Good News for Classic Cars

Anytime a market has more buyers than sellers, the value of the goods being sold will rise. In the case of the collector car marketplace, it appears that is exactly what is happening right now. The demand for desirable collector vehicles is at an all-time high today and the values (as well as prices) are definitely rising. Collecting, restoring, buying and selling collector cars has always been quite popular in the U.S., but the whole scene has seen a real boom of expansion since the end of the financial crisis back in 2008 when the prices for some cars fell by as much as 30%.

In the collector car market, the recession is definitely over. The most desirable classic cars have been fetching record prices at car auctions for two years in a row now, and that activity in the highest tier of the market has also boosted both the popularity and values of all types of collector vehicles. It has also expanded the limits of what an accepted “collector vehicle” is today to the point that what were once considered “lesser” categories like four-door sedans, pickup trucks and station wagons, are all starting to show some new life in the marketplace too.

The rapidly growing market for affordable rides is also reflected in the latest Hagerty’s blue chip index report. The Hagerty insurance company index keeps track of the value of specific post-war era classic cars to create a snapshot of what the entire market reflects. The latest numbers from Hagerty reflect huge growth, and show a whopping 230% increase over just the last five years ending in May 2014. Compared to the stock market, that amount of increase is nearly double the performance of the S&P 500’s increase of 117% over the same time period.

For this year alone, Hagerty’s blue chip index numbers show a healthy 14.7% increase. Because the demand for desirable vehicles is at an all-time high today, and there is a limited supply of the “best” cars available to purchase, sports cars and American muscle cars from the 1960s and 1970s both rank very high on the list of the fastest-rising stars. At a recent Scottsdale auction this year, a 1967 Chevrolet Corvette L88 coupe sold for $3.85 million, making it the most expensive Corvette to ever sell at auction. With many similarly high priced cars crossing the auction block around the country, the collector car market is receiving a lot of new attention, and in turn, the increased activity has boosted the demand for domestic cars of all types and price levels. The most recent Hagerty Price Guide Index of American Muscle Cars reflects this with a 16% jump in value from December 2013 to April 2014, an increase that Hagerty says is the biggest positive movement they have ever reported for that group of cars.

Along with an expanded list of desirable cars, the market is also attracting a younger generation of car collectors who are further expanding the demand for a wider variety of styles. The new crop of younger enthusiasts have also ushered in a new era of appreciation for “resto-mod” category cars that appear restored on the exterior but have modern operating features under the hood. The younger enthusiasts want to drive their collectibles and seem to like a broad range of American cars that have some nostalgia appeal, but perhaps did not have much of a following in the past. The values of vehicles like domestic station wagons and just about any convertible from the 1960s are rising especially quickly as a result.

Given the current health and expansion of the collector car market, the prices of all types of vehicles are rising rapidly across the board. This means that any potential car collector who is now looking at a low-to-moderately priced car that they might want to own, should probably make a move right now before the prices go any higher. Conversely, if you’ve got a desirable car to sell, there is probably no hurry at all.