Rarity comes first above all

Collector cars are a matter of enthusiasts but also a matter of big money. The global market is worth $20 billion and 11K exceptional cars changed hands in 2019. Investment has largely taken precedence over passion. Americans are the biggest participants with more than 5M vintage vehicles owned. The majority of big sales are made across the Atlantic. France is No. 4 in the world with more than 1M registered vehicles, which is huge compared to the population.

The market is divided into 3 segments:

*The 3 segments of the classic car market*

The Mid Cap segment is currently growing the fastest, mainly due to the relatively large number of vehicles available.

Regarding the vintage, it is the post-classic (1965 - 1974) that is the most in demand. It corresponds exactly to Delon's Ferrari. In recent years, we have also seen the emergence of classic moments, recent and rare vehicles that are becoming extremely expensive. The original Tesla Roadster or the Mclaren MP4 fall into this category. Finally, in terms of brand, Ferrari generates the most volume ahead of Porsche, Aston Martin or Maserati. Do you find Alain Delon's Ferrari expensive? A 250 GTO sold for $48M in the United States in 2019, the absolute record.

The classic car market is unique for 2 reasons: the target and the “supply”. The target are enthusiasts with enormous resources. They invest for fun and to make added value. Supply is deflationary: vehicles are becoming more and more rare, and even impossible to find. Even though the prices may seem crazy, these factors make the market relatively healthy. When you have a large wealth, diversifying into vintage vehicles is quite reasonable. The buyer of Delon's Ferrari understood this and will probably realize a huge gain in value in 15 or 20 years. As long as you never drive the car to avoid the risk of damaging it.

Where can I buy a classic car?

Classic cars are sold mainly in 3 channels. Each of them represents a different level of the market and attracts different types of buyers. Let's analyze them one by one to see their different characteristics.

Private sellers

It is the channel with the largest number of sellers because it is not centralized. Private sellers often decide to sell their cars through specialized ad sites or by using their network of acquaintances through word-of-mouth.

The savings achieved through this channel can be juicy, as there are no intermediaries at the time of the transaction; on the other hand, there are disadvantages: one of them is that there are no expert mediators in case of disputes after the sale. Another disadvantage is that verifying the authenticity of the car and its parts as well as the overall condition of the vehicle is the responsibility of the buyer.

Professional salespeople

Professionals are the best way to get a classic car that meets your expectations. You can aim for cars that are in perfect condition when available or cars in worse condition that you are ready to restore. Some sellers specialize in certain types or brands of cars. Many professionals also offer brokerage services: you tell them in detail what type of car you are looking for and, for a fee, they find it and negotiate its purchase for you.

Professionals can certify the authenticity of the car and its parts. They can also guarantee the car for a certain period of time after purchase. The main disadvantage of this channel is that all of these services come at a price. Professionals know very well the price of cars on the market and, of course, they need to make a profit on top of that.

Auctions

Some prestigious auction houses organize well-organized events where it's always possible to find a bargain, a rare car that you didn't outbid for and didn't go over budget.

Sounds ideal, doesn't it?

In reality, car auctions can be a minefield; it's by far the riskiest way to buy a classic car.
Often, cars are sold “as is” not fully restored, and without warranty.

As a buyer, you are alone and without recourse in case of problems with the car. The only information and certifications for the car are made by the auction experts and they do not have the same legal obligation as professional car dealerships.