RUSSO AND STEELE COLLECTOR AUTOMOBILE AUCTIONS
NOVEMBER 2011
ENTHUSIAST NEWS Thanksgiving Transportation Special Discount pricing for door to door transport for all Russo and Steele Consignments
As part of Russo and Steele’s dedication to its fellow enthusiasts, we have enabled our clients to receive exclusive discounts in order to assist with the transportation of your collector automobiles to the 12th Annual Scottsdale Auction being held January 18th-24th, 2012. Consigning your vehicle with Russo and Steele affords enthusiasts to take advantage of MAJOR transportation discounts from coast to coast. Typically reserved for those enthusiasts planning to transport a full truckload, which consists of 6 automobiles, this Thanksgiving Transportation Special provides the same pricing discounts on individual automobiles. Unlike more special transportation offers, Russo and Steele’s auction transportation shipping does not require you to drop your automobile off at the transportation hub. These discounts include door-to-door service at no additional cost. In order to take advantage of these discounts, you must book transport by November 24th and automobiles must be ready for shipment by December 16th. This offer will not last long! Please contact Russo and Steele at 602.252.2697 for additional information.
For those of you who are familiar with Russo and Steele, you already know that our company is “For Enthusiasts, By Enthusiasts”. It’s not just a tagline – it’s a lifestyle. Most of our communication with the collector automobile community has been centered around our annual auctions, in Scottsdale, AZ and Monterey, CA. As an enthusiast, I know that in addition to classic car auctions, there is an abundance of information, events, hot topics, trends, and news concerning the collector car community. As part of our effort to connect with fellow enthusiasts on a more personal level, Russo and Steele would like to present you with “Enthusiast News”. This newsletter will feature various segments specific to the collector car community and to you, the enthusiasts. I will include a personal note with each issue in hopes of sharing some of my personal thoughts and insight. Russo and Steele is gearing up for our 12th Annual Scottsdale Auction; January 18th-22nd, 2012. I hope that you will follow us on this journey, as we will provide the latest information regarding our auction as well as other enthusiast news.
-Drew Alcazar
Recap of SEMA Show 2011 True automobile enthusiasts know that the SEMA Show in Las Vegas, NV is the premier automotive specialty products trade event in the world and is not open to the general public. Held at the Las Vegas Convention Center, over 10 thousand attendees, 2 thousand exhibitors, 1,500 new products, and 1,500 vehicles gather for 4 days of everything automotive – educational seminars, product demonstrations, special events, and networking opportunities. From Hot Rod Alley to the Restoration Marketplace, the SEMA Show encompasses
an automobile enthusiast’s playground. The SEMA Award winners represent the models that industry experts —the SEMA Show exhibitors—most often feature in their booths as the hottest rides for the enthusiast market. At this year’s show, 4 vehicles received SEMA Award top honors as the hottest vehicles. The 2011 winners included: Hottest Car – Chevrolet Camaro, Hottest Sport-Compact – FIAT 500, Hottest 4x4-SUV – Jeep Wrangler, and Hottest Truck – Ford F-Series.
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RUSSO AND STEELE COLLECTOR AUTOMOBILE AUCTIONS
What Every Collector Should Know About the New Estate Tax Rules Randy A. Fox, CFP
The recently enacted “Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010” provides several generous planning opportunities and a few cautions that collectors must be aware of. There is a two year window during which collectors can take advantage of what the new law provides for wealth transfer. Your advisors should be prepared to discuss the various options with you before this unprecedented time elapses. First, the exemption (this is the amount of your estate that you can pass on free of estate tax) has been raised to $5 million for every individual ($10 million per couple). Under the old rules, if one spouse didn’t own enough assets at death, their “exemption amount” might have been wasted. The new law permits so called “portability” which essentially allows for the full use of both exemptions for a married couple no matter who owns the assets at death. The positive side of this provision is that it allows clients and their advisors to be somewhat relaxed in their planning, especially as it relates to the ownership and cumbersome re-titling of assets that was necessary under the previous rules. However, it is most important to remember that these rules only apply until the end of 2012 and no one knows what will follow. For those couples with only a few cars in their collections, this may make your planning much easier. Larger collections still face many planning challenges.
Second, under the prior law, an individual could make lifetime gifts of up to $1 million without paying gift taxes. Even when the exemption rose to $2 million, then $3.5 million, the lifetime gifting amount was frozen. That is the unified credit was no longer “unified”. With the passage of the new act, the credit is reunited an individual can transfer up to $5 million without incurring any gift tax. This represents possibly the biggest planning opportunity the new law provides. Those affluent families that desire to transfer significant wealth to future generations can take advantage of moving $10 million and all of the future growth of those assets out of their estates sometime before the end of 2012. And they don’t have to die to do it. Leveraging those gifts will make the benefit of the transfers even more profound. Whatever the future law reverts to, it is highly unlikely that Congress will be able to take back transfers that have been made during this period. For car collectors, there are some additional considerations, especially if the assets you are thinking about transferring are some of your cars. First, when you make a gift, you must give up all control for the gift to be “complete.” Even if you make the gift to a trust for your children, your ability to use the property comes to an end. No more Concours, no deciding where and how the car(s) are displayed, etc. Even additional repairs or maintenance paid for by you would be considered additional gifts. Second, should your heirs ever sell
NOVEMBER 2011
A Car Named Grace I have never been one to name machinery. This is somewhat curious since there are few people in the world who likely have spent as much of their lives personifying machinery. Every ship I ever served in or boat that I sailed on was a she and while some of my cars have borne nicknames (the 61 Austin Healey 3000 BN7 race car which bears the moniker of “the Beast” springs to mind) none of them have ever held a proper Christian name. I have talked to cars, caressed them, lusted after them and occasionally cursed them, but never once decided to give one a name. The car used in this drive is a 1953 Austin Healey 100 owned by Austin Healey Association of Southern California member Mike Newsome. He purchased the car sight unseen off of Ebay several years ago from Michigan. There are certain maxims in life: never start a land war in Asia; never go against a Sicilian when death is on the line; and NEVER buy a car without seeing it (I myself have violated this rule several times to my personal detriment). Upon delivery to Southern California it was clear that it was less than advertised. After a less than impressive begin it was shunted off to one side of the garage to whither away. There the car sat until a couple of months ago. California Healey Week was scheduled for Ventura and I wanted to go and Mike was kind enough to offer me use of the car. George McHarris and I set out to get it running well enough to make it to Ventura and back (about a 200 mile round trip). I wanted to show my appreciation to Mike for use of the car by getting it running better and failing! (continued on page 5)
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RUSSO AND STEELE COLLECTOR AUTOMOBILE AUCTIONS
NOVEMBER 2011
What Every Collector Should Know About the New Estate Tax Rules... Continued the property, they will pay taxes based on your cost basis in the property and taxes will be paid at a much higher rate than the normal capital gains rate associated with assets like marketable securities. Clearly, before you make any gift, you should look at all of your assets and consider which assets are the most appropriate to give away. While this is all good news there a few cautions as well. It will be easy for collectors who are worth less than $10 million to ignore estate planning totally, thinking that since there is no tax, there is no need to plan. Planning has never been only about the taxes and this window is only open until the end of 2012. Who knows what will come next? Planning for disability, for fair and timely distribution of assets, to avoid probate, to protect heirs should still be compelling motivation but it will take wise and steady counsel to keep you in the right mindset. Collectors share an extra motivation; the disposition of their prized collection.
The current law offers several unique opportunities for the seasoned collector to take advantage of. With the value of great automobiles continuing to rise and interest in tangible assets like art, antiques, cars and coins at an all time high, the savvy collector is in a great position to preserve his collection and his legacy and eliminate future taxes. See like a little work for a lot of reward.
Four Candidates Announced for 2011 Rolex Bob Snodgrass Award of Excellence named as candidates for the 2011 Rolex Bob Snodgrass Award of Excellence , presented by Gorsline Company. The award recipient will be chosen by a panel of motorsports professionals and named on Friday, January 27, 2012, during the Grand Marshal dinner which is the traditional prelude to the Rolex 24 At Daytona. The 2011 honoree will be presented with a specially-engraved Rolex Stainless Steel and Platinum Yacht-Master timepiece. The Rolex Bob Snodgrass Award of Excellence was created to recognize The late Bob Snodgrass the team owner or team manager who has demonstrated the qualities Faytona, Fla.-- With the recent of integrity, passion for the sport and conclusion of the 2011 Grand-Am the love of cars for which Bob Rolex Sports Car Series comes the announcement that, from a field of 25 Snodgrass was known during his life and career. In 2010 Bob Stallings was teams, four team owners have been
the first-ever recipient of the award which is supported by Gorsline Company, the premier insurer of high-risk professionals. The four team owners who are candidates for the 2011 Rolex Bob Snodgrass Award of Excellence are: Peter Baron of Starworks Motorsport (Ft. Lauderdale, Fla.); Joe Sahlen of Team Sahlen Racing (Buffalo, N.Y.) ; John Stevenson of Stevenson Motorsports (Jacksonville, N.C.); and Sylvain Tremblay of SpeedSource (Sunrise, Fla.). ©2011 Vintage Motorsport Inc. Used by permission. Read more articles like this and/or subscribe online at www.vintagemotorsport.com or call 800-626-9937.
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RUSSO AND STEELE COLLECTOR AUTOMOBILE AUCTIONS
NOVEMBER 2011
View from the Consignment Desk At least once a day I am asked, “what is the state of the collector car hobby?” In today’s market and based on the last 16 months I can honestly say it is awesome! The American car market has made a nice recovery with the help of some very notable sales such as the 1970 Plymouth Hemi Cuda Convertible selling last January for $1.7 million. It is these types of sales that have resulted in a firm foundation that has brought both buyers and sellers back in the game.
rise to new high sales in ultra blue chip collectables such as Mercedes Benz Gullwings and Enzo era Ferraris in the last 16-months. Scottsdale will prove to be another record setting year at Russo and Steele and with our new event site enthusiasts are guaranteed more excitement and auction action than ever before! -John Bemiss
It is my belief that the collector car market’s positive signs are a result of the uncertainty in the global economy. Today people are looking for hard assets to hedge against the value of the dollar, euro, and pound. The desire to place their money in hard assets is the reason why a tremendous amount of money has been driven into the collector car arena. A good example of this is the steady This 1965 Shelby 427 Cobra CSX3127 Paved the Way for the Production of all 427 Street Cobras
This 427 Cobra was the fourth of just 260 original 427 Street Cobra produced by Shelby. Let us be clear; this is not a reproduction or continuation car, it is an original Cobra built at Shelby American in 1965. CSX 3127 served as Shelby's test v e h i c l e a n d to g a u g e c u s to m e r response to the 427 Street cars.
Factory records obtained from AC Cars Limited show that chassis number 3127, a s listed on their invoice: "Prototype Mk.II Road Car, Unpainted, Black Leather ", was completed and shipped to Shelby American in Los Angeles by air on April 30th, 1965. While most Cobras were shipped by boat to the States, the importance of 3127 is demonstrated by the fact that not only was it shipped by air, but also delivered to Shelby in bare aluminum, rather than painted. Shelby American records indicate they completed 3127 on September 9th, 1965, after which it w a s a l s o u s e d a s S h e l b y 's demonstrator and public relations car including a tour of duty on the famed Cobra Caravan tour.
Carroll Shelby made sure his PR cars were seen with the right people at the wheel. As such, CSX 3127 was loaned to celebrities and movie studios, such as Universal Studios and Paramount. Astronaut Scott Carpenter wa s loaned 3127 in May, 1966, when his personal 427 Cobra (CSX 3230) was being painted by Shelby American. Robert Cophier, a Ford executive, was loaned 3127 after Carpenter returned it. The Shelby Factor y continued using 3127 for similar duties until 5/26/1967, when it was sold to its first owner Gregory Peabody. Mr. Peabody kept the car for over a decade, until 5/1980, when he sold it with just 19,000 miles to Sloan Krister. Krister sold the car in 3/1986 to United Artists who gave the car as a gift to Sylvester Stallone upon
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RUSSO AND STEELE COLLECTOR AUTOMOBILE AUCTIONS
NOVEMBER 2011
A CAR NAMED GRACE - CONTINUED During this period of time however, Mike found out that he had multiple myeloma. Mike was more than a buddy from the club. Over the past few years he has been my photographer, racing supporter and one of my greatest fans who it seems genuinely enjoyed watching me drive – especially it seems in this once derelict car.
thought to naming the car. I thought about it a moment and gave him two choices – Hope and Grace. Hope is nice but to me represented something plaintive. Grace is defined as “favor from above” and one of my best friends shares the name. We named the
The week following Mike’s first round of chemo I had decided to do something – thus the drive was born. The problem was the car was not running and it looked doubtful that it could be made to run in any reliable fashion. As we worked on the car with the guys from the club I told them that as unreliable as she was she always broke down somewhere safe and that in fixing whatever it was that had stopped her I uncovered something more serious that would have led to a catastrophic failure. When everyone called me crazy for wanting to make this drive – and make it in this car I had a feeling that she could if we just believed. The day before we left (the car and I), Steve Kingsbury turned to me and asked whether I had had given any
car Grace. Over the next 7000 miles we would find out how appropriate that name was. *courtesy of John Nikas.
1965 Shelby 427 Cobra CSX3127 Street 427 Prototype
completion of the movie "Cobra". Stallone later sold 3127 to producer Jeff Mohr. Ten years later, in 1996 John Zinsmeyer purchased 3127 from Mohr, and had noted Cobra restorer M i ke Mc C l u s ke y p e r f o r m e d a concours level restoration. CSX 3127 then passed to John Sinders in 2001, who later sold it to noted Cobra authority Colin Comer in 2005. Comer applied the stunning black paint it retains today as well as thoroughly sorted the car mechanically.
rally twice (2006 and 2008), both The positive public reaction to CSX times without skipping a beat for the 3127, as well as the high profile entire 1000 miles. exposure gained by ha ving this automobile in the hands of influential Although few Cobras have survived people clearly helped create a market a n d a r e n o w h i g h l y co v e te d b y for the 427 Street Cobra. If it were collectors worldwide, none can rival not for this very car and the hype the unique Prototype designation, surrounding it, we may not have had noteworthy and celebrity ownership 427 Street Cobras, unquestionably one history, historical significance with of the most iconic vehicles of our detail in both authenticity, quality of time. restoration and attention to detail, all culminating to establish CSX 3127 one CSX 3127 has been featured on the of the few elite collectible pieces of 1989 Mac Tools calendar; in The Shelby American automotive history. Shelby American ma gazine #56; featured and track tested on Spike TV’s hit show “MuscleCar” in 2006; was shown at the ISCA’s World of Wheels show in 2006 where it won Outstanding Engine, Outstanding Restored, and Best of Show; and has completed the Copperstate 1000 road
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RUSSO AND STEELE COLLECTOR AUTOMOBILE AUCTIONS
NOVEMBER 2011
CARS FOR SALE AT THE SCOTTSDALE 2012 AUCTION EVENT
1932 Ford "Fusion" Great 8 Contender
VIN: 1817251 The first Uni-body constructed Street Rod ever built. This one-off roadster was built to compete for the "Ridler Award."
1966 Chevrolet Chevelle SS 396/360
Offered Without Reserve VIN: 138676B129475 Cosmetic restoration 5 years ago 396 360 horsepower engine Owner believes it to have matching
1970 Ford Mustang Mach 1 'R-Code' Offered Without Reserve VIN: OTO5R1O95O4 Features a true 428CJ Ram Air Mach 1 "R" code engine. 1 of only 1,371 with this engine & transmission combination & 1 of only 1,003 with its options.
1967 Ferrari 330 GTC VIN: 8843 Freshly repainted Sera metallic blue over a newly refreshed tan leather interior and blue wool carpets. Platinum-level cosmetic
1969 Chevrolet COPO Camaro "Tin Soldier" Race Car VIN: 124379N666683 Documentation includes, the original owner title, COPO Connection certificate of restoration, all mechanical aspects of the car authenticity, Verification, Vintage race have been attended to. pictures, time slips and full owner history.
The “Noland Adams” 1953 Chevrolet Corvette NCRS Duntov Award 99.8 - US Stamp Car
VIN: E53F001284 Bloomington Gold Award Winner NCRS Top Flight NCRS Performance Verification Awards NCRS Duntov Mark of Excellence Award scoring of 99.8% Fully Documented
1936 Auburn 852 VIN: GG5715 Restoration completed in early 2000's with a $12,000+ refresh done in 2009 by Doug Jenkins in St. Louis.
1963 Porsche 356B Cabriolet VIN: 157127 Finished in the correct, original "701" Raven Black with contrasting tan, leather interior. It was cosmetically restored in 1983 and has been dutifully maintained as a prized possession
1960 Ford Foose Custom Starling Offered Without Reserve VIN: 0D53Y102022 Equipped with a 583 HP Ford Racing motor. Has approximately 400 miles. It has a 5 speed blow proof bell housing a 373 rear.
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RUSSO AND STEELE COLLECTOR AUTOMOBILE AUCTIONS
NOVEMBER 2011
CARS FOR SALE AT THE SCOTTSDALE 2012 AUCTION EVENT
1967 Camaro “Cherokee” Convertible
VIN: 124677N233228 "The rarest Camaro Ever - This '67 ragtop could be the most collectible Camaro of all time." Muscle Car Review (Nov 2007) Built by Bill Mitchell & the Vince Piggins Group at the GM Design Center. This ultra-rare styling car is only Cherokee known to exist.
1990 Ferrari Testarossa VIN: ZFFSG17AXL0083838 It is a mint condition car with only 34,364 miles, a 100% clean Carfax History Report, flawless all original paint, and upto-date maintenance records (including the timing belts and brand new tires).
1966 Ford Galaxie 500 7 Litre VIN: 6G61Q186689
1951 Jaguar MK V 3 Position Drop Head Coupe
Complete frame-off rotisserie restoration completed in 2006. Concourse quality. One year only production, very collectible. One of only 8705 hardtops built along with 2368 convertibles for total production of 11,073 7 Litres built.
VIN: 647460
1973 DeTomasso Pantera VIN: THPNNA05889 West Coast rust-free equipped with a TallMan Conversion; mid-engine 351 Cleveland
1970 Plymouth Hemi Cuda VIN: BS23R0B214317 Real High Impact Lime Light Hemi Cuda, Numbers Matching
engine, ZF 5-speed manual transmission. Runs and drives perfectly.
1953 Jaguar C-Type Alloy Recreation
1968 Chevrolet Corvette 427/390 Roadster
This superb example of a C-Type Recreation is an exact copy of a late production series 1953 alloyed body car.
Offered Without Reserve VIN: 194678S403828 It just had a cosmetic restoration and the engine was rebuilt less than 2000 miles prior to restoration. Finished in bc/cc Porsche red.
These ultra elegant convertibles are one of the best looking cars of the era with their 3 position soft top harkening back to the classic Pre-War Dropheads.
1948 Ford "Vendetta" Custom Pick Up
VIN: 98RC417346 Has Nearly 9000 man hours logged. Thirteen different vehicles and one boat were utilized in the construction of this radical custom. A multiple award winner: The Sam Barris memorial Award & The Dick Bertolucci Award of Excellence.
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RUSSO AND STEELE COLLECTOR AUTOMOBILE AUCTIONS
NOVEMBER 2011
Calendar November 12, 2011 34th Annual “Saloons in the Old West” Concours d’Elegance November 18-20, 2011 Good Guys Scottsdale November 19, 2011 Power Ford Turkey Run Mustang Car Show December 3, 2011 Cars and Coffee December 3, 2011 Boys in Blue Car Show January 18-22, 2012
The expertise of Russo and Steele goes far beyond simply having
12th Annual Russo and Steele Scottsdale Auction
the singular focus of collector car auctions. We are fellow enthusiasts as well. We actively participate in Concours d'Elegance shows, road rallies,
*More info like location and event website can be found online
auctions, car shows, vintage racing, and other collector car events. This gives us the opportunity to interact directly with fellow enthusiasts and
Contributors
enjoy a mutual passion. Over the next few months, take a look at the classic car events in which you attend. There is a good chance that you will see one of Russo and Steele’s team members there. Our team consistently travels to various events around the country in a dedicated effort to perpetuate the enjoyment of our hobby, while staying keenly in tune with current values in the marketplace. Actions speak louder than words and we believe that the difference at Russo and Steele is astounding; we are here because it's more than a job to us, it's our passion! Please visit www.russoandsteele.com to find out what Lifestyle Events Russo and Steele will be attending in the upcoming months.
RANDY FOX, CFP Randy is a nationally known wealth strategist, philanthropic estate planner, educator and speaker dedicated to helping individuals, professional advisors, charitable institutions and planned giving organizations do well while doing good.
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