Hagerty. “View from Inside. ” Eddy Eckhart. September 2022.

You might assume that the

younger demographics that are feeding the growth in modern classics, might have less wealth on hand, and as a result might be compelled to borrow money to seize the tantalizing opportunity of a fast-rising "investment. " But that assumption would be wrong. Even the far end of the age demographics shows that only 10 percent to 20 percent of the vehicles that Millennials buy are financed. Perhaps the young enthusiasts, who entered the workforce around the time the banking sector was melting down, learned a thing or two about the risks of borrowing.

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In either case, these factors suggest that analogue cars are not facing a “house-ofcards” situation that can be brought tumbling down as inflation and interest rates rise. Instead, the potential set of buyers is growing to include new age demographics (Gen-Xers and Millennials), new financial demographics (high-networth collectors hedging their money with cars) and new regional demographics. 13,24

Although a humbling reality, there will be those who will be in the unfortunate position of having to sell vehicles for cash in this economy – and, not unlike what we are seeing out of the UK, this does bring about a favourable buyers’ market. And if there is one thing we can count on whenever there is an opportune buyer’s market, it’s that another group will inevitably come join the demand. While most buyers continue to be enthusiasts, the market uptick, hedging nature of vehicles, and emerging buyers’ market has brought a few more investmentoriented buyers to the plate. In other words, demand remains very strong, and it’s coming from a broader swathe of the population than ever before.

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The fact remains that there is still an astonishing amount of money out there, ready to buy.

AVERAGE SHARE OF CAR FINANCING

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