Legal Files

The 2014 Scottsdale auctions showed that many collectors are taking advantage of the hot market and selling cars for record prices. But many of those collectors are also learning that we are in an era of high income tax rates. So, how can collectors minimize the tax costs? Basic tax principles Let’s start with some…

An SCMer wrote asking about potential liability if he sells his vintage Formula One car and the buyer is later injured as a result of a defect in the car. He knew he could clearly state that the car was being sold “as is” but wondered if that would be sufficient. He was particularly concerned…

Since a 2001 Porsche Boxster S resides in the “Legal Files” garage, this letter from noted Porsche authority Pete Zimmermann caught my attention: Dear Legal Files: It appears that Porsche has a problem. A really big problem. All because of a bearing, to be exact, an IMS (Intermediate Shaft) bearing. That bearing is an internal…

 Last month’s “Legal Files” (December 2013, p. 40) reported on the conflicting ownership claims to the Briggs Cunningham #1 Le Mans Corvette. The claims of plaintiff Dan Mathis Jr. took an unexpected turn when defendant Kevin Mackay’s attorney discovered that Mathis had failed to mention the Corvette when he filed bankruptcy. That put his bankruptcy…

Howard Coombs At this writing, a U.S. Bankruptcy Court trustee is set to auction off the ownership rights — whatever they might be — of Dan Mathis Jr. in regards to 1960 Corvette VIN 00867S103535. This car is one of the legendary Cunningham Corvettes — one of the three that competed at the 1960 24…

Monterey Car Week is the closest we get to automotive nirvana. We have grown accustomed to the week’s three major problems: finding acceptable accommodations, finding enough time to do everything we want to do, and getting decent dinner reservations. This year, for the first time, another problem manifested itself — car thieves have discovered Monterey.…

Auto leasing hit historic highs in the past couple of years and now finances about 27% of new-car sales. Leasing is particularly popular with the luxury brands — 75% to 80% of new Mercedes-Benzes and about 50% of new BMWs are leased. And specialty collector-car leasing companies such as Putnam Leasing and Premier Financial Services…

A Ferrari owner was in deep financial trouble. Business difficulties had left him pretty well broke. Worst of all, he owed the IRS more than $3 million, and an IRS agent was hot on his heels to collect. In need of cash, the owner approached his bank for a loan. Since the IRS had filed…

On April 28, Publisher Martin hosted the Round Fendered Volvo Club at his home for a viewing of the movie “Swedish Auto.” A few days later, a club member who drove his Volvo 122 wagon to the affair wrote this interesting account of the demise of his Volvo. “Legal Files” has added comments — with…

  Last month’s “Legal Files” illustrated how loaning your car to another can wreak havoc at the highest levels. This month, we’ll explore some more mundane situations that can be equally unsatisfying. Let’s start with a pretty common situation — you and your friend enter a rally in your 1957 Porsche Speedster. On the second…