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Ferrari

Automobile sales and the economy have skidded into a ditch, but auctioneers in town next week to sell seven-figure collector cars are not hitting the panic button.

Buyers might be less flamboyant about paying $5 million for a 1960 Ferrari 250 GT, if that’s possible. But the high-rolling collectors are still likely to spend well over $100 million on 1,700 cars at four prestigious auctions.

That includes the “big dog” Barrett-Jackson auction starting Sunday and smaller niche players, including Russo and Steele, Gooding and Co., and RM Auctions.

I’ve had a bit of sense from people that they don’t want to be seen flaunting (their wealth),” said Craig Jackson, Barrett-Jackson Auction Co. chairman. “If you had to lay people off and then you’re seen buying a million-dollar car, that’s kind of heartless.”

Unemployment and economic woes aside, there is still strong demand and a limited supply of the best-of-the-best collector cars, according to the auction houses and other observers. They are anxious to see what happens next week in the exclusive world of the collector-car market. Most expect stable prices except in a few categories where there could be some decline.

“There is no market that is immune from economic realities, whether it’s real estate, art, boats or you name it,” said McKeel Hagerty, whose company, Hagerty Insurance Agency, sells collector-car insurance. “Collector cars are a little more insulated.”

In most cases, collectors pay cash for cars they are passionate about owning and there is not a lot of speculative buys, he said.

David Gooding, president of Gooding and Co., said car guys are more likely to sell a second home or a boat before they sell their automobiles.

Last year’s inaugural Gooding auction in Scottsdale tallied $21 million in sales for 70 cars. That included a 1959 Ferrari 250 GT California Spider that sold for $3.3 million, topping all auction sales that week.

This year, Gooding is bringing a highly sought 1960 Ferrari sports car that it estimates could sell for more than $7 million.

Russo and Steele did $20 million in business for about 500 cars last year and expects similar sales this year.

Company President Drew Alcazar said that the industry’s growth in past years has created unrealistic expectations.

“We’ve painted ourselves into a corner if we’re saying that if Barrett-Jackson doesn’t do $100 million, then the market must be in the toilet,” he said.

In its 38th year, Barrett-Jackson sold $88 million worth of cars last year at WestWorld, down from $111 million the previous year.

This year, the Scottsdale auction company has accepted about 10 percent fewer cars for its busy auction block.

But the overall event will be larger with more entertainment and space for other sales and events, Jackson said.

“In this economy, I wouldn’t want to be relying on just the auction block,” he said. “Just like the Super Bowl is not just about the game, Barrett-Jackson is about the week in Scottsdale, the parties and everything else that goes with it.”

Still, it is the cars that drive these high-horsepower auctions.

Anything can happen, Jackson said, when you have “two people lining up against each other who really want a car.”