July 17, 2017
www.usedcarnews.com
Classic Car Market Stays in High Gear
Photo by Jenny King DRAWING A CROWD: Classic car fans visit the Auburn Cord Duesenberg Automobile Museum in Auburn, Ind., for a recent event. Classic cars remain popular, but buyers are more selective in what they buy. By Jenny King
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Buyer optimism, a healthy economy and a generous supply of vehicles are keeping the classics and collectibles market in high gear. John Crispeno, Manheim Pennsylvania marketing manager, said it is a buyers’ market for classic cars at the auction. Sellers had the upper hand from 2012 to 2015, “with big gains,” but pre-election doubts drove the prices down last year and they are remaining steady. The economy has a “huge efect” on the classics market, Kinney says. For many, these (purchases) are in-
dulgences. Some high-line car purchases are like fashion accessories: what’s “in” comes and goes. Others with deep pockets purchase vehicles as investments. Those with more modest bank accounts may be more cautious, trading by the old saying don’t spend more than you can aford to lose. Demographics will play a big role in the future of collectibles. Like most businesses, the classic car market needs to attract younger buyers to keep the hobby relevant. Barrett-Jackson, the Scottsdale, Ariz., auction long associated with a January mega-sale of collector cars,
said it sold 630 vehicles in Connecticut in June for $23.4 million. Customers included younger buyers and tastes ran to collector pickup trucks and “custom vehicles professionally restored or modiied,” the company said in a press release. Millennials and Gen-Xers appear to be attending its auctions in greater numbers, the company says. And two young teens, working with a parent, rebuilt a Bandit Trans Am and sold it at the auction. While interest in and prices for American cars from the 1950s are lat, and European make values generally are not increasing, muscle cars have recovered from their
post-recession doldrums and are in great demand, according to recent Hagerty valuation reports. “Sales of muscle cars from the ’60s through the ’80s are very active,” said Dave Kinney, publisher of the Hagerty Price Guide. “Younger baby boomers are buying them.” The Manheim Riverside, Calif. auction began selling classics and collectibles in 2016 and is now hosting a monthly classic/muscle car sale through 2017, says Manheim spokeswoman Jennifer Sheran. Broad dealer interest shows that consumers still want the classics, she says. Continued on page 8
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