During the iconic Monterey Car Week, auction results revealed a notable 3% decline in total sales from the previous year, reflecting a broader shift in collector preferences from classic to modern vehicles. This year, combined sales from the five major auction houses (RM Sotheby’s, Broad Arrow, Gooding & Company, Mecum and Bonhams) totaled $391.6 million, down from $403 million in 2023, according to classic car insurer Hagerty. That decline follows a 14% decline from peak sales in 2022.
Of the 1,143 cars listed, only 821 found new owners, a 72% sell-through rate, slightly lower than last year. The average price per car also decreased slightly to $476,965 from the previous average of $477,866.
Market analysts note that despite a strong stock market boosting investor confidence, the saturation of similar models available at multiple auctions has prevented sales and higher prices. Simon Kidston, a renowned consultant to wealthy car collectors, noted an oversupply problem. “The auctions seemed overcrowded with similar models, competing for the same group of buyers. Many of these cars had been on the market for a considerable time, which didn’t help their cause,” Kidston explained.
One notable trend is the growing influence of younger collectors, predominantly Gen Xers and Millennials, who favor vehicles from the 1980s through the 2000s over the classic models from the 1950s and 1960s that have historically dominated the market. This shift was evident in sales data, where pre-1981 vehicles valued at over $1 million had a particularly low sell-through rate of 52 percent, while newer vehicles, less than four years old, boasted a robust 73 percent sell-through rate.
Reflecting these changes, Hagerty’s Supercar Index, which tracks sports cars from the 1980s to the 2000s, is up more than 60% since 2019. By contrast, the Blue Chip Index, which includes iconic models like Corvettes, Ferraris and Jaguars from the 1950s and ’60s, is down 3%.
Among the most notable sales were a 1960 Ferrari 250 GT SWB California Spider, which sold for $17 million at RM Sotheby’s, and a rare 1938 Alfa Romeo 8C 2900B Lungo Spider, which sold for $14.03 million.
McKeel Hagerty, CEO of Hagerty, commented on the changing market dynamics. “The market is adapting as we move from vintage classics to contemporary supercars, reflecting a significant shift in what is considered desirable.”
This changing landscape is also influenced by economic factors such as rising interest rates, which affect both ends of the market spectrum. At the lower end, financing has become more challenging, while at the higher end, the opportunity costs of investing in classic cars have become less attractive. Kidston added: “The economic environment is causing collectors to reconsider their investments. The historical appreciation of collector cars has been largely driven by investment.”
As the classic car market continues to evolve, the impact of these changes will likely reverberate for years to come, reshaping the collector landscape and influencing future auctions.
