There is no exact age required for a car to become a “classic” car. In general, the average age of a classic car is twenty years or more. A car that is over 100-years-old is considered an “antique” car.
Cars that are very special, extremely expensive, and have severely limited production runs almost instantly become a classic car. An example of this is the Italian Edonis Supercar made by B. Engineering. It is estimated that only 21 were made and sold during 2002 to 2006. They originally sold for around $1 million and now if one comes up for sale the price is at least $1.5 million.
Baby-Boomers Love Classic Cars
The classic car market really took off as the baby-boomers got older, had lots of disposable income, and became reminiscent for things from their childhood. However, CNBC reported in August 2016 that the classic car market is slowing down a bit. Prices for classic cars had been increasing since 2010 and the total market increased 17% in 2015.
Classic Car Market
Auction sales at Scottsdale, which is the biggest auction in America was down about 15% to $251 million. This was the first drop in sales volume for the past six years.
Nevertheless, even almost-new vehicles like the 2014 Ferrari “La Ferrari” sell for $3.6 to $4.2 million. The record price for a classic car was a whopping $52 million paid for a 1962 Ferrari 250 GTO Berlinetta. Autoblog reported in 2014 that one of these cars from Germany is now offered for sale at $64 million!
What Makes a Classic Car Valuable?
The key factors that make a classic car very valuable are:
Provenance – This is the record of who owned the vehicle. Vehicles owned by famous people command higher prices.
Rarity – Low production runs make a vehicle more valuable.
Original Price – If the price, when first released, seems insane, the insanity usually continues to raise the price even further.
Condition – To command top prices the classic car must be in perfect condition.
Mileage – Classic cars with low mileage are very valuable. Wealthy car collectors drive their vehicles very little, just enough to keep them in good working order, but not too much.
Buying a classic car is driven by nostalgic passion. However, as far as an investment goes, the annual appreciation rates for classic cars exceed other collectibles such as art, fine watches, stamps, and wine. To find out more about many class cars check out the classic car database.
Interested in purchasing classic cars? Contact Vanguard Motor Sales today!