Collector Cars and the new Economy

[EllisonCal]

Higher Pricing has an effect on demand for certain cars as well. In the stock market people tend to buy more of what they have seen move up in price, but are reluctant to buy if the stock stays the same price too long or goes down a little. It is momentum they're chasing. With Ferrari and Lamborghini it is money chasing new record highs in the $millions. We also see that in the muscle cars of the 60s and 70s. When that market cools there may well be another rotation, maybe to that Japanese Skyline and Fairlady market. If the 23 window VW Microbus is any indicator, collectible fads come and go.

[BirdsAndBugs]

People often buy what they remember in their lifetime, or maybe wanted but couldn't afford at the time. The hot cars right now are the muscle cars of the mid 60's through the 1970's. Priced out a nice Pontiac Trans Am lately?

Also, most car collectors are typically in the 45-70 age bracket. After about 70, many people are downsizing their assets, not acquiring more. That's why a lot of the cars from the 1950's that were super hot 20 years ago have softened in value. Take the 55-57 Thunderbird. Many nice cars can now be found in the $30,000 range; some below $30,000. The active collectors of today, don't have a personal connection a car that was made before they were born.

One area of a lot of interest lately based on an article I saw from Hagerty's is classic pickup trucks and SUV's (Ford Bronco) from the mid 60's - mid 80's.

[Rondor]

After almost 20 years of a sluggish economy trying to see a trend in the Collector car market is getting to be even more of a challenge. Watching prices at the Auctions steadily rise on some cars and fall on others certainly doesn't help any. It appears that there is more money in the market but also a different culture of buyers. We have some really good buys in some areas and huge prices being paid in others. Going to be interesting to see which of the 2 economic forces rules the market. I am still trying to adjust to collectible Toyota's.and Million dollar MoPars Like everything else the Millennials are going to be a factor.