Car Market Slump

The Cool Down on Collector Car Values

The world of collector cars is experiencing a cooling of sorts, with median sales prices taking a dip from their late 2022 heights. Around 20% lower now, the average collector car is fetching about $27,800, according to the Hagerty Market Index as of May 2025. While this might sound like bad news to sellers, it’s a golden opportunity for enthusiasts looking to snag a classic ride without breaking the bank.

Key Factors

Tax Woes

The IRS has its eyes on high-value assets, and with stricter tax scrutiny, some owners are opting to sell their collectibles earlier than planned, injecting more supply into the market and deflating prices as a result.

Demand Normalization

Remember that flurry of collector activity during the pandemic? People had cash, were stuck at home, and turned to online auctions. Fast forward to now, and that fervor has softened. As life normalizes, so too do the bidding wars, leading to more selective and prudent buying practices.

Rising Costs to Own

It’s not just buying cars that costs a fortune these days—owning them does too. Storage fees are climbing, now up to $350–$400 a month for premium spaces. Insurance and upkeep aren’t far behind, forcing some collectors to offload rather than expand their collections.

Regulatory Hurdles

Regulations and tariffs loom large over the collective heads of car owners. Sure, some classics skip import duties until they hit 25 years, but new tariffs on early ‘90s models or stricter emissions rules could change the game, prompting preemptive sales.

Market Adjustments

Fewer people are buying, and auctions have lost some of their spark. Where 1967 Ford Mustang Fastbacks used to go for $80,000–$90,000, they now hover more around $65,000–$75,000. Likewise, the market for cars like the 1972 Datsun 240Z and early BMW E30 M3 is softening by about 10–15%, forcing sellers to rethink their pricing strategies.

New Enthusiast Goals

Today’s collectors seem less keen on owning something to stare at and more about driving it. The younger demographic is keen on track days and hands-on restoration, favoring the feel of a car under the hands over a potential jump in value.

Market Examples

• 1967 Ford Mustang Fastback: Prices are down approximately 15-20%. Negotiations now often include prep work like fuel-system refresh or brake rebuilds.
• 1972 Datsun 240Z: Once near $60,000–$70,000, well-kept ones now sell for around $50,000–$55,000.
• Early BMW E30 M3: Softer prices mean higher-mile examples are fetching high $50k, down from past highs of over $65k.
• Ferrari 360 Modena & Porsche 997 Carrera: Both dipped 10-15% in price. Buyers now factor in maintenance costs.

Tactical Moves

Feeling adventurous? Go hunting for hidden gems in barns and forums, and leverage detailed inspections to negotiate terms. Secure better storage and maintenance deals now while demand is lighter. Lastly, get involved with clubs and networks to sniff out good deals and group purchases.

Driving Enjoyment

With depreciation worries easing, indulge in those weekend drives, rallies, and track days. More so, this is a great time to dive into restoration projects with the additional hands in shops this market cooldown affords.

Informed Exits

If thinking of parting with a classic ride, selling in spring or summer can elevate interest and price. Professional detailing and high-quality photos can make a difference in a quieter market.

Takeaway

This market downturn isn’t all gloom and doom. There’s a lot to gain for the astute enthusiasts willing to look beyond the price tag and focus on genuine enjoyment. Whether picking up a dream car for drives or reveling in a well-negotiated service deal, now might be the perfect time to act. Car enthusiasts should embrace this shift—not just for investment but for the pure love of driving and the satisfaction it brings.