Collector Car Market Remains Strong Despite Economic Turmoil

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Just how much longer will this keep up?

There’s been a growing debate in the collector car world which isn’t too dissimilar to debate in real estate and other markets about when or if rapid price inflation will reverse the course. If you’ve been tracking prices on certain desirable vehicles over the past several years, you might be excited at realizing the ride you’ve held onto is now worth a huge wad of cash or feel dismayed that your dream ride is further away from your grasp than ever.

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A prime example comes via a Toyota FJ Cruiser which recently sold on Bring A Trailer for $103,000. Yes, an FJ Cruiser just fetched more money than what brand new Land Cruisers sold for straight off the lot. If you’re thinking that’s crazy, congratulations you still have your head on straight. However, plenty of speculators don’t and they’re helping drive rapidly-inflating prices in at least certain sectors of the collector car market, which apparently now includes FJ Cruisers. We live in truly crazy times.

This was also potently illustrated with results from the recent Monterey Car Week auctions. When all was settled, the record from 2015 of $394.5 million in sales was absolutely obliterated this year as auction houses reported $469 million in sales. Many thought that figure would be much smaller, and even some of the more optimistic estimates were nowhere near that total. But will the meteoritic rise in prices continue?

Some believe the surge in Monterey Car Week transactions was pent-up demand thanks to the pandemic shutdowns. Others feel the main driver has been volatility in the stock market, causing investors to sink money into tangible assets like classic cars. Another reason cited for skyrocketing prices is the scarcity of both new and used cars. And there are many other theories thrown around about the current state of the market. This is just like a joke my old economics professor used to tell: seven economists in one room, 13 different opinions.