The collector car market has enjoyed several years of red-hot interest. Auctions reported record-breaking sales at seemingly every event—evidence of the furor for classic cars among collectors. However, recent data shows that consumer enthusiasm is normalizing. The feverish pace of buying and selling is reducing to rational levels, driven by inflation and other economic changes. People are becoming more selective in their collection choices and altering collector car trends accordingly.
The following are several trends evolving along with the collector car market:
- Younger buyers are altering vehicle demand. Baby boomers account for the lion’s share of the collector car market, but Gen-X and Millennials are making waves. While they don’t have the monetary reserves of the Baby Boomers, they have enough financial security to drive market changes. For example, Japanese tuner cars experienced a large bump in value thanks to Millennial enthusiasm for the Fast and Furious
- Flipping as a side hustle gains traction. Most people involved in the collector car market have a passion for it. However, some began dipping their toes into the experience during the pandemic as a lucrative hobby. Unlike typical collectors, these buyers have little interest in the vehicle. They intend to buy the car, restore it, and then sell it again at a profit. These flippers are polarizing entities. Some view the flipped vehicles as value degraders. However, high-quality flips can save vehicles from becoming scrap.
- Restomods are increasing in popularity. Restomod is the portmanteau of restoration and modification. Although similar in concept to flippers, they have a few key differences. In addition to restoring the vehicle to retain its classic look, the buyer modifies it to perform better. They also typically add modern amenities and conveniences.
- Buyers are using digital platforms. Finding a collectible classic car wasn’t always an easy feat. Many auctions required interested collectors to travel to the event’s location. Now potential buyers can find classic cars online and even attend digital auctions. As a result, collecting classic cars became more accessible worldwide.
Like all markets, the classic car world continues to evolve under various influences. Buyer demographics, the economy, and technology are the primary drivers behind the current trends. Navigating these changes requires informed collectors that can quickly adapt. Contact Windermere Insurance Group to learn more about protecting your classic car collection in this fluctuating market.