No, the future of classic cars will never be affected. Nothing should stop a collector or an enthusiast from investing in high-valued classic cars.
According to a report by Credence Research, the global classic car industry is expected to be worth around $51.3 billion in 2028, a figure that was estimated to be $31.1 billion in 2021.
Additionally, Statista reported that the U.S. accounted for the largest share of the classic car market in 2020, with revenue worth $15 billion. This figure has been projected to rise by $4 billion by 2024.
However, with the production of high-tech cars and the EU-approved ban on the sale of new gas-powered vehicles by 2035, there may be an oncoming threat to classic cars’ timeless appeal and the passion of their enthusiasts and collectors.
But don’t worry! This blog will provide interesting insights into classic car markets’ current state and future value to help you decide if it’s still worth investing in.
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Classic Cars in the Era of EVs
People who deal with classic cars have never been concerned, even in the face of the rapidly evolving energy transition from internal combustion engine (ICE) to electric vehicle (EV).
Peter Brook, the CEO of Oracle Finance, views classic cars as a separate group that won’t be affected by the ongoing encouragement of car users to switch to electric vehicles. He further says that the classic car is a small automotive market sector, and the impact generated is not highly significant.
In another view, Tom Senior, a Director of Classic Vintage and sports Car Finance at Cambridge & Counties Bank, said the energy transition is unlikely to affect the classic car sector. He believed the value of many gas-powered cars will likely go up as we approach the deadline.
He also stated that since classic cars are driven for fewer miles than a typical family car, the emission rates are usually lower even though they are cars powered by high-combusting engines.
Classic Cars and the 2035 Diesel and Petrol Car Ban
Classic car collectors are worried about their investments and are unsure what will happen to them when ICEs are banned from 2035. However, classic cars are here to survive the legislative changes.
European Union (EU) and its 27 member countries have agreed on a policy to ban the sale of new gas-powered cars after 2035. California has also adopted the legislation and will not allow the sale of new gas vehicles in the state. The essence of these laws is to tackle carbon pollution by encouraging owners of gas-powered cars to switch to electric charged vehicles.
What does this mean for collectors? Vintage car owners do not need to worry since the laws do not prohibit the sale or use of older vehicles on the roads. However, it could indirectly affect classic cars and collectors, who could be forced to make their classic cars more eco-friendly.
How the Millennial Generation See Classic Cars
Over a decade ago, the world was just recovering from one of the worst recessions in history. The stabilizing economy has seen collector car prices skyrocket, and the worth of classic cars has increased; however, another challenge is facing the automotive world, and it’s generational.
In the history of the automotive world today, the baby boomers played a big part in stabilizing it. As they age, they now prefer to buy less and sell more of their collector cars.
Moreover, today’s buyers and drivers, known as Generation X, tend to be more interested in cars from the 1970s, 1980s, and 1990s. Like the Boomers, they grew up with these timeless appeals to make memories. However, teenage privacy from parents for Gen X came in an imported modern car, unlike a Ford Mustang.
With time, there is the possibility of a decline in the stock of traditional classic cars due to the millennials growing up without the timeless memories of classic cars. They are used to technological advancement and will be needed to return cars to where they originally belonged. High-end cars may continue to increase in value. Still, other unexceptional vintages are likely to see a gradual drop in sales due to low interest within a large percentage of the millennial generation.
Things to Consider Before Classic Vehicle Investment
A classic car’s age, mileage, features, and number in production can significantly affect its worth. Before investing in a classic car, verify its history and condition.
Moreover, get the classic car build sheet to access the factory-installed features, original base price, number produced, and more. This will assist in quickly deciding whether to proceed with the purchase.
If you plan to invest in a classic car, here are the factors to consider to ensure your investment is secured.
| Things to look for | Questions to Ask |
| Exclusiveness | How many were produced?Is it rare? |
| Vehicle Condition | Has it been maintained well? |
| Originality | Is it still original?Was it restored, or were there any modifications? |
| Maintenance Costs | How much will it cost to maintain the vehicle? How easy are the parts replaceable? |
| Original Price | How much did the original purchase of the car? |
| Popularity | How popular is the car with collectors and enthusiasts? |
| Historical Value | Is it rare and beautiful?Was there any racing history?Was it designed or built by a respected engineer?Did the vehicle introduce a new technology?Did the vehicle raise the bar for buyers’ expectations?Was it owned by any celebrity? |
READ ALSO: How do I run a VIN history check on a classic car
Make your Classic Car Worthy: Join Fight to Tackle Carbon Pollution
EU’s ban on ICE in 2035 seeks to help create a more healthy and sustainable environment for the human race. To save the world, there is a need to reduce carbon emissions and human dependence on gasoline. By 2050, the EU aims to achieve a 100% carbon-neutral, a goal that’s been hindered by gas-powered dependent vehicles.
Even though there is nothing to fear, every classic car owner can help join the fight to reduce the emission of greenhouse gases like carbon dioxide (CO2). Here are some ways to make your car emit lower CO2.
Regular maintenance
A car will be more fuel efficient if it’s in top condition. You must be on top of your car maintenance so your classic car doesn’t become worthless. You should also perform routine maintenance and service to attain better fuel mileage. Regularly check the oil, fluids, and tire pressure to improve your old car’s fuel efficiency.
Reduce the loads
Reducing the loads you tow with your classic car will keep it light, making it more efficient. The lighter a vehicle is, the less fuel the engine needs to burn for propulsion.
Use premium gasoline
Using high-quality gasoline helps the engine to operate efficiently. Although it may be costlier, it helps make your car engine burn cleaner, thus reducing carbon emissions.
Electric car transition
The automotive industry is rapidly turning to electric vehicles, with many manufacturers joining the trend and many countries adopting them.
So, to cope with the changing trend, classic car owners can convert their timeless ride to an electric powertrain—many do this every year. Although this will cost thousands, the transition will help to make classic cars appealing to the modern age and technology.
The Classic Car Future Amidst Electric Car and Millenial’s Reign
Despite the 2035 deadline not having anything to do with classic cars, it will indirectly affect how collectors and enthusiasts view their classic car investment.
With more manufacturers ready to install electric vehicle powertrains into most classic cars without damaging the iconic appeal, the classic car market will continue to be attractive to enthusiasts, buyers, and collectors beyond 2035.
Also, in a few years, we will likely see a growing population of car enthusiasts among the millennial generation who now develop praise for classic cars – whether gas-powered or electric car models.
