GM still gets returns on classic cars
General Motors is putting some of its classic cars on the auction block today for the second time this year. The move saves GM on warehouse costs and makes some cash on the solid classic car market. Joel Rose reports.
Classic cars are displayed at General Motors headquarters in Detroit, Mich. (Spencer Platt/Getty Images)
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Renita Jablonski: Car sales in China just hit a monthly record of more than a million vehicles in March. This is the third month in a row China has exceeded auto sales in the U.S. GM, though, is hoping to cash in on some major sales starting today. That auction of about 100 antique cars from GM's private collection starts today. Joel Rose reports.
Joel Rose: A 1920 Chevrolet truck and a '78 Corvette pace car from the Indianapolis 500 are just a few of the historic vehicles on the block this weekend. GM is selling the cars at an auction in Palm Beach, Fla. to raise cash and save on warehousing costs.
You might expect that a deep recession would be the wrong time to put a bunch of classic cars on the market. Not so, says one expert:
Rick Carey: The collector car market has been remarkably solid.
Rick Carey is the auctions editor of Car Collector and Victory Lane magazines. This is second time this year that GM has put historic cars up for sale. Carey says more than 200 cars went on the block in January.
Carey: And the collectors showed up with dollar bills falling out of their pockets to buy them. And they paid some very serious money for them.
Compared to stocks and real estate, Carey says classic cars are looking more and more like a decent investment vehicle.
I'm Joel Rose for Marketplace.
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