Classic car auctions in Monterey are poised to reach record sales this week, potentially hitting $500 million, fueled by the tech boom and a surge in new collectors. Events during Monterey Car Week, which includes auctions and races, are forecasted to yield between $470 million and $500 million, surpassing the previous record of $471 million set in 2022. McKeel Hagerty, CEO of Hagerty—a classic car insurance and auction company—indicated that strong bidding could mark the first half-billion-dollar auction week in this niche market.
A notable shift is occurring as millennials and Gen Z begin to dominate classic car collecting, moving away from the vintage models traditionally favored by baby boomers. Instead of focusing on 1950s and 1960s cars, new collectors are increasingly interested in modern supercars, such as the Ferrari F40, Bugatti Veyron, and Koenigsegg models, many of which have doubled in price over the past two years. A highlight of the auction is a 1996 McLaren F1 GTR, expected to sell for around $35 million.
Despite these high prices, industry experts warn of market volatility. The Hagerty Blue Chip Index, which tracks traditional collector cars, saw a decline of 2% over the past year, while the Hagerty Supercar Index surged by 30%. Some classic car dealers express concern that the soaring prices of modern supercars may not be sustainable, pointing to high speculation levels among young collectors who often treat these purchases as short-term investments rather than long-term assets.
Why this story matters:
- Shifts in collector demographics influence market trends and pricing strategies.
Key takeaway:
- Modern supercars are rapidly gaining popularity, reshaping classic car auction dynamics.
Opposing viewpoint:
- Critics argue that the speculative nature of current prices could lead to market instability.
