It’s no secret that the car market has been a hot one for the past couple of years. As demand increased and supply decreased during the worst of the COVID-19 pandemic, prices for new and used cars shot up significantly. Classic and collector cars were no exception to this trend, as collector car prices spiked throughout 2020 and 2021.
Still, now that we’re heading into a new year, many car collectors are wondering if we’ll continue to see a rise in classic prices—or is the market finally ready to cool down?
A Reduced Demand for Older Cars
While only time will tell what 2022 and beyond will bring for the classic car market, experts do have some predictions. For instance, many experts believe that we will begin to see a reduced demand for older collector cars across the Canadian market.
Why? Because these older classics tend to be taken on as “project” cars that need to be fixed up. Unfortunately, a lot of car collectors have been scaling back on purchasing these project cars due to a lack of available parts. Supply chain issues have made it difficult for many to find the parts and materials needed to fix up these older cars. Until these parts become readily available again, it is likely that the prices of older collector cars will continue to decrease.
Of course, this isn’t to say that there is no market for older classic cars, such as 1950s Chevy and Ford convertibles. Vehicles from this era that are already restored and in great condition can still sell at relatively high prices.
An Increase in Demand for Newer Classics
While the Canadian market may see a drop in demand for older collector cars that need some work, newer classics are expected to see the opposite trend. One example of this is the Porsche 911—specifically, the air-cooled 1997 model. According to a Driving article, the 1997 Porsche 911 is “one of the hottest cars in the marketplace today.” These “newer” classics often have parts that are easier to come by and may need less work to begin with, making them less of a risk for car collectors.
Looking to Sell a Project Car?
So, what does all this mean for somebody who is trying to sell a project car in 2022? Ultimately, it depends on whether the car has been fully restored or still needs some work. A completely restored classic car will still have a perfectly good chance of selling for a decent price in this market. However, you may have a harder time selling a collector car that still needs a lot of work.
The age of the car may also have an impact on classic car prices in 2022. You may have an easier time selling a newer project car as opposed to an older one, especially if it still needs a significant amount of work.
If you have trouble selling a collector car in 2022 for the price you want, you’ll probably be better off waiting to sell when the market stabilizes a bit. Once supply chain issues level out and classic car parts/supplies are easier for collectors to come by, people will one again be more likely to pay top dollar for these vehicles.
On the flip side, if you’ve been in the market for a collector car, now could actually be an excellent time to buy. This is especially true if you aren’t afraid to take on a project car and hold onto it until parts and supplies are more readily available.
Looking at 2022 and Beyond
Again, these are only predictions for what the collector car market will have in store for 2022 and beyond. Experts anticipate that older collector cars may have a slight drop in value, whereas newer models will see a classic car price increase. Of course, if there’s anything we’ve learned about the car market in the past few years, it’s that trends can change very quickly and without much warning.
Even if we see the average classic car price drop as we move into 2022, the good news is that this market always stabilizes in time. As long as there are collector cars out there, a market will exist for them.
Looking to stay on top of changing trends and classic car industry news? The Wayfarer Insurance Group blog is frequently posting new articles to help you stay up-to-date, so be sure to check back frequently!