RM Outperforms Gooding in Auction Success
21 September 2024 12 min read 8 images
Photo credit: Gooding, RM Sotheby’s
We often refer to Pebble Beach as the "market thermometer". It hosts the most expensive cars, with the best history, prestigious models, famous (and wealthy) collectors and plenty to choose from. Based on this, $400 million in turnover is not a record but still a significant figure. Let’s compare the results of two European auctions that illustrate this concept: RM in Tegernsee, Germany, held on July 27 – before Pebble Beach – and Gooding in London on August 31 (after the California week).
Gooding managed to sell less than half: 47.83% or 11 cars out of 23 and didn’t surpass 54% in value: £7,498,325 from a total of £13,910,000. None of the cars sold at Gooding met their estimates. These numbers might be alarming when viewed like this. On the other hand, RM reached a strong 67.5% in value, achieving €15,705,075 from €23,315,000, even though RM’s top lot remained unsold while Gooding’s did sell.
Those suggesting "panic selling" – a financial term describing irrational market crashes – were wrong: subsequent September auctions proved quite resilient. To draw conclusions, it’s better to look "inside" the Gooding auction: almost 50% of the cars were pre-war (RM only had one in comparison), with another 25% from the '40s or '50s. In essence, 75% of the offerings were from categories less appreciated by today's buyers. Plus, the estimates, though for exceptional examples, were often very high. Finally, the limited number of vehicles rarely leads to success: more cars attract potential buyers, even out of curiosity, but that wasn't the case here. Let’s move forward with our overview, starting with RM, the earlier of the two auctions.
Top lot: a Mercedes-Benz SLR McLaren Stirling Moss Edition, redesigned from scratch. Of the 75 units produced, the 2010 model offered at auction had only driven 45 kilometers. Is this a benefit? No, a drawback, because in the European Union, a car with less than 6,000 kilometers is considered new, and thus subject to VAT on the purchase price, adding around €750,000 on top of the estimated €3.2-3.8 million. The alternative is selling outside the EU, where national duties apply. Despite this "small issue", it sold for €3,355,000, a new record for the model.
Another record was set for a TBA HWA EVO, the first example ever offered at auction (and the first produced). This model combined two popular trends: '90s DTM cars and restomods. Essentially, it’s a Mercedes-Benz 190 Evo II on steroids: 3.0 V6 biturbo, 450 horsepower (though this particular one had 500), full carbon-fiber body making the car weigh just 1,350 kg, with a top speed of 300 km/h. Even its design looked like it had just come from the gym. Restomods never sell cheaply. In this case, the estimate was €700,000-900,000, but after a bidding war, it sold for €1,310,000.
RUF also ventured into the restomod market – in fact, they’ve always been part of it. The SCR from 2022 offered in Tegernsee was a prime example: chassis number 2 (the first produced after the prototype), painted in a striking Lime Green, with the finest interior I’ve ever seen, only one owner, and, at last, used: 11,000 kilometers. Had I had the money, I would have paid the estimate of €1.1-1.6 million just for the interior, and someone agreed with me; it sold for €1,152,500.
I’d also have bought the 2008 Ferrari F430 Scuderia: of the various "special" Ferraris (from the 360 Challenge to the 488 Pista), it’s the most "affordable" of the bunch. This one was estimated at €190,000-240,000, but the low estimate was due to its high mileage (a whopping 57,000 kilometers). Black exterior, black interior, dark gray wheels, and black brake calipers – the perfect car for Batman. I would’ve gladly paid more than the €218,500 it sold for, but I’m not Bruce Wayne, and I don’t have his bank account.
By now, we’ve discovered another key reason why these two auctions are not comparable and why they don’t offer a global market outlook: RM’s offerings were ultra-modern, while Gooding’s were ultra-classic. At Gooding, the top lot was a Bugatti Type 43A Roadster “Sport Luxe”. Of the 19 produced (and the 10 that survived), this was probably the finest example: super well-preserved, it had been "veiled" (repainted in its original color over the existing one) many years ago but was otherwise entirely original. Just look at the interior and engine! It was stunning. Furthermore, the seller was Jack Braam-Ruben, one of the foremost Bugatti experts, to whom I have a special connection since I bought his collection of auction catalogs in 2009, which became the core of my collection. The estimate of £3-4 million was not reached, but it still sold for £2,981,250, a new record for the model.
From the same collection, the 1935 Bugatti Type 57 Atalante was also one to watch. Initially planned as a Grand Raid Roadster, the factory decided to outfit it with this bodywork instead. Being the third of 10 examples from the first series, it had a more streamlined and sporty tail. Acquired by the collector in 2019, it was restored to the highest standards of its owner, and it was probably the finest Atalante example. The estimate was £3-4 million, about double the price of a standard example, but the difference in condition probably didn’t justify the price. It sold for £2,362,500.
Though it didn’t reach its minimum estimate, the 1928 Lancia Lambda Series VIII Torpedo still set a new model record. Usually, these cars have a "patchy" history (not to say invented), but this one was not only well-documented but had an exceptional history: it was the only remaining car of the nine that participated in the Mille Miglia as part of the official team. Moreover, in 2019, it won the prestigious FIVA Award at Villa d’Este as the best-preserved car. To understand the value of this car, it's essential to know that the Lambda was the first car with a unitary body, meaning that, despite being a pre-war vehicle, no example was bodied by a prominent coachbuilder – it’s like a modern mass-produced car. As such, all Torpedoes have similar price ranges between £50,000 and £100,000, while this example was estimated at £550,000-650,000. Did its history and condition justify the price? The market said yes: £528,750.
The car I would have taken home from the Gooding auction? You know I’m passionate about Lagonda, and the M45, with its 4.5-liter engine, was a super sedan of the era. As I often say, pre-war cars are the ones I would bet on; they can participate in any event, and since they’re "out of fashion", they’re priced reasonably: the 1934 example offered was estimated at just £60,000-80,000. The restoration of the interior alone, with all that leather, wood and all the chrome work, must have cost double that. Plus, the engine was in exceptional condition. If £60,000-80,000 was already a low estimate, what do you think about the final sale price of £40,500?
To conclude, despite the results, it was Gooding that ultimately won this "battle": just a few days later, they announced that the auction house had been acquired by the English giant Christie’s. The figures were not disclosed, but we can bet it was another record-breaking deal.
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