Classic car market grows with younger audience

According to Haggerty, one of the leading insurers for classic cars, the car collector market became younger and much larger during 2021. Understandable facts, considering COVID pandemic boredom, record savings rates and a shortage of new cars available to the public markets last year. Prices increased dramatically for many classic cars during 2021. For example, according to Car Gurus, a 2000 Porsche 911’s average price rose close to 20 percent year-over-year as of this writing. Recent prices seem to be softening a bit due to higher interest rates, inflation and some of the uncertainties brought on by the Russian invasion of Ukraine.

One big change in the markets over the past few years is the younger age of classic car buyers. You are seeing millennials, Gen Y and Gen Xers enter the market in a big way. Baby boomers still had a lock on the most expensive offerings, but it’s nice to see a widening in the hobby from an buyer perspective.

With Gen X participants hitting their prime earning years, future car buyer demographics likely will continue to adjust.

With everyone sitting at home the last few years, the online auction market space has taken off. Online auction houses such as “Bring A Trailer” welcomed many new buyers into the auction game last year.

No question, these sites are exciting to watch as the last few minutes of an auction unfold. Some cars never end up hitting their “minimum acceptable bid” price, while other auctions end in a frenzy of escalating bids — leaving some questioning the sanity of the winning bidder.

Although these auctions are convenient and fun to watch, be aware that unlike a traditional live visit with a formal inspection of a car by your trusted mechanic, you often are making your purchase decisions by relying on videos, pictures and reports on a car sometimes situated thousands of miles away from your location.

These “uninspected” bids sometimes end in heartache if mechanical problems are not detected or disclosed during the bidding process.

However you end up buying your

dream car, be sure to keep to your budget and do your homework. With any luck, I will look forward to seeing you cruise by my office this summer!

Eric Tashlein is a certified financial planner professional, founder and financial adviser at Connecticut Capital Management Group, LLC, 2 Schooner Lane, Suite 1-12, in Milford. He can be reached at 203-877-1520 or through www.connecticutcapital.com. Connecticut Capital Management Group, LLC, or CCMG, is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified

financial adviser and/or tax professional before implementing any strateg y discussed herein. Past performance is not indicative of future performance. CCMG may discuss and display charts, graphs, formulas and stock picks which are not intended to be

used by themselves to determine which securities to buy or sell, or when to buy or sell them. Such charts and graphs offer limited information and should not be used on their own to make investment decisions. CCMG and Connecticut Benefits Group, LLC, are not affiliated.

Contributed photo According to Haggerty, one of the leading insurers for classic cars, the car collector market became younger and much larger during 2021. They attributed this to COVID pandemic boredom, record savings rates and a shortage of new cars available to the public markets last year.