Though the traditionally popular...
Though the traditionally popular Pontiac musclecars like this Orbit Orange ’70 GTO Judge are not gaining in value at the moment, the prices seem to have stabilized and may represent a good long-term investment. If you are just looking to buy one for the enjoyment of ownership, this is a good time.
The collector car world has been in a nervous state since even before the collapse of the banking industry in September of 2008, and things haven’t changed much since then. After an overall drop of approximately 35 percent from its high in late 2005 and early 2006, the collector market has remained stable, and in some areas, has even shown gains. Still, the spotty level of confidence has many would-be collectors and investors taking a wait-and-see stance, still reluctant to invest their hard-earned dollars.
Further compounding the situation is that some regions of the country are recovering at faster rates than others. The Southwest is still reeling from the collapse of the housing market, while the Northeast is seeing some modest job growth and more stability in the real-estate market. Upstate New York, where your author is from, didn’t get the big boom in the housing market in the early 2000s, and as a result, didn’t get the crash. The economy seems to be on a modest upward trend, and with any luck the rest of the country will soon follow.
For this article, we have interviewed collectors in various areas of the Pontiac hobby, as well as a representative from the Mecum Auction house, to get their insights on the current state of things and ask them the following questions:
-What is your opinion of the state of the collector-car hobby?
-Are the factors that are affecting the stock market, like the instability in the Middle East and the earthquake in Japan, having the same level of impact in the collector-car market?
-Where do you see areas of growth in the Pontiac collector-car world?
-Where is there stagnation in the Pontiac collector-car world?
-Do certain price ranges show stability, growth, or recession?
-Are there any vehicles you think are undervalued or will make large gains in the market, similar to the way the ’69 Trans Ams rapidly escalated in cost in the early 2000s?
Steve Ames, Founder of Ames Performance Engineering
Steve has a unique insight on the collector-car market because he has been able to track collecting trends based on the sales of restoration parts. He is also a heavy-hitter in the general collecting world, with a focus on ultra-low-mileage vehicles. His Pontiac collection alone holds some of the marque’s crown jewels.
Happily, he has reported that industry-wide sales for Pontiac restoration parts have been steady and risen slightly, despite the various downturns in the economy. “Some companies specializing in other brands have dropped as much as 35 percent,” he reports. “As we are tracking new trends, the Second-Generation Firebirds and Trans Ams are doing very well.” This viewpoint matches what others are seeing as well.
“Right now, the market for full-sized GM cars is tanking across the board,” he adds. “If there is a GTO and a Catalina in the same garage waiting for a restoration, which one do you think will be tackled first?”
“Most people don’t have a firm grasp on what is going on right now,” he says. “The middle range between $25,000 to $40,000 is stable, but above that, it can be a little disappointing.”
Ames cited some recent auction results to illustrate the situation. At the Milton Robson collection auction, hosted by RM Auctions in November of 2010, Ames commented that while the $680,000 sale of the triple-black Ram Air IV ’69 GTO Judge convertible grabbed the headlines, it wasn’t representative of the market at that time. “That sale was an isolated incident,” he explains. “Other cars from that collection didn’t do as well. In fact, I would consider the ’71 Judge convertible sale at $286,000 as stable and the $308,000 for the ’70 Ram Air IV Judge convertible a little disappointing. I was especially disappointed that the Jim Kurzen ’62 aluminum-nosed SD 421 Catalina only sold for $154,000. The auction forecast for that car was between $250,000 to $400,000, which was a bit optimistic, but it didn’t come close.”
Station wagons have made great...
Station wagons have made great strides in popularity in the last decade or so, but recent developments in the market have put most full-sized cars on the sidelines. As always, be careful about getting in over your head with restoration costs. Project or pristine—do your research before you decide.
Station wagons have made great...
Station wagons have made great strides in popularity in the last decade or so, but recent developments in the market have put most full-sized cars on the sidelines. As always, be careful about getting in over your head with restoration costs. Project or pristine—do your research before you decide.
The ’79 10th Anniversary Trans...
The ’79 10th Anniversary Trans Ams are hot right now, like the previous Special Edition Trans Am. When looking for a ’79 of any type, keep in mind that the four-speed cars are the only ones that have the Pontiac 400 engine. Automatics received the less-desirable Oldsmobile 403 engine and aren’t as collectible.