Millennials Shape Classic Car Auctions As Baby Boomers Face Losses On Vintage Vehicles

Baby boomers, who began retiring in the early 2000s, are currently experiencing a downturn in the classic car market. During their retirement, many of them indulged in buying classic automobiles such as Packard Roadsters and Ford Thunderbirds. However, as we move into 2024, it's clear that the younger generations, particularly GenXers and millennials, do not share the same enthusiasm for these classic cars. Instead, they show a strong preference for cars from the 1980s, 1990s, and 2000s, such as 911 Turbos.

Millennials' Disinterest in Pre-1960s Vehicles

In October last year, it was noted that millennials were not interested in many of the pre-1960s vehicles that were popular with baby boomers. As a result, some of these vehicles may have reached their peak value. The younger generations were not showing up at auctions to purchase classics from the 1930s, 1940s, 1950s, and 1960s. These classic cars have been driving the historic car bubble for decades.

Decrease in Classic Car Sales

The disinterest of younger generations in these classic cars is making them increasingly difficult to sell at some of the country's most popular auctions. At the Monterey Car Week, sales were down 3% from last year, and unsold classics from the pre-1960s were accumulating.

Monterey Car Week 2024: A Summary

The Monterey auctions and Car Week 2024 were characterized by big numbers. Over four days, more than 1100 vehicles were offered, and 73 percent of them sold. Of those offered, 163 were potentially worth $1M or more. Total sales for the five auctions were just under $392M. However, fewer lots were offered this year, total sales were down by three percent, and the average price also fell.

Preference for Modern Vehicles

The market seems to have a growing preference for more modern vehicles. The term "modern" is defined as anything built since 1981, which leaves nearly 100 years of vintage vehicles and just over 40 years of modern ones. The imbalance between the number of vintage and modern cars could reflect an oversupply of vintage $1M-plus vehicles.

Diminishing Appeal of Vintage Seven-Figure Cars

The appeal of vintage seven-figure cars like 1930s coachbuilt French cars appears to be diminishing. Both the 1937 Bugatti Type 57 Atalante and the 1938 Talbot-Lago T10C Teardrop Coupe didn't sell. On the other hand, modern track-only sports racing cars, such as the 1995 Ferrari 333 SP Evoluzione and the 1997 Porsche 911 GT1, sold well.

Shift in Ferrari Sales

In the past 36 years, the top auction sale of the year occurred in Monterey 19 times, and 11 of those times, the car was a Ferrari. This year, six of the top 10 were Ferraris. However, there's a split between vintage Enzo-era Ferraris (pre-1974) and modern Ferraris. Vintage cars are more numerous at this price level, and the sell-through rate has been falling, while modern cars are relatively rarer and have been selling better.

Gen Xers and Millennials' Preference for Newer Vehicles

The sell-through rate of 52% for pre-1981 cars priced at $1 million or more at Monterey stands out. For newer vehicles, the sell-through rate was 73%, further evidence that Gen Xers and millennials prefer cars from the 1980s, 1990s, and 2000s. Data from Hagerty's Supercar Index, which tracks sports cars from the 1980s through the 2000s, shows a surge of over 60% since 2019. In contrast, the Blue Chip Index, which includes classic Corvettes, Ferraris, Jaguars, and other cars from the 1950s and 1960s, has fallen by 3%.

Millennials' Market Influence

Millennials have dominated the labor market for the last five or so years. Their shift in taste has dictated economic trends this decade; many have been crushed by debt and inflation, and many cannot afford homes and/or start families. Baby boomers who are loaded up with classics from the pre-1960s need to understand that these car prices will only slide more as millennials don't want Packards and T-Birds. They want the 1980s 911 Turbos. Also, high interest rates have dampened activity in the classic car market.

Bottom Line

The classic car market is experiencing a significant shift as millennials and Gen Xers show a clear preference for more modern vehicles. This trend is impacting the value and demand for vintage cars, particularly those from the pre-1960s era. As the younger generations continue to shape market trends, it will be interesting to see how this impacts the future of the classic car market. What are your thoughts on this shift in preference? Share this article with your friends and let's get a conversation started. Remember, you can sign up for the Daily Briefing, which is delivered every day at 6pm.