Trends: Values for Muscle Cars & Classics Rising

Based on the history of private sales and auctions, there has been a recent upturn in the market for classic American cars despite the fact that prices in the overall collectible car market peaked back in early 2008 or late 2007. Although the prices of domestic classics and muscle cars did cool off a bit along with simultaneous downturns in the U.S. real estate market, it appears the prices of collectible cars have stabilized and even climbed slightly as the market has reshaped itself into two distinct camps: high-demand cars in perfect condition, and all of the rest that are not so desirable. The market may not ever get back to the 2008 peak when a high-demand muscle car could rake in two million dollars at auction, but the best cars are still pulling down high asking prices today. American classics and muscle cars, as well as European sports cars have all seen higher prices in private sales and auctions in recent months. The timing seems to correspond with more people feeling better about the economy and they are more comfortable about spending their cash on top-quality cars. Although buyers may be more selective today than they were five years ago, the best cars are now moving quickly at high asking prices, while the market for less desirable cars does not seem to be as strong.

Perfect condition cars in the best colors with the right engine and transmission options that also have complete documentation are easily finding buyers today. This trend is reflected in the most recent Hagerty Indexes of car values , a useful and up-to-date analysis of the sales and values in the collector car marketplace, and one that is published on the Hagerty Insurance website and in the Hagerty Classic Cars magazine. Considering that Hagerty claims the largest database of classic cars in the world, their analysis of the market is usually spot-on. The Hagerty Institute looks at data from many different sources to compile its indexes of values, and tracks the ups and downs on its Valuation Blog and in its Valuation Guides too. According to the latest postings on the Valuation Blog, the Hagerty’s Index of American Muscle Cars shows that more than half of the cars tracked in that category had appreciated over the last four months. The index of 1950s American classics showed a 2% gain over 4 months, and the Index of Affordable Classics showed its largest four-month gain at 4% since its September of 2006 inception. Another recent finding from Hagerty that might surprise more than a few people is that the market for vintage SUVs is beginning to heat up too. The Hagerty data shows that over the last five years, the number of vintage SUV’s offered at auction is up 150 percent, and the value of those vehicles has risen a whopping 31 percent.

The increases in popularity and prices are good news and reason for optimism among car collectors. Hagerty’s Brian Rabold, writing in the latest Index Preview of American Muscle Cars, said that the less expensive and cheaper muscle cars have showed real gains since the start of this year, and that “No matter the numbers, we feel that present day is a great time to get behind the wheel of one of these cars. You may not be able to flip it in a year for twice what you paid, but you aren’t likely to see prices get too much lower, either.”

Hagerty’s Dave Kinney, writing in the Hagerty “Blue Chip” Index of the Automotive A-List, a stock market style index that averages the values of 25 of the most sought-after collectible automobiles of the post-war era, was also optimistic when he said that “More quality cars are coming to market—with several high-line cars consigned for the summer auction season in particular—and buyers continue to seem willing to pay up. All indications at the moment suggest that the trend will continue for the short term.” Collector car enthusiasts interested in more details can find all of the Hagerty indexes and a lot more at the Hagerty website, www.Hagerty.com.