There’s no doubt the collector car market is contracting, with new data showing that August is continuing the trend. Five years ago, when government lockdowns and fear of an aerosol virus wiping out mass portions of the population were a part of everyday life, the market soared to ridiculous heights. Now, it seems that’s being corrected.
Lowered tariffs on European-made cars have been put on hold for now.
Collector car insurance giant Hagerty has had to admit this is true as it’s been measured in two different marketplace tools it publishes every month. The first is the Hagerty Market Rating, which shows activity in the market and which way it’s trending.
As the company explains, the tool assigns the current market conditions a number between 0 and 100. Since it began in 2008, the rating has never fallen below the high 40s and we’re not near that number at this point.
Instead, for August we’re sitting at 59.6, the lowest number seen in five years. Of course, five years ago everything was turned upside down.
The second tool Hagerty uses to monitor the collector car market is the Hagerty Market Index. An open-ended version of the Market Rating, it helps give a different perspective on the state of the market.
For 13 of the last 14 months, the tool has shown a drop in the market, which currently sits at the lowest point it’s been in three and a half years. Also started back in 2008, the current measurement is 173.16, a long way off the lowest point at the beginning of approximately 100.
In other words, both tools show the collector car market is contracting with the strong possibility it will continue for a while. However, the market hasn’t hit an historic rock bottom, yet. That could happen, although it would take things sliding for a lot longer, likely thanks to more economic turmoil, for that to transpire.
The good news is this could make getting that classic car you’ve always wanted far more affordable, helping everyday gearheads who care more about the hobby, instead of using vehicles as strictly investments.
Image via Nate Rider/Facebook Marketplace
Join our Newsletter, subscribe to our YouTube page, and follow us on Facebook.
Comments