There are some interesting changes in the collector car market in 2019. If you are looking to make an investment for a little profit, a lot of fun, or a bit of both, read this first.
It’s a buyer’s market.
Buyers are becoming more discerning than ever and this means that the standards are rising. With the buyers calling the shots there is a demand for better, well maintained cars in good condition. Cars with serious issues or even cars that are just average are no longer passing the muster. They are being pushed aside in favor of better quality. This alone is transforming the market with more million dollar purchases – and beyond.
Japanese cars and restomods are enjoying a surge in popularity.
Japanese imports and restomods (professionally built) are becoming more in demand than ever. Japanese classics are really finding firm footing in the market, commanding six figures and even more. Then again, Barrett-Jackson predicted this some time ago. Limited production models always have a strong showing.
Buyers are purchasing more for love than profit.
Several years ago, buyers were picking up collector cars as money making investments. That trend has been slowly shifting and now buyers are selecting collector cars simply for the love of the automobile. Sometimes they want to add to their personal collection. Other times they are purchasing their dream car. Money is no longer the primary motivator.
New tax laws are having an impact on collector car sales.
The end of the 1031 exchange tax benefit for cars has caused the selling and trading of collector cars to slow significantly. Sellers who have a large gain are not as likely to sell because they will have to pay capital gains taxes. It is not cost effective for them to replace their vehicles.
1960 and 1970 SUVs are resonating with younger buyers.
These vehicles have several pluses in their corner. They are familiar, they look cool, and they are great for customization projects (another hot trend). This makes them appealing to Millennials and those on the younger end of Gen X.
Prewar and Brass-era cars are popular among older collectors.
While younger collectors are growing in numbers, the older, more established collectors are still market leaders. Collectors that are 55, 65, even up to 80 are gravitating to the prewar cars and some Brass-era. They are like the fine wine of collector cars.
Ready to jump into the market and invest in a car to add to your collection? Let Woodside Credit help you make it happen. Exotic, classic, and collector car loans is what we do. In fact, its all we do. That’s why our experts are some of the best in the business and can help you at every point of the lending process. Give us a call and see for yourself what a difference experience and expertise make.