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2022 05 27 Posting - CCC Blog Post, The Collector Car Market is Bigger Than You Think - Collector Car Canada

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2022 05 27 Posting – CCC Blog Post, The Collector Car Market is Bigger Than You Think
1968 Chevrolet Camaro

 

 

2022 05 27 Posting – The Collector Car Market is Bigger Than You Think

 

 

 

Almost anyone who collects classic vehicles has an opinion about their value. Here are a few ideas on the importance of supply:  What is the supply? Think about the number of collectibles that exist.  The Hagerty Valuations Team conducted a study aimed specifically toward the latter thought. There are 43 million collectible automobiles in the U.S., according to Hagerty. Many will say that the process of searching for and procuring a collector car has been a difficult endeavour.

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Ford Mustang

Let’s look at the size of the collector car market, and determine factors affecting whether a car appreciates with time or is devalued.  Collectors and enthusiasts collect cars because they enjoy them, which often means driving them or being able to be around them. Some people also collect cars to make a profit on the secondary market, while others wish to keep their cars forever. The appeal of collector cars is high because of their rarity and the fact that they are rarely driven; collectors cannot just purchase them everywhere. The process of obtaining a collector car can be very expensive and time-consuming. The hobbyist collects cars for reasons other than profit such as the love for a particular model or the appreciation for the history of an automobile company.

Ferrari 250 GT California

With a future general economic decline expected to hit global markets, we believe that relative values within the collector car market may prove to differ drastically. The more valuable or rare cars could spike in the near future as they will be valued similarly to historic art, an eventual surge could be attributable to numerous factors. These include but are not limited to a vehicle being at the end of the manufacturing line for the series with low numbers sold, historic value, pop culture exposure, nostalgia and feel.  While these cars could spike in value and be recession-proof as they have branded themselves within a certain social culture, other cars that fail to do so may become subject to attrition.

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Mercedes-Benz 300SL Gullwing

 

Many collector cars will devalue in a weak economic market, especially in an environment of rising interest rates. While the cars could look amazing and have an enormous sentimental value, this does not ensure appreciation in the collector car market. There are many reasons why a particular collector car might devalue. A few examples include mechanical issues, accident damage, modifications not approved by the manufacturer, weather conditions of where the car was driven and if the car was stored outdoors vs indoors .Before buying a vintage car, make sure you are aware of the potential reasons why its value might sag. Being aware of a few of how the value will sag may help you make the right decision.

What do you think of the market?  Got any hot takes?

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