Prices for most classic cars are slowly declining, says Hagerty Classic Car Index. Most of the seven primary indices of the index show a decline of some sort.
The index for German collectible cars suffered a decline for the fifth time in a row. The first one was in May 2016. It is the longest sustained decrease for any of the seven primary indices of the Hagerty Classic Car Index, causing that index a bit lower than where it was in September 2014.
The Ferrari index has been stable for the past 4 months, but that follows a dramatic 2 percent drop before. Out of the 13 models that are represented in this index, 6 have decreased in value, none increased. Hagerty expects a modest decline until the end of the year, especially for more ‘volume’ models and cars that are otherwise relatively easy to source.
“Buyers are aware that they can afford to be choosy and demanding for these types of cars”, Hagerty says on its website. On the other hand, Hagerty says that most owners of pre-1980 Ferrari’s are not in a position where they need to sell.
In the category of affordable classic cars (for instance VW Karmann Ghia, MG MGB, Ford Mustang) prices have been steady. Over the past 3 years, only three cars in this index have lost value, but that means they lost maybe 500 dollars on a value of 12.000 of 15.000 USD. Most cars in this index, however, have increased around 10% in the same period.
The Blue Chip index has even gone up by 3%, but that is entirely caused by a surge in Jaguar D-type pricing. If you take this model out of the index, there is a gentle drop of 1%. The Blue Chip index averages the value of 25 of the most sought-after collectible automobiles of the post-war era. ‘Blue Chip’ refers to a casino, where the blue chip was the one with the highest value.
In general, Hagerty’s Classic Car Index shows how the market for classic cars has boomed between September 2012 and September 2013. After that, the index went straight up until September 2015, when values for some models reached around six times their value of 2006. The past two years, prices of many models have decreased.