Collector Car Market Experiences Billion Dollar Growth over last 10 years
Choosing the Right Legal Counsel Makes All the Difference
The collector car insurance company Hagerty Insurance is reporting that the collector car auction business in the United States is now a billion dollar business. Reports suggest that the total gross auction sales in 2013 eclipsed $1,300,000,000.00 ($1.3 Billion) according to Hagerty. Hagerty comparatively notes that in 2004 the figure was around $282,000,000.00 ($282 Million). This is a billion dollar growth in the United States collector car auction market in ten short years! As Hagerty and other news outlets note, this growth is not simply confined to the United States, but the world-wide collector car market has soared similarly over the same time-period.
With this type of unprecedented growth within the collector car market, hobbyists, collectors and car investors need to be more vigilant than ever to protect their investments and their collections. The market is ripe for fraud, misrepresentations and other nefarious actions, including ownership disputes and estate or probate litigation. If you, unfortunately, find yourself on the cusp of a dispute or hauled into court or other legal tribunal over the title, ownership, pedigree, provenance or history of an antique or classic car or collectible, you must be prepared to present your side of the story in an intelligible, persuasive and cogent manner. You would be best served by employing an attorney who fully understands the issues you face and the collector car market and car auction industry.
The handling of a legal matter concerning an antique or collector car is markedly different than other types of legal matters. In the collector car hobby there are “terms of art” (i.e. trim tag, restamp, NOS, NOM, matching numbers, etc.) that must be defined for the Court in order for your position to be argued effectively. Furthermore, many times it will not simply be enough to define the term, but rather the term itself and its application to the facts of the case are what the case’s ultimate determination may turn upon. This is where it pays to hire an attorney who not only “speaks your language” but also knows how the frauds are perpetrated and how to persuasively represent your position to the Court or Jury.
Ultimately, collectors must be hypervigilant in the current market and careful to employ the right legal counsel and other professionals with respect to their dealings, collections, and businesses. The market is constantly changing, not only in its growth but also in its technicalities and breadth, a collector’s diligence is of paramount importance.
Bryan W. Shook, Esquire is an attorney in Camp Hill, Pennsylvania whose practice areas include vehicle fraud, dealership fraud, VIN matters, title fraud, VIN error, estate ownership questions and general collector car problem resolution. Attorney Bryan W. Shook is not only a devoted automotive enthusiast, but is also an experience litigator who devotes a large portion of his law practice to helping other collectors and hobbyists understand today’s market and protect their automotive investments.
Attorney Bryan W. Shook is not only a devoted automotive enthusiast, but is also an experience litigator who devotes a large portion of his law practice to helping other collectors and hobbyists understand today’s market and protect their automotive investments. Attorney Bryan W. Shook is a seasoned automotive collector and restorer and as such brings real world experience and firsthand knowledge to the table for his clients throughout the world. Although Bryan Shook is headquartered in Camp Hill, Pennsylvania (close proximity to Carlisle and Hershey), Attorney Bryan Shook is available anywhere for consultation, advice, and information, most times, on as short as a day’s notice. If you’d like more information about this topic or would like to speak with Attorney Bryan W. Shook please email him at BShook@shooklegal.com or by phone at 717-884-9010. More information can be found at Http://www.vintagecarlaw.com.
Benefits of Using an Attorney as an Escrow Agent to Protect Yourself in a Collector Car Sale or Transaction
Benefits of using an attorney as an escrow agent to protect yourself in a collector car transaction
By: Bryan W. Shook, Esquire
Email: bshook@shooklegal.com
Using an attorney to act as an escrow agent is one of the most effective ways to safeguard yourself from the pitfalls of buying vehicles sight unseen from far away locations. In a perfect world collector car transactions would all be “above board” and transparent however as we all know this, unfortunately is not always the case. That screaming deal on eBay or Craigslist may be a great deal, but it may also be the biggest mistake you make this year. There are many hazards upon which a prospective buyer may happen, although most happen with the consummation of the sale, especially if the vehicle is not viewed, in person, by the buyer.
How can using an attorney as an escrow agent help protect you in a collector car transaction?
An attorney as an escrow agent has more inherent safeties as opposed to using a broker. Attorneys are regulated by their state’s bar association or their state’s supreme court. Brokers are usually not regulated at all and only subject to their state’s vehicle board, if regulated at all. Money placed into an attorney’s escrow account is subject to strict accounting oversight and may only be paid out with the client’s consent and agreement.
As an attorney familiar with the nuances and pitfalls of collector car transactions I can offer many safeguarding services, professionally, discreetly and unobtrusively to preserve the transaction and yet protect you the client throughout the sale.
I offer the following services:
- Pre-Purchase Inspection Review
- In-person auction assistance to both bidders and sellers
- Escrow Agent
- Sales Contract Drafting/Review
- Private Treaty Sales (start to finish)
- Independent evaluation of title documents prior to consummation of sale
- Vehicle research, including verification of provenance and pedigree
- Forensic investigatory services (number & stamp investigation, make and model investigation, production anomalies, etc.)
- Powers of Attorney
- Import/Export
- Competing Claims of Ownership
- Title Defense
- Help safeguard against misrepresentations and fraud
By utilizing my services, you are not only protecting yourself in the transaction, but you are also making a further investment in the value of your purchase.
Bid with knowledge. Buy with confidence.
Attorney Bryan W. Shook is not only a devoted automotive enthusiast, but is also an experience litigator who devotes a large portion of his law practice to helping other collectors and hobbyists understand today’s market and protect their automotive investments. Attorney Bryan W. Shook is a seasoned automotive collector and restorer and as such brings real world experience and firsthand knowledge to the table for his clients throughout the world. Although Bryan Shook is headquartered in central Pennsylvania (close proximity to Carlisle and Hershey), Attorney Bryan Shook is available anywhere for consultation, advice, and information, most times, on as short as a day’s notice. If you’d like more information about this topic or would like to speak with Attorney Bryan W. Shook please email him at BShook@shooklegal.com or by phone at 717-884-9010 More information can be found at Http://www.vintagecarlaw.com.
Rebodied Cars … what to do …
Rebodies:
What’s the big deal???
(By: Bryan W. Shook, Esquire)
717-884-9010
I’ve been getting quite a few calls lately seeking information on re-bodied vehicles. The term “rebody” is a term of art used throughout our hobby to denote a vehicle whose original factory body has been replaced with another “donor” body. The donor body is then given the original body’s VIN, serial number, data card, trim tag, cowl tag, etc. and then usually and most unfortunately sold to an unsuspecting buyer as the original, real deal automobile. This problem is complicated when the rebodied car is an “air car” which did not exist prior to the rebody. Specifically what happens is someone dreams up a car or has the paperwork from a desirable car and makes it from “thin air” using the donor body as the starting point. All of a sudden, the car has pedigree, provenance and history if the builder can dream up a good enough story. This is problematic as you can plainly see.
There are several legal issues when it comes to a rebodied automobile. The most important issue is whether or not the rebody was disclosed to you when you purchased the vehicle. If the rebody was not disclosed to you how can it be said you negotiated with the seller on equal footing. Another issue comes from the fact that rarely are rebodys done properly. Were the police notified of the body replacement as required under some state laws? Did the seller give you two Certificates of Titles? (Remember the best bodies come from good cars and in today’s day and age, good cars get restored … was the body stolen and the subject vehicle the product of a “chop shop”) Did the seller give you photographs of the original body to evidence the condition of the original body? Do you have confirmation that the original body has been destroyed? (This is usually where the State Police come in as this is where the stories start about two cars registered under the same VIN)
Without the safeguards outlined above, you can never been shore that the vehicle you purchased truly belongs to you. Under the law you would have a breach of the warranty of title claim if any third party were to ever come after you claiming you own the body to their car. The problem is that if you know the car has been rebodied and you can’t provide the above information to a new purchaser you could be just as liable as the seller who sold the car to you should you not disclose what you know to a prospective purchaser.
If you have a rebodied car or think you do, this is a serious matter. Rebodied cars can be nearly unsaleable and always have questions. There was way to rectify the situation and there are ways to unwind the transaction which unknowingly left you with the rebody. In any event, please call me and we can discuss your options and to what extent your car may have been rebodied.
Attorney Bryan W. Shook is not only a devoted automotive enthusiast, but is also an experience litigator who devotes a large portion of his law practice to helping other collectors and hobbyists understand today’s market and protect their automotive investments. Attorney Bryan W. Shook is a seasoned automotive collector and restorer and as such brings real world experience and firsthand knowledge to the table for his clients throughout the world. Although Bryan Shook is headquartered in Camp Hill, Pennsylvania (close proximity to Carlisle and Hershey), Attorney Bryan Shook is available anywhere for consultation, advice, and information, most times, on as short as a day’s notice. If you’d like more information about this topic or would like to speak with Attorney Bryan W. Shook please email him at bshook@shooklegal.com or by phone at 717-884-9010. More information can be found at Http://www.vintagecarlaw.com.
Bid with Knowledge; Buy with Confidence – Vintage Car Law
Collector Car Market Stands to Gain from Latest Economic Meltdown
Monterey and Beyond:
A Prediction for the Collector Car Market
(By: Bryan W. Shook, Esquire)
717-884-9010
With the Monterey Auctions only two weeks away, the eyes of the Collector Car Market are on Wall Street and other world markets.
Gold has surpassed Platinum, S&P has downgraded the United States credit rating from AAA to AA and the stock market is plummeting. How could this possibly be beneficial to the collector car market, you ask … it’s simple. The stock market, the bond market, the futures and other typical investment arenas are subject to the debt crisis. While the Collector Car Market is, in a sense subject to the debt crisis, but not nearly to the extent that the traditional markets are.
This economy is somewhat of a double-edged sword. On one hand, the current debt crisis has undoubtedly caused more than a few cars to come to market, but on the other hand as investors seek safe havens from the latest market crash the world of collector cars looks like a better and safer investment market every day. Collectors invest in automobiles because of emotion, artistic adoration and quite simply, memories. A tangible investment is much easier to quantify than a stock certificate and the same is not as susceptible to the tumultuous economic climate we live in today.
Last year’s $172,000,000.00 in sales will likely be eclipsed this year as investors clamor for the many of the blue chip collectible automobiles that the several major auction houses are going to parade across the block.
Don’t be surprised to see a plethora of domestic and foreign collectors alike flock to Monterey, cash in hand to buy up the consigned cars. Monterey has, for years been THE PLACE to sell your high-dollar, blue chip car … this year the money will be there more than ever.
Thank you to Standard and Poor and all of the world’s economies responsible for this latest turmoil.
Attorney Bryan W. Shook is a devoted automotive enthusiast, but is also an experience litigator who devotes a large portion of his law practice to helping other collectors and hobbyists understand today’s market. Attorney Bryan Shook is available throughout the United States for consultation, advice, and information. If you’d like more information about this topic or would like to speak with Attorney Bryan W. Shook please email him at bshook@shooklegal.com.
Bid with Knowledge; Buy with Confidence – Vintage Car Law
Economics of Car Valuations
The Economics of Vehicle Values
The value of an antique car or a collector vehicle is driven by three key factors: desirability, pedigree/provenance and condition. These three factors fit into an equation which eventually leads to the value of the vehicle. The weight to be assigned to any of the factors is subjectively based upon the influence any one factor has over another.
Let’s take a look at these three factors:
Desirability: Although this is a subjective measure, it is fairly easy to quantify. A desirable vehicle is one that nearly anyone would love to own. Also vehicles that were produced in limited quantities or with attributes or options not commonly found on contemporaneous models are desirable. Exotic vehicles are usually desirable on their name alone. Finally, some vehicles are desirable simply because they are cool. While every vehicle is desirable to a collector on some level (yes, even the Yugo is desirable if you can find a complete and somewhat running example), it is the level of desirability which drives the value. The more people who like the vehicle; the more desirable the vehicle is. Specific years, specific models, or specific options can make an otherwise undesirable or not so desirable vehicle desirable for the purpose of valuation. Keep in mind however, that although desirability drives just one aspect of the pricing structure it can sway the equation completely. A fitting example is a Duesenberg. In any condition, and even without any pedigree or provenance, a Duesenberg will ALWAYS command a relatively high value based purely upon its highly regarded desirability and relatively low production figures. The weight to assign to desirability can also be dependent upon the year, model, options or scarcity of a model.
Pedigree/Provenance: This is where most vehicles are lacking. Time has a way of erasing memories. By and large, information about a vehicle’s origins was not something that was discussed when the vehicles were sold, “back in the day.” Most vehicle owners do not have much information about the vehicle before they acquired it. Therefore, when you come across a vehicle with paperwork or history, dating from new, you are looking at a vehicle with pedigree. Merriam-Webster defines “pedigree” as the origin or history of something. Items that add pedigree are copies of old titles, registration paperwork, original sales forms, window stickers, build sheets, factory documentation, certification, etc.
Provenance is the history of ownership of the vehicle. Vehicles that were once owned by movie stars or other public figures tend to be worth more than other similar vehicles. These same vehicles also tend to have more options or unique features which make them more desirable (see above). Vehicles that have a known, uninterrupted chain of ownership, from new can also be said to have provenance. Nevertheless, the weight assigned to this form of provenance is obviously not the same as the weight assigned to a chain of celebrity ownership or ownership within a large nationally recognized vehicle collection or museum. For provenance to be given appropriate weight, it must be substantiated with documentation.
A vehicle with either pedigree or provenance is worth more than a similar vehicle without. A vehicle with these attributes is sometimes referred to as a “no stories” vehicle.
Condition: This third and final factor is the “make it or break it” for most vehicles. Even if a vehicle has good desirability and pedigree and/or provenance, it likely won’t influence the value of the vehicle as much as condition. A vehicle with in superb original condition (i.e. extremely well-kept since new) or a vehicle which has been restored or built/rebuilt to an extremely high level is worth more than a similar vehicle needing restoration or a similar vehicle in a deteriorated condition. In recent years we have seen a push for original vehicles. As the appreciation for these examples has risen, so has the weight assigned to originality with respect to valuation. (Note: An overwhelming public appreciation for a particular vehicle or vehicle trait tends to also weigh heavily on desirability). The more original a vehicle or the better the restoration of the vehicle, the more the vehicle is worth; period.
Although the equation into which these three areas are plugged is somewhat objective on its face, the weight assigned to any one area is subjectively based upon the knowledge, expertise, and experience of the person assigning the value.
Any attempt to confidently assign a fixed weight to any of these three areas would be illogical. There are far too many vehicles with far too many options, characteristics, stories, and degrees of condition to allow for such a rigid valuation method. Each vehicle must be evaluated first on its own merits and then against similar vehicles with known sales to find a comparable sale. Then the comparable sales must be evaluated to see how closely they match the subject vehicle. The closer the comparable sale, the closer your estimate of value will be to the actual value of the subject vehicle. You must however, keep in mind some principles of economics such as, market saturation versus scarcity, preferences, and rationality (i.e. marginal cost versus marginal benefit).
This theoretical approach to the economics of car valuation should provide you with an understanding of why one vehicle is worth so much more than another. The equation described here should be view as a template which along with the expertise of a seasoned professional will likely allow you to confidently arrive at a value for your particular automobile given the economics discussed herein.
Attorney Bryan W. Shook is a devoted automotive enthusiast, but is also an experience litigator who devotes a large portion of his law practice to helping other collectors and hobbyists understand today’s market. Attorney Bryan Shook is available throughout the United States for consultation, advice, and information. If you’d like more information about this topic or would like to speak with Attorney Bryan W. Shook please email him at BShook@shooklegal.com
Bid with Knowledge; Buy with Confidence – Vintage Automotive, LLC
32nd Annual Spring Carlisle Swap Meet & Collector Car Auction – April 21-26, 2009
32nd Annual Spring Carlisle Swap Meet & Collector Car Auction
By: Bryan W. Shook, Esquire
Email: bshook@shooklegal.com
The 32nd annual Spring Carlisle Swap Meet & Car Corral are about to get underway. Officially the event runs from April 21 through April 26, 2009, but large vendors are starting to arrive today. Carlisle’s swap meet offers what might be the best selection of automotive treasurers of any swap meet in the world. For the automotive faithful that make their annual trek to Mecca, the weather for this year’s Spring Carlisle looks to be better than most years, with forecasted highs in the low to mid 70s and clear skies! I know, the diehards will be depressed … “What no rain, how can it be Carlisle without rain???”
A change for this year’s event is that the Collector Car Auction will be held on Thursday and Friday nights, April 23 & 24, 2009 at the Carlisle Expo Center. Also new for Spring Carlisle is a cruise-in to be held on Sunday at the grandstands. This follows last fall’s successful Sunday cruise-in. I look for several hundred cars to attend.
As for the auction, there are several very appealing lots. With more than 250 vehicles scheduled to cross the auction block, there is certain to be something that appeals to everyone! See you in Carlisle! Http://www.carlisleevents.com.
Attorney Bryan W. Shook is a devoted automotive enthusiast, but is also an experience litigator who devotes a large portion of his law practice to helping other collectors and hobbyists understand today’s market. Attorney Bryan Shook is available throughout the United States for consultation, advice, and information. If you’d like more information about this topic or would like to speak with Attorney Bryan W. Shook please email him at BShook@shooklegal.com.
Bid with knowledge. Buy with confidence. – Vintage Car Law
Let’s Review: Barrett-Jackson – Palm Beach 2009 Collector Car Auction
Let’s Review:
Barrett-Jackson – Palm Beach 2009
By: Bryan W. Shook, Esquire
Email: bshook@shooklegal.com
Well, it’s hard to believe but the 7th Annual Barrett-Jackson Palm Beach Collector Car Auction is behind us.
How did the stars of the auction do?
The top seller of the weekend was Lot Number 369.1 the Super Chevy Magazine feature custom 1969 Chevrolet Camaro RS/SS titled “Project American Heroes”. The Camaro, which included parts supplied by over twenty five major speed parts producers and a legendary LS-series GM 427cu GMMG supplied powerplant, hammered sold for $500,000.00! The proceeds from the sale of the Camaro will go to benefit the Armed Forces Foundation, a truly worthy cause.
Two other stars of the auction with their proceeds going to charity were Lots Nos. 655 and 655.1 the 2004 Ford Mustang GT Convertible concept car and the 2004 Ford Mustang GT Coupe concept car, respectively. These cars debuted in January 2003 at the North American Auto Show and arguably started the current muscle car frenzy amongst the big three. Many people believe that these two concept Mustangs are what raised the ante for General Motors and Chrysler to go all in again and give the public what they want, FUN muscle or muscle-type cars. Ford let these two ponies out of their livery for Charity. Both concepts sold individually for $175,000.00, each, a bargain, any way you slice it. The proceeds from the sale of these two pieces of current American automotive history went straight to the benefit of the Juvenile Diabetes Research Foundation (JDRF). After the bidding for the coupe stalled around $150,000.00, Barrett-Jackson, CEO, Craig Jackson and Barrett-Jackson, President, Steve Davis, big against each other with Mr. Davis eventually taking home the concept car for the very reasonable price of $175,000.00.
The third historic Mustang that Ford auctioned off, was lot number 665, a 2010 Shelby GT500 coupe, the very first available for public sale. The hammer price was $150,000.00 and the proceeds above MSRP for the car went straight to the Carroll Shelby Children’s Foundation.
So, how did my “sleeper” predictions go? Pretty well, but judge for yourselves.
1920 Chevrolet Model T – 1 Ton (open cab) chassis truck (Lot # 678) – Sold $37,400.00
1964 ½ Ford Mustang convertible (Lot #347) – Sold $51,700.00
1972 Chevrolet C10 Cheyenne Short Bed pickup (Lot #32) – Sold $35,200.00
1976 Chevrolet C10 Silverado Long Bed pickup (Lot #330.1) – Sold $29,150.00
1994 Pontiac Trans Am 25th Anniversary Edition Convertible (Lot #58) – Sold $37,950.00
1999 Pontiac Trans Am 30th Anniversary Coupe – Daytona 500 Pace Car (Lot #616.1) – Sold $39,600.00
I think my sleepers performed very well considering that the lack of national publicity that other auction cars enjoyed and the current economic situation but they all sold at the high end of their respective value ranges, proving that good quality cars (and trucks) will always command higher prices.
Closing Thought – I believe GM has sold over 200 or so of its Heritage Collection and I hope that this “garage sale” is over soon. On the bright side, I hope that the new owners of these GM refugees allow the cars to see the light of day again and hopefully we can all enjoy them at an upcoming automotive event or car show.
Attorney Bryan W. Shook is a devoted automotive enthusiast, but is also an experience litigator who devotes a large portion of his law practice to helping other collectors and hobbyists understand today’s market. Attorney Bryan W. Shook is a seasoned automotive collector and restorer and as such brings real world experience and firsthand knowledge to the table for his clients. Attorney Bryan Shook is available throughout the United States for consultation, advice, and information. If you’d like more information about this topic or would like to speak with Attorney Bryan W. Shook please email him at BShook@shooklegal.com.
Bid with knowledge. Buy with confidence – Vintage Car Law
Welcome to Vintage Car Law
Attorney Bryan W. Shook through his firm of Vintage Car Law serves the niche market of the collector car hobby. The goal of Vintage Car Law is the preservation of all aspects of the collector car market.
Founder, Bryan W. Shook, is a true car guy, in every sense of the word. He is not only a collector, restorer and hobbyist, but is also an attorney who devotes a large portion of his practice to helping other collectors and hobbyists understand today’s market. Currently, Attorney Shook is litigating several automotive deception cases and represents clients in nearly a dozen states.
Through many years of collector-vehicle restoration and overall market analyzation, Attorney Shook is able to accurately and confidently advise his clients as to which vehicles to purchase and which vehicles to stay away from. Further Attorney Shook has been invited to give his insight into the collector car market by several venues including the Ocean City, Maryland Collector Car Auction held annually in February.
Attorney Shook is available at all major automobile events within the United States for consultation, advice, and information.
For more information, please call 717-884-9010 or email BShook@shooklegal.com.
