Baby Boomers Create Waves in the Market
Some collectors are beginning to wonder what will happen to the collector car market once baby boomers start to liquidate their car collections. Already, we’re beginning to see an unprecedented number of collections at national auctions. Just last week there were six collections up for sale at the Mecum Auction in Indianapolis. At the same time, the value of staple collector cars seems to be stagnant at best. Cars On Line’s own quarterly Market Trends Report continues to show a downward bias for some of the most widely traded classics like the 1957 Ford Thunderbird, which remains down 7.6% from pre-recession value. Yet high dollar, ultra-rare collector cars like the 1960’s Ferraris have skyrocketed.
The collector car market is poised for a big change. Members of the largest generation of automotive collectors are clearing out their garages and the market could be in danger of oversaturation. Values for some of the most collected cars are likely to fall while the market sorts itself out and the attractive low prices on icons of the 50’s and 60’s could result in many being repurposed by a new market that’s showing a desire for classic customs. No matter what happens though, the market will stabilize. There were only so many of these cars made, and the ones that survive will ultimately get rarer and more valuable. The market will endure. It always has. It just might look a little different when the dust clears.
What do you think will happen to the market? Tell us in the comment section below.
See this story and more in the latest Cars On Line Newsletter here.