Ron Pratte-How good are cars as an investment?

How old is he? Could be estate planning. ..

 

surely BJ significantly reduced fees & other costs assoc. otherwise the ultimate "broker", got'em going IN and OUT !! BJ advertised the heck out this too.

Jack

 

He paid $1,650,000 for the Howard Hughes Buick a few years ago and I think it sold for $125,000 last night.

 

Looks like a better write off than an investment. Great question posed by Jim.

 

My thinking as well.

If he doesn't like his kids partners, this could be a show for them of what is yet to come for them.

"NOTHING"

 

The way I saw it the Buick had a reserve that wasn't met so it was a no sale.

 

Could be age, could be health issues, could be he's moving on to collecting stamps... unless someone asks him, it's all just speculation.

 

The website lists it as sold at $110,000 but that could be an error.

1953 BUICK ROADMASTER 4 DOOR SEDAN - Barrett-Jackson Auction Company - World's Greatest Collector Car Auctions

 

The Buick was announced as sold while on podium so I believe it was. Did he really pay 1.6 mil for that thing? He lost on the Shelby as well as the GM Futureliner. I don't think he has a money problem after doing some research on him. Sounds like estate planning to me.

 

Estate planning is dying with them and only paying estate tax vrs a double tax of capital gains and then estate tax on top of that.

There is no way to spin this bubble any longer. The party is over and until the next growers of trees to sky are reborn a hard rain is going to fall.

 

I thought the results from the auctions was pretty healthy - some very solid numbers on superamerica, 288gto, CS, testarossa, lambos, boxter....def doesn't feel like a bubble popping....actually nice to see some cars not meet reserves - def not a feeling of people puking things....and that's after a week with global fx markets going nuts

 

A 93% hit on this Buick seems a bit like puking to me...

 

that's one car - does anyone actually care about the car? did he buy it to raise money for a charitable cause when he paid top dollar? it's an odd lot

 

I think if you base the results solely on sales prices compared to the estimates it would appear like a very mediocre auction overall. However, I think these estimates at ALL the auction houses were way to ambitious

 

those estimates are like wall st estimates...good for not much other than marketing hype

only things that matter in a market are the prices things sell at and the prices they dont

 

He is in his early 60s

The Hughs Buick went for 110,000

 

Ron bought a 1926 Ford Indy Speedster from me in 2003 for his collection. He paid me $19,000, it sold at this auction for $34,500. I would say that is not too bad of a profit.

 

According to very unofficial reports, the Pratte collection sold approx 140 cars for around 35 million including buyers premium. Overall 1585 cars sold for approx 130 million including buyers premium.

 

The buick was definitely sold as were many of the other cars I think they sold all of his cars.. I would not be certain that some of the old prices were even real .. certainly a guy like RP would be smart enough to cut some very good deals with BJ like no fees and probably a good portion of the buyers premium on anything he lost on I know i would have worked that out ..
also the overall impression from the auction was that cars were down..
for example very few of the NON Ron P cars with reserve sold.. some of them I do not beleive even had any bidders of they would run them up and then spend 5 minutes trying to get 25K more on a car for 2000000... they were looking for one bid.. IMHO .. i mean if a car was run up to 2000000 and BJ had close to 400K in fees they stand to make you think they would have spent 5 minutes trying to get 25K... doesnt add up to me..
also several cars were hammered sold then they started taking bids again that violates the contract with the bidders..
also they would on many cars remove the catalog despcription by downgrading it at the last minute.. alot of funny business that I have not noticed as much in previus auctions...
all of this is just my observation from spending 4 days there watching some cars very closly and not even in the room on others....
remember auctions are just like any other car dealer on buyer be very aware..

 

Ouch!


That's a huge loss.

 

If the bubble "pops" on vintage and cars owned to generate profit what does that really mean to the owners of current model Ferrari's? I'm not a sky is falling kind of person - just curious.

 

He more than likely negotiated a sweet deal with BJ......

I watched a bunch of his 0001 serial number cars sell for what I thought was crazy money.

 

11 years of storage insurance and maintenance?
Really.

 

Many of the 0001 cars were charity auctions, so I'd guess his basis was a deduction?which would make sales value or delta between donation and sales the basis? Or did manufacturers take the deduction?
My understanding is manufacturers gave to charities, BJ et al auctioned for them, likely no fees/donated deductions.
So purchase would be direct deduction?
I'm not a CPA, and I didn't sleep in a Holiday Inn since the late 60's.