INDIANAPOLIS — The desire to own American-made automobiles remains remarkably strong, despite the recent announcements that General Motors and Chrysler will close hundreds of U.S. dealerships in a struggle for survival. • Across the nation auctions of classic muscle cars and vintage luxury vehicles are drawing record crowds.
It's both a buyer's market and a seller's market, depending on the type of vehicle that rolls into the auction ring.
More than 1,250 highly in-demand models of Chevrolet Corvettes, Pontiac GTOs, Plymouth Hemi Cudas, Packard Woody Wagons and many more original American automobile idols were put on the auction block at the 22nd annual Spring Classic conducted by Mecum Auto Auction, held recently at the Indiana State Fairgrounds. Attendance was projected at more than 10,000 people, which is in record territory, officials said.
"We simply refuse to participate in the recession," said Dana Mecum, chief executive officer of the Marengo, Ill.-based auction company.
The buyers, sellers and just-plain curious ranged from professional auto-restoration companies to independent high-rollers, husband-and-wife teams who needed to sell their prized wheels to pay mortgages and children's college educations, to senior citizens subsisting on Social Security checks looking for an escape from their problems for a few hours.
Entering the weekend, 63 percent of the vehicles were sold, according to Tom Christmann, Mecum's marketing manager. That figure has remained steady from before the collapses on Wall Street and in the housing sector, he said.
"The irony is that there are some bright spots in the economy and the car industry. The passion for the old cars is alive and well," Christmann said.
There are some deals around. The prices on some classic Chrysler models are down 20 percent to 30 percent on average, he said. But it has less to do with Chrysler's bankruptcy troubles than the fact that Chryslers were last to appreciate in value over the last several years, so now they are the first to decline, he said. GM cars are the least affected, while Ford vehicles are in the middle, Christmann said.
"The very best cars haven't depreciated at all," he said. "They are money in the bank."
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