“a significant increase in expert sentiment, largely motivated by private sales, robust middle market sales and rational auction bidders”
After reporting a cooling trend a month ago, the Hagerty Market Rating is up nearly a point, “a significant increase in expert sentiment, largely motivated by private sales, robust middle market sales and rational auction bidders,” the company reported in its news release. Hagerty said contributors to the jump — from 70.90 in March to 71.81 in April — include:
- Private sales were extremely robust. Average sale price was up 13 percent year-over-year,
- Of the private sales tracked by Hagerty, 36 percent were in amounts in excess of the vehicle’s insured value,
- At Amelia Island, auction sales dollar volume were up 30 percent year over year, motivated by robust middle market sales and Bonham’s entry into the Amelia Island auctions for the first time in 2015,
- Of middle market sales, Ferrari 512 BBs were especially strong. With one selling for more than twice its top estimate of $150,000 at the Bonhams auction and another going for almost $50,000 over its top auction price of $375,000 at RM.
However, the company noted, “Amelia Island sales at the very top of the market told a different story, with some lots selling for less than their low estimates, indicating that buyers recognize that growth has slowed in the current market and are bidding more rationally. Sellers proved more likely to accept a bid under reserve, signifying they too recognize growth has slowed as well.”
The 71.81 figure is the highest for the index and the highest in the five-year span that Hagerty used in developing the monthly market rating. The lowest figure was 49.68 for May 2010.
The rating is based on a weighted algorithm that considers 15 proprietary data points in eight categories, including public auction and private sales, values of insured cars, price-guide values, Hagerty’s own index system and input from industry experts. The rating, reported at the middle of each month, is based on a 100-point scale and is presented in the form of a tachometer-style gauge, complete with a “superheated” red zone, a sort of warning that we’re approaching a possible burst of the bubble. Ideally, the market cruises along comfortably in the 60- to 80-point “expanding” zone.