Last month, “Legal Files” focused on ways that a buyer can protect himself in a collector car purchase transaction. This month, we are focusing on how the seller can protect his interests.
In today’s hot collector car market, the seller’s main problem is not getting the car sold, but keeping it sold — that is, not having to buy it back when the buyer complains that the car is not “as it was represented to be.”
Watch what you say Read More
The collector car market has been very strong the past few years, and many cars are trading at prices that were unheard of not long ago. An unfortunate consequence of today’s market is that mistakes can cost a lot more than they did before. There also is a perception that good cars sell super quickly, so you have to move fast to get the car. In this situation, trouble can come very quickly indeed.
Savvy collectors need to balance their Read More
Collector car insurance policies are the coverage of choice for car collectors. The premiums are very low, and you get better service and claims treatment. But while collector car insurance policies, as a class, are almost always superior to your basic consumer auto insurance policy, they are not all created equal.
Are you covered? Here’s a few examples of what to check in your policy:
Other Drivers: With one notable exception, all insurance policies cover you for anything that happens Read More
A recent Federal District Court decision in Illinois should be of serious concern to auction bidders. If it stands, we might all have to take a full coterie of mechanics and consultants with us to each auction.
Our plaintiff, “Ted,” was a successful bidder at a 2011 auction. (“Legal Files” won’t identify the auction company because, as will be explained later, it isn’t particularly unique in this regard.)
Ted purchased a 1967 Corvette 427/435 coupe at a hammer price of Read More
We all know that it’s going to be windy when a low-pressure area bumps up against a high-pressure area. The difference in air pressure sucks air into the low-pressure area until the pressures are equalized.
“Legal Files” recently reported (June 2014, p. 54) how this same principle applies to economic disequilibrium, resulting in an industry that buys new cars in the United States and exports them to countries where the same cars typically sell for much more due to manufacturers’ Read More
Legal Files” gets a lot of questions, but the most frequent is: “How can I do a 1031 exchange with my collector car?”
This is not much of a surprise. Many readers who have owned their collector cars for some time have realized significant appreciation they want to cash in on. Then they discover that income taxes will take a very large bite out of the successful sale.
Fortunately, for those who have owned their collector car for at least Read More
George felt his time was coming. He was through with his studies and was just getting established in his career. Unburdened by a wife or kids, he had been able to save up some money and he was ready to have some fun with it. His interest in collector cars beckoned, and he was quite a fan of the Mercedes-Benz “Pagoda” cars.
A lengthy Internet search led him to the website of a dealer a long airplane ride away. The Read More
One unexpected consequence of today’s hot collector car market has been that many SCMers have been buying and selling more cars more quickly than ever before. They — and their accountants — have wondered if they have crossed the line from a collector to a dealer, which would carry some significant tax and legal consequences.
All states require car dealers to be licensed. The most obvious consequence of dealer licensing is the cost. Not only do you have Read More
Earlier this year, Portland, OR, residents Rick and Jackie White were stunned to find a very technically worded legal notice in their mail. A lien service company was informing them that a local towing company was auctioning off their 1970 ’Cuda to satisfy its unpaid storage bill.
They weren’t stunned because of the substantial unpaid bill. They were stunned because the Hemi ’Cuda had been stolen in 2001, and they had given up on ever finding it.
Rick White ordered Read More
Two recent cases that attracted a lot of attention seem to involve different issues, but they actually have a lot in common. In one, SCM and ACC contributor John Stein brought to our attention a recent fire in a Sacramento repair shop that destroyed a number of Porsches. In the other, SCMer Joel Gardner shared a very lengthy Internet chat-board thread about a Ferrari FF that was damaged while being driven by a dealer’s employee.
The Sacramento shop Read More