Nothing could ever beat the classics. A 1968 Ford GT40 racer just set a record when it sold at an auction in Monterey, California for $11 million. RM Auctions had an unexpectedly huge lineup of classics this event. On the first day of a 120-lot sale of "investment-quality automobiles,” the works Gulf/Mirage, which was finished in trademark powder blue with a marigold stripe, was expected to be sold at a price of over $8 million.
RM, Gooding & Co. and Bonhams’ summer sales on the U.S. west coast are considered bellwether events for the market. Just like art, wine, or other alternative asset classes, the appeal of classic cars has been increasing.
This is true particularly for new buyers who want to diversify their investment portfolios. From the start of the year until July, the Historic Automobile Group International Top 50 benchmark index of outstanding classic cars has increased by 8.2%. If it stays on this course, it will rise to around 14.4% over 2012. HAGI founder, Dietrich Hatlapa, said that the GT40 was a “great demonstration” of how the price is determined by the car’s history.
He explained that value is based on the early life. He mentioned that this Ford model was included in the original Gulf team and had kept a “good racing record.” Canada-based RM said that two bidders raised the GT40 price from $9 million to $11 million, which is inclusive of auction house fees. Ford created the GT40 in the early 1960s to do better than Ferrari at long-distance sports car races after the U.S. automaker was unable to purchase the Italian brand in 1963.