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RM London 2016

 

RM London Auction Results 2016

 

Well it was an interesting result in London – was this the top?

One of our clients purchased all three of the truly rare air cooled Porsche’s on offer which were part of the eight car Stuttgart collection being liquidated at the auction. While our evaluation of the purchase results are mixed (see below) the price paid for the Riviera Blue 993 GT2 Strassenversion was certainly a record that will stand for some time – particularly as the market softens, in our opinion even for the best examples.

964 RS 3.8 – purchased at what could be considered at or below fair market
– 16.6k KM
– one owner
– not 100% original paint
– sale price before commission £640,000/€768,000/$857,600

964 Turbo S Leichtbau – purchased at what could be considered below fair market
– 6.3k KM
– two owner
– 100% original paint
– sale price before commission £870,000/€1,044,000/$1,165,800

993 GT2 – purchased at what could be considered the very top of the market
– 12.7k KM
– one owner
– 100% original paint
– sale price before commission £1,848,000/€2,184,000/$2,457,800

So is this the top of the market? We think for the foreseeable future the argument will be that the best and/or rarest examples will still command the high prices while lesser examples will suffer varying degrees of market correction. However, we believe the prices paid in London are the foreseeable top – across the board – for these reasons.

– One owner 964 3.8 RS show up only every five years if that and few if any 3.8 RS come to market at all in a given year. Maybe the paint work reduced the value, but its such a rare car that the lack of competitive bidding demonstrates market exhaustion.

– While Turbo S Leichtbau do come to market more frequently than 964 3.8 RS, the price paid was well below what we thought this example should clear for given its rarity and condition. To us another example of market exhaustion.

– The 993 GT2’s selling price, even for an example which could arguably be considered a best of breed (1 owner, 100% original paint, desirable color Riviera Blue), demonstrates to us the irrational exuberance of a market top. When buyers with an excess of funds throw out logic in exchange for emotion – simply because of the frothy financial markets which are supporting their pocket books.

So some examples selling into weakness and others selling at over-the-top prices … I had hoped London would help to settle the market – but it may have created and even larger disparity between the expectations of buyers v. sellers.

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