Auction Wars in Vegas – will this ruin the vintage/collector market?

by Lorin Guy

This January it’s Auction Wars in Las Vegas Nevada. This should be one of the most interesting years in the history of the Las Vegas Motorcycle auctions. This all comes down to the fact that vintage and classic motorcycles are a strong and viable commodity and investors as well as collectors are still buying, regardless of the economic woes of the country. Pricing was said to be about 25% off, but as the numbers seem to indicate that was an overstated evaluation, the market is still strong and if off at all it’s more like 5-10%.

As the economy continues to be an issue the vintage and collector auction houses are looking for ways to bolster their business as well as take advantage of a financial situation that has some collectors and enthusiast reeling, having to sell off their prized collections of motorcycles. On the other hand there are those who are looking to invest in something that is more stable than the traditional stocks, real-estate and banks, but looking for more rewarding market for their money to sit and in some cases appreciating such as classic cars and motorcycles.

To prove this point, the Las Vegas Motorcycle auction week, January 12-15 is hosting THREE major houses all looking to sell. First in line is the Mid-America Vintage Motorcycle Auction, (South Point Hotel and Casino, January 12-14) now in its 24^th year Mid-America has what is considered by most to be “the show” or they are the main target of the others coming to Vegas.

Second is the Bonham’s House, (Imperial Palace Hotel & Casino, Jan.12^th), in the auction business for well over 300 years but relatively new to the game of classic and vintage motorcycling they have over the last couple of years been gaining experience, as well as bringing some incredible motorcycles to the floor.

RM auctions, (Rio All–Suite Hotel & Casino, January 12-14) a group more commonly known for its work in classic cars, but having acquired the auction house of Bator who had acquired Wood’s Auctions a couple years ago, is in a good position to step up and produce a very interesting show.

So what does this do for the common enthusiast in the market for a classic?  Well, it offers an incredible opportunity for a bargain purchase of a classic or vintage bike. For the collector or enthusiast having to sell or liquidate, it waters down a market that has, up to this point, been very strong. The competition is tough for the auction people too, as most of the auctioneers (callers) are commission-based, the watering down of the flock of buyers makes their job tough. It’s going to be a war on the floor, so if you’re coming to buy, be prepared to be aggressive, know your position and the market for the bike you desire.

The whole situation brings up some very interesting questions and theories. One or more of these houses are going to lose; there just are not that many buyers in a position to purchase and there are fewer who are in a position to make multiple purchases on the weekend. So it stands to reason that if I buy on Thursday at one show, I’ve mostly likely shot my wad and unless I want some sleepless nights over the constant protests of my wife, buying another one at one of the other shows in unlikely. But are the houses counting on the ones who can make the multiply purchases, are they looking for them to step up and buy a few more because of the glut of bikes?

Does this, as in the real-estate market, create a false bubble? All these auction houses coming into a market that has seen only a couple of specialty players dealing and maintaining a strong pricing base? Well, yes it does, but the question is, when will it burst? That’s hard to say really, as the basic economy improves so does the common buying power. So by watering down the market, attracting attention as investors see the potential, even if as short gains. If they can hold on, the results are due in late January, that’s when we’ll better understand the impact of this war.

All I can say I want to sit up front, I want to be there, maybe get some of the splatter all over me because this is going to be a “Battle Royal”, egos of the auction houses, the callers, the sellers and the tenacity of the savvy buyers are on the line. Wow, it does not get any more brutal than this.

Be there, you don’t wanna miss Auction Wars in Vegas 2012.