After a surprise upward spike during the pandemic years, the classic car market continues to cool, and experts say that is actually good, especially for those looking to get into the hobby.
The rule of thumb has always been that a classic car, no matter the condition, is only worth what someone is willing to pay for it, and that rule has not changed.
According to Hagerty, it really should not have been surprising that the prices of classics rose during the pandemic. Having to deal with quarantines, people sought out a hobby that could be a somewhat solitary project.
Naturally, when the restrictions began to lift, some of those same people found out that owning and maintaining a classic vehicle is not a cheap endeavor; especially when it comes to insuring the vehicles and finding parts; those people have decided to empty their garage and try a different hobby which has created a glut in classic rolling steel on some segments of the market.
It certainly hasn’t helped that gas prices continue to soar, causing the owners of vehicles such as the 1971 GTO to experience migraines at the pump.
Another factor may be that despite the pandemic uptick, classic car collectors are aging and while their younger counterparts may enjoy going to car shows and looking at the cool rides, they are looking in other places to make investments.
The Hagerty Price Guide covers 48,000 cars, motorcycles and trucks, and It is interesting to note some of the classic vehicles that Hagerty has determined to have lost value in the last year.
Some on the list are downright shocking.
The third generation of the Thunderbird tops the list with a market drop of 23%, according to Hagarty. Specifically, the 1962 convertible roadster version of the “bullet bird” has almost bottomed out, which is surprising because Ford only made a limited number of the special editions.
Mercedes-Benz also took a hit, with classic models such as the 1996-2003 E320 station wagon and the 1981-1985 300TD, which fell 23% and 19% respectively.
However, the biggest shocker was a car that was considered an instant classic right off of the assembly line: the 2010-2015 Mercedes-Benz SLS AMG, which is down 17%.
Long after other car makers had abandoned making plastic-laden retro-styled fad cars, Mercedes-Benz released a sleek two-seater that gave subtle nods to the 1954 – 1957 300SL, complete with the famous gull-wing doors.
Hagerty surmises that the SLS AMG was such an outstandingly good car that people did not want to park them and so many of the units coming up for auction today sport some pretty high mileage.
For a while there, everyone loved the 1975-1978 Datsun 280Z, especially the Fairlady version, but those pre-Nissan Nissans are down 16%.
Unlike classic boats, which lose value even after costly restorations, generally speaking, old cars hold their value pretty well if maintained properly, but they are susceptible to outside market forces as well.
This is why experts, even famous car collector Jay Leno, say to do your homework before considering purchasing a classic; no one wants to purchase a vehicle for $15,000, put 15 grand more in restoration and then find out it only has a paltry market value of $20,000.
See you on the road!
Scott Hudson is the Senior Investigative Reporter and Editorial Page Editor for The Augusta Press. Reach him at scott@theaugustapress.com
