UsedCarNews.com
July 16, 2018
Classic Market Boosts Interest, Options
Photos by Jeffrey Bellant CLASSICS ROCK: Summer’s here and the time is right for cruising in the streets. These classic cars were on display at last year’s Woodward Dream Cruise in Detroit. The definition of what’s a classic is starting to shift as the market becomes more flexible. By Ted Craig
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The classic car market is driven by a lot of pent-up demand – decades of it. Eric Lawrence, for Black Book, said classic car buyers usually chase the cars of their youth. This is why demand shifts as cohorts enter and leave the market. “It seems like there’s a new hot car every year,” Lawrence said. A few years ago, Porsches and other Italian exotics seemed to double in price overnight. Muscle cars declined and then bounced back. Even cars from the ’70s and ’80s
are seeing increased interest. Lawrence said many of these vehicles fell into the “credit card car” category, meaning they’re inexpensive enough to buy with plastic. But not as inexpensive as they were 10 years ago. At that time, people looked down on these cars because they came with engines that attempted a response to the gas crisis and often failed. Today, people want the cars and are realistic about how they will use them, Lawrence said. “Who is going to do top speed runs in their ‘76 Capri?” he said. Overall, the market right now is
strong, Lawrence said. This is especially true at the high end, as wealthier consumers reap the rewards for an almost-decadelong bull market for stocks. The car market has become a spectator sport, with several new auction houses debuting in recent years and the sales being broadcast on cable television and via the Internet. These sales used to take place only a few times a year, but now they run year round. There is plenty for people to watch and buy in the auction lanes these days as older collectors start thinking about estate planning.
Classic car buyers put a lot of trust in buying from these collections, Lawrence said. They are also becoming less picky than they were in the past, when everything had to be original. Lawrence said classic car buyers are now open to buying restorations and classics with modified drivetrains. So with vehicles ranging from a restored classic to that ’76 Capri, people are buying what they want rather than making investments, as they had in the past. “That’s really what these cars are,” Lawrence said. “They are toys for grown-ups.”