The Hagerty Market Rating – a 0-100 number that conveys the “heat” of the collector car market – recorded a third consecutive monthly decrease in April, pushing it into “flat” territory for the first time since 2020. The contraction was short lived, however, as the rating rose by 0.42 points in May to nudge it back into “expanding” territory.
This modest rebound was driven by an increase in private party sale prices, as reported by Hagerty’s insurance clients, mainly due to several seven-figure transactions happening last month. Growing sales volume at public auctions, boosted by sellers lowering their expectations and their reserves, also pushed the rating higher.
Two factors counteracted those bright spots. First, the percentage of private sales that exceeded the amount people had insured their cars for continued to decrease. Second, the median auction sale price for collector vehicles fell. In all, only three of the rating’s 14 input metrics increased month over month, but they were significant enough to lift the overall number. Click here for a full explanation on how the Hagerty Market Rating is calculated.
The collector car market has had a volatile run over the last five years, with a pandemic-fueled boom followed by a reality-based comedown. It’s likely that comedown will continue and the Hagerty Market Rating will slowly recede throughout the rest of the year. Since 2022, the market has been bolstered more by increased volume and an expanding definition of what is considered collectible than it has by true appreciation, and growing volume is becoming increasingly difficult. As a result, expect the collector car market to settle into a holding pattern overall.
