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The SHELBY AMERICAN
Unfortunately, questions like
this cannot be answered in ad-
vance. You’ll have to sell the car
before you can see how it feels to
not own it anymore. Based on our
own experience and those of others
we’ve spoken with, however, that
fear is mostly in your mind, blown
up to larger proportions by over-
thinking it. Most humans don’t
like change. It’s easier to do noth-
ing than it is to do something dif-
ferent. Because of this, some cars
never get sold. And since a car will
outlive its owner, this is exactly
what happens.
Not selling your car when you
are past enjoying it can mean
watching it slowly deteriorate. If
it’s no longer any fun to work on,
even if that means washing it and
waxing it, the thought of driving it
and having something malfunc-
tion is enough to keep it in the
garage. You’re overtaken by the
“what-if’s.”
Letting it sit there until it out-
lives you shifts the burden of own-
ership somewhere else: to a wife,
son or daughter (or probate court).
Heirs surely won’t appreciate the
car as much as you did. Once they
get past their emotions – having
the car there after you are gone –
they may look at it only as a dis-
posal problem. A commodity that
can be turned into cash.We’ve wit-
nessed wives putting up a brave
front of keeping the car and driv-
ing it once in a while to a club
event because “
that’s what he
would have wanted
.” We don’t see
them having nearly the fun their
late husband did. They tend to
view it as a grim responsibility, of
carrying out what they imagine
was their late husband’s wishes.
Deciding to sell the car pres-
ents your survivor(s) with a whole
new bunch of problems. They don’t
know the market like you did and
by your decision to do nothing,
you’ve unwittingly thrown them –
and your car – to the sharks.
You’ve given up the right to deter-
mine how it will be sold: at auc-
tion, private sale, broker or dealer.
Spring 2019 5
HERE COME THE MILLION $ MUSTANGS
When the 1967 Super Snake re-
cently sold for $2.2M at the Mecum
auction in Kissimmee, Florida [
see
previous page
] it got us thinking about
the parallels thirty-seven years ago
when 427 Cobras started topping
$1M. After a five year lag, 289 Cobras
followed suit. It wasn’t every Cobra, to
be sure, but 427 S/Cs or 289 factory
team cars led the way. It was a boom
time that saw more cars than normal
suddenly appear on the market. Own-
ers who had bought them in the early
1970s when prices were scraping the
bottom, suddenly found that it was
hard to resist selling something that
had appreciated forty or fifty times in
value in as many years. Investors were
replacing enthusiasts as cars changed
hands and prices spiraled up.
Then in 1990 there was a notable
recession and in 1991 the Gulf War
caused investor shivers. Cobra buyers
who had jumped on the train, expect-
ing values to climb indefinitely sud-
denly found themselves with a
depreciating “investment” as Cobra
prices plunged thirty percent. Some
sold, swallowing the loss, and others
gritted their teeth and held on. Enthu-
siasts who had been long time owners
didn’t feel any pinch. They loved the
cars; always had and always would.
They never considered selling their
cars and cashing in.
Over the next decade the economy
came back, drawing the Cobra market
with it. Real estate values climbed and
stocks went up, resulting in wealth
creation. The rising tide lifted all boats
and Cobra prices began their steady
increase. Shelbys followed, but at a
more modest rate.
The question occurring to us was,
will everything that happened when
Cobras reached the magic $1M mark
happen all over again when Shelby
values top $1M? Admittedly, the first
Shelby to hit seven figures, the Super
Snake, was a genuine one-of-one car
with indisputable history. Other
unique Shelbys will likely follow.We’re
already seeing prices for some ‘65s and
‘67 GT500s begin to spool up to $400K.
Opinions are always widespread
after the sale of any record-breaking
car. With forums and blogs, no one
keeps their opinion to themselves.
Some think that a $2M car should be
top-of-the-pyramid, restored to perfec-
tion and not need anything. However
with high-dollar cars like this that are
outside the envelope, this is often not
the case. The Super Snake is a little
long of tooth and could really stand a
top-to-bottom, end-to-end restoration.
However, this was hardly a considera-
tion for the two bidders slugging it out
to own the car in rarified air.
What’s a $100,000 restoration
compared to a $2M price tag? It’s only
5% of the car’s value. And this is a one-
of-a-kind car that you have developed
an emotional attachment to. It may
not become available again. Do you re-
ally want to pass on it because it is
less than perfect? The Brits call it
being penny wise and pound foolish.
It may be something to consider in
the near future if Shelby values con-
tinue to climb towards that $1Mmark.
You have to look at it a little differ-
ently if you’re considering buying a car
near the lower end of the scale. Would
a $75K car needing a total restoration
which might run $75K be worth
$150K? And if it is, does it make sense
to pour 50% of the value into having
work done to get it to that point? But
substitute some figures: buying a $1M
car and spending $75K to get it into
top condition represents only 7 1/2% of
its value. Pocket change.
We tend to be optimistic by na-
ture. The sun will always rise tomor-
row and the value of Shelbys will
continue to increase. Trends don’t al-
ways last as long as people expect.