Prior to this market shift, anyone who restored a car or paid to restore a car did so as a hobbyist; few regarded such efforts as investment decisions, despite the fact that professional restoration at a shop labor rate of $50 an hour could easily top $8,000 a month. Still, a stack of receipts for parts and labor that totaled six figures never resulted in a six-figure car; restoration was a loss leader with only about 50 percent of restoration costs being recouped. But things changed in the 1980s, when Aston Martin values increased tenfold over the course of a single year, and escalating Ferrari prices revved up the collector community’s bidding engines. The Ferrari 250 GTO (a car that might have fetched $75,000 in 1985) would increase in value to more than $10 million by the end of the decade. Such spiraling car values made the restoration industry more viable, and the vice of restorative indulgence a more economically reasonable pastime, expanding the number of freshly minted restorations crossing the auction block from coast to coast. And the automobile auction industry has continued to grow since.

The provenance of an original, dusty, dented, barn find inspires more confidence than a car restored to better than new condition.

With this growth, the value and desirability of some of the cars has sidestepped their former mantle as transportation and placed them on the same level as other big-ticket, investment-grade collectibles. In the same way that an original finish can double the value of a 17th-century chair, original, unrestored cars, sometimes literally barn finds, have sold for figures comparable to and sometimes exceeding fully restored items. The provenance of an original, dusty, dented, barn find inspires more confidence than a car restored to better-than-new condition, because the car-collecting world, like those of other high-end collectibles, is dotted with unoriginal cars, clones and bitsas (cars built from parts, or bits), some of these dating back to the Fifties, giving them the look of the genuine article.

Though the industry has expanded in size, it has not always advanced in terms of its sophistication. Far from the stately environs of fiction, the automobile auction can more closely resemble a livestock sale at the county fair. Auctioneers occasionally drive the vehicles across the platform, immersing the audience in a miasma of carbon monoxide, or arrange them in the sorts of static displays to be found at used car lots. The catalogs of the sales’ contents, at their best, are glossily printed tomes, often colorful, often wordy, but seldom terribly informative as to the historical significance of the lots or their true condition.

The Mechanics of Buying
All these factors make the classic car auction, strictly speaking, the wrong place for the uninformed beginner. But, luckily, many resources are available for nonexperts to smooth out the bumps in the auction highway. Auction catalogs are released more than a month before most events; this is usually enough time to perform basic research on the car in question. This preliminary research should include verification of any facts claimed in the auction catalog description. Details such as color, engine number, chassis number and special options are fairly easy to verify on most popular collector cars. A combination of books, the Internet and marque experts should provide sufficient information for a prospective buyer to proceed. Marque experts and appraisers who offer prepurchase inspection services (advertised in the "services offered" section of car collector publications) are especially valuable resources. Certain cars, after all, turn up at auctions repeatedly, even after they have appeared to sell; others have been advertised for months (or even years) prior to going to auction. An expert follows specific cars closely enough to often know which cars one should avoid (the ones that have "stories") and which cars one should pursue.

Spending time in the vicinity of a desired vehicle will likely reveal some of the buzz around the car— or lack of it.

A car that passes these first tests should next undergo a physical inspection. Once again, hiring an expert is recommended, unless the buyer is extremely knowledgeable concerning the details that make or break a car’s value. A professional will often spot these inconsistencies and flaws, such as a car with apparently matching numbers that have been restamped, or even more alarming, a coupe that was cut to become a convertible. Cars that have suffered major collision damage as well as color changes or rust that can be difficult to spot can profoundly impact the actual value of the vehicle. An expert knows where to look and what to look for.

The major auctions hold the consignments in a staging area that receives cars up to three or four days before the auction date. It should be possible to make arrangements to inspect a car at this location. The auction company accepts no responsibility for the accuracy of any statements made by the consignor, including the model year and serial number. Though the time available for checking the dozens of details that can make a car a candidate for purchase is limited, a little preparation and organization can at least reassure the buyer that the purchase of a given vehicle is not a costly mistake.

Those unable to preview the car prior to the day of the event can sometimes discuss the car with its owner: Smart, well-prepared sellers stay with their car to answer questions on the day of the auction. Some have prepared handouts with copies of important documents or photo documentation of the restoration, history or other not-so-obvious features. The buyer’s expert can quiz the owner, and though the owner may not permit a test drive, buyers can at least hear the car’s running, check the function of lights and switches, check the underside for leaks, and perhaps get an idea of the owner’s real expectation of the car’s performance on the auction block. If the seller has paid an additional consignment fee for a prime time spot, he probably hopes to get top dollar. The first or last cars to cross the block are almost always less expensive, with fewer bidders in attendance at those hours. Many of those early and late entries are "no reserve" and might sell for bargain prices. Experts should assist in establishing a fair price for a given car, as well as in determining whether the buyer’s target price is in line with verifiable sales. This equation can be unpredictable: Researching advertised sales prices of a particular car will not always yield successful results because some cars bring much more money at auction than the typical advertised price, while others do not. Finally, the buyer’s target price point must include the buyer’s premium (usually 8 percent) and transport (seldom less than $1,500 coast to coast).

Buyers who have the opportunity to do so should attend a field walk. These exercises give buyers the opportunity to see marque experts in action as they critique dozens of cars, and to ask questions. The organizers of the Barrett Jackson auction, held every January in Scottsdale, Ariz., wade through 5,000 entries to select 800 consignments. This large auction can have as many 1960s Corvettes, Mercedes Benz 300SL Gullwings or Ferrari Dinos as even the most avid enthusiast will normally see in one year—all available for examination in the course of two or three days. If a large auction offers one advantage above all, it is the opportunity to inspect the most cars in the least amount of time.

Auctions run the staggering gamut from huge tents filled with folding chairs, noise, smoke, cars and a no-host bar to European-style events, held in much nicer tents with color catalogs and a no-host bar. Either way, the same rules apply: One must do research, set a dollar limit on a purchase, and keep one’s ears open. Spending a few minutes in the vicinity of the desired vehicle will likely reveal some of the buzz around the car—or the lack of it. In either case, the education available to a good listener might just result in a more effective bid strategy and a sounder investment.

A Car Enthusiast’s Auction Glossary

Buyer’s premium: The sales commission paid by the purchaser, usually 8 percent. Color change: A car that is no longer painted its original color. Cut or cut car: A coupe that has been converted to a convertible. Estimate: A term used in auction catalogs to indicate the expected hammer price. Field walk: A tour of the consignments hosted by one or more market or marque experts, where selected cars are critiqued and participants are given useful information on both buying and selling. Offered most often through Sports Car Market magazine, www.sportscarmarket.com. Letter of Guarantee, also known as an Irrevocable Bank Letter of Guarantee: A document, required by most auction companies and completed by the buyer’s bank, that will guarantee the buyer’s personal or corporate check up to the limit stated in the letter. Hammer price: The high bid on a car that has successfully sold. Marque: The make or brand name of a car. Matching numbers: A car that retains the major mechanical components (sometimes including the original paint) with which it was originally fitted at the factory. No excuses: See "No stories." No reserve: A car that will be sold for the highest bid. It is possible for the consignor to bid on his own car. The bidder, in this case, will be responsible for both buyer’s and seller’s premiums. No stories: A car that is correct and original, sometimes called no excuses. Prime time: The middle portion of the auction, typically when the most people are in attendance and the spaces are reserved for the most expensive cars. Restamp: A serial number or other code number that has been stamped onto the engine or other major component to give the appearance of originality. Reserve price: The minimum that the consignor will accept for the car. Seller’s premium: The sales commission paid by the consignor, usually 8 to 10 percent. Stories: A car that has some elaborate excuse for not appearing original or correct.

Photograph by Roger Ressmeyer/Corbis