Barrett Jackson

[Charley Lillard]

Originally Posted by Ambrola

As always, BJ cars sell for more money than their worth? Look at Pratt. He didn't make any thing on millions of dollars of investment in the car market. But then again, he spent stupid money on BJ cars at the advise of Steve Davis. I can't hardly watch BJ any longer. Mecums is the place to buy and BJ is the place to sell?

I also thought Pratte would lose his ass when he sold but I seem to remember people paying stupid prices when he sold. Would be nice to compare his bought and sold prices.

[Lee Stewart]

Originally Posted by Charley Lillard

I also thought Pratte would lose his ass when he sold but I seem to remember people paying stupid prices when he sold. Would be nice to compare his bought and sold prices.

I can tell you he lost money when he bought the 1966 Shelby Super Snake in 2007 ($5.5 million) then sold it in 2015 for $5.1 million (com. inc. on both numbers)

[whitetop]

Originally Posted by Charley Lillard

I also thought Pratte would lose his ass when he sold but I seem to remember people paying stupid prices when he sold. Would be nice to compare his bought and sold prices.

I would bet Pratt also received deep discounts on commissions both ways from BJ and in some cases I would bet he paid none at all. In effect he was used as advertising for BJ for people to spend more money than they would have otherwise.

Potential buyers think: Here is a super rich, smart guy buying very high priced cars. He must know something I don't so i will pay high prices too.

Probably some right offs also done by sharp accountants.

Guys like Pratt don't normally lose money.

[the427king]

Im pretty sure those with unlimited funds dont buy cars for investment,but for enjoyment and bragging rights.

[Lee Stewart]

Originally Posted by whitetop

I would bet Pratt also received deep discounts on commissions both ways from BJ and in some cases I would bet he paid none at all. In effect he was used as advertising for BJ for people to spend more money than they would have otherwise.

Potential buyers think: Here is a super rich, smart guy buying very high priced cars. He must know something I don't so i will pay high prices too.

Probably some right offs also done by sharp accountants.

Guys like Pratt don't normally lose money.

If you buy a car, keep it for a year and make a profit - that profit minus expenses is taxed as Capital Gains. But if you lose money on the car - you can't write that off.

[jdv69z]

Originally Posted by Lee Stewart

If you buy a car, keep it for a year and make a profit - that profit minus expenses is taxed as Capital Gains. But if you lose money on the car - you can't write that off.

I believe if you sell a car at a loss, you can use the loss against another car sale on which you made a gain (profit) to offset the capital gain and thus the capital gains tax. Same as you would with sales of stocks. So tax would be on the net gain of the 2 sales. But I am not an accountant.

[the427king]

That is correct. However if you lose 30K on a sale and do not profit on another you cannot take the 30K as a capital loss. It can only be used against profit

[southernfriedcj]

Originally Posted by the427king

That is correct. However if you lose 30K on a sale and do not profit on another you cannot take the 30K as a capital loss. It can only be used against profit

I'm not CPA, but if you run you hobby like a business(Car Collector, LLC) I would think you could write off individual losses. Write off trips to auctions as well.

[Ambrola]

Originally Posted by whitetop

I would bet Pratt also received deep discounts on commissions both ways from BJ and in some cases I would bet he paid none at all. In effect he was used as advertising for BJ for people to spend more money than they would have otherwise.

Potential buyers think: Here is a super rich, smart guy buying very high priced cars. He must know something I don't so i will pay high prices too.

Probably some right offs also done by sharp accountants.

Guys like Pratt don't normally lose money.

I always enjoyed watching Pratt when he was buying. But I would bet BJ didn't cut him any slack on the commissions? I was surprised at the prices the restomods were bringing.