- Collector Car Insurance

Volume 6 / Issue 1
Rarified Air
A
takeaway from the recent
Scottsdale auctions is that the
increases we are seeing in
total auction results are largely being
driven by rare, post-war vehicles —
particularly European sports cars.
The numbers generated for some of
the most expensive examples simply
boggle the mind, and the market
of buyers for cars in this rarified air is
really quite small when compared
with collector car owners as a greater
group.
Large swaths of collectors are not
seeing big increases in car values,
such as the majority of muscle car
and pre-war classic owners. To these
folks, the market seems to be in a
holding pattern, or maybe even a
gentle decline.
This realization speaks to me in a
couple of ways. As David Schultz so
eloquently put it in the last issue of this
newsletter, some of the best values in
the marketplace right now are CCCA
Classic automobiles, many of which
were built in very small numbers to
a very high standard. There are also
great bargains in the muscle car
world, as many owners have spent
much more restoring their cars than
they can recapture at auction or via
private sale. Most people like a good
bargain, and there are certainly
plenty out there.
The big question remains: Is there
a ceiling to these post-war European
sports car values? If history is any
guide, and it usually is, there has to be.
As I’ve stated before, what’s most
important is that you buy what you
love and drive what you buy. It’s
nearly impossible to put a value on
the joy we feel motoring around in
our favorite cars with our family and
friends. With spring around the corner,
there will be plenty of time for that
before we know it.
I hope to see you in Amelia
Island. The Chubb folks will be at the
Gooding auction and the concours,
so please stop by and say hello.
Keep ’em running!
Jim Fiske
Senior Vice President
Chubb Personal Insurance
[email protected]
In This Issue
Amelia Island’s 20th Anniversary���� 1
Gooding on the Market������������������ 2
Ten Amelia Island Cars to Watch2–3
The Classics��������������������������������������� 3
1969 DeTomaso Mangusta������������� 4
When Hobby Becomes a Business� 5
1958 Lincoln Continental Mark III���� 6
1970 Datsun 240Z Series 1���������������� 7
Upcoming Events����������������������������� 8
insider
Collector Car
Building on Success
One man’s car event has grown into one of the world’s
premier weeklong collector-car celebrations
by Keith Martin
T
his year marks the 20th anniversary of the Amelia Island
Concours d’Elegance.
It’s interesting to reflect on what
a difference a single individual can
make.
Bill Warner founded the concours in 1996. With his able team,
he has driven it to become one of
the two top car gatherings in the
country — along with the Pebble
Beach Concours d’Elegance.
He has an unwavering passion
for celebrating the heroes of the
motor racing community, beginning with Sir Stirling Moss in 1996
— and repeating with Sir Stirling
this year.
One man’s vision has become a top-draw event in the collector car world
In addition, the concours has
raised more than $2.5m for charity.
The concours has become the anchor event of a week filled with activities. Auction companies Gooding, RM,
Hollywood Wheels and now Bonhams always offer a mouth-watering array of cars for sale. There is also a Cars & Coffee
show on the grounds of the Ritz-Carlton on Saturday, where the concours takes place, as well a nearby exotic-car expo
and car show put on by Festivals of Speed.
In short, the singular drive of Warner
to found a concours has led to an entire
week filled with activities that celebrate
our love for classic cars and motorsports.
There might be some good buys at
the Amelia auctions. The market slowed
and consolidated some of its recent
spectacular gains in Scottsdale. That
means sellers may be more motivated to
take a current market price than hope for
next year’s money.
As always, do your homework, know
exactly what you are bidding on, and
don’t be afraid to stretch a little bit for
the special car that hits all your hot butRace cars and Classics are always well represented at Amelia Island
tons.
The Goods
Amelia Island Star Cars
by David Gooding
Here are 10 of the world’s elite collector cars that just might make history
this spring:
1
1956 Maserati 200Si
Gooding & Company
Factory team car with exceptional
international racing history. Highly
original. Certified by the Maserati
Classiche Department.
Contact Gooding & Company for
estimate
S
pring is a great time of year to
enjoy your collector car. Whether
you are taking your car for long
drives, rolling it out for maintenance
or putting the top down for the first
time this year, the crisp and refreshing
weather is always inviting for motorists.
For Gooding & Company, the turn of
spring means we are approaching
our Amelia Island Auction at the Omni
Amelia Island Plantation in Amelia
Island, FL, on Friday, March 13, at 11
a.m. EST.
Our Scottsdale Auction in January
realized more than $51.1 million in
sales, a 90% sell-through rate, and 11
cars selling over $1 million, improving
from our 2014 sale. We continue to
emphasize our strength as a premier
auction venue with the highest-quality
consignments, award-winning marketing, presentation and hospitality.
Our team has once again curated
an extensive Amelia Island line up of
more than 80 exceptional classic, sports
and race cars spanning the decades
and marques, including Ferrari,
Duesenberg, Mercedes-Benz, Porsche,
Lotus, Jaguar and many others. Exciting
Ferraris heading to Florida include a
rare light blue, long-term-ownership
1967 Ferrari 275 GTB/4 and a stunning
white-over-red 1961 Ferrari 250 GT
Series II cabriolet that has been widely
celebrated and showcased at events
including the 2010 and 2011 Palm
Beach Cavallino Classic.
Our Amelia Island Auction has also
been the site of many high-profile race
car offerings, such as the record-breaking 2014 sale of the 1968 Porsche 907 at
$3,630,000. Our Porsche racing trend
continues this year, with a champion
1974 Porsche 911 Carrera 3.0 RSR, as well
as other road-going examples such as
the 1957 Porsche 356 A 1600 Speedster.
We hope you will be able to join
us at our sixth annual Amelia Island
Auction, an accommodating location
for our growing worldwide collecting
community. If you are unable to join us
in Florida, you may still participate by
viewing our live webcast on our website
and registering to phone or absentee
bid with the assistance of one of our
team.
2
Collector Car Insider
2
1967 Ferrari 275 GTB/4
Gooding & Company
Well-preserved garage find, last
registered in 1982. Offered from
43-year ownership.
Gooding estimate: $3.4m–$3.8m
3
1988 Jaguar XJR-9
RM Auctions
The sole remaining example of two
purpose-built, IMSA-spec XJR-9s
ever built. Winner of the 24 Hours of
Daytona in 1990, podium finishes at
1989 and 1990 12 Hours of Sebring.
RM estimate: $3m–$5m
Tim Scott ©2015, courtesy of RM Auctions
4
1938 Bugatti Type 57C
Aravis cabriolet by Gangloff
RM Auctions
One of three surviving Aravis
cabriolets by Gangloff. Desirable
supercharged specification. The
2012 Amelia Island Best of Show
winner.
RM estimate: $2.5m–$3.25m
5
1967 Shelby 427 SC Cobra
RM Auctions
One of 29 authentic semicompetition Cobras built.
Documented with exceptional
history and long-term ownership by
renowned Cobra enthusiasts.
RM estimate: $2.2m–$2.5m
The Classics
6
1992 Ferrari F40
Bonhams
The last U.S.-spec example built.
Driven less than 10,000 miles. Ferrari
Classiche certified.
Enjoy Classic Cars and
Friends at Amelia Island
Bonhams estimate: $1.2m–$1.4m
by David Schultz, CCCA President
and CCCA Museum Trustee
A
s I write this I’m looking out my
window at a light snowfall that’s
been going on for several days.
Temperatures are below freezing. No need
to go to the gym; snow shoveling is my daily
exercise.
I am ready to enjoy a long weekend at
Amelia Island, FL.
The Amelia Island Concours d’Elegance
celebrates its 20th anniversary this year
with another spectacular show field. While
the warm weather certainly contributes to
the event’s success, it is the diversity — and
scope — of the show field that sets the
Amelia Island Concours apart. (In the spirit
of full disclosure, I serve as chief judge of this
concours.)
Concours founder Bill Warner and his
team do a fine job bringing together a wonderful group of antique, Classic and sports
cars, as well as a superb field of racing cars.
I attend many car events and I truly see
something special every year at the Amelia
Island Concours. The spectators truly get
their money’s worth. Bill’s roots are in racing
and each year a racing legend is featured.
This year’s honoree is Sir Sterling Moss.
The concours weekend features several
automobile auctions. RM Auctions holds its
auction at the host hotel, the Ritz-Carlton,
while Gooding & Company is at the Omni
Amelia Island Plantation. Bonhams is a newcomer to Amelia Island, and is at nearby
Fernandina Beach Golf Club.
The highlight of the weekend is reconnecting with fellow motorcar buffs I
only see at events like this. Many of my best
friends are those I’ve made through the old
car hobby.
Back home, my Classic cars haven’t
been on the road in months. For those of
us in wintery climates, this is the time of the
year when repairs — minor and major — are
made, so the cars are ready for the road
in April. Warmer weather can’t come soon
enough.
But in the meantime, Amelia Island offers
nice temperatures, great cars, good friends,
and a wonderful setting. Add it all up and
you have a pretty good excuse to head
for the sunny climes of northern Florida in
March.
7
1953 Fiat 8V
Gooding & Company
One of 114 8Vs built, and one of
only nine Vignale coupes. Beautifully
restored. Class winner at Pebble
Beach and Amelia Island.
Gooding estimate: $1.6m–$2m
8
1934 Duesenberg Model
SJ Touring Berline
Gooding & Company
Documented history. Known as the
“Continental Duesenberg.” One of 36
factory supercharged Model SJs.
Gooding estimate: $950k–$1.4m
9
1932 Stutz DV-32 Super
Bearcat
Bonhams
Ex-Fred Simeone. Coachwork by
Weymann. Retains original fabric
coachwork.
Bonhams estimate: $850k–$1.2m
10
1974 Porsche 911 racer
Hollywood Wheels
Fully race-prepped. Now restored
from the ground up. Raced in period
by Hollywood icon Paul Newman.
Contact Hollywood Wheels for
estimate
(Images are courtesy of the respective auction houses, unless noted otherwise)
Collector Car Insider
3
Market Analysis
1969 DeTomaso Mangusta
The Mangusta is now selling at parity to the small-block Grifo, as I have long believed should
be the case
Courtesy of Silverstone Auctions
by Donald Osborne
This car, Lot 319, sold for $281,782 (£180,000), including buyer’s
premium, at Silverstone Auctions’ NEC Motor Show sale in
Birmingham, U.K., on November 16, 2014.
The Mangusta is a fascinating car, beautiful in a very masculine way,
powerful, rare and characterful. That it also has had a reputation for being
slightly dangerous adds to its appeal, although as is often the case, conventional wisdom is not really accurate. It is a car that doesn’t suffer fools
gladly, but as a collector car, it is rather unlikely to be driven today near or
past its “ fearsome” limits.
Mangusta International, the central club dedicated to these cars, has declared that more than half have survived. Unlike its successor the Pantera,
relatively few Mangustas have been modified, customized or updated, and
originality is prized.
SOLD!
Two variants
There are two basic variations: the 289-ci vs. the 302-ci Ford V8 engine
and four fixed vs. two pop-up headlights. The former is the European version, and the latter is the U.S. specification, although by now the original
delivery locations have very little to do with where a car might be found.
Generally, the 289/four-headlight cars are more desirable, but if someone
were to offer me a two-headlight/302, I wouldn’t turn it down.
As original glass and rubber parts are not available, and the deeply
curved body panels demand careful and accurate repair work, the difference
in value between a well-preserved original or freshly, expertly restored car
and one that isn’t can be — and should be —substantial.
On a steady rise since 2008
At the time I am writing this, RM Auctions have consigned to their
February 4, 2015, sale in Paris, France, a 1969 four-headlight car. Formerly
a part of Peter Kaus’ Rosso Bianco collection, it was said to retain its “original paint, upholstery and drivetrain” and was finished in an attractive light
metallic blue. It carried a pre-sale estimate of $146k–$194k (€120k–€140k).
On a major international listing website, a vendor based in Florida
was advertising a “burn down Mangusta 1970, matching number, USA
model” complete with “several body parts” for the needed restoration.
Located in northern Italy, it carried an asking price of 120k euro, or $146k
at $1.216=€1.00. Another project was on offer in France — a 1968 car at
€140k ($170k). Finally, in the U.K., a London dealer was advertising a 1969
U.S.-delivery, two-California-owners-from-new example for £225k, or
$349k. That’s an indication that the U.K. trade thinks the Mangusta is still
undervalued — despite the tripling of prices in the past five years.
Tracking values
According to SCM’s Platinum Auction Database, the last four auction
sales of Mangustas have been as follows:
In December 2014, Bonhams sold a 1970 two-headlight car with an older
4
Collector Car Insider
restoration for $195,252 at their Oxford, U.K., sale.
In July 2014, a refurbished four-headlight 1969 sold for
$214,500 at the RM/Auctions America sale in Burbank, CA.
In May 2014, a 1969 freshly prepared four-headlight
model sold at $369,882 at RM Auctions Monaco.
In December 2013, an original, concours-winning fourheadlight 1970 brought $332,808 at Bonhams’ London sale.
In my profile of a Mangusta published in the December
2012 SCM (Etceterini Profile, p. 42), I observed a dramatic
rise in Mangusta values — and a discernible chasm in prices
in the U.K. and in the U.S. I also commented on what it cost
to buy a Mangusta versus an Iso Grifo. I also compared
prevailing values from a Mangusta profile I wrote for the October 2008 SCM
(Etceterini Profile, p. 38).
In 2008, my profile subject, a 1969 Mangusta, sold for $99,241 at Bonhams’
Goodwood Festival of Speed sale. At the time, a small-block Grifo would
have brought just under $200k. By the time of the 2012 article, the Grifo had
come down a bit to around $175k. The Mangusta then written about was a
then-market-high $209k.
Now on par with the Iso Grifo
In my opinion, the Grifo is a more-refined vehicle, with better details and
finish, but the Mangusta could nevertheless be considered a reasonable alternative to a Grifo as a powerful, attractive, Italian-American hybrid GT.
I wrote in 2008 that the DeTomaso should not keep selling at such a steep
discount to the Iso, and so it seemed the gap had closed. But at the same time,
a well-regarded U.S. dealer had just sold a good example of a ’69 Mangusta
for half that money.
While U.S.
sales have historically been
less-than-topcondition cars
sold in a range
far lower than
the U.K. sales,
the result of the
RM/Auctions
America July
2014 sale in
Burbank is evidence that the
Atlantic Ocean differential seems
Details
to be lessening significantly.
Years
produced:
1967–71
The Mangusta is also selling at
Number produced: 401
parity to the small-block Grifo, as
Original list price: $11,500
Current SCM Valuation: $105,000–$250,000
I have long believed should be the
Tune-up cost: $525
case. If you fit comfortably inside
Distributor caps: $45
— and not everyone does — the
Chassis # location: Stamping on frame member
Mangusta can be an interesting and
near right rear corner of engine compartment,
data tag in front compartment on bulkhead
offbeat choice. The long overlooked
Engine # location: Intake side of block
“non-purebreds”
have
finally
Club: Mangusta International
found their day. That a relatively
More: www.mangustainternational.com
Alternatives: 1969 Iso Grifo S1, 1969 Corvette 427,
minor player in the major auction
1970 Monteverdi Hai 450SS, 1969 Ferrari 365
scene achieved this sale backs my
GTB/4
opinion that this is the new “marketSCM Investment Grade: B
correct.”
Legal Files
When Your Hobby Becomes a Business
You can’t claim to be a dealer to avoid sales tax, and at the same time claim to be an investor to
get favorable income tax treatment
by John Draneas
O
ne unexpected consequence of today’s hot collector car market
has been that many people have been buying and selling more
cars more quickly than ever before. They — and their accountants — have wondered if they have crossed the line from a
collector to a dealer, which would carry some significant tax and legal consequences.
Dealer licensing
All states require car dealers to be licensed. The most obvious consequence of dealer licensing is the cost. Not only do you have to file an application and pay a licensing fee, but you need to carry appropriate insurance,
post a bond and meet a host of other requirements. A friend recently went
through the process and, while trying to keep it as cheap as possible, ended
up spending about $8,000. Plus, he will incur significant annual expenses for
insurance and license renewals.
But the licensing costs are probably not your most significant legal exposure. As a dealer, you must collect sales tax on all your sales. You are subject
to any mandatory disclosures about the condition of the cars you sell, and
any mandatory warranty provisions that your state may require dealers to
extend. You are exposed to lemon-law liability. You are exposed to liability
under your state’s consumer-protection laws, as each of your sales is now a
commercial sale to a consumer. Remember, in the eyes of the law, judges and
juries, used-car dealers are right down there on the popularity scale a rung
or two below lawyers.
Favorable tax consequences
The most immediate tax benefit is that your cars don’t have to be registered, but they can be driven with dealer plates. That means you don’t have to
pay sales or use tax when you buy them. Many collectors register as dealers
simply for that purpose, and it works — sort of.
Dealer status also offers the ability to deduct all of your dealer business
expenses on your income tax returns. These can be substantial — travel to
check out possible purchases, travel to and registration at collector car auctions, your SCM subscription, and so on. Those savings can certainly add up.
However, there are many reasons why dealer status is a short-sighted
approach that can cost you even more in the long run. One reason is that
claiming to be a dealer when you really aren’t can land you in legal hot water.
You can be fined or charged criminally for failing to properly license your
personal cars and for filing false licensing applications. Another reason is
that the income tax deductions aren’t automatic. Dealer licensing is a matter
of state regulatory law. To be able to deduct your “dealer” expenses, you have
to actually be engaged in the business of being a car dealer. If you aren’t, but
deduct your expenses, you can be subject to substantial tax penalties — and
even criminal tax charges in egregious cases.
You can also say goodbye to the low insurance rates you’ve been getting
from your collector car specialty insurance company, as they don’t insure
dealer cars.
Unfavorable tax consequences
As a dealer, your collector cars are now inventory — not investments. As
such, all of your profits on sales are now taxed as ordinary income, with federal
rates running as high as 39.6% today. If you were not a dealer, the profit would
be taxed as a capital gain — at a maximum federal rate of 20% if the car was
held at least a year. That’s a pretty big spread.
As a dealer, you are not eligible to use like-kind exchanges to defer your
gain on a sale. Collectors commonly use that technique these days.
Dealers, on the other hand, are required to pay income taxes on their
gains every time they sell a car — even if they reinvest in other cars. That
erodes their invested principal and their rates of return.
Crossing the line
So the question arises — when do you cross the line and become a dealer
even when you don’t want to be one? Unfortunately, the answer is not clearcut.
Many states’ licensing statutes look at the number of sales within a single
year — most often five. But the number of sales is not determinative — it is just a
legal presumption. Think of that as a burden-of-proof principle. Once you exceed
the stated number of sales in any given year, the law assumes that you are a dealer
unless you can establish that you are not. Below that number, you are assumed
not to be a dealer unless the government can establish that you are. Thus, you can
be a dealer with fewer sales in a year, and still be a collector even with a higher
number of sales.
Character, not number
To be a dealer, you must be selling cars in the ordinary course of business.
That is a bit of a self-defining term. A car is sold in the course of business
when you are in the business. You are in the business when you routinely buy
cars for the purpose of immediately finding someone to buy them. An investor buys them to hold until something happens that makes it worth selling. If
that something just happens to happen quickly, then it’s still an investment.
The question is completely subjective — did you buy the car with the
intent of selling it in the ordinary course of business? Since only you know
your true intent, the inquiry necessarily focuses on your actions and other
circumstantial evidence. The more cars you sell in a year, the more it looks
like you are a dealer, that’s all.
That is a pretty big factor for an auditor because it is easy to understand.
Here are some factors that would point to you being considered a dealer:
If you have a showroom or car lot, that’s an easy one. Being licensed as a
dealer is a bad fact. Slick magazine ads and multiple cars listed in the same
ad are detrimental. An eBay store would be bad. Using a business name or
a business entity, rather than your own name, would be a negative. Looking
for a buyer as soon as you buy a car, or perhaps even before buying it, makes
you look like a dealer.
Still, numbers can matter. In isolation, every one of your car sales can
be defended as an investment, but the market moved so quickly, and offers
started coming so fast, that you had little practical choice but to take the
money. However, when they accumulate into a fairly large number over a
fairly short period of time, it starts to establish a pattern. Plus, it draws attention to your tax return.
Preserving investor status
If you’re going to be selling a lot of cars, you need to be holding a lot of
cars for an extended time. You have to avoid the buy-fix-flip cycle. Exceptions
are no problem, but patterns make a lot of difference.
You also have to be consistent. You can’t claim to be a dealer to avoid sales
tax, and at the same time claim to be an investor to get favorable income-tax
treatment. Your licensing status will be used against you as an admission.
After all, you wouldn’t have lied to your state government to defraud them
out of their sales tax, would you? And if you lied to them, we’re supposed to
believe you’re telling us the truth now? ♦
John Draneas is an attorney in Oregon. His comments are general in
nature and are not intended to substitute for consultation with an attorney.
He can be reached through www.draneaslaw.com.
Collector Car Insider
5
The Cumberford Perspective
1958 Lincoln Continental Mark III Convertible
By Robert Cumberford
I
charm (a polite euphemism to avoid “ugly”) and a dreadful package.
As I recall those cars, they were bigger than anything else, but they had
no more room inside. The 7.05-liter V8 could move the tonnage quite well,
and had it been more reliable perhaps owners’ comments would have been
more favorable, but Lincoln trailed both Cadillac and Imperial in owner satisfaction. Lincoln’s precarious state today largely stems from a long series
of aesthetically questionable designs, of which this is perhaps the nadir. Its
immediate successor, the 1961 model, which was smaller, and with still more
advanced body engineering that allowed a unitized 4-door convertible, was
probably the pinnacle. ♦
t’s a gigantic parade and party barge to us today, but this Continental
actually represents some adventurous engineering, as the entire 1958
Lincoln range used Ford’s first completely unitized body. Yes, the 1935
Zephyr was semi-unitized, but this was a more ambitious project, imperfectly achieved, but not bad for a first effort.
Add in that this “forgotten” Continental Mark III (effaced so Lee Iacocca
could re-use the designation for his Thunderbird-based 1969 “personal
luxury” coupe) is the biggest convertible made in the past 75 years, and it’s
impressive that it worked as well as it did.
Having said that in its favor, the car is still a hulking beast with little visual
4
3
5
2
6
1
FRONT 3/4 VIEW
1 Massive chrome bumpers are
hallmarks of a long-gone era. This,
with the X-ed ends, is a particularly
unattractive version.
2 The tilted off-vertical headlamp
pairs look all right, but the cowl at
the top is a splendid aerodynamic
braking device, slowing the car and
increasing fuel flow at any speed.
5 The solid tonneau cover was a nice
element, enhancing the subtle kick-up
of the rear fender just behind the door.
just behind the headlamp to the base of
the fin gave a long, soft highlight that
widened toward the rear.
6 The entire rear was outlined in
chrome, elegantly thin in this view.
10 The rear edge of the door is almost
exactly in the middle of the body mass,
with a vast sheet of painted surface
behind it.
REAR 3/4 VIEW
7 Inelegantly, overwhelmingly complicated and shiny when seen directly, a
Victorian urn with little red lights was
inserted in the false grille-work.
3 This excrescence appended to the
fender side extended body width and
called attention to the infelicitous
squared-off wheel opening.
11 Vent windows were useful in
providing a track for side glass, but
they also added visual substance to the
A-pillar without blocking vision too
much.
8 The fender peaks are fins, but very
subdued fins with a nearly straight
profile to enhance the impression of
length — hardly needed since the car
was immensely long.
4 The windshield is handsomely
executed, but is placed very far
forward on the body mass.
12 The entire body profile is framed in
chrome, the perimeter broken only by
the wheel cuts.
9 Rolling the surface outward from
10
9
8
7
12
6
Collector Car Insider
11
INTERIOR VIEW
It seems incredible that we
once tolerated seats as basic as this
contour-free bench in our cars. There
was nothing to keep you in place
in a quick maneuver, as it is just a
simulated living-room sofa. But we’d
appreciate the space given by the
instrument panel being close to the
windshield base, and the simplicity
of the instrument cluster.
Market Analysis
1970 Datsun 240Z Series 1
Collectors are paying five-digit prices, which will attract quality cars out from under their
covers and onto the auction blocks in 2015
Jeff Zurschmeide
$4,198 and 132 horsepower came closest to a good competitive
buy in 1970.
Courtesy of Motostalgia
Now comes the value spike
SOLD!
This car, Lot 107, sold for $40,700, including buyer’s premium, at
Motostalgia’s Grand Prix Auction on November 1, 2014, in Austin,
TX.
The 240Z was a pivotal product for Datsun in 1970, and it set the stage for
Nissan sports cars to this day. It is the direct lineal ancestor of the current 370Z.
The 240Z offered performance and styling at a level not generally expected
from a Japanese car in that era, and its low price point relative to the European
competition made the 240Z an extremely attractive proposition.
In its debut year, Datsun marketed the 240Z as a “high-performance personal two-passenger fastback” with a 2.4-liter SOHC inline 6-cylinder engine
rated at 151 horsepower and a fully synchronized 4-speed gearbox.
The new 240Z advertised a 0–60 mph time of 7.5–8.7 seconds and a top
speed of 115 to 122 mph. The 240Z also offered a modern independent suspension at all four wheels, with McPherson struts in the front and Chapman struts
in the rear, radial tires, and front disc brakes. Inside, buyers got a true sports
car experience, including a full set of aircraft-style gauges. It was an exciting
package with a sticker price of $3,526. Datsun sold 16,215 of these cars in the
first model year.
The 240Z soon made its mark in racing, diving into road racing and even
scoring a win in the East Africa Rally on the WRC calendar. Best known in the
United States was the distinctive red, white and blue livery of BRE Racing by
Peter Brock. Brock’s 240Z racers claimed back-to-back SCCA national championships in 1970 and 1971.
This is the performance and history of a true groundbreaking sports car.
The 240Z in context
When comparing the 240Z with its closest in-period competitors, buyers
could save a few dollars by buying the Triumph GT6 or TR6, but they would
sacrifice performance, as the Triumph pushrod engines made just 94 and 104
horsepower respectively. The horsepower comparison doesn’t even touch the
antiquated suspensions on British cars
of the day. 240Z purchase prices were
on par with the Opel GT, but there
again, the best Opel came with only a
102-hp engine and a solid rear axle.
To get into the same performance envelope as the 240Z, buyers could opt for
the least expensive Porsche 911 at 142
horsepower and $6,430, or the 914-6 at
125 horsepower and $5,999. Yet those
cars cost more than the 246-horsepower Jaguar E-type at $5,725. Of all
comparable imported sports cars, the
4-cylinder Alfa Romeo Spider 2000 at
The subsequent history of Z-Series cars had its ups and
downs. Bad decisions at Nissan — that turned the nimble
240Z into a heavier, clumsier car — resulted in the 240Z (1970
through 1973) emerging as clearly more desirable than anything that came afterwards. While the collector car community
has been slow to recognize the value and appeal of Japanese
cars, some recent sales are indicating an impending tornado
for top-condition early Z-cars.
Our subject car was an early 1970 240Z that sold for $40,700.
Even considering 57,014 original miles on the odometer and a nice restoration
with respect paid to period-correct aftermarket dish-mag wheels, this was still
an eyebrow-raising price for the car.
But just two weeks later and thousands of miles away at the Silverstone
auction in Birmingham, England, a resto-modded 1972 240Z with 62,924 miles
brought $33,813.
This car had been the subject of a bare-metal restoration, with the engine
pumped up to 190 horsepower courtesy of an aftermarket exhaust and triple
side-draft Webers replacing the original twin SU carburetors. Ordinarily,
those modifications should detract from auction value, but that doesn’t seem
to have been the case.
The hype begins
As if those sales weren’t enough, consider the restored 1970 240Z that ended
up on eBay in late November. The owner claimed $90,000 in receipts, including
$40,000 in paint and bodywork. The high bid came in at $30,600, which didn’t
tip the reserve or come close to the hyperbole in the listing, but it was still an
impressive bid for a 240Z.
The SCM Platinum Auction Database shows that most 240Z models traded
between $2,000 and $10,000 just a few years ago. One all-original 1972 example sold in 2009 for $9,975 (SCM# 143125). Those days are almost certainly
over for any solid original or nicely restored 240Z. Prices for the transition
model 1974 260Z and the 280Z from 1975 through 1978 will likely follow the
rising tide.
With these recent sales, it seems undeniable that at least for top restorations
and solid time-capsule cars, values have taken a hockey-stick turn and are
headed up to compare with more conventionally collectible vehicles of the same
era. Collectors are not blinking at mid-five-digit prices, which will bring more
quality cars out from under their covers and onto the auction blocks in 2015. If
you ever want to own a 240Z, the time is now. ♦
Details
Years produced: 1970–73
Number produced: 148,115
Original list price: $3,526
Current SCM Valuation: $8,200–$14,000
Tune-up cost: $200
Distributor cap: $10.95
Chassis # location: Right side firewall
Engine # location: Right side inner fender
Club: Classic Z-Car Club
Club Website: www.zcca.org, www.classiczcars.com
Alternatives: 1965–74 MGB-GT, 1971–74 Alfa
Romeo Spider 2000, 1969–76 Triumph TR6,
1965–72 Porsche 911
SCM Investment Grade: C
Collector Car Insider
7
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