be done in a very particular way and (b) it had become very valuable. 

But how valuable?  Two years ago I started this blog with the statement (in the header above) that these cars are worth "half a million and up."  Since then the bar has been raised.  Considerably.  

Value vs. Cost

The steward of an historically important automobile should not correlate the costs of restoring and maintaining such a vehicle with its value. Valuations are ephemeral, changing over time, growing and shrinking like all other assets. Prized mechanical possessions wear out or are rendered obsolete by improved technology. They lose value. Desirability fades. Then the survivors become rare. Scarcity enhances value. Nostalgia kicks in. Perceived value goes up . . . and so does the cost of restoration!

In 2014 I spent extravagantly on restoration costs, in spite of the fact that a lot of  work was done in previous years.  I do not regret a penny of it, but like a mistress (or so I am told), The Alfatross absorbs all of my unencumbered time and money!

Still, it is important to know what value the market places on an historically important automobile and the trajectory that value has taken over a long period of time.  My research has turned up very little information in that regard, as most sales over the last decade or two have been private.

One of The Alfatross' brethren (chassis no. unknown) sold
at auction in 2001 for $217,000.  Sports Car Market.

Chassis no. 02056 sold at auction for $557,000  in 2009.
Tim Marinos.

The Record

The price of a new 1900C SSZ in 1955 was $6,637. From that point their value decreased steadily with time as it does for most cars. By 1963 The Alfatross was on its 5th owner, Pat Braden. I don't know what he paid for it 8 or 9 years later, but in 1965 or '66 he sold it for $2,250. Its value continued to decline precipitously, allowing me to buy it in 1969 for $770 . . . It would never be worth less.

There follows a twenty year period for which I have no valuation information.  In 1992 I was considering selling The Alfatross. I had soft offers of up to $80,000 from four different bidders including Keith Martin and Martin Swig, but in the end decided to keep the car.

Chassis 10593 "Zagato's Zagato".  Private sale in 2013 for
 $1,200,000?  Matteo Bossisio.

Nine years later I was surprised to see an article in Sports Car Market about the sale of a 1900C SSZ at the 2001 Bonhams and Brooks auction at the Cavallino Classic in West Palm Beach auction.  It was apparent that the author was very familiar with the model--their engines, handling characteristics, interior space, and even noise levels inside the cabin. The author was none other than Pat Braden!   

Chassis no. 01947 (unrestored) sold at auction in 2014  for 
$1,012,000.  Sports Car Market.

The serial number of the car was not mentioned, but its condition was described as "pristine" and it brought a surprising $217,000.  This was doubly surprising because the SCM Price Guide valued the car at only $85,000-$120,000. 

Perceptively, Braden concluded his analysis with ". . . this car sold for a remarkably high price, appropriate for its remarkable condition. The new owner faces a classic question: whether to use the car as it was meant to be used, thereby risking injury to it, or to retain it as a showpiece and conserve a considerable investment. It will be very interesting to note the price of the next 1900 SS Zagato to cross the block and see if this price was an aberration, or a harbinger of value increases to come."

The answer to that question came in 2009 when chassis no. 02056, another beautifully restored example now part of the Arturo Keller collection, sold at auction for more than twice as much: $557,000. 

Sports Car Market's Price Guide recorded another sudden jump in value in 2013 with a new figure of $1,200,000 for an excellent example.  Although we don't know anything about the sale that produced this figure I suspect that it was "Zagato's Zagato", chassis no. 10593.  In any case it is a new high-water mark for 1900C SSZ values.  

An even more surprising result occurred this year when chassis no. 01947 sold at auction for $1,012,000.  I say surprising because this was a non-running car without matching numbers in need of everything. 

What does the future hold for The Alfatross? Will its value continue to increase or has it reached its zenith? Who will become its next Steward? Will that person set it free to once again roam the open road? Or, like so many of its brethren, be "confined to quarters" like the Ark of the Covenant in the last scene of Raiders? 

Marcus Brody: Where is the Ark?  Major Eaton: I thought we'd settled that. The Ark is somewhere very safe . . . .