Auction sales during Monterey Car Week fell 3% from last year, as a shift in preferences from older to newer cars has become evident. This change has resulted in a pileup of unsold classics from the 1950s and 1960s. Total sales at this year’s five car auctioneers in Monterey, including RM Sotheby’s, Broad Arrow, Gooding & Company, Mecum and Bonhams, amounted to $391.6 million, down from $403 million in 2023. There were 1,143 cars up for sale, out of which only 821 were sold, marking a 72% sell-through rate.
A new generation of collectors, mainly Gen Xers and millennials, are now driving the classic car market. Their preference for cars from the 1980s, 1990s, and 2000s has significantly impacted the industry. The classic cars from the 1950s and 1960s, which were once popular among baby boomers, are now struggling to find buyers. The sell-through rate for pre-1981 cars priced at $1 million or more was a dismal 52%, while cars less than 4 years old had a much stronger 73% sell-through rate.
The Hagerty Supercar Index, which tracks sports cars from the 1980s through the 2000s, has shown an increase of over 60% since 2019. On the other hand, the Blue Chip Index, which focuses on 1950s and 1960s classics like Corvettes, Ferraris, and Jaguars, has seen a decline of 3%. This shift in preference is evident in the auction results, with younger collectors driving the demand for newer models over vintage classics.
Apart from the generational shift in preferences, high-interest rates are also putting pressure on the classic car market. The rising rates have raised the opportunity cost of buying a classic car, leading many potential buyers to reconsider their purchases. Financing options, which were popular among buyers at the lower end of the market, are now less attractive due to the higher interest rates. This has led to a reevaluation of the investment value of classic cars among potential buyers.
Future Outlook
The changing landscape of classic car auction sales is likely to continue in the coming years. As older collectors start to sell off or downsize their collections, the market for vintage classics may face pricing challenges. The transition from older models, such as Enzo-era Ferraris and ’50s and ’60s sports racers, to modern supercars is expected to accelerate in the near future. The market is in a state of transition, with a divergence between older and newer cars becoming more prominent.
The classic car auction sales landscape is undergoing significant changes due to a shift in preferences among collectors and the impact of external factors like high-interest rates. The rise of a new generation of collectors, coupled with changing market dynamics, is reshaping the industry. As the market continues to evolve, it is essential for auction houses and collectors to adapt to these changes and navigate the shifting landscape of classic car sales.
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