Collector Car Market Update 2020
What a difference several months can make. In January 2020, enthusiasts gathered in the Arizona desert for a trove of collector cars being sold at several big-name auctions. The atmosphere was lively, with crowded sales rooms, laughter, food, and drinks. However, as business proceeded as usual, sales dipped slightly, continuing a healthy market correction from the previous peak in 2016. By March, the COVID-19 warning signs became evident, yet the Amelia Island Concours d’Elegance and its associated auctions went on as scheduled, demonstrating a reasonably strong 2020 collector car market.
Initial Worry Leads to Calm
As it turns out, the anticipated market crash has yet to materialize. The stock market’s rebound towards record levels, along with optimism for a quick job market recovery, has bolstered confidence. Conversations with industry experts, including Wayne Carini, host of the popular show Chasing Classic Cars, indicated that panic sales had not emerged among elite collectors. Furthermore, significant online auction platforms like Bring a Trailer reported record traffic without any significant slowdown in sales volume.
Bring a Trailer Reaps Rewards
The cancellation or delay of many high-profile in-person auctions has positioned Bring a Trailer as a noteworthy competitor. During May 2020 alone, the platform listed 1,229 vehicles, including the notable sale of a 1969 Ferrari Dino 246 GT for an impressive $395,000. This success underscores the ongoing interest among wealthy car shoppers in the current market.
Traditional Auction Houses Play Catch-Up
While some auction houses adapted swiftly to online-only formats, others faced mixed results. RM Sotheby’s managed to conduct a successful online auction, setting a record with a 2003 Ferrari Enzo selling for $2.64 million. However, Barrett-Jackson’s debut online auction in May, which typically boasts high sell-through rates, only managed a 53-percent sell-through.
An Emphasis on Modern Cars
The shift to online auctions has proven particularly beneficial for modern collector vehicles that prioritize ownership history and service records. In contrast, the complexities surrounding older classic cars, including details of restorations and authenticity, have presented challenges in online sales. This has been particularly true for vehicles exceeding a million dollars in value. As a result, many high-value classic car sales may transition to private sales facilitated by reputable brokers.
The Rise of (Once) Affordable Sporty Cars
Recently, a 2000 Honda Civic Si sold for an astonishing $52,500 on Bring a Trailer, showcasing a remarkable trend of affordability in sporty cars. Other standout vehicles have also brought in impressive amounts, indicating a shift in market interest and value for formerly mass-produced models.
What Does the Future Hold?
The future remains uncertain for the collector car market. While some auction houses hope for a return to live events later in the year, the ongoing pandemic has prompted a continued reliance on online auction formats and private sales. Market health will largely depend on the containment of COVID-19 and the overall global economy. With evolving trends and interests, the collector car scene will undoubtedly continue to change.
Scheduled Online-Only Collector Car Auctions
- Barrett-Jackson July Online-Only Auction: July 6-10, 2020
- Bonhams Bicester Heritage: July 25, 2020
- Gooding and Company Geared Online: August 3-7, 2020
- Bonhams The Quail Online: August 14, 2020
- RM Sotheby’s Shift/Monterey: August 6-15, 2020
