Feds Auctioning $1M in Classic Cars with Russian Ties

by Andrea L. Algar
Motorheads Performance

A bizarre classic car auction article surfaced this week. It appears that our Federal Government is auctioning off eight classic cars which had been purchased by an American with money that was embezzled from a Russian company. Not your typical auction by any means!

In an article appearing in today's Houston Chronicle, reports that "The federal government seized the cars after they learned Leigh E. Sprague, an American citizen, used fake emails and a shell company to divert more than $10 million from the Russian company Rusal, according to court documents."

These are the vehicles, which include several American made classic cars: 


      1937 Packard Super 8

1966 AMC Ambassador 990

1959 Lincoln Continental Mark IV

1949 Lincoln Cosmopolitan

There are also several European classics as well:  

1962 Mercedes 220SE Cabriolet

1970 Mercedes Benz 280SE

1937 Bugatti 57C Berliner

(sold at Bonham in 2010 for $205,000)

1938 Peugeot 402BL Eclipse Decapotable

(one of 500 built, with only 50 left)

A unique and diversified collection of American and European classics.

Probably wanting to spare involvement in the case, Sprague's family apparently forfeited claim on the cars which is how the government is now in a position to auction off the vehicles. Reserves have been set by the US Marshals Service and will not be disclosed ahead of time. The auction, which is being held by Houston's Apple Towing/Apple Auctioneers, ends next week. You can contact them with any auction questions at 713-600-7778. Details, more photos, terms of auction and information on registration can also be found on their website below.

REFERENCES:
Houston Chronicle - Feds Auctioning Off Classic Cars Worth More Than $1Million
Yahoo - Feds selling $1 million worth of classic cars bought with embezzled Russian cash

RESOURCES:
Apple Towing - Houstin, TX - On-Line Auction for Seized Classic Cars
Houston Chronicle - News, Sports, Business and Entertainment

ABOUT THE AUTHOR:

Andrea L. Algar is co-owner of a classic car performance and restoration design shop in Leesville, Texas. Motorheads Performance specializes in repairs, maintenance, performance upgrades and restorative work on cars and trucks from the 1920’s through 1970’s. Her husband Guy L. Algar is a Mechanical Engineer with over 25 years experience. He holds 5 ASE Certifications from the National Institute for Automotive Service Excellence and has been working on old cars and trucks for over 37 years. Together they share their passion for old cars and trucks with other enthusiasts from around the country.

Read More

Classic Car Auction This Saturday in Austin

by Andrea L. Algar
Motorheads Performance

Don't miss out on this Saturday's classic car auction in Austin! Dan Kruse Classics of San Antonio is hosting the 38th Annual Hill Country Classic Car Auction at the Palmer Events Center this saturday from 10am to 4pm.

Car enthusasiast from all over South Central Texas have enjoyed this popular auction for the past 37 years. It has been held in San Marcos, New Braunfels and Fredericksburg in past years, and is coming to Austin for the first time.

Approximately 200 cars are expected to be auctioned off at the event, making it the areas big event this season. Having just come off the auctions at Monterey Car Week, classic car enthusiasts in Texas are eager to jump into the action. According to Tiffany Kruse of Kruse Classic Cars, "We have wanted to bring the Hill Country Classic to Austin and this year, with the help of the City of Austin, we are able to do so. We are hoping for a very good crowd of enthusiasts and buyers by holding the event in Austin at the Palmer this year."

1963 Chevy Corvette
Split Window Coupe

One thing I can say, they sure have a lot of convertibles up for sale!

One of my personal favorites is this beautiful, and hard-to-find, 1963 Chevrolet Corvette Split Window Coupe! It's rare to find a '63 with the original split window in tact. There was a time when it was common for owners to have the split window taken out and replaced with one piece glass. This proved to be a big mistake.

  What's in store at the classic car auction?

Here are pics of just some of the other great classic cars and trucks that will be available at this Saturday's auction:

1961 Chevy Impala Bubble Top

1969 Chevy Camaro
Indy Pace Car Convertible

1949 Mercury Pickup

1956 Oldsmobile 88 Convertible

1955 Chevy Corvette Convertible

1956 Pontiac Starchief Convertible



1957 Ford Thunderbird Convertible

1955 Ford Crown Vic Convertible

1966 Chevy Corvette Convertible

1966 Pontiac GTO Coupe

1967 Pontiac GTO Coupe

1947 Buick Roadmaster Convertible



1940 Packard Convertible



Saturday, September 15, 2012

AUCTION LOCATION:

The Palmer Events Center 
900 Barton Springs Road
Austin, Texas  78704

AUCTION INFORMATION:Tiffany Kruse at Dan Kruse Classics
San Antonio, Texas
Telephone: 866-495-8111  Phone
tiffany@kruseclassics.com

RESOURCES:

Dan Kruse Classics - Auction Brochure
Austin Information - Visitors Bureau

ABOUT THE AUTHOR:

Andrea L. Algar is co-owner of a classic car performance and restoration design shop in Leesville, Texas. Motorheads Performance specializes in repairs, maintenance, performance upgrades and restorative work on cars and trucks from the 1920’s through 1970’s. Her husband Guy L. Algar is a Mechanical Engineer with over 25 years experience. He holds 5 ASE Certifications from the National Institute for Automotive Service Excellence and has been working on old cars and trucks for over 37 years. Together they share their passion for old cars and trucks with other enthusiasts from around the country.

Read More

Are Auctions Influencing The Values Of Classic Cars?

by Andrea L. Algar
Motorheads Performance

Following my July 9th article entitled Buying Classic Cars As Investments - What Are Your Chances of Making Money?, I realized that I had created a bit of controversy. Some readers took it to mean that I thought that classic cars are not a good investment, others took it to mean that if your timing was right, you could still make money on your investment. Both can be true. There simply are no hard-and-fast rules. Certainly you're not limited to the cars mentioned in the list that was compiled by Hemmings Daily. Trends can change in an instant when a new fad is introduced, rendering predictions totally invalid. But, we can take a look at history and see that some trends are repeating themselves. What does this mean to us now, as the country is struggling to recover from years of economic turmoil?

There's no doubt that the financial world has taken a huge tumbling over the past few years. Depending upon the area of the country you live in, the effects ranged from drastically impacting you, to causing minor inconveniences, but overall, it's pretty safe to say that the bad economy has affected everyone in some shape or form. Wall Street has become a very volatile place, with extremely wild swings. True investors have been looking at alternative investments to diversify their portfolios. Some have turned to classic cars! Are auctions influencing the values of classic cars and trucks for enthusiasts?

Barrett-Jackson has reported increased interest in classic cars at their auctions, and the fact that values over the past decade have increased in some cases by 10% or more could be the reason. Compared to the stock market's dismal growth rate of under 4.5%, this is a much better investment opportunity.

The cars that Barrett-Jackson auction are high-end, show quality, or rare automobiles that demand high dollars. They are usually a bit above the average enthusiast's spending threshold, but for wealthy investors, they look at classic cars as a potentially better way of fighting the extremely low interest rates that bog down their other investment earnings. Many of the "newbies" to classic car auctions don't really know much about cars, and for these investors, they may be entering a dangerous world.

On a positive note, their involvement with classic cars could have the benefit of driving up prices of cars and trucks that don't make the "elite" list of high-end action cars - the ones you and I own or dream of owning. The downside is that this may be an artificial inflation of a car's worth, and when the bubble bursts, things could get ugly. After all, it's not so easy to liquidate and sell off quickly if the classic car market turns downward. Losses can be dramatic when this happens. For the average classic car buyer/owner, its my opinion that the big national auctions on high-end collectible classic cars does not affect the value of the low to mid-range classics. This is probably because it is you and I - the buyer - who dictate prices. If the buyer is asking too much we simply do not buy. The market seems to regulate itself pretty well, however, once again, when the bubble bursts, it still hurts to lose money if you must sell at a loss.

For now, the professional investor interest in classic cars keeps them a pretty attractive investment for all. However, I stand by my previous statement that, "The fun of owning a classic car or truck is NOT in the financial gain you might get from owning one. This can be a big mistake by buyers. It is purely in the joy that driving one can bring...even if the restoration costs more than the value will ever attain." Guy Algar states, "Owning a classic car, muscle car, or old truck - whatever it is that you like - should be for the nostalgia or the pure enjoyment you get from owning it, no matter what it's condition. There's no better feeling in the world than to own something that you've been dreaming about for years and years."

Andrea offers a possible rule of thumb to follow if you're at all squeamish or hesitant about spending money on a project car: "Don't invest more in the restoration of your car than you are willing to lose on it in a quick-sell situation!" Our bottom line: passion first...investment (if it even has to enter your thoughts) always last.

AUCTION RESOURCES:
List of Auction Companies that handle American Classic Cars
Auctions America by RM
Auctions America Raleigh Classic
Barrett-Jackson
Bonhams
Carlisle Events hosts Auburn Fall Collector Car Auction
Classic Motorcar Auctions
Crown Collector Cars
Koko Classic Car Auctions
Leake Auction Company
McCormick's Classic Car Auctions
Mecum Auctions
MidAmerica Auctions
Palm Beach Car Auction
Russo and Steele
Silver Auctions
Smith's Auction Company
Vicari Auctions
Zephyrhills Auctions

ABOUT THE AUTHOR:
Andrea L. Algar is co-owner of a classic car performance and restoration design shop in Leesville, Texas. Motorheads Performance specializes in repairs, maintenance, performance upgrades and restorative work on cars and trucks from the 1920’s through 1970’s. Her husband Guy L. Algar is a Mechanical Engineer with over 25 years experience. He holds 5 ASE Certifications from the National Institute for Automotive Service Excellence and has been working on old cars and trucks for over 37 years. Together they share their passion for old cars and trucks with other enthusiasts from around the country.

Read More

Finding Old License Plates

by Andrea L. Algar
Motorheads Performance

As I announced a few days ago, our friend Rod Hemmick, who is an expert when it comes to old, vintage license plates for classic cars, antiques, old trucks and muscle cars has prepared some great information for Classic Car News on the history of Texas license plates and information on obtaining and using old license plates for your ride. The series of articles will start next week!

Motorheads Performance has benefited from Rod's expertise since 2008 or so when we first got together to talk cars. We were so impressed with his knowledge about old license plates, as well as his skills in restoration of old plates. Guy Algar and I learned that there's a lot that goes into the process of restoring old or vintage plates. It requires great detail, use of correct paints and colors, and it's not cheap, but for those who have a set of plates that may have been original to the car, or perhaps plates that were owned by a father or grandfather, sometimes it isn't all about the price. Rod's work has been sold to collectors and enthusiasts from all over the country.

Prices for a good set of YOM plates can go for $250 or more, while nice NOS plates might be found for $50 or more. Prices can vary between states, the year of the plate, and because of the condition of the plate itself. Some years and states are more difficult to find than others because of their current popularity for example.

Sets, or pairs, are usually always more desirable, and more expensive. Sometimes, you can find a random, single plate at a car show or on-line for short money, but in general those who handle old license plates know the value and price them accordingly. A really inexpensive plate may not have a match to make a pair, or be in too rough a shape to be approved for use on the road. It's value may be primarily for wall art. Rod will address many of these issues in his articles.



1954 Michigan Plate

Take a look at this recent rare California license plate, listed on eBay, which looked like it was settling to sell for $177.50 for the single plate. Meanwhile, the Michigan plate had a Buy It Now price of only $4.99, but it was certainly not road-worthy in it's present condition. And, as we wrote in our article, Old Licenses Are Poised To Draw Top Dollar At Upcoming Auctions, prices can go very, very high!

Rod offers up this advice, "The best place to find a set of license plates for your ride is eBay or an automotive swap meet. One of the biggest automotive swap meets held in Texas is the Pate Swap Meet in April which is held at the Texas Motor Speedway in Fort Worth, Texas.  The 2013 Pate Swap Meet will include a classic car auction in addition to the swap meet!"  I offer that if you can't make it there, consider the New Braunfels Swap Meet in April each year.  Nationally, and probably best known is the Pomona Swap Meet, in Pomona, California, which has 7 events each year specifically for classic car enthusiasts! Mark your calendars and we'll see you there! 

Since we're right in the middle of a very active swap meet and car show season, I wanted to be sure to get information you can benefit from right away. We just published a list of August 2012 Events this week. We will continue with this event listing, and we look forward to bringing you Rod's informational series on old license plates and information on how you can contact Rod with any questions you may have on the history of old license plates.

ABOUT THE AUTHOR:
Andrea L. Algar is co-owner of a classic car performance and restoration design shop in Leesville, Texas. Motorheads Performance specializes in repairs, maintenance, performance upgrades and restorative work on cars and trucks from the 1920’s through 1970’s. Her husband Guy L. Algar is a Mechanical Engineer with over 25 years experience. He holds 5 ASE Certifications from the National Institute for Automotive Service Excellence and has been working on old cars and trucks for over 37 years. Together they share their passion for old cars and trucks with other enthusiasts from around the country.

Read More