“The Greatest Show on Earth”; “Automotive Mecca”; “The High Holy Days of Hershey”. The repetitive use of all these terms describes what is formally known as the AACA Eastern Fall Meet, a car show extravaganza that has been held in the quaint town of Hershey PA (“Chocolate Town USA”) since the early 1950s. This blog previously reported on Hershey in 2015, 2016, and 2017.
The Hershey Show has evolved and expanded through the decades into its current three-part form: a weekday flea market/car corral, now exclusively held on paved ground (the infamous Hershey mud is no more); a Saturday judged car show, currently held on a mostly-smooth grassy lawn; and a two-day auction conducted by RM Sotheby’s (“the official auction of AACA Hershey”).
Here we present Act II, The RM/Sotheby’s Auction.
The RM Sotheby’s Hershey Auction, a mainstay event for the last several years, is now “the official auction of AACA Hershey”. For the uninitiated, it is held on the grounds of the Hershey Lodge, about four miles from the flea market/car corral at Hersheypark.
Bidders pay $200 for an auction catalog, granting them entry into the arena. For everyone else, it’s not so bad: there’s plenty of free parking (provided you show up before the 5:30pm kickoff); a bidder’s badge is NOT required for you to walk among the cars under the tents; and outdoor loudspeakers broadcast the auctioneer’s chants and gavel smacks. Perhaps best of all, you can watch the dedicated RM staff get each of these beasts running and driving into the building. Unless you plan to bid, the real show is outside.
It’s a two-day affair, held on both Thursday and Friday, and I was there only on the first day. RM has long specialized in auctioning primarily American iron, both pre- and post-war, with a smattering of high end European vehicles thrown into the mix. If anything, by my casual observation, the American offerings have become even more mainstream (witness the ’68 Camaro, something I thought I’d more likely see at Mecum). But pre-war cars continue to rise to the top of the “sold” column (more about that in a bit).
Several auction trends continue. “Estate sales” again constituted a large percentage of cars here. There were three such named estate lots on offer, and the first of these to cross the block, the Richard L. Burdick collection, did so early on Thursday.
Mr. Burdick, a successful businessman and collector, passed away earlier this year, and obviously, his family decided that the auction method was the cleanest way to liquidate his automotive holdings. Trend #2 is to note the high percentage of “no reserve” sales, such as almost every car in the Burdick Collection.
In spite of what some perceive as a softening in the collector car hobby, the auction houses hold a good amount of power: they have continued to demonstrate their ability to move the metal (especially noteworthy in our digital-rich age); they can arrange for cars to be brought to the auction site; and they may even include some auction prep work (for the appropriate fee).
In exchange for the advertising, marketing, host location, and expected bidders, the auction company can state that all this is done on the condition of a no-reserve sale. It’s positioned as a win-win-win: the car is sold to an exuberant new owner, the seller/estate gets paid, the auction company earns its slice, and everyone goes home happy. And that’s not a bad thing! Bidders and observers alike find it a special treat to see a no-reserve car climb the block, knowing that the car is guaranteed to sell.
If no-reserve sales have potentially pushed down values, no one is seen complaining. The reality is that both buyer and seller may be happier with a guaranteed sale at 80% of perceived value compared to no sale at 100% of perceived (and unachieved) value. (Two days after the auction ended, RM Sotheby’s rightly bragged about their 94% sell-through rate.)
Staying on values, much has been written about the ups and downs of market values, driven in no small measure by collectors of various ages entering and leaving the hobby. For example, we know that Baby Boomers, born between 1946 and 1962, collect the cars of their youth. As the oldest Boomers leave the market, it’s said, then the cars they’ve been chasing (in this case, American cars of the early-to-mid ‘50s) drop in value. To some extent, that has been true. Many American cars of that time period hit their value peak a few years back, and while they are certainly not worthless, prices have dipped.
The other side of the curve has seen demand (and therefore values) rise for cars of the ‘80s and ‘90s as young entrepreneurs and executives, dripping with newfound wealth or at least some disposable income, snap up the cars whose posters adorned their bedroom walls. We’ve seen it with everything from Fox-body Mustangs to Lamborghini Countachs.
If we follow this logic, then it should stand to reason that most cars built before World War II would have little or no following, and I’ve heard that uttered by more than one pundit. Let’s do the math: a 1934 Lincoln should be attractive to someone who got their driver’s license that year. He or she could probably barely afford a used Model T, but they lusted for that Lincoln (or Packard, Cadillac, Duesenberg, etc.). Someone who turned 18 in 1934 was born in 1916. If alive today (unlikely), that person would be 102 (and if I’m wrong, Happy Birthday).
Reality at RM Hershey is this: of the top 10 highest-priced cars which sold, NINE were pre-war (the only exception a 1960 Plymouth Fury convertible). Here is a quote from the email I received from RM:
“… top honors going to the 1930 Cadillac V-16 Roadster, which exceeded its pre-sale estimate and achieved a final price of $495,000. Other strong results for American classics included a 1941 Packard Custom Super Eight One Eighty Convertible Victoria by Darrin, which reached a final price of $357,500, and a 1934 Lincoln Model KB Convertible Sedan by Dietrich, which exceeded estimate at $286,000.”
So who is buying these cars? My own theory is that the great American pre-war classics are being purchased by a variety of well-heeled collectors of no particular age group. They see these cars as transcending any pre-ordained value curve. Instead, the cars have been elevated to a status of collectability akin to fine art: they are admired for their style, grandeur, and place in history. Whether the purchaser remembers this car from an earlier time is of no consequence. Just as someone with means may decide to grab a vase, table, or piece of jewelry from a time long ago for its intrinsic beauty and value, automobiles from the earliest decades of the 20th century are now in that same rarefied position.
The cars featured below are a sample of the Thursday auction cars which I inspected and which sold. Hammer prices are shown exclusive of 10% buyer’s premium. (Of the 16 here, 11 hammered under estimate.)
Vehicles are arranged in ascending price order.
Lot 155, 1980 Mercedes-Benz 450SL, champagne/brown, pre-sale estimate $20-25,000, no reserve
SOLD FOR $15,500
Just another used 107-platform SL, like seen so often at Carlisle and Mecum. Buyer didn’t take pre-sale bait.
Lot 172, 1969 Buick Riviera, brown, tan vinyl top, tan interior. Dealer emblem on back is from Quebec Canada. Pre-sale estimate $25-30,000, no reserve
SOLD FOR $16,000
The RWD Rivs consistently sell in the mid-high teens, so price was appropriate.
Lot 171, 1989 Mercedes-Benz 450SL, white, white hardtop, black softop, pre-sale estimate $20-25,000, no reserve
SOLD FOR $16,000
1989 was the last year for the 107 chassis, and they usually bring a higher price, so well-bought. May have been held back a bit by the refrigerator white color.
Lot 175, 1968 Chevrolet Camaro convertible, blue/blue, 350/automatic, “SS exterior trim” implying fakey-doo, pre-sale estimate $35-40,000, no reserve
SOLD FOR $25,500
I’m no Camaro expert, but the price seemed fair for the condition.
Lot 199, 1951 Kaiser Dragon sedan, two-tone green, dragon skin upholstery, claimed 11k original miles, pre-sale estimate $35-50,000, no reserve
SOLD FOR $26,000
From the Burdick collection. If you had to have a Dragon, this might have been the one to have.
Lot 176, 1959 Ford Sunliner convertible, blue/white inside and out, Continental Kit, pre-sale estimate $40-45,000, no reserve
SOLD FOR $26,000
The Skyliner retractable gets all the attention; the soft-top Sunliner, with its ‘normal’ sized trunk, is arguably the better-looking car.
Lot 195, 1954 Ford Crestline Skyliner, white, blue painted top, blue interior. Glass roof, claimed “rare peek-a-boo” hood; pre-sale estimate $40-50,000, no reserve
SOLD FOR $28,000
From the Burdick Collection. Claimed 13k original miles and cosmetic restoration.
Lot 173, 1969 VW Microbus camper, blue/white, “weekender” edition fully equipped for camping, pre-sale estimate $25-30,000, no reserve
SOLD FOR $30,000
One of the few cars seen on Thursday to sell within estimate. VW buses continue to gain traction in the hobby, and you can even live in this one if you have to.
Lot 196, 1947 Lincoln Continental convertible, green/tan top/green, V12, one of just 738 made, pre-sale estimate $35-45,000, no reserve
SOLD FOR $34,000
From the Burdick Collection. The post-war restyle did this car no favors, and neither did the color (and I like green cars, but not this green). Sold for a grand under low estimate. Cheap way to get 12 cylinders.
Lot 156, 1964 Lincoln Continental 4-door convertible, white, dark red leather, factory air, pre-sale estimate $30-40,000, no reserve
SOLD FOR $35,000
Sold exactly at estimate mid-point. Clean, good looking, imposing car. Someone got a decent deal on a great cruiser.
Lot 153, 1971 Volvo 1800E, dark silver/red, pre-sale estimate $25-30,000, no reserve
SOLD FOR $35,000
This was the first car to cross the block (after the automobilia). Someone got excited and paid above estimate. To my eye, the color and the alloys weren’t right. Well above market for an 1800 Coupe.
Lot 178, 1957 Olds 98 convertible, red & white in & out, J-2 tri-power, pre-sale estimate $50-60,000, no reserve
SOLD FOR $47,500
1957 was a peak year for GM styling, before it went a bit haywire in ’58. This was a great-looking full-size American convertible. Well bought.
Lot 187, 1936 Cord Westchester 4-door sedan, beige, FWD, pre-sale estimate $55-65,000
SOLD FOR $53,000
This is the only car in this report to have had a reserve. Usually, the low number on the pre-sale estimate IS the reserve, yet this sold for two grand under that. Most people who want a FWD Cord will hold out for a drop-top, but I find these sedans to be just as attractive.
Lot 179, 1954 Chevrolet Corvette, white/red, inline 6 and Powerglide as built, pre-sale estimate $60-70,000, no reserve
SOLD FOR $59,500
Close enough to say that it just sold at low end of estimate. These first and second year 6-cylinder cars have their followers.
Lot 180, 1958 Jaguar XK150 Coupe, white/red, wires, pre-sale estimate $50-60,000, no reserve
SOLD FOR $70,000
It was a nice-looking restoration, but these coupes don’t look as good to my eye as the convertibles. Someone saw more value here than RM did, and they may have been correct.
Lot 157, 1948 Playboy retractable hardtop/convertible, light blue, white painted top, tan interior, pre-sale estimate $55-75,000, no reserve
SOLD FOR $120,000
I’ve never seen one in the metal. It’s a sad and pathetic looking little thing, and this is coming from a former Isetta owner. It’s so rare that there may be no prior sales history, so making an accurate estimate is not possible. Whoever got it will have the only one at every show they attend.
All photographs copyright © 2018 Richard A. Reina. Photos may not be copied or reproduced without express written permission.