ROUNDTABLE

now reached the age where they have access to CRAIG JACKSON State of the Market the capital required to spend on a collector car. Chairman and CEO, Barrett- Secondly, you have a notable, if smaller, Jackson slice of new people entering the market who Industry experts confirm the health of the collector-car market are attracted by the investment potential of While the pandemic collector cars. We have seen plenty of articles challenged everyone in the mainstream financial press that have ex- in different ways, this plored the performance of, say, vintage sports year’s Scottsdale Auction Barrett-Jackson cars, against major indexes, and those articles propelled the collector-car community back 1994 Supra featured in the first two How would you assess the health of the collector-car market so far this year? Is the hobby growing or shrinking? What do you expect from “Fast and Furious” films the next six months? Will values trend up or down? have painted a rather positive impression of into motion, demonstrating that this market collector cars as an investment tool. Add in the remains vibrant and healthy. Not only did we lifestyle news from those same outlets when enjoy a 100% sell-through rate in March with mod. Popular films also help drive interest it comes to certain vehicles, like vintage Land a completely no-reserve docket, we also hit in the collector-car community. During this M. PETER NEUMANN Rovers, Broncos or 1990s cars, and you get a more than 90 world-record auction sales. We year’s Las Vegas auction, we offered the 1994 Principal, Chrome Strategies whole new group of people interested in the followed that in June at our Las Vegas auction featured in the first two “Fast Management hobby. with another 100% no-reserve docket that set and Furious” films and driven by Paul Walker. Surprisingly, we have also seen a steady another 65 world-record auction sales. The Supra attracted attention from enthusiasts Whether employing stream of what might be called “traditional” The hobby is definitely growing because around the globe and sold for an incredible qualitative or quantitative collectors who have kept the market strong, we continue to evolve and meet the demands $550,000. analysis, the collector-car with plenty of bidding outperforming reserves of each generation of collectors. For example, Coming out of the pandemic, I think a market has been healthy on the likes of Model As, Thunderbirds, there has been a noticeable increase in the lot of people are eager to re-engage with the in 2021. This is almost certainly due to the Corvettes and certain muscle cars. I think it’s number of Millennial and Gen X buyers at our hobby and attend collector-car events. The pandemic-induced mentality of, “I’ve always safe to say that the market has been strong auctions. These younger generations who are wonderful thing about Barrett-Jackson is that wanted a collector car, and what better way to across nearly all segments. We expect values jumping in the market are fueling the demand we provide an authentic automotive lifestyle be socially distanced than to ride around in a to maintain in these traditional segments, with for resto-mods, as well as domestic and import event full of action and excitement. Most classic convertible?” Demand has been strong, plenty of growth for the best-prepared, lowest- vehicles built between the late 1970s to early importantly, 100% of this year’s Scottsdale and and that is reflected in values. mileage cars with proper documentation. 1990s. We’re also seeing a growing interest in Las Vegas auction dockets sold at no reserve, If measured by the number of participants People have shown they are willing to pay top EV versions of classic muscle cars, which is further showcasing the demand for quality in the hobby, we think that the size of the Ferrari 550 Maranello dollar for quality vehicles. creating a new market for this style of resto- collector cars. ♦ hobby is stable. The older demographic that is exiting the hobby is being offset by younger snapping up great examples of cars that they complete and often exceed the value of the newcomers entering the hobby, albeit in dif- might have owned in their 20s, or that they finished car. Another benefit of purchasing a ferent segments of the market. If measured coveted when they were in their teens. high-quality car is that it can be enjoyed right by financing, the storage industry, online Well-maintained examples of the Porsche away. Most buyers would like the fun to start participation and other metrics, the hobby is 964 or 993 look like a great value compared now and don’t want to do a restoration with certainly growing. to some of the latest performance cars, while all the headaches it entails. It may cost a lot Given that the collector-car market is those with more to spend might be looking at more in the beginning, but they be happier global, so much depends on what happens the likes of the 550 Maranello. A low-mileage in the long run — especially when it comes around the world as we attempt to return to Ferrari GT car with a V12 and a manual gear- time to sell. Rare, correctly restored cars will “normal.” Participation in the collector-car box for less than the cost of a new Porsche 911 always be sought after and worth a premium. market will be uneven as socially interactive Carrera is a no-brainer for certain collectors. Values are on an upward trajectory now versus socially distanced events open up on More than anything, I expect the price gap and will be for at least the next six months and different schedules in different countries. between the best and worst examples of any into 2022. The trend is steady and solid. Sharp If we look beyond the pandemic effect, model to spread further apart over the next six upswings in values many times lead to a drop where prices rose as demand outpaced sup- months. The devil is in the details with most when the bubble breaks, but that is not the case ply, longer-term trends will come back into collector cars, and people will always pay for now. With COVID-19 winding down and car play. In the short term, however, we expect quality. Buyers need to remain vigilant — not events resuming, there is a feeling of optimism that values across most of the collector-car just to avoid buying a lemon, but also to ensure in the air and a pent-up desire to acquire and market will tend to correct, which will result they don’t miss a fantastic opportunity when it enjoy classic cars that shows no signs of slow- in values more reflective of those prevailing crosses their path. ing. I’m excited for the future of the hobby. pre-pandemic. DON WILLIAMS TERRY SHEA EDWARD LOVETT Owner, Blackhawk Collection Director of Auction Operations, Founder and CEO, Collecting Cars Hemmings Auctions The collector-car There is definitely a market is very healthy With all live events lot of momentum in the this year and continues to shut down for a big market at the moment. grow. We are also seeing chunk of last year, we Cars priced well are sell- more first-time collector- saw significant and rapid ing fast and, as always, car buyers than ever before, which is great for growth starting last spring. Fortunately, that the best examples are fetching a premium. It’s the hobby overall. These new buyers are more growth has been sustained well into this year. I true that some cars have seen value gains over sophisticated, have studied the market and do believe the hobby is growing, in two ways. the last six or 12 months, but if it escalates to know exactly what they want: specific types First of all, we are seeing a new generation another bubble, there will be very few winners. and models of cars of very high quality. of dedicated enthusiasts entering the phases of Global interest in collector cars shows no Customers are demanding higher quality, their lives where they can afford to play with sign of waning, and in large part that is down and rightfully so. I always advise people to collector cars, something beyond their reach to many enthusiasts rediscovering the joys of buy the best possible example they can find. until recently. When you think about it, we modern classics. Many supercar owners are Restoration costs are huge, can take years to now have Millennials in their 40s. Many have

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