Online auctions offering much desired vintage and classic models have no issues selling, Ferrari is #1.
The HAGI Top Index traded down marginally for the month (-0.24%) and was up 3.87% for Y 2020 to the end of July.
Exceptional classic and collector’s cars continued to perform well overall. This was most visible in the Ferrari sector which rose 2.43% during the month.
The HAGI F (Ferrari) showed a YTD performance of 13.53% as well as 7.85% over 12 months.
In an automotive universe reconfigured after the C-19 coronavirus chaos stalled production lines and hit new-car sales with declines of 20% and more, there is 1 area unharmed: the values of, and market demand for, classic and collectable sales.
“It’s been a wild ride, but it’s been good – it has been really good,” David Gooding said, adding that Gooding & Co.’s private-sale business is booming. “I’ve had people ask ‘Have you seen pressure sales, desperation?’
“And I haven’t. A lot of the people who own these cars have a lot of money. I just haven’t seen one desperate sale. The market is strong.”
The Y 2020 cancellation of the world’s foremost automotive festival, Monterey Car Week, offers a look of what the new normal might look like for the world’s biggest car show once rebalanced from the C-19 chaos.
The lead-up events to Virtual Car Week are already underway, but the best stuff all happens this week from 12 to 16 August 2020.
The volume of million dollar cars set for Monterey this year has more than halved compared to prior years, and the response from the marketplace will be worth watching with auctions now virtual and virtual attendance compulsory if you want to buy what is on offer.
The major auction houses have all begun developing their auction platforms for the new how things work order, and virtual auctions will become the norm for the foreseeable future.
RM-Sotheby’s is in the middle of a major re-engineering of its web presence and already the promise can be seen.
Gooding & Company has launched a new phone/tablet platform for its auctions, and appears certain to become a major auction presence on both sides of the Atlantic.
Bonhams internet auction set-up best of them, but failing to get better and learn continuously in a time of massive change is almost certainly going backwards, and Bonhams can at least amortize investment across many auction genres.
While auctioneers in some states and countries will persevere with bricks-and-mortar auctions, unless they begin catering to the enthusiasts who cannot attend due to travel or health or plain old common sense restrictions, they will be dealing to a fraction of prior audiences.
If you wish your auction to be a world class event, you need a worldwide audience, and those auctioneers who develop the best Internet auction platform will be the winners in the long run.
The chaos has been kind to other auction genres as sport, music and entertainment memorabilia is booming, so it will be fascinating to see how the the collector car market responds. Since there will be fewer cars on offer, we might expect more demand, stay tuned…
There is F1 racing this weekend at Barcelona, tune in.
Our overall technical outlook is Bullish in here, as all Key indicators are Very Bullish.
Ferrari finished at 184.29, +1.24 Tuesday in NY, just shy of its intraday all time highs at 189.26 marked on 3 August 2020.
The Maranello Outfit’s shares were raised to Buy from Hold at HSBC.
Ferrari will continue to create value in the long term. Ferrari is a quality 1st long term luxury products investment, and I have called it at it at 200+/share long term, adjusting it to 200/share short term (after the virus) and siding with BAML to 230 long term for now. The stock is now considered defensive in the sector.
Have a healthy day, Keep the Faith!