The 1967 L89 – Investment Opportunity Is Knocking
By Rick Tavel© January 24th, 2014
1967 L89 Black on Black (Photo: Mecum) |
1967 L89 and known as "The Ed Cole Car" (Photo: Mecum) |
1963 Corvette Z06 "Tanker" Black Interior (Lot S172 Kissimmee 2014 Photo: Mecum) |
So, aside from not being marketed to the same degree, what else bears consideration? Collectability would be a good place to start. Among all production second generation models the L89 is among the top three collector Corvettes. The other two are the "Crown Jewel" of American collector cars, the 1967 L88 followed by the 1963 Z06, particularly those with documented racing heritage. The L88 and the Z06 have become the most sought after Corvettes and contrary to most collector Corvettes their prices have skyrocketed well beyond their historic values while most others have remained flat or even declined from their historic highs. The estimated value of both the L88 and Z06 is well above their value seven years ago, prior to the market crash, while most other Corvettes are just now getting back to those prices. But for some unknown reason the 1967 L89 estimated value is still below the 2006 level, well below.
Let’s look at some numbers according to the acknowledged classic
car valuation authority, Hagerty®, which will illustrate the investment
potential of the 1967 L89. The Hagerty® Valuation system is based on actual
sales of almost every collector car sold and gives an accurate depiction of historic
values. From this projections and trends and values can be accurately made. This system is
available to everyone free of charge at their website, www.hagerty.com .
1963 Z06 originally raced by Dick Lang (Lot S148 Kissimmee 2014 Photo: Mecum) |
Looking at a number 2 condition Z06 shows the value of both
the big tank and small tank models in December 2006 valued at $213K and this
past December the "tanker" was valued at $270K, a 26% improvement over the 2006 values. The
normal tank Z06 was valued at the same 2005 price and $222 at the end of 2013. The 21% difference between
the small and big tank cars is due to the added value the increased interest in racing heritage adds to the
value of a car. There have been no
recent sales of Z06’s but Mecum® has three number 1 condition cars that will be
auctioned the same day as the L89. Though the Hagerty value scale estimates the value of a number 1 "tanker" at $375K Mecum is more optimistic. Two
number 1 condition, silver big tanks, lots S150.1 and S172, are estimated between $600K and $800K and lot S148 Terry Michaelis’ concours Lang race
car, is expected to sell between $900K and $1.2M, well above the $375K estimate
for a #1 condition Z06.
1963 Z06 "Tanker" Red Interior(Lot S150.1 Kissimmee 2014 Photo: Mecum) |
Sales on the L89 are not nearly as strong as the recent trends of the L88 and Z06. In December 2006 the Hagerty® Valuation Chart
shows a number 2 condition L89 convertible to be valued at $465K and the
December 2013 value at $331K, almost 30% below the price seven years ago and
even below the value during the spring and summer following the 2008 market
crash. A number 1 condition car is valued at $390K, over $100K below the 2006 level. The percentage drop is well below
Corvettes that are not nearly as rare as other second generation Corvettes. Most of those models have recent values estimated
very close to their values seven years ago.
If the Barrett – Jackson auction is any indicator most number one and
two condition big block Corvettes are back or above the 2006 values.
Goodwood Green 1967 L89 Ed Cole's Ultimate Corvette (Photo: Mecum) |
Arguably, during the last seven years, no other second generation collectable Corvette has had cars hammered down so far below the estimated value as the rare L89. It is an aberration, and inexplicable. At Mecum’s 2011 Indy auction a 1967 L89 was sold at the unbelievable price of $117K, less than half the value of even a number 4 condition car. At that price the car should have been towed across the block in several pieces. In 2002 Barrett Jackson® sold a beautiful number 1- condition silver pearl L89 for $221.4K. But the most blatant example is the sale of the aforementioned “Ed Cole Car”. The car was originally taken to the Mecum’s Bloomington Gold auction in May of 2009, less than a year after the stock market crash in the fall of 2008, where it failed to meet the $1M reserve being bid to $550K. Two months later it was taken to Mecum’s Monterey auction with the same $1M reserve and it was bid to only $207K and incredibly the seller lifted the reserve and it sold.
*Important Note: Like any ultra
rare collector car it is important to insure that the car is what it is claimed
to be because there are several cars sold every day which are simply not
authentic. Caveat Emptor, buyer beware!
Most headline cars being featured by reputable auctions, in fact most cars are
as claimed but a buyer should always have a potential purchased checked by a
reputable authority who can verify authenticity. It is important to know that I have not been
able to get to Mecum’s Kissimmee auction this year so I have not personally
inspected the cars and the cars and condition of the Mecum® cars referenced in
this article are taken from the auction catalog and assumed to be as the seller
describes. I have personally inspected
the Dick Lang Z06 and one of the silver Z06’s earlier this year and can vouch
for their authenticity and outstanding condition. The two cars I inspected are truly Blue Chip
award winning cars. However I have not
inspected the third Z06 or the L89.
Nevertheless the projected values of the examples should not be affected
for that model in the stated condition.
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