TCG Stories

This week, a driver-quality BMW Z3 M Roadster sold on Bring A Trailer for nearly $15,000. This was in line with what the market generally commands for the less desirable open-top M car, especially one with average miles and condition. Even so, the price paid may still be too much. 

When we debunk a car's history, there's a tendency to rely on the CarFax, perhaps a bit too much. The CarFax tells us if any maintenance was conducted at local service facilities and dealerships, and more importantly captures whether a vehicle was wrecked beyond repair in the course of its life. Plenty of cars are damaged significantly but not enough to warrant totaling it. 

While bodywork is sometimes a serious blow to the value of a car, it can be a moot point if the work was done to a high standard and documented by the owner and the body shop. However, this work is rarely captured with photos, and the same goes for if a vehicle is neglected for years at a time. Take for instance the M Roadster mentioned above: the seller pointed to gaps in its history as being due to its use as a summer vehicle on Martha's Vineyard. Ironically, I saw this car years ago after being consulted to view another vehicle on the property.

The M Roadster was seriously neglected, with an interior covered in mold due to being stored in an incredibly damp garage with evidence of water ingress. The car did not run; hadn't run in years; and was left idle for months at a time due to the property owners not being on the island full-time. In fact, the property was in foreclosure and it seemed like the residents of the home had very little interest in spending much time there. 

Does it make it a bad car? No. But this sort of neglect is a characteristic of the CarFax that is never captured, and as stewards of enthusiast-grade vehicles, it's not difficult to imagine a world where the documentation we already do is channeled into a dedicated account with sufficient access controls and one that is forever associated with the VIN of the car. That's what The Common Gear (TCG) was founded around, the notion that as car nerds who already take more pictures of a vehicle than we do our own children, it's not a difficult reach to lock that data into an account so those perilous gaps never again develop in the history file of an enthusiast-grade car or truck. 

And given the seller of this M Roadster didn't say a word about how he found this car on Chappaquiddick, it sure would have been helpful for the buyer to see exactly what he was buying. 

Hagerty has introduced a segment called "The Appraiser" on YouTube, and a recent episode where the guest brought on his recently restored Plymouth Superbird captured a key detail that we at The Common Gear have long believed in. 

"Chris (the owner) has said he has no original paperwork for the car, which, although it's not the kiss of death on a Mopar, it would be really nice to have a factory broadcast sheet, or some ownership history, original window sticker, something like that. That would help the value." 

What's incredible to me about this is the owner likely paid $50,000 or so for the car as a project, and then paid to have it restored by one of the leading Mopar shops in the country. So, let's say he's $175,000 all in on this car the day he picks it up. It just blows my mind that you'd spend that kind of cash and not even ask the seller to purchase a report that breaks down the VIN plate, or shows its ownership history to the point that he picked it up. It's not always easy but I've done it for $2,000 junkyard cars - why would a six-figure shopper not make the same effort? 

While he's not likely to be unable to sell the car when it comes time, he may be in for a $10,000 - $20,000 hit as a result - and that seems like a huge price to pay in exchange for not making the effort to track down a few pieces of paper. Watch the full episode below. 

For a while now, I've felt the train is leaving the station as it relates to the 996 chassis Porsche 911. More so than any index fund, the Porsche 911 has only gone up in value year over year. I know anyone reading will think I'm just being a spendthrift, but this truly is an investment decision. 

Every chassis of the 911 has eventually become a car with a $50K price of entry. I look at these cars now and feel like there's a door opening on the 996 right now, which has time and again proven itself to be a far better car than it was ever given credit for. 

Right now, my perfect specimen is for sale in Georgia. '99 model year, which is generally thought to be less prone to IMS failure (but this car has had the IMS work done already); traditional cable-operated throttle (no drive-by-wire); a two-wheel drive Carrera, as opposed to the 4WD Carrera 4; has th optional rear wiper (don't ask me why this matters); and just ratty enough to be cheaper than most other 996s for sale right now.

My plan had been in the spring to sell either the E91 or the Dakota and use the funds to buy the 996. But now my plan is to take out a short-term loan, grab this 996, and continue with the plans to sell one of those two cars in 2-3 months. I hate owing banks money but assuming either of those two cars is a fast sale, it's a minor inconvenience to grab this car. If it hasn't sold by Friday, I have a PPI scheduled at a shop near Road Atlanta for Friday morning. 

Letting the universe be my guide on this one. 

One of my favorite rabbit holes tracking down the original selling dealer when I add a new project to the fleet. I have been incredibly successful for the most part, barring a few vehicles that left no trace of where they were sold new. 

The Audi S6 Avant came with the full assortment of original owner's manuals and service stamps from when it was nearly new. The dealership didn't ring any bells to me at first - Holbert's Audi / Porsche / Volkswagen in Warrington, PA - but as I began looking for a dealer plate frame to adorn the rear of the wagon, I realized this was a very cool connection to IMSA and Porsche's factory racing efforts in the U.S. 

Al Holbert was the second-generation owner of one of the earliest VW franchises in the U.S. His father, Bob, was an early adopter of air-cooled Porsches as his preferred track car for SCCA events throughout the Northeast. While Bob was a successful racer and driver for none other than Carroll Shelby, it was Al who brought it all together, combining business acumen with true driving talent, making him both a successful dealership owner and championship-winning driver for Porsche. He is still the winningest driver in IMSA history. 

From his efforts to bring segment-busting models like the 959 to the U.S. to convincing Porsche to build an ill-fated Indy car, Al Holbert was a force to be reckoned with. His son Todd runs an outstanding Instagram page with regular updates featuring archival footage from the dealership and the track. Tragically, Al was killed in a plane crash in 1988, but his legacy with some of the most iconic racing cars, including the brutal Porsche 962s, will forever live on.

Enjoy this clip from the 1983 running of LeMans, when Holbert's car blew its engine on the final lap and he popped the clutch, jammed it into first, and crossed the finish line at crawling speeds:

https://www.youtube.com/watch?v=iWCmNNclG30

For many of us of a certain age, we realize that the world of automobiles and motorsports is incredibly hard to penetrate. Those of us who remember pulling up to our first autocross event, or a track day session, know it's an intimidating crowd (at first, and then mostly friendly) and that you'll soon be picking apart your performance on the course for the rest of the weekend. (Or, if you're like me, finding an excuse to buy a different car as a means to cutting a few seconds off your lap time.)

But let's be real: if you've been introduced to road racing or autocross by a certain age, there's a good chance you already had a toe in the hobby somewhere. Many of the stories you hear about the men and women who shaped auto racing in one form or another grew up in the business, with a family member who owned a car dealership or a father who worked in Dearborn. It's rare that an individual just happens to fall into auto racing and then goes on to become a household name in the sport.

Ken Block was a rule breaker in numerous ways, but the manner in which he made motorsports accessible to all is what stands out the most. Yes, he was a successful entrepreneur with the means to pick any sport he wanted to become competent in. The fact he chose rally racing is a godsend to anyone who wished that more young people showed an interest in competitive motorsports. While we often lament the fact that the internal combustion engine seems to be losing ground to electrified drivetrains, Ken Block showed us what the future could look like, where highly-specialized machines are celebrated and admired on a global motorsports stage. His achievements went beyond just introducing a new audience to the joys of auto racing; he showed us how the gasoline-soaked fantasies of our youth will survive in a world where the traditional means of transportation will likely evolve to electrified fleets at some point in the future. Block's Hoonigan brand created a world where a Subaru Loyale wagon could become a turbocharged street beast capable of jumping over a bridge and the swirling blades of a helicopter. It's the stuff of legends.

If you're a gearhead like me, you likely realize how much we owe Ken Block and the Hoonigan team. He put track cars into the mainstream and showed us that becoming a part of auto racing culture didn't require having a great uncle who worked on Brian Redman's pit crew at Sebring. He made it accessible to all and likely added hundreds of thousands (if not more) of followers to the hobby many of us hold dear. 

Godspeed to Ken Block and may we never forget his culture-shifting achievements. 

In 2022, Bring A Trailer blew past its record year in 2021, recording a 63 percent increase in sales over the prior year. While the winds of change are blowing with recession fears and interest rate hikes moving in, BaT's founders don't foresee a major slow-down in its booming business. 

In addition to recording $1.35 billion in sales, the online auction merchant also saw an increase in its average sale price per vehicle, rising to $54,495, up from $47,500 in 2021. Other notable metrics include BaT selling 145 cars for more than $500,000, a 172% increase in its half-million dollar sales from 2021. 

BaT co-founder Randy Nonnenberg isn't worried about a looming recession, either, noting that BaT's low cost of entry compared to many traditional in-person auction houses will only work to its advantage should the economy take a dive. 

The company's big goal for 2023 is a noble one, and eminently achievable should a slow-down occur: get the auction house's notoriously long listing wait time down from 26 days to 10, which will only work to its advantage in the coming years. 

Read more at MSNBC: Online car market Bring a Trailer closing out year with record $1.35 billion in sales

 A few nights ago, I went to check out an old Honda VF500 Interceptor motorcycle. This was not a serious excursion - more an excuse to get the kids out of the house on a rainy day than anything else - but I've had the idea of buying a cheap 80s sportbike as a catalyst for getting my motorcycle license. 

The VF500 was pretty tired. Didn't run (well, it did, but it couldn't run because the carbs leaked.) The cosmetics were rough. Overall, a project bike that wasn't worth much more than $500 and the seller was firm at $1,150. What was more compelling was the Jeep Wrangler Renegade sitting in the driveway that he had recently acquired from a customer. 

The Renegade was an appearance package sold in limited quantities. That's rare enough, and the factory body kit was in excellent shape. What truly set this YJ-series Wrangler apart was the cardinal red interior. I have never seen a red interior in a Wrangler, and this one was in astounding condition. So, the first thought that pops into my head is: should I buy it? It's a unicorn I can likely sell for a fair price even after I've shelled out real cash to get it. The second thought is, do I want to go through the steps of reconditioning it so it's ready for sale and can drive that maximum sale price? 

Short answer: well, no. Perhaps I'm not enough of a risk taker but I have a hard time getting excited about a flip vehicle when I am not already looking for said vehicle. The reason I bought the Dakota R/T was that I both wanted to experience sport truck ownership and felt like it could drive a good price when it came time to sell. While I love the YJ Wrangler, I don't pine to own one. 

Therefore, someone else will have the chance to experience this incredible survivor Renegade first-hand. Don't worry, I told the owner it's only worth $15,000, so it shouldn't cost too much to buy it from him. 

While we have all come to know and love Hagerty for the way it looks after collector car owners, there's more to the story than just agreed-value policies for quirky hobby cars. In fact, a recent article from Seeking Alpha, a blog that provides insights on the good, bad, and ugly of publicly traded companies, profiled Hagerty and declared the following: 

"For more than a decade, Hagerty has grown at three times the rate of the overall auto insurance industry, fueled by high retention rates (90%+), effective marketing (more on that later), and the partnerships described above. What is not obvious when first studying the company is that existing partnerships tend to be a source of ongoing growth."

We've often said here at The Common Gear that the market of collector cars and owners is far larger than most pundits give it credit for being. The author of the article agrees, noting the following: "Hagerty estimates that there are over 43M registered classic and collectible cars. That number grows each year as new collector cars (McClaren, Ferrari, etc.) are produced and other cars “age into” the category (25 years old or more). Hagerty currently has ~2M cars insured, so there is a long runway for growth."

That's why the services that support the collector car market go well beyond just mechanics and body shops. Hagerty is obviously well aware of the fact that vintage and classic cars need insuring, but the company is also investing in other avenues to shore up its support of those customers. What's lacking is a seamless way to track the data and reporting that owners are providing independent of Hagerty's involvement, and often via channels that are disparate and heavily silo'd. 

The Common Gear gives insurers and owners a centralized place to meet and exchange the data that powers the policies Hagerty writes. With the projected growth of the collector car market indicating plenty of maturity ahead, organizations like Hagerty and TCG can grow together for years to come. 

In 2020, Hagerty produced a compelling article about the size of the collector car market in the United States. In this piece titled, "The collector car market is bigger than you think," the author points out that at the time of publication, there were some 31 million collector-grade vehicles in the U.S. 

The data calculation was a little messy, with Hagerty reaching into its own database of customers along with "boiling the ocean" in terms of how many cars and trucks total were on the road. Then, they broke down what constituted a "collector" car that extended the goalposts to allow for late-model entries belonging to the post-boomer contingent. 

What's most intriguing about this report is not necessarily the numbers (though they are impressive) but more what it represents which is how many people have a second car squirreled away that counts as the "collector" or "hobby" car. While we can go several days without seeing a single interesting car in traffic, the reality is there are millions of enthusiast-grade vehicles hiding in driveways and storage units, waiting for the weekend or a complete revival.

For The Common Gear, this represents a tremendous batch of potential customers who need to take steps now to protect their investment and digitize the valuable records that capture every improvement necessary to justify both a higher insured value and stronger sale price, when the time comes.  

The collector car insurance landscape is often summed up in one word: Hagerty. We tend to assume that the provider with the biggest media buys and splashiest presence at marquee car shows and auctions is the only game in town, but there are actually quite a few agencies to choose from that provide what we refer to as collector car insurance. 

While the benefits of working with such an outfit are numerous, the most obvious one is being able to access what we call assigned value coverage. In other words, you - the customer - have some control over the valuation, and can oftentimes tell the insurance carrier what you believe the vehicle to be worth based on both market dynamics and your own investment into the car or truck you're insuring. 

I use Hagerty and JC Taylor for my vehicles, but there's also American Collectors Insurance, Heacock, Chubb, Condon Skelly, and more. Here's what you may not know: NSM Insurance owns all but one of those companies, including JC Taylor (Chubb remains the largest publicly-trade insurance company). You might even say they're a bigger deal than Hagerty, with one distinct edge going to the company that recently went public and bought Broadarrow Group: Hagerty is focused on what's next customer-wise, while NSM seems content to service a boomer audience that is quickly aging out of the hobby. 

While Hagerty may be edging closer to catering to the upper end of the hobby, there's no denying they have found a niche and exploited it; the question is whether groups like NSM will find a way to catch up.