<VV> vehicle values, Corvair or otherwise

[CHRIS KUNKLER]

Wow!!!!

> On January 16, 2019 at 3:31 PM Marc Marcoulides via VirtualVairs <virtualvairs at corvair.org mailto:virtualvairs at corvair.org > wrote:
> 
> 
> 
>     a good example of the fact that an auctions purpose is to maximize the excitement for the sale of anything
> 
> 
> 
> 
>     -----Original Message-----
>     >From: "Steven J. Serenska via VirtualVairs" <virtualvairs at corvair.org mailto:virtualvairs at corvair.org >
>     >Sent: Jan 16, 2019 9:46 AM
>     >To: virtualvairs at corvair.org mailto:virtualvairs at corvair.org
>     >Subject: Re: <VV> vehicle values, Corvair or otherwise
>     >
>     >VVers:
>     >
>     >I shared the results of the Mecum auction with a few friends who are car
>     >guys, although not Corvair guys.  One of them is a former judge from
>     >Texas who is now a professor at a law school here in my town in Rhode
>     >Island.  I thought his response was pretty well written and educational:
>     >
>     >
>     >[In the judge's words:]
>     >
>     >Having been to Barret Jackson many times, I can say that many of the
>     >cars do sell for incredibly high prices; sometimes, it's the result of a
>     >buyer and seller "negotiating" an auction environment.  At other times,
>     >with booze and big egos the prices rise. I would never call the "auction
>     >price" a FMV. The prices are manufactured by the environment and the
>     >auction house's manipulations. One could argue, however, those are still
>     >FMV because someone bought and someone sold.
>     >
>     >One example that I was personally involved in had to do with my 1929
>     >Stutz LeBaron Speedster. I sat in front of the auction stand. The tent
>     >was packed. It was morning, but I know the booze was flowing. My
>     >"reserve" price was $165,000. Out of that, I'd pay the auction house 8%
>     >and net the rest sans the expenses of having taken the car to Scottsdale
>     >from San Antonio. It was supposed to be a good "environment" for the
>     >classics.
>     >
>     >The car sat on a turntable, with lights beaming off the concours-winning
>     >black paint with red pinstripe. The massive polished alumninum wheels
>     >shined like the sun.
>     >
>     >The bidding was fast and furious. "I have 130...and now 135 over
>     >there....now 142...now 145...there's a new bidder with 150.......the
>     >auctioneer was pointing left, then right, right again, then left. Other
>     >auction staff, in the tent, would yell, "yes" and the auction price
>     >would increase by 5,000.
>     >
>     >The price stalled at around 150,000. A staffer came over to me and asked
>     >what I wanted to do. I said, "well, close out the auction and say the
>     >reserve was not met." He said, "do you want us to run it up to your
>     >reserve?" That, of course, would leave the unwitting audience thinking
>     >someone had bid the reserve and I chose not to sell at that price.
>     >(Remember, no one, but the auctioneer and seller know the reserve price).
>     >
>     >As the staffer, with whom I had just spoken, approached the head
>     >auctioneer on the microphone, someone in the audience yelled "155." OMG,
>     >I thought, the bidding was starting again. The auctioneer was
>     >reenergized and began calling out bids from left and right in nearly
>     >staccato fashion. It quickly ran past my reserve and the car was
>     >declared sold.
>     >
>     >After the auction session, I was in the auction office and was told that
>     >there were no bids, at all.....except one lonely bidder who started at
>     >155 with that yell-out. He was the only bidder in the entire tent. And,
>     >all the auctioneer call-outs were shills.
>     >
>     >Can we, then, call the selling price FMV? Arguably, yes. But, would you,
>     >as a buyer, want to use that as criteria to determine the value of a car
>     >you're buying? Arguably, no.
>     >
>     >[end of judge's words]
>     >
>     >
>     >Steven J. Serenska
>     >Bristol, RI
>     >
> 
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