The Under 1,000 Club: Ultra-Low-Mile Supercars

The Under 1,000 Club: Ultra-Low-Mile Supercars as Auction Trophies

Limited-production high-end sports cars unfailingly inspire some buyers to stash their quarry rather than drive it, often for anticipated future financial gain. Or, the intention may be to ensure future bragging rights for owning the best example in the world, as collector Miles Collier opined in the July 2015 issue of Sports Car Market.

Whatever the motivation, there were numerous such cars offered and sold at the various Monterey auctions in August. Alain Squindo, Vice President of RM Auctions/Sotheby’s, suggested that the availability of Ford GTs, Ferrari Enzos, Mercedes-Benz SLR McLarens and others with super-low miles offers a second chance to get a car that was difficult to buy when new.

“Owning one isn’t just about the driving experience,” said Squindo. “It’s also about having something ultra-rare, like a valuable piece of art on your wall.”

Image Source: 1989 Ferrari Testarossa(rickcole.com)

Low-Mile Stars from Monterey 2015

A sampling of sub-1,000-miles supercars sold at the Monterey auctions:

• RM/Sotheby’s Pinnacle Portfolio included two very special Bugatti Veyrons: the first of 300 built, with 764 miles, sold for just over $1.8m, and the last one made, a 16.4 Super Sport with 308 miles, brought $2.31m.
• The Rick Cole online auction sold a 1989 Ferrari Testarossa with 318 miles for $350k; Hagerty value data suggests a high value of about $140k for this model.
• At Mecum’s auction, a 2005 yellow Porsche Carrera GT with 252 miles sold for $1m, though that was below the $1.2-$1.4m pre-auction estimate.
• Low-mile Ford GT’s have been garnering big numbers, too, and there seems to be plenty around. RM/Sotheby’s sold a red 2005, equipped with just one of the four factory options and with 287 miles, for $340k. At Mecum, a red 2005 GT with a mere 25 miles also sold for $340k, and a 2006 Tungsten model with 706 miles brought $310k. Compare that to $270k paid for another red GT at Mecum with all four options but with 2,618 miles.

The number of low-mile cars at auctions is of course no coincidence.

“Our aim at auction, especially in the very competitive landscape of Monterey, is to bring the very best examples,” said Squindo. “A low-mileage car with desirable color and options is usually the best example. That’s not to say cars with higher mileage are not desirable, they’re just not the most valuable.”

Image Source: 2005 Porsche Carrera GT (mecum.com)

A Dilemma

But what does the buyer do with such a car? Preserve it in perfect condition for the next owner? Drive it for weekend enjoyment? Squindo said he sees both kinds of buyers, but the “preservers” seem to be more common.

“In the case of the Ford GT and some others, it’s a proven investment and so there’s incentive to preserve the car as a time capsule – a future collector may want that,” he said. “The most likely scenario is a client who will drive the car a hundred miles a year, have some fun on a couple of days but continue to preserve the low mileage.”

Squindo emphasized that low mileage isn’t the only factor in determining value.

“With the Ford GT, color means so much,” he said “The 2006 Heritage Edition with the blue and orange Gulf racing livery colors is at top of the heap.” (A Heritage Edition with 264 miles sold at Mecum in Monterey for $460k.)

Image Source: 2006 Heritage Ford GT (californiadreamlimousine.com)

By Jim Koscs for Premier Financial Services