Scottsdale, AZ, October 13, 2008 –- Turns out the guy driving that 1967 Shelby GT500 as an enthusiast has the side benefit of being a smart investor. Leading into the Barrett-Jackson Auction Company’s inaugural event in Las Vegas, the world’s leading collector car auction house reported that many of the top cars sold have performed better in value than the stock market and gold over the last 10 years.
“Though most people buy a collector car to enjoy, they have also proven to be one of the soundest investment vehicles in the global marketplace over the past 10 years,” said Craig Jackson, Chairman and CEO of Barrett-Jackson. “It’s rare that a hobby and someone’s passion has the potential of being a great investment.”
The Barrett-Jackson mini-index* was created in 2003 and consists of representative cars that reflect the diversity seen in the collector car market. These cars span from 1957 to 1970 and are primarily European and American sports cars and U.S. muscle cars. The cars used in the index are the 1957 Thunderbird, 1967 Jaguar XKE, 1967 Shelby GT500, 1970 Camaro Z/28, 1970 AAR ‘Cuda, 1965 Austin Healy MK III and a 1967 Corvette 427/435.
According to the data released today, the value of the cars in the Barrett-Jackson mini-index grew by a compounded annual growth rate of 16 percent from Q1 1998 to Q1 2008, which included economic and political upheaval stemming from major events ranging from the Invasion of Iraq, the Dot Com bubble crash, and 9/11. During that same period, the Dow Jones Industrial Average (DJIA) grew a compounded 5 percent annually while the S&P 500 Index grew 4 percent. The price of gold grew a compounded 11 percent in the same period.
“These numbers paint a vivid picture of the intrinsic value and growth of the collector car market,” said Steve Davis, President of Barrett-Jackson. “A financial analyst will tell you that every market has year-to-year fluctuations, but that the true measure is performance over time. We’re proud to be part of that great performance of the collector car market and we believe our expansion this week into Las Vegas will reinforce the view that collector cars are not only our consumers’ passion but offer the potential of providing long-term value. Most enthusiasts like me take great solace that as a car collector, we own tangible assets that have not only stood up to the test of time in value, but can also be driven and enjoyed.”
“With all the turbulence in the current capital markets, we are pleased with our key economic indicators for this event. Tickets sales have been strong, our Las Vegas consignment slots were sold out a month ago, and bidder registration has exceeded our expectations. Bidder interest and registration have not waned despite the negative news coming from Wall Street.”
“We are excited about the upcoming Barrett-Jackson Inaugural event,” says Scott Voeller, Vice President of Marketing for Mandalay Bay Resort & Casino. “We are near capacity for our hotel and we have seen a strong inquiry from our casino players.”
The inaugural Barrett-Jackson Las Vegas event will be held from October 16-18 at the Mandalay Bay Events Center. It is open to the public with tickets for sale at the Barrett-Jackson web site (www.barrett-jackson.com) and onsite at the Mandalay ticket booths. SPEED will broadcast the auction live on high-definition (www.SPEEDtv.com).