How the Coronavirus is Impacting the Collector Car Industry
The coronavirus has shaken the country, the world, with widespread lockdowns and restrictions on gatherings which have impacted both consumers and businesses. As the landscape of the auto industry as a whole appears shaky, the more elite segments are being scrutinized to see how they are faring.
The collector car industry in one of them and what we found might surprise you.
The wildly fluctuating stock market has no bearing on the collector market
Since COVID has spread across the country and globe, the DOW and NYSE have taken a real hit and rebounded. The stock market has been all over the place lately and that has some people concerned about the value of their collector cars. Here’s a bit of information to put you at ease. Those fluctuations primarily affect vehicles with values that are less than $100,000. Your 1953 Willy’s may not fare so well in a bear market, but your mint vintage Aston Martin won’t even bat an eye.
Unemployment can put a damper on collector car sales.
The pandemic has led to a rather large segment of the population being unemployed or with reduced hours. The unemployed and lower incomes tend to purchase vehicles to use. They have their daily driver for transportation and anything more is often not realistic from a budget standpoint. However, unemployment can hit on any rung of the ladder. Unemployment leads to tightening of belts and curbs in spending. When consumers spend less, the businesses feel the pain.
Collector car auctions are going online.
Many people were dismayed to see their favorite collector car events cancelled one after another as the pandemic rolled on through April and May. Business after business closed and it looked like the collector auto industry was going to fold, but popular auction site Bring a Trailer has been booming. In May 2020 the site listed more than 1,200 vehicles to auction and the results were encouraging:
- 1969 Ferrari Dino 246 GT – $395,000
- 2019 Porsche 911 GT2 RS Weissach Edition – $321,000
- 2015 Ferrari 458 Speciale Aperta – $481,000
- 2006 Ford GT Heritage Edition – $385,000
Collector car shoppers with bigger wallets are obviously still shopping and adding to their collections.
And that’s good news.
Traditional auto auction houses are getting on board with a new normal
Early on auctions were cancelled or postponed, but as the pandemic drags on, the auction houses are making accommodations and finding ways to carry on in spite of the state of the country – lockdown or not.
RM Sotheby’s went digital in late March with a sell through rate of just 69%. Not dismal, but not great. Then they were out of the gate with a record setting sale, a 2003 Ferrari Enzo went for a whopping $2.64 million. That is the most a car has gone for at an online only auction. Barrett-Jackson also took their auction online in May with a disappointing 53% sell through. But what we have to remember is that these were firsts for these auction houses. Things are expected to pick up.
What’s in store for the collector car market post-pandemic?
Whatever it is, we’re ready for it.
When you are ready to buy that sweet collector car, let us help you make it happen. We’ve been open throughout the pandemic and will remain open so there will be nothing keeping you from getting the car you want with the best terms and lowest rates in the industry. Visit Woodside Credit and find out how easy it is add to your collection.