[Zmagnette] NOW: how to set the market for our cars at $45K: EASY

Sun Jan 12 16:35:33 MST 2014

Last fall, during Hot August Nights, Barrett-Jackson held an auction here in Reno for the first time.  I hired on as a driver.  A fellow brought a 23 window bus from Arizona.  The one thing that BJ is stringent about is VIN numbers.  I saw cars turned away because the VIN Number plate rivets were suspicious.  Well, I was a part of the team that practically tore that bus apart.  No data plate, no way to confirm VIN.  BJ called the man and told him to pick up his bus.  Turns out during the restoration he removed the VW VIN and forgot to put it back. He called a guy from his shop who flew into Reno and they installed the plate.  The bus went for $135.000.

Gene
  ----- Original Message ----- 
  From: Steve Kirby 
  To: List for the Z Magnette Group - North America 
  Sent: Sunday, January 12, 2014 2:34 PM
  Subject: [Zmagnette] NOW: how to set the market for our cars at $45K: EASY

  regarding Steve's comments about the VW 23 window "busses".  Yes, the incredible, and very quick rise in prices, can be directly attributed to the day one sold at Barrett Jackson for (sit down, please), $197,000 + fees.  That one I saw, via TV, with my own two eyes.  I've since heard that at another sale, about a year later,  went $297,000 + fees.  That last one, I've only "heard", not confirmed, and somewhat doubt its truth.  Regardless, since then, "bus" prices have been ridiculous.  

  Listen and follow carefully:  It is to each of our best interests to drive up the price . . . . right?  So, think about your Magnette being worth say $45,000 at auction.  Easy enough.  There are how many in our group . . . about a hundred?  We each give Allen, or better yet ME!!!!, a donation of $500.  By advanced calculus, that's $50K.  Next decent one that comes up, I bid $50K.  Now, the market has been set at $50K, and it only cost you $500!!!!  Such a deal!!!!!  I'll even give you rides at the next NAMGAR event.

  #2SteveK 
    ----- Original Message ----- 
    From: Steve Hanegan 
    To: List for the Z Magnette Group - North America 
    Sent: Sunday, January 12, 2014 1:53 PM
    Subject: Re: [Zmagnette] 1958 MG Magnet 20000

    Yes, the auctions are an expensive way to sell a car. Getting a car registered, transportation and the fees charge to both the seller and the buyer are quite eye watering unless you have a highly sought after car such as a  23 window VW van or a Ferrari or similar. I have a friend who has a very nice mid '90s Jag XJ6R. This is a very nice car, great condition, well looked after, runs perfectly etc. Mark took his car to a local "collector car" dealer who takes cars to local auctions. Mark ended up incurring about $1500 in fees trying to peddle the Jag at $10K - with no sale. The dealer charged $400 to "detail" a car that had just had an expensive detail just prior to it being listed added storage and "processing" fees etc. 

    But, auctions DO tend to set "market values" and drive cars to a higher value. I have another friend who has an absolute jewell of a 1970 split bumper MGB. The evaluation guides, such as Sports Car Market, KBB Classic, Hagerty etc. indicate that this should be a $14K - $18K car. Advertising and trying to sell it around here at $10K, in winter, has resulted in not one single nibble. My suggestion would be to advertise the car to the widest audience possible and be patient. Websites such as The MG Experience, NAMGAR's website (and print) and NAMGBR's site point the car to the widest possible audience - of targeted buyers - folks who are already knowledgeable and interested in MGs, seems prudent. Showing the car at local British Car shows and at local club events and in local club newsletters can often be effective as well.

    The biggest problem with Magnettes is A) the lack of "comps" and B) relatively few folks know what a good car they are - with a resulting lack of solid demand. I would hate to be the one to have to be the benchmark or trendsetter! I guess that part of our task as the leading Magnette support group would be to publicize the cars as much as possible (establishing desirability) and to support and publicize any of the sales that result in an appropriate sale price and "real" value for the cars (helping to establish value). We should cheer and encourage every sale of $20K+ if that is the direction we would like to see values go. Even so, $20K isn't anywhere near what it takes to create a good solid "ready to drive" Magnette from some of the starting points that I see for sale. That being said, I would also point out that every time we see something that is for sale, we seem to knock it down on the details or price. The motivation for a seller is far different than that for a buyer. We should cheer every car that sells (cowboy blanket upholstery notwithstanding), because every one that does sell helps to increase the value of our cars when It is time for us to sell. (Cowboy blanket sold for $12K - mine is "original" and "correct" for $20K and that is why you should buy it...)

    We really do only have two options: either we establish a price that we would like to see for our car and be prepared to wait (maybe years) until some buyer agrees, or, find someone who is willing to buy the car and be prepared to accept whatever they offer for it. Sad choices indeed.

    I do happen to know of a great British Car show with a great "Car for Sale" section that averages about 50% of cars sold... it is in July (great time to take advantage of the summer weather)... I will say that any Magnetteer trying to sell their car at the Western Washington All British Field Meet will get a screaming good deal from the organizer... and full support and help from the organizer... and maybe even a free lunch (great bratwurst!)... all you have to do is show up at St. Edward State Park on Saturday, July 26th and tell them you know Steve H. and have a personal invite...

    Steve H.

    On Jan 12, 2014, at 1:06 PM, John Park <jpark at bmts.com> wrote:

      Well I’ve thought of the auction route but pretty much all of the bigger ones are several days drive away. To ship the car, especially at this time of year is into 4 figures and then there is the auction house fees which cut into the final sale price. So is it worth trying to go that route to “establish” a value or just move the car for what you can get if you don’t want to hang on for years until someone decides you do have a nice car?

      From: zmagnette-bounces at autox.team.net [mailto:zmagnette-bounces at autox.team.net] On Behalf Of Steve Hanegan
      Sent: Sunday, January 12, 2014 3:24 PM
      To: List for the Z Magnette Group - North America
      Subject: Re: [Zmagnette] Fwd: 1958 MG Magnet 20000
      This is a pretty good looking car! Concours? Show Winner? Probably not, but if it drives as well as it looks, it certainly represents a good deal for the buyer. You certainly could not build one like this for this price, even if you are starting with a good solid car. I question whether there is a market that will step in and buy a car like this at this price. I am at a loss on how we as Magnette owners can create a market for good clean cars like this one. A  Mk II Jag in this condition would have no problem reaching $30K - $35K at auction because of the reputation and mystique of Jaguar, though these prices have remained pretty constant over the past 10 years or so. Though it lacks the torquey 6 and top notch brakes of the Jag, the Magnette is still a very solid car with better than average handling characteristics and a very posh and cozy interior. I would speculate that having a few more "finished" cars sell, and perhaps, sell at one of the more prominent Auctions such as Barret Jackson, would  increase the public awareness and demand for our cars. Without demand, there really isn't any value, and demand can't be built on $2K projects.
      I am guessing that a few more of us are going to need to sell our cars - holding out for prices like this one or higher - before the market will come up far enough to make this more of a typical value.
      Steve H.
      On Jan 12, 2014, at 10:54 AM, John Marcell <MG1948 at verizon.net> wrote:

        Good car, good price if you cant do the work yourself.  Even I don't think you could do one with you doing all the work today.
        Phil
        Begin forwarded message:

          From: Gary Sandusky <gary at sandusky.cc>
          Subject: 1958 MG Magnet 20000
          Date: January 11, 2014 9:34:04 PM CST
          To: Phil Marcell <MG1948 at verizon.net>
          Take a look at this Magnet. 
          Gary

          http://dallas.craigslist.org/dal/cto/4281771840.html

          Sent from my iPhone
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