cars auction lambrecht collection

[Tilar]

It doesn't matter if you get a deduction, you can't make a profit by losing money. There is no way that he had a 50% profit margin on the sale of the new car. So lets just say that the new car cost $5000.00 and the trade in was worth $2500.00.

I'm not sure what "deduction" you are referring to but that's alright. He probably had a 30% profit margin on the cars back in the 60's and I'm going to guess the profit margin in the 80's was well into the 40% range. He didn't get a new $5000 car until the mid 70's and if you take a look at his auction, other than just a few here and there he didn't have much of anything older than early 70's.

At that point is where the scenario that I mentioned earlier made him a ton of money. He could sell his trade-ins to his wife for pennies on the dollar. His business shows a loss and a private sale by his wife or other entity on the trade-ins that he didn't keep is pure profit to him personally, plus his business takes a deduction for the loss. It happens every day in many forms and is for the most part legal. I've watched it happen many times over the years.

i can't imagine a dealer today....

Right there is the problem with people not understanding this. This entire subject has never had anything to do with "today".

[69hemidaytona]

What if he did sell all those turd cars back in the day for lets say op dollar for the day.
Ok, you all know how 'investing' works. You win some, you lose some.
I doubt seriously that ANY money he made back in the day would bring him $2million like it did 'hoarding' those cars like did....

He got all his 'investment' profit in one lump. He didn't lose/risk.anything. the cars made money.
Any money from sale years ago would have been spent just living life.

Arguing this is nothing more than my house is bigger than yours. Depends on how you look at it.

I think that had he sold all of those cars soon after he acquired them and invested the money in any mutual fund, or individual stocks, or gold, or farm land, or bonds, or just about anything else he would have much much more than that amount now. If he had even just ordered a new 67 L88 Vette or a ZL-1 Camaro, that one car would have been worth more than everything that sold at auction. To assume that he would have just spent any money he received when selling the cars is probably not accurate. He seemed to live OK on the money he did have so I don't think he would have blown it all on fast living.

[69hemidaytona]

It doesn't matter if you get a deduction, you can't make a profit by losing money. There is no way that he had a 50% profit margin on the sale of the new car. So lets just say that the new car cost $5000.00 and the trade in was worth $2500.00.

I'm not sure what "deduction" you are referring to but that's alright. He probably had a 30% profit margin on the cars back in the 60's and I'm going to guess the profit margin in the 80's was well into the 40% range. He didn't get a new $5000 car until the mid 70's and if you take a look at his auction, other than just a few here and there he didn't have much of anything older than early 70's.

At that point is where the scenario that I mentioned earlier made him a ton of money. He could sell his trade-ins to his wife for pennies on the dollar. His business shows a loss and a private sale by his wife or other entity on the trade-ins that he didn't keep is pure profit to him personally, plus his business takes a deduction for the loss. It happens every day in many forms and is for the most part legal. I've watched it happen many times over the years.

i can't imagine a dealer today....

Right there is the problem with people not understanding this. This entire subject has never had anything to do with "today".

The deduction I was talking about is the same one that you mention later in the same post. I really don't think the profit margin was anywhere near 30% in the 60's or into the 40% range in the 80's. Right now it is about 7%. While he may or may not had a $5000.00 car during the 60's, I was just using that number as an example. It was a round number that I thought would be easy to work with and understand. Then we get into the heart of the matter where I believe we might not be analyzing it the same. When he sells the car to his wife for pennies on the dollar you are correct that his business would be incurring a loss. This would reduce his income tax by whatever percent tax bracket he was in. If he shows a dollar loss and he is in a 30% tax bracket, he saves 30 cents on his tax bill for that year. Again that is just an example using a nice round number. I'm sure his reported loss on each deal was more than one dollar. But what this shows us is that even though he gets to show a loss on a particular deal he still has less money at the end of the year than if he hadn't reported a loss. Now it's true under your scenario that his wife gets to buy a used car for a lot less than it's worth. If she sells the car for more than she paid for it she has to report that as income and pay the tax. Nothing has been gained versus just having the dealership sell the car to the same party that the wife ended up selling it to. However it appears that many of the trade ins were never sold at all, until the auction that is. Therefore they showed a loss at the dealership and no profit by her personally selling the car. As we know they did eventually sell all of these cars. They probably sold some of them for more than they allowed in trade and sold some for less than they allowed in trade. Take for instance the 1969 station wagon that I initially mentioned in my first post. It sold for $900.00 at the auction. I'm sure they gave much more than that in trade in 1971 when it had only 46,000 miles. Therefore they lost money on that car. There are probably countless examples of that in his dealings. Had he just sold the cars at auction to another dealer at wholesale price when he received them, paid the tax and stuck the money in the bank he would have been much better off monetarily than he is now. Had he invested it wisely like in the stock market or in real estate he would have 50 to one hundred million dollars by now.

[nh_mopar_fan]

The Cameo sold to a guy in this area.

http://www.wmur.com/news/nh-news/historic-truck-comes-to-new-hampshire/-/9857858/22325946/-/o7bjehz/-/index.html

[Aero426]

Buyer of the Cameo (Steve Ames) is a major Pontiac restoration parts supplier.

http://www.amesperf.com/

[arrow]

  What did the Corvette sell for ?

[Tilar]

  What did the Corvette sell for ?

3 times what it was worth. I think it was 80k or something like that.

[69hemidaytona]

 What did the Corvette sell for ?

3 times what it was worth. I think it was 80k or something like that.

I agree with you on that Tilar. There are a lot of those Vettes. A large number were bought as investments and are around with no miles. Not a bad looking car though.

[Cooter]

What if he did sell all those turd cars back in the day for lets say op dollar for the day.
Ok, you all know how 'investing' works. You win some, you lose some.
I doubt seriously that ANY money he made back in the day would bring him $2million like it did 'hoarding' those cars like did....

He got all his 'investment' profit in one lump. He didn't lose/risk.anything. the cars made money.
Any money from sale years ago would have been spent just living life.

Arguing this is nothing more than my house is bigger than yours. Depends on how you look at it.I

I think that had he sold all of those cars soon after he acquired them and invested the money in any mutual fund, or individual stocks, or gold, or farm land, or bonds, or just about anything else he would have much much more than that amount now. If he had even just ordered a new 67 L88 Vette or a ZL-1 Camaro, that one car would have been worth more than everything that sold at auction. To assume that he would have just spent any money he received when selling the cars is probably not accurate. He seemed to live OK on the money he did have so I don't think he would have blown it all on fast living.

Respectfully, you are wrong. Look how many sell Charger dream car today, only to be out if money AND the car in 5 years.
You people are Trying to put the round peg through the square hole...yes, in a perfect scenario, he woulda made more money....how many times have you been involved in petfect scenarios?

My point exactly.  Deal in reality.

[69hemidaytona]

What if he did sell all those turd cars back in the day for lets say op dollar for the day.
Ok, you all know how 'investing' works. You win some, you lose some.
I doubt seriously that ANY money he made back in the day would bring him $2million like it did 'hoarding' those cars like did....

He got all his 'investment' profit in one lump. He didn't lose/risk.anything. the cars made money.
Any money from sale years ago would have been spent just living life.

Arguing this is nothing more than my house is bigger than yours. Depends on how you look at it.I

I think that had he sold all of those cars soon after he acquired them and invested the money in any mutual fund, or individual stocks, or gold, or farm land, or bonds, or just about anything else he would have much much more than that amount now. If he had even just ordered a new 67 L88 Vette or a ZL-1 Camaro, that one car would have been worth more than everything that sold at auction. To assume that he would have just spent any money he received when selling the cars is probably not accurate. He seemed to live OK on the money he did have so I don't think he would have blown it all on fast living.

Respectfully, you are wrong. Look how many sell Charger dream car today, only to be out if money AND the car in 5 years.
You people are Trying to put the round peg through the square hole...yes, in a perfect scenario, he woulda made more money....how many times have you been involved in petfect scenarios?

My point exactly.  Deal in reality.

There may be some people that have sold their Charger and then were broke five years later. Sometimes they sell their car because they have an urgent need for the money i.e. medical bills or something similiar. Those people are "broke" immediately. This guy had 500 cars so at the five year period you quoted for going broke after selling one car, it would take him 2500 years to go broke! I know he's lived a long time already but I don't see him making it that far. To assume that everyone who has money available will just spend or lose it all means that you don't believe anybody could ever get rich. That's obviously not accurate.

[6spd68]

In other news...

http://www.ebay.com/itm/Chevrolet-Bel-Air-150-210-210-LAMBRECHT-CHEVROLET-ORIGINAL-1957-CHEVROLET-210-SEDAN-POWER-PACK-/151140303839?forcerrptr=true&hash=item2330aa03df&item=151140303839&pt=US_Cars_Trucks

5300$ end bidding...  Originally sold for 7 \/
https://vanderbrinkauction.proxibid.com/asp/LotDetail.asp?ahid=1530&aid=68561&lid=17400710&title=1957-Chevrolet-210-4dr-Sedan

  The universe is slowly balancing itself out...

[bill440rt]

Good thing there was a reserve or else he DEFINITELY would have lost money. 

[6spd68]

http://www.ebay.com/itm/Oldsmobile-Eighty-Eight-jet-star-1964-olds-jet-fire-88-holiday-hardtop-two-door-four-speed-/271295239160?forcerrptr=true&hash=item3f2a74d3f8&item=271295239160&pt=US_Cars_Trucks

Currently at 2000$, reserve not met yet.  Originally sold as listed below for 5300$

https://www.proxibid.com/asp/LotDetail.asp?ahid=1530&aid=68562&lid=17534983&title=1964-Oldsmobile-jet-Star-88-2dr-HT#



***Edited side note, I actually kinda like this car.  It's like a 64 Impala with it's own funky twist.

[GOTWING]

I have a feeling he will be keeping the Olds above..

[6spd68]

Considering it'll only be worth 8 or so restored, I'd have to agree...

[6spd68]

http://www.ebay.com/itm/Chevrolet-Corvair-700-New-Lambrecht-1960-Corvair-/300998489509?forcerrptr=true&hash=item4614e875a5&item=300998489509&pt=US_Cars_Trucks

Starting at 6K with no reserve...  Sold originally at 3800$

https://vanderbrinkauction.proxibid.com/asp/LotDetail.asp?ahid=1530&aid=68561&lid=17400612&title=1960-Chevrolet-Corvair-Monza-700-4dr-Sedan

Lets see if there are any suckers out there...