The classic car market is experiencing a notable transformation, driven by shifting demographics and evolving collector preferences. As baby boomers age and Generation X and millennials become more prominent in the market, the values of classic cars are being reshaped. Recent auction results, such as those from Pebble Beach, highlight these trends and offer insights into the future of classic car investments.

Impact of Aging Baby Boomers on Classic Car Values

Baby boomers have long been the driving force behind the classic car market, with a strong affinity for vehicles from the 1950s to the early 1970s. However, as this generation reaches their 70s and beyond, mobility considerations and lifestyle changes are prompting many to reassess their collections. The maintenance demands and driving challenges associated with older classics are leading some to downsize or transition to more modern, user-friendly vehicles.

This shift is influencing market values. While rare and historically significant models continue to command high prices, more common classics from the baby boomer era are experiencing a plateau or decline in value. For instance, the 2024 Pebble Beach Auctions by Gooding & Company achieved a total of over $108 million in sales, with a sell-through rate of 82%. Notably, a 1938 Alfa Romeo 8C 2900B Lungo Spider sold for $14,030,000, underscoring the sustained demand for exceptional pre-war models.

Emergence of Modern Classics – Young Timers

As Generation X and millennials ascend in purchasing power, their automotive preferences are reshaping the market. Vehicles from the 1990s and early 2000s, often referred to as "modern classics," are gaining popularity. These cars offer a blend of nostalgic appeal and contemporary drivability, aligning with the desires of younger collectors.

The 2024 collector car market reflects this trend, with certain modern classics appreciating in value. For example, the Ferrari 360 Modena and Porsche 911 (996) have seen increased interest and rising auction prices, indicating a growing recognition of their collectible status.

Investment Opportunities in Post-1990 Vehicles

For investors, the current market dynamics suggest a strategic pivot towards post-1990 vehicles. As the collector base evolves, cars from this era are poised for appreciation over the next few decades. Identifying models with limited production runs, significant cultural impact, or technological innovations can yield substantial returns.

However, it's essential to approach such investments with due diligence. The collector car market is subject to fluctuations, and factors such as provenance, condition, and originality play critical roles in a vehicle's value trajectory. Engaging with experts and staying informed about market trends are prudent steps for prospective investors.

Conclusion

Time to seek out some high quality, low mileage, interesting modern classics?

The classic car market is undergoing a generational transition, with significant implications for vehicle values and investment strategies. As baby boomers adjust their collections and younger generations assert their preferences, the focus is shifting towards modern classics. Staying attuned to these trends and recent auction outcomes, such as those from Pebble Beach, can provide valuable guidance for collectors and investors navigating this evolving landscape.

My Tip is the BMW 8 E31

Produced from 1990 -1999, this BMW 8 series has about 12 variations of this generation. The car only came with rear wheel drive. There were 5 petrol engines, V12 and V8, with displacement from 4.0 to 5.6 litres and power of from 286 to 381 horsepower, and one diesel engine with displacement 3.0 litres and power of 218 bhp. The 850i was the first model of the 8 Series launched in 1990 with the 5.0-litre M70B50 V12 engine