Welcome to Extreme Investor Network, where we bring you the most cutting-edge insights and analysis in the world of business news. Today, we’re diving into the recent happenings at Monterey Car Week, where auction sales saw a 3% decline compared to last year.
According to Hagerty, the classic-car insurance company, total sales at this year’s five car auctioneers in Monterey fell to $391.6 million from $403 million in 2023. This drop in sales can be attributed to a shift in preferences from older classic cars to newer models, leading to a backlog of unsold classics from the 1950s and 1960s.
While some rare masterpieces like the 1960 Ferrari 250 GT SWB California Spider fetched high prices, the overall market is experiencing a shift in demand towards cars from the 1980s, 1990s, and 2000s. Gen Xers and millennials are now the driving force behind the market, favoring more modern vehicles over the classic cars popular with baby boomers.
Simon Kidston, a leading advisor to wealthy car collectors, noted that the market is saturated with similar cars, leading to weaker prices and sales. As a result, the sell-through rate for pre-1981 cars priced at $1 million or more was only 52%, while newer cars had a stronger 73% sell-through rate.
Additionally, high interest rates are putting pressure on the classic-car market, impacting both buyers and sellers. Rising rates have raised the opportunity cost of investing in classic cars, leading some collectors to reconsider their purchases.
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