The Jaguar Stimulus Program

The current financial environment has sent monetary shockwaves around the world, affecting almost every aspect of our lives. As countries are on the brink of bankruptcy, stock prices are fluctuating, real estate is gone bonkers, and bailouts are happening faster then lemmings off a cliff, so classic car prices have equally gone mad.

As Jaguar enthusiasts, many owners of valuable and preciously restored cars, our investments in our cars is also hanging in the balance. Of course, some of the extremely rare and valuable cars continue to fetch meteoric prices (see http://www.autoblog.com/2010/01/23/1956-jaguar-d-type-brings-3-74-million-at-gooding-and-company-auc/ about the sale of a Le Mans D-Type for $3.74M), the general car market pricing of classic cars is currently precipitously on either one edge or another. Conversely, sellers of classic cars, such as Jaguar, are responding in typical and historically psychologically ways to determine the valuation of their classic steeds.

eBay in particular is an interesting theater in which one can follow this unfolding drama. Logging on each day, it has been fascinating to see the wide range of valuations, both unrealistically high and surprisingly low, that owners are offering their cars for sale. While in general, as with the rest of the financial market places, prices overall are down, but the hysteria and desperation at the extremes is an interesting study in both human nature, and the marketplace realities of the emerging new world order.

Generally, there appears to be two prevailing themes in classic Jaguar sales.

The first scenario mirrors the current financial situation where, like real estate and stock prices, values are much lower than they were 12-18 months ago. In particular, XJ-S two years ago were approaching pricing of collectible respectability with 89-94 convertibles often fetching prices above $18,000 to $20,0000. However in today's price adjusted marketplace, typical sales of these models are easily ten thousand less, and mid to late 80's coupes in fair to even very good condition can be had easily for under $6,000-$7,000.

Even with some very fine examples or Series 3 E-Types, and classic older XJ6 sedans, many either in excellent or completely restored condition, some sales appear to be forced due to the significant losses of an individuals net worth in 401Ks, stock portfolios, or changes in personal finances. One sad example was a fellow who had an E-Type worth at least $75,000 with an eBay 'Buy It Now' price of $52,000. As he said in the description of his auction ad, . I have to regrettably offer this car at this price due to my upcoming retirement.. Although unwritten, you could feel a quiet desperation in his decision to sell.

The second case are those that are trying to liquidate their significant investments in restoration and want to get out of the (classic car) market before things get much worse. Some of the offerings have been optimistic at best and unrealistically greedy at worst. One thing that these high end cars have consistently had in common is that all are top-notch vehicles, i.e. at or near "100 point" cars. Nevertheless, the extremes in asking prices have been shockingly laughable.

For example, there have been excellent XJ-S examples offered at buy-it-now prices of $25,000, Series 1 and Series 3 E-Types at well over $100,000 and even (an admittedly rare but gorgeous 1990) Majestic XJ40 at $10,000!! You'll also find early XJ 120s in the six figures, and one glaring example--a Mark V drop head for almost $190,000--that made one wonder what world these people are living in.

Another interesting consequence of this topsy turvy (car) economy is the number of re submissions of cars for sale that have expired their auction time frame has ended. This is true for both of the previously describes scenarios, but it is not uncommon to see the same vehicle being offered, once, twice, or even three times--and even then, the vehicle still did not sell.

In some cases, this is simply due to an asking price (buy-it-now) that was unrealistically high, or a reserve price that was likewise more than people were willing to pay. (The "reserve" price on eBay or similar auctions is the un disclosed minimum price that the owner requires for the item to be sold.) Often these vehicles come back onto eBay, often with a lower buy-it-now price, or are offered at "no reserve."

In particular, these no reserve auction cars present sometimes remarkable opportunities for a buyer looking for a particular vehicle. There have been some astoundingly low sales on very desirable cars, such as the aforementioned Series 3 V12 E-Types, 50's vintage XKs, and the venerable and appreciating XJS. The key is timing, a good eye, knowing your model's true value, patience, luck--and most importantly--having the cash on hand to close the deal.

If you throw out the pie in the sky prices of the most egregiously high price offerings, the current economic situation presents some great deals on many classic Jaguars. If you are flush with a bit of cash, and can hit the right seller with the right car at the right time, some astounding classic Jaguar acquisitions can be had for at bargain prices.