Ferrari Mailing List: More auction craziness: "375 Plus Spider" estimated to bring $25-30 million

[Larry Bard (larrybard]

CINCINNATI - Subject to an Ohio state court-ordered settlement, a rare 1954 Ferrari "375 Plus Spider" is estimated to sell at a Bonham's London auction for $25 to $30 million, over ten times the original estimate of the value in 2010 (when the lawsuit was filed). The car was the subject of a lengthy ownership dispute between the individuals and now heirs of the prolific car collector, Karl Kleve, who purchased the car in 1955 and removed some of the original parts (ironically to prevent theft), and the Belgian racer and Ferrari dealer, Jacques Swaters, who purchased the car in good faith in Europe in 1990, several years after the car was allegedly stolen.

[ARIS Commentary: The expected high price for this rare Ferrari is heightened due to the fact that the court settlement ensures that the car is sold with all of the original parts and manufacturer documentation; in other words, in this case a judicial ruling establishes the authenticity and clear legal title to the Ferrari. The art and collectible ownership risk extends to the rare, classic and antique automobiles market, which likewise lacks a foolproof system to ensure that traded automobiles are not stolen and are free of liens and encumbrances. Although Kleve reported the theft of his Ferrari to local law enforcement circa 1989, who reported the theft to Interpol, the car was released with clear legal title by Belgian police in 1990 because the imported Ferrari purportedly had a different chassis number from Kleve's Ferrari. Only a title insurer that conducts "process underwriting" in which the company takes a holistic view of assessing submitted property including vetting the ownership history of the work, and provides a financial guarantee of clear legal title to the property can fully manage the risk exposure in the collectible automobile market.]   Access Full Text