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 Monday, April 02, 2007
The need for American speed
Posted by Ron

    I've always been obsessed with going fast. From my first pedal car to home-made go-karts and mini-bikes to almost 20 years of driving hobby-level stock cars, it's always been about the thrill of mashing the throttle.
    A natural extension of that attitude is that I had heroes early on who, in my eyes, were the guys that epitomized and legitimized the search for speed. I'm talking about World Land Speed Record legends such as Craig Breedlove, Art Arfons, Gary Gabelich, and a long list of others before and after who strapped into land rockets and casting aside the high risks of speed record attempts, lit the fuse and went for it.
    So it was with great interest that I read recently that an American supercar manufacturer by the name of SSC is attempting to capture the production car maximum speed record with its Ultimate Aero supercar. This sleek gull-winged two-seater is powered by a twin-turbocharged 6.3-liter V-8 that is rated at 1,183 horsepower.
    The current production car maximum speed record is 253 mph and is held by a Bugatti EB16.4 Veyron. The Ultimate Aero, in late March testing, was achieving 230 mph at just 56 percent throttle, so things are shaping up nicely for an American car to reclaim the record. Unfortunately, the attempt to go for the record on a 12-mile stretch of Nevada highway recently was cancelled due to a snowstorm. Plans are underway to reschedule the record run attempt.
    With the non-production vehicle World Land Speed Record now owned by Great Britain's duo of Sir Richard Noble and his driver Andy Green who piloted the "Thrust" car faster than the sound barrier several years ago on top of Bugatti holding the production car record, it's high-time for America to get back these records.
    Good luck to SSC and the Ultimate Aero whenever the next speed record attempt is made. And, by the way, if anyone is thinking of building a WLSR vehicle to unseat the Brits and "Thrust" and needs a driver, don't call me. I love going fast, but anything over 700 mph and I get car sick!



4/2/2007 4:28:23 PM (Eastern Daylight Time, UTC-04:00)  #  Comments [0]
 Tuesday, March 13, 2007
Continuing high scrap values a doom indicator
Posted by Ron

Don't look now, but that restorable 1957 Pontiac Bonneville hardtop you've been wanting to buy as a project car from your local salvage yard may become an I-beam for a skyscraper being built in China as you read this. The demand for scrap metal from overseas countries such and China and India, which are currently experiencing explosive internal growth, has been and will likely continue to be high.

One of the prime targets for the scrap metal industry are salvage yards filled with older vehicles. These vintage cars and trucks have a high metal content, versus the modern cars that have large amounts of plastic in their makeup, and regularly weigh in at a ton-and-a-half or more per vehicle. According to Yvette VanDerBrink, head of VanDerBrink Auctions (www.vanderbrinkauctions.com), who leads the industry in salvage yard auctions and grew up in the salvage industry working at her father's yard, Nordstrom's Automotive (www.nordstromsauto.com) in Garretson, S.D., current scrap metal value is at $165 per ton. What fuels the problem during the winter months, is much of the scrap metal, whether vehicles or other, is buried under snow and not accessible. As supply lessens, the price paid per ton increases. VanDerBrink believes the price will reach $225 per ton before it levels off. Once the snow melts, and more scrap metal becomes available, the price paid per ton should come down. But if demand from overseas buyers continues strong, the value of scrap metal will remain high.

Over the past several years, salvage yards that have catered to the old car enthusiasts have been closing at an alarming rate. The crush value of these yards' contents have allowed the owners of these yards to reap an immediate cash windfall, and no one can blame these owners for making a sound business decision, even if crushing old cars is counter to the mindset of hobbyists who want to preserve vintage iron. This advanced rate of yard closures will continue as long as there is high demand for scrap metal. Among the many threats to the future growth of the old car hobby, this should rank as the most insidious. Without the parts donor cars that salvage yards provide, the only cars and trucks that will be able to be restored in the future are those that have aftermarket parts support, which is a minority when compared to all vehicles produced since the dawn of the motoring age.

The other frustration factor in this plight is there's not much the average old car hobbyist can do to "fight back" against this near invisible threat. The threat stems from the simple supply and demand logic that drives every society steeped in capitalism. Aside from purchasing donor parts vehicles and "squirreling" them away before the crusher arrives at a yard, if scrap metal values remain high many more old car hobby-friendly salvage yards will close. Quoting a famous line from a popular horror movie: "Be afraid. Be very afraid."



3/13/2007 12:14:20 PM (Eastern Daylight Time, UTC-04:00)  #  Comments [16]
 Monday, February 19, 2007
The two-edged sword of TV auctions
Posted by Ron

My recent return from Arizona and covering parts of the multiple auction marathon that begins about mid-month in January and continues on for more than a week had me pondering the "big picture" on the plane ride home.

As editor of Old Cars Price Guide, I study auction prices realized quite heavily to see what trends are developing as a result of prices paid, not only in Arizona at the beginning of each year, but throughout the year and throughout the country. Arizona is just a logical starting point because the several auctions that take place there are usually the first of the calendar year. For the most part, when researching prices paid to consider any adjustment to the values in OCPG, multiple sales must be considered on the same or similar car. Of those multiple sales studied, the tendency is to throw out the high and low and use the middle ground as the actual. Guess where most of the Arizona results end up in this scenario? They generally show up at the high end, so say good-bye!

I've been pretty much a regular on the Arizona auction scene since 1990. That was the year the old car hobby was already experiencing the hand-wringing of a market correction that saw prices paid for collector vehicles taking a sharp (I'm being conservative in my word choice) downturn. It was a time of frustration for those who bought high, and equally a time of renewed enthusiasm for those now able to buy low(er).

Jump ahead 17 years, and rumblings of a softening of prices paid for collector vehicles are again being heard. Muscle cars are still king, often commanding dollars that defy logic, and Arizona sales bore this out. But what's different in 2007 vs. 1990 is what I'll dub the "TV factor." My best guess is that just as the SPEED television coverage of the Barrett-Jackson sale at the WestWorld facility has brought new eyes and new collectors into the old car hobby each of the past several years (an extremely good thing), it, too, will continue to promote artificially high prices paid for many, if not all, the vehicles that cross the block. If a market correction should occur (or re-occur for those who remember 1990), it may not have much of an impact on this slate of early-year Arizona sales that all benefit from the extensive TV coverage, whether they're held at WestWorld or not. (This is a bad thing if you're a buyer hoping that at some point the "cream" authentic muscle cars that show up in Arizona each year will be able to be had without taking out a loan the size of the national debt to acquire one!)



2/19/2007 12:37:15 PM (Eastern Standard Time, UTC-05:00)  #  Comments [0]