Mercedes-Benz made only two 300 SLR Uhlenhaut Coupés. The two-seat cars, which were manufactured in 1955, are nicknamed “The Red” and “The Blue” based on their interior colors. With long, sleek hoods and passenger doors that open from the top, the cars were designed for the racetrack and had a maximum speed of 300 kilometers per hour, making them far faster than their contemporaries. Ironically, the Uhlenhaut Coupés never entered a race because Mercedes-Benz decided to exit the motorsport business shortly after creating the two prototypes. The cars’ rarity may explain why The Red set a new record for automobiles when it sold for $143 million (about €137 million) at auction in 2022. Its partner, The Blue, remains at the Mercedes-Benz museum in Stuttgart.
The Uhlenhaut Coupé sale shows the enduring appeal of legendary cars. Other collectibles are equally in high demand, including models from luxury brands such as Ferrari, Aston Martin, Bugatti, Lamborghini, and Porsche, as well as those from mainstream brands such as Chevrolet, Nissan and Ford. Like the Uhlenhaut Coupé, some models have sold for astronomical prices—a 1962 Ferrari GTO went for about $51.7 million at auction (about €50 million) in 2023—but the average transaction price is about €65,000 for auctions and €56,000 for public listings, given that a large portion of the market consists of more accessible vehicles.
Today’s most popular collectibles span a number of decades, with models from the 1980s through the 2000s recently demonstrating a significant increase in both public appreciation and valuations. The growing interest in these vehicles pushed the global value of the existing stock of collectible cars to around €800 billion in 2024.
While collectible cars represent only a small number of total automotive sales, their influence extends far beyond an exclusive group of wealthy buyers. Interest is so great that it can shape both public opinion and cultural trends, meaning that OEMs can leverage collectible cars to strengthen customer relations, connect with high-net worth individuals, improve brand perception, and capture new opportunities. Other automotive stakeholders, including insurers and repair shops, may also find new revenue streams and profits from collectibles.
Our survey methodology
We surveyed 256 car collectors, enthusiasts, and professionals worldwide, with most respondents located in Asia, North America, and Western Europe. Of these, we reached out to more than 50 for direct interviews. Of the collectors and enthusiasts, the respondents are demographically diverse except with regard to gender: over 90 percent are male (exhibit). All income groups are well represented. Most collectors and enthusiasts—42 percent—have a household income below €200,000 and only 20 percent earn €1 million or more. The age distribution of collectors and enthusiasts is also broad, with most between 31 and 40 (26 percent) and 41 to 50 (28 percent). Over 70 percent of collectors and enthusiasts own two or more collectible cars, suggesting that their interest goes far beyond a single vehicle. The age and household income for professionals, which included those engaged in a wide range of activities such as events and restoration, also varied.
We conducted extensive research about the size, value, and characteristics of today’s collectible car market to help guide OEMs and others who want to benefit from this growing segment. Given that consumer demand is the biggest factor affecting the growth of the collectibles market, we also surveyed more than 250 collectible-car enthusiasts and professionals worldwide about their vehicle preferences, driving habits, and purchase plans. In combination, these insights reveal emerging opportunities and critical next steps for all automotive stakeholders that want to benefit from the surging interest in collectible cars. (For more information on the methodology, see sidebar “Our survey methodology.”)
A thriving and evolving market for collectible cars
Collectibles are sometimes referred to as “classic” cars. On the highest level, they are cars that inspire people to dream of ownership, even if it may take years to achieve that goal. When behind the wheel, drivers typically feel a rush of emotions inspired by a more analog and unfiltered driving experience. Collectible cars also allow their owners to enjoy creative, cutting-edge designs no longer possible on modern cars because of current safety regulations.
For our research, we defined “collectible vehicles” as those that have been out of production for at least five years and valued at €20,000 or more. They also have some intangible characteristics that are less easy to quantify—for instance, how iconic, important, sporty, or advanced the car was considered during its early days, as well as its current reputation. In other words, a collectible car must be more than just a mobility solution. Our definition encompasses roughly 3,660 models globally, from more than 260 manufacturers, some of which are no longer active.
Iconic cars such as the Ford Model T and the Lamborghini Miura have been trading hands for years, but the steepest increases in car values began in the 2000s, coinciding with the period in which leading automotive brands began drawing inspiration from their heritage and launching retro-inspired models. Community activities for auto enthusiasts, including rallies with vintage cars and concours d’elegance, contributed to the uptick in interest and increased the perception that older model cars could be prestigious collectibles.
The 2020s showed sustained value increases and consumer interest, partly because both traditional and digital media sources presented collectible cars favorably. The upswing in consumer demand is part of a greater trend that sees vintage products such as spirits, watches, jewelry, and handbags, surging in value across sectors. The rise of digital marketplaces and online auction sites also contributes to the growth of collectible sales by broadening access to products.
The customer base for collectibles has evolved along with the market. Before the 2000s, global luxury buyers primarily viewed vintage goods as status symbols; today, younger luxury buyers tend to be less focused on conspicuous consumption, and instead value collectibles because of their uniqueness and brand authenticity. A brand’s backstory also carries more weight with collectors, and selected manufacturers have opted to build on their heritage to lay the foundations for their future, as French car manufacturer Alpine did by using the original A110 from the 1960s to relaunch its brand in 2017.
Today’s collectors are highly active, with about 5 percent of cars changing hands annually for a trade volume of €45 billion. About 5,000 trades involve vehicles valued at above €500,000. Collectible cars from the 1980s, 1990s, and 2000s have been the major value and liquidity growth driver for the past ten years, perhaps because many millennials first encountered these models as children and aspired to own them as adults. In a related trend, the share of cars from the 1980s through 2000s at public auctions has sharply increased over the past five years to reach an average of 29 percent, compared to 13 percent for cars from the 1970s; meanwhile, the average age of cars being auctioned off has dropped from a peak of 54 years in 2012 to only 38 years in the first half of 2024.
Opportunities along the collectibles value chain
For automotive industry stakeholders along the value chain, the collectibles market represents an opportunity worth €76 billion to €90 billion in annual revenue. Given the growing interest in collectibles, the potential for profit could rise, especially if OEMs and ecosystem players can learn from other segments that offer vintage goods and develop new products and services for this market.
The collectibles value chain is complex, with multiple segments containing many small, independent players. As the industry grows, some businesses may attempt to consolidate or adopt universal standards, which would make the market easier to navigate. To get a clear idea of the opportunities ahead and value at stake, we identified six key industry segments (Exhibit 1).
Trading and brokerage of collectible cars
Numerous dealers, brokers, auction houses, platforms, and individuals trade collectible cars. Their activities represent the largest part of the value chain, generating about€40 billion to€45 billion in annual revenues.
Approximately 30 to 40 percent of cars are sold through public listings, including dealer offerings and classified ads. For unlisted sales, about half of trades involve individual collectors. While third parties or agents often facilitate these transactions, innovators have recently launched several new platforms to connect buyers and sellers directly for a fraction of the typical cost.
Auctions account for only 15 to 30 percent of unlisted sales. Those numbers are rising, however, because many buyers appreciate the ability to see feedback on sellers and participate in a community experience. In addition, many online-auction buyers say that they now feel more confident when making bids because of the increased availability of public data, including information on previous transactions, car value, and past auction results.
Vehicle manufacturing
This segment involves the production of “extended/continuation series” of historic vehicles, the reproduction/replication of vintage cars, and the creation of “restomods”—short for restoration modifications—which are classic cars modified and updated to modern technical standards. Revenue from vehicle manufacturing is about €0.2 billion to €0.3 billion annually.
While customer demand for restomods or replicas is high, some OEM leaders are concerned that these vehicles are not identical to the originals. Nevertheless, a number of OEMs sanction some efforts and support some continuation series. Consider Aston Martin, which recently offered remanufactured versions of two of its rarest sports cars, the DB4GT and DB4GT Zagato, as well as a faithful reproduction of the DB5 driven by Sean Connery as 007 in the 1964 James Bond film Goldfinger—functioning gadgets included. Recent engineering advances have made it easier for companies to produce quality restomods and replicas, even during small-scale production, which is opening the door for more businesses.
Logistics and storage
Cars increasingly require international transport as more buyers engage in cross-border historic racing, attend collectible car events, or simply engage in overseas transactions. Customers thus need dedicated logistics companies that can facilitate a smooth trip. Many collectible cars also have special storage requirements, including those related to climate control, fire prevention, and heightened security standards that necessitate customized garages. Some organizations that rent garage space also host special events or meetings of private clubs; others offer on-site automotive services for greater convenience.
Overall, the logistics and storage segment generates about €1 billion to €2 billion in annual revenue. It is expected to grow because storage is among the greatest pain points for collectible car owners, and a significant number of players are building dedicated, experiential facilities to meet those needs.
See sidebar “Motorworld: Creating a community for collectible car enthusiasts,” for more information on available services.
As collectible cars soar in popularity, the Motorworld Group is building a space where enthusiasts can share their passion.
Car collectors and automotive enthusiasts enjoy being part of a community. Germany-based Motorworld Group develops, builds, and operates spaces and events in which these aficionados can interact and immerse themselves in the collectibles universe. With more than 40 vehicle brands at its locations, Motorworld is the world’s largest brand-neutral center for classic cars and sports cars. Among other goals, Motorworld promotes “emotional mobility” and the appreciation of collectible and premium cars.
McKinsey’s Michele Bertoncello recently met with Andreas Dünkel, who founded the Motorworld Group and has served as its CEO since 2009.
Michele Bertoncello, McKinsey: What underpins Motorworld’s recent growth?
Andreas Dünkel, Motorworld: The market for collectible cars—also called the “emotional mobility” market— has been continually growing and developing on an international level, allowing Motorworld Group to expand. We now have more than ten locations that are already operating or under construction.
Our concept is fundamentally centered on offering car collectors and other automotive enthusiasts a tangible and all-encompassing platform for meeting up and sharing experiences and knowledge, as well as storing, buying and selling vehicles, or having them professionally serviced.
Michele Bertoncello: What are the critical factors that will help future collectors, including younger people and female fans, become more actively engaged with the world of collectible cars?
Andreas Dünkel: I think the stereotype of the typical collector needs to be rethought completely. To attract the future collector generation, it is critical to put a higher focus on community and sharing this passion on a platform. We see this community at our growing number of Motorworld locations, which offer a physical platform for a wide audience and for every budget in an optimal way. This passion is the central idea of Motorworld. Many people, not just collectors, use our services, which include car storage, special events, tours and auctions, culinary experiences and many more.
To inspire a younger and diverse audience for collectible cars, the industry should focus more on digital engagement, community-oriented events, sustainability, and storytelling, all of which align with modern values. Virtual reality offerings, such as racing simulators, which we offer at several of our Motorworld locations, create immersive experiences that allow enthusiasts to virtually explore and engage with special cars. In addition, we have found that social media plays a very important role in fostering community, which is why we are expanding our presence here as well. Social media platforms such as Instagram, Facebook, YouTube and TikTok can bridge access gaps by showcasing car stories and connecting diverse collectors.
Andreas Dünkel is the founder and CEO of Motorworld Group and Michele Bertoncello is a partner in McKinsey’s Milan office.
Comments and opinions expressed by interviewees are their own and do not represent or reflect the opinions, policies, or positions of McKinsey & Company or have its endorsement.
Administration, financing, insurance, and regulation
An often underappreciated side of the collectibles market involves financing and insuring these vehicles—activities that now generate about €8 billion to €10 billion in revenue annually. Some large traditional companies offer policies specifically designed for collectibles, and a few smaller businesses also focus on this area. Specialty insurers tend to extract more value from their clients and maintain the relationships for extended periods by offering community events, special insights, and partnerships.
Although many high-net-worth individuals purchase collectibles, traditional banks and leasing companies tend to underserve the market. Few of them currently offer dedicated financial products or collectible-car specialists to support their clients.
In our survey, a significant number of customers financed their collectible-car purchase (Exhibit 2). Interestingly, for vehicles priced under €100,000, only 15 percent of sales involve financing; this figure rises to 55 percent for vehicles in the €100,000 to €500,000 range, and to over 80 percent for those priced over €500,000. Some buyers also opted for co-investments with family, friends, or partners to avoid financing, and a few relied on new crowdfunding solutions.
Bank loans currently represent a relatively small portion of financing deals. Some private banks are becoming more interested in financing collectible cars, however, and are sponsoring events that might interest collectors. Other sources of funding include niche players outside the banking sector, which tend to offer shorter-term loans and higher rates for collectibles compared to those for new cars. As the collectibles market grows, financing could potentially increase to two- to three-fold over the near term, considering that the penetration of financing tends to increase as car values increase.
The collectible car market is highly regulated. Some organizations, such as the Fedération Internationale des Véhicules Anciens and the Classic Car Club of America, are increasingly attempting to set technical standards. Others, such as the Federation Internationale de l’Automobile, are establishing sporting regulations.
In some cases, governments may decide to introduce legislation that helps the collectibles market through favorable legislation (for instance, exempting such cars from congestion fees or decreasing the vehicle tax).
Maintenance, restoration, and spare parts
Like all older cars, collectibles need routine maintenance to stay in top shape. This service, combined with restoration and the sourcing or remanufacture of spare parts, generates about€25 billion to€30 billion in annual revenues. While this segment is the second largest value-chain pool after trading and brokerage, it is also among the most fragmented. Many collectible-car mechanics work in small independent shops—about 75 percent have fewer than 8 employees—and specialize in different areas. With numerous shop owners planning to retire and a shortage of skilled replacements, companies will likely consolidate, explore new business models, and increase prices.
In our survey, many respondents state that they are extremely selective when choosing a service provider. Among collectors with six or more cars, 54 percent indicate that they want to deal with the best specialty services center, no matter where in the world it is located, compared to only 35 percent of respondents with fewer cars (Exhibit 3). Respondents with many cars are also more likely to use the official restoration unit at their car manufacturer, provided that the OEM offers that service. Some respondents also perform their own maintenance or deal with local garages, highlighting the relevance of B2C channels for parts and the growing interest in technical education by collectors.
When asked about their goals for restorations, 35 percent of survey respondents say they want to keep their vehicles completely authentic. Smaller percentages of respondents are open to upgrades that improve performance or reliability, even if those changes detract from authenticity, and some respondents want to make custom upgrades, rather than adhering to the original specifications. These findings contradict a common belief that customers want cars that are either identical to the last bolt to how they left the production line decades earlier, or extreme reinterpretations. Instead, the survey results to indicate that some collectors want their cars to reflect the vehicles’ original spirit while becoming a little more pleasant to use in today’s traffic. Respondents welcome safer brakes, “hidden” power steering, improved air conditioning, or the option to charge a smartphone.
The spare-parts market could benefit from new fabrication techniques, such as 3D scanning and 3D printing of parts, which have the potential to decrease costs and increase availability, particularly for collectible cars used for racing purposes.
Community and experience
Collectible vehicles inherently touch numerous emotional “strings” and thus appeal to a wide variety of people. Although some may value collectibles for their driving characteristics, others might primarily view them as objects of art, a means for enjoying beautiful surroundings, or a highly fascinating engineering marvel. Various groups have created experiences and events that cater to different interests, including races and exhibitions, and these now generate between €2 billion to €4 billion annually from participants and spectators. Some of the most popular collectible events, such as the Pebble Beach Concours d’Elegance, the 1000 Miglia, and Goodwood Revival, are now oversubscribed. In response, organizations have created more exclusive formats, such as members-only meetings at Goodwood or the “1000 Miglia experience UAE.”
Two famous collectible events, the century-old Concorso d’Eleganza Villa d’Este and the newer FuoriConcorso, extend the focus from cars to lifestyle and art to attract more—and more diverse— attendees to to the shores of Lake Como. Since many consumers increasingly seek unique products and experiences, these curated trips may boost interest in collectible cars and in the ecosystem of brands associated with them. They also appeal to buyers who want direct experience with vehicles before making a purchase.
See sidebar “The Pebble Beach Concours d’Elegance,” for information on one of the most famous events.
A leading concours d’elegance fosters both passion and professionalism in the world of collectible cars.
By Sandra Button
The Pebble Beach Concours d’Elegance, founded in 1950, has long been considered one of the world’s leading concours, and its Best of Show trophy is often said to be the ultimate award that a collectible car can receive. For automotive enthusiasts, it is an unsurpassed opportunity to view, in person or online, collectible cars from various decades. In this commentary, Sandra Button, the long-time Chairman of the Pebble Beach Concours d’Elegance, reflects on the event’s evolution.
To the uninitiated, a concours d’elegance—a “competition of elegance”—must seem an odd event. Most spectators arrive after the cars are already posed on some lovely swath of green, and there the cars likely remain throughout the event—apart from what is perhaps a brief trip over an awards ramp or past a review stand.
But a concours is much more than it seems. It is the culmination of hundreds of decisions made and actions taken over the course of many months—or, more often, many years—to allow each of several dozen or several hundred cars to showcase its best self. Then, all of these cars are transported to one specific place on one specific date to be seen and celebrated. Along the way, a multitude of people are involved in preserving, restoring, and prepping these cars—from early creators to current caretakers, as well as researchers, historians, and a host of mechanics and craftspeople with a wide variety of expertise. A concours is the coming together of all of these cars and people. It is a community that spans the globe.
As its name implies, a concours is also, of course, a competition—one that celebrates automotive elegance rather than speed.
Our event, the Pebble Beach Concours d’Elegance, is a one-day mobile museum showcasing a curated collection of about 220 great cars brought to us from around the world—and shared with the world through our participants, our livestream, and our social content. The event incorporates tradition and pageantry, but it is also ever-changing, continually taking its lead from enthusiasts, striving to mirror their interests and elevate the cars they love.
This concours, founded in 1950, initially followed the format of the early concours in Europe by primarily showcasing new cars. But in 1955, at the urging of a few impassioned enthusiasts, we gave our top award, Best of Show, to an older 1931 Pierce-Arrow 41 LeBaron Town Cabriolet owned and restored by racing great Phil Hill. We rewarded more old cars in ensuing years, other concours soon followed suit, and the modern concours d’elegance was redefined as a competition for collector cars.
We are proud to note that this shift played a role in saving many great cars. It also brought numerous new businesses and industries into being: restoration and preservation shops (not to mention the new “classic” divisions of many major manufacturers), car brokerages, and auction houses, and specialized transport services.
The Pebble Beach Concours is also tied to the emergence of historic racing. This concours came into being with the Pebble Beach Road Races and quite early in our history, we began to showcase historic race cars. By the early 1970s, when Steve Earle decided to host some of the earliest races for historic cars, he asked if he could pair these races with our event by holding them at nearby Laguna Seca Raceway, which had been purpose-built for our races.
The number of concours and related events here and around the world have increased dramatically over the past three decades—and they have often been modeled upon or inspired by our success, or else begun with the advice or participation of our leaders, our judges, and our entrants. Historic races and other car events have multiplied as well. Locally, the Pebble Beach Concours now serves as the hub for over 60 car events.
We continue to evolve as other events grow up around us.
In the 1980s, to encourage designers and manufacturers to dream of the future, we created our Concept Lawn. In the 1990s, to emphasize the importance of driving, we founded the Pebble Beach Tour d’Elegance and integrated it into our Concours judging system. More recently, we added the Motoring Classic, RetroAuto, and Concours Village.
Along the way, the cars on our show field have expanded in age and range; you can now find cars from China, India, and Japan at Pebble Beach, and the clear majority are now post-World War II creations.
New classes are often inspired by our participants. Our 2024 classes celebrating wedge-shaped cars came about after the Aston Martin Bulldog was submitted by a new entrant. Because we had no clear class for it, we opted to build one. Ideas grow organically here, in keeping with the interests of collectors, and we hope this will ensure the participation of younger and future generations of enthusiasts. We certainly have room on our show field and in our car-enthusiast hearts for all that interests them.
Our judging system, too, is ever-evolving. Fred Simeone, a leading thinker in the collector car world, once took me aside to stress the importance of concours judging, noting that it sets the bar for what people do with cars—how they use and care for cars, and how long cars will last into the future. Accordingly, our definition of elegance has expanded to include the intricately crafted parts and interrelationships in finely crafted engines, the history of racing greats, and the importance of preserving or gently restoring great cars. A well-preserved Bugatti took our top award in 2024!
The entry and judging details of over 12,000 cars now reside in our archival database, which is accessed repeatedly by individuals, brokers, and auction houses as cars change hands or undergo important work.
In these and many other ways, this concours serves to promote great cars and support the collector car world.
Sandra Button is Chairman of the Pebble Beach Concours d’Elegance. She has guided the organization since 1986, first serving as its Executive Director and then becoming Chairman in 2002.
Comments and opinions expressed by interviewees are their own and do not represent or reflect the opinions, policies, or positions of McKinsey & Company or have its endorsement.
Private driving clubs are also enhancing the collectibles experience by organizing drives, events, and get-togethers to appeal to a growing community of passionate collectors and investors. Some clubs offer dedicated sites, including private facilities and racetracks, that allow owners to have a place of their own close to their passion—for instance, there might be a private garage or even a residence close to a racetrack. As of 2024, there are more than 20 private racetracks and clubs under construction worldwide, and demand is still growing for other locations where people can enjoy their passion for motoring.
Gaining an edge by meeting customer needs
Every collectibles business must understand the customer base because consumer demand is the strongest growth driver for the segment. Our survey data reveals several customer insights that could help companies chart a path forward.
For collectible car enthusiasts, it all starts with the driving experience
When asked why they purchased a collectible, the vast majority of survey respondents say that they are primarily motivated by a personal interest in driving (Exhibit 4). Other aspects of the ownership experience, such as the ability to attend collectible car events or participate in races, also appeal to many people. Those findings help explain why many leading brands are increasingly offering premium driving experiences and providing owners with opportunities to maximize their enjoyable time behind the wheel of their collectibles. In many cases, the brands are emphasizing the community aspect by combining driving experiences with opportunities for artistic and culinary enjoyment, visits to historic sites, and in-person social networking.
In our survey, about 90 respondents say that they are mostly interested in collectibles because of their asset value. Until very recently, it would have been difficult to quantify this value, as well as the appreciation potential, because information was not readily available. When making a purchase, many collectors simply followed their instinct and did not always select the vehicle that would represent the best investment. Now, however, professionally run investment platforms have emerged, increasing transparency about asset value and providing data-driven insights on future expectations and market liquidity. That said, collectors should not assume that every purchase will lead to a profit; instead, they should view collectible cars as a hobby that might offer a better long-run cash curve than most. See sidebar “AssetClassic: Taking an investor’s lens to collectible cars,” for more information.
Only a minority of respondents say that their primary interest in collectibles results from the status associated with owning a unique or expensive car.
With values for collectible cars rising, the sector may be at an inflection point. A data-driven analysis can help investors direct their funds to the best opportunities.
While collectible cars elicit a strong emotional response, owners and traders are also interested in their tangible value. McKinsey partner Michele Bertoncello recently spoke with Camillo Mekacher-Vogel, the CEO and Managing Partner of AssetClassic, a company that operates a private-equity fund investing in collectible cars and supports industry players in creating value within the collectible car space through data-driven insights.
Michele Bertoncello, McKinsey: What are the defining characteristics of collectible cars as an asset class?
Camillo Mekacher-Vogel, AssetClassic: According to the survey of car enthusiasts, collectors, and professionals, a significant portion of respondents indicate an “asset focus” when considering investment potential in their classic car purchase decisions. In our view, the investment potential of collectible cars is supported by three key factors.
First, as an asset class, collectible cars have demonstrated remarkable stability. Over the decades, they have appreciated at a consistent double-digit annual growth rate. Perhaps even more compelling from an investment perspective is their resilience to market fluctuations, with relatively low maximum drawdowns. According to the 2022 Credit Suisse Research Institute Collectibles Report—and corroborated by our internal data—the average valuation of classic cars has experienced a maximum annual value loss of only 5 percent. For investors, this lower risk profile is an important deciding factor.
Second, the performance of collectible cars is largely uncorrelated with broader financial markets, including equities, bonds, commodities, and gold. In fact, the asset class tends to show positive correlation with inflation trends, much like other luxury goods. This characteristic offers diversification benefits, making classic cars an attractive addition to investment portfolios.
Finally, collectible cars are more transparent and easier to value compared to other alternative investments, such as art. Cars are publicly registered, identified by unique chassis numbers, and often accompanied by extensive provenance histories. Even for vehicles manufactured in very limited production numbers, comparable assets are typically available to assist in valuation, providing a level of traceability that sets them apart from other collectibles.
There are also fundamental drivers that support the sustained growth and stability of this asset class. According to the UBS Global Wealth Report 2023, one in three ultra-high-net-worth individuals (UHNWIs) currently collect cars, with an even higher percentage aspiring to start collections. Classic cars are the only category of traditional collectibles where future demand is projected to exceed current levels. Coupled with the fact that the UHNWI population is growing by 30 to 50 percent every five years, this creates a clear rationale for the long-term appreciation of the asset class. This growth trajectory underpins why we believe the value of collectible cars will continue to rise for decades to come.
Michele Bertoncello: What is the difference between investing in collectible cars as a private collector and as a fund?
Camillo Mekacher-Vogel: When purchasing a collectible vehicle, it’s always best to choose one that aligns with personal enjoyment and fosters a deep appreciation for the driving experience. Beyond this, the primary focus should be on acquiring the highest-quality car available, rather than prioritizing the pursuit of a bargain—quality over price. Over time, our data demonstrates that higher-quality vehicles consistently outperform comparable lower-quality ones, both in terms of base value and reduced long-term maintenance costs.
Securing a great car at a discount requires a significant commitment: hundreds of hours of research, continuous monitoring of the market, access to a global sourcing network, and the ability to act quickly to close deals, even for multiple vehicles at once. These activities are typically beyond the scope of the average private collector. As such, focusing on quality offers a balanced approach, yielding immediate satisfaction (enjoyment) and long-term benefits (higher resale value). For private collectors, resale value often outweighs internal rate of return as a more relevant consideration.
For investment funds, however, the perspective shifts by necessity. The core objective is to generate value for investors. Many alternative asset class funds have historically adopted a “buy and pray” strategy—purchasing assets in the hope of short-term appreciation. While this approach may succeed in a strong market, it fails to justify the investment under less favorable conditions.
In our view, the key to success lies in creating guaranteed value for investors during the acquisition phase. This involves sourcing high-quality assets at a meaningful discount to their fair market value. Here, the resources of a dedicated organization with a robust, data-driven decision-making process become invaluable. Identifying deals that meet our rigorous criteria often requires evaluating thousands of cars and conducting hundreds of physical inspections, even before applying filters for specific makes and models.
Michele Bertoncello: What role does data play in investing in collectible cars?
Camillo Mekacher-Vogel: Planning what could be one of the largest purchases of someone’s life—potentially second only to their home—has traditionally been done in a complete data vacuum. This has been the unfortunate reality for many enthusiasts over the decades, as well as for numerous industry professionals. For us, accelerating decision-making and bringing transparency to the investment process through a data-driven approach was a fundamental priority.
Over the past five years, data from auction results, off-market deal flow, third-party valuations, and online listings have allowed us to begin making sense of the market’s complexity. Today’s enthusiasts can access multiple sources of data to form their own understanding of a car’s worth and its potential value trajectory over time. At AssetClassic, we build on this foundation by, leveraging larger and proprietary datasets, including records of public and private classic car transactions and valuations spanning the past 50 years. This enables us to make informed investment decisions and provide valuable insights to our clients.
We firmly believe that, over time, increased market transparency will lower the barriers to entry for new enthusiasts, fostering a shared passion for classic cars. Furthermore, improved liquidity in the market is likely to attract new institutional players, contributing to its continued growth and evolution.
Camillo Mekacher-Vogel is the CEO and Managing Partner of AssetClassic. Michele Bertoncello is a partner in McKinsey’s Milan office.
Comments and opinions expressed by interviewees are their own and do not represent or reflect the opinions, policies, or positions of McKinsey & Company or have its endorsement.
While survey respondents highly value the driving experience, many of them manage to spend only a few hours behind the wheel each month. Some are busy and others lack a place where they can enjoy driving. Relatively few state that they regularly take short trips in their collectible cars and even fewer routinely take long trips (Exhibit 5). Our survey also shows that collectors enjoy their vehicles even when they are not on the road. For instance, many respondents say that they enjoy tinkering with their vehicles and visiting shows on collectible cars at museums and exhibitions. Reflecting a growing trend, some respondents say that they create video blogs, photographic tours, or other video/digital content about their passion for collectible cars, which could create a unique opportunity for brands to engage in co-creation with their customers while simultaneously fostering appreciation and community building.
For most collectors, the greatest joy comes from sharing their interest with others
Our survey respondents enjoy sharing their passion for collectible cars with others—most often their partners but also their friends and children. Sharing their interest allows drivers to enjoy their passion for motoring in new ways—for instance, by transforming it into a weekend activity for a couple. Most commonly, respondents give rides or let other collectors drive their cars, but they also engage in other shared experiences, such as working on cars together or attending car shows with friends. When seeking fellow car enthusiasts outside of their immediate circle, respondents under age 40 were most likely to use social media platforms, while older respondents preferred in-person gatherings or events (Exhibit 6). Other popular resources included classic car clubs, online forums, and digital platforms, or events sponsored by car manufacturers. By hosting community events for collectibles, OEMs and other businesses could get an opportunity to connect with customers who might also become interested in their new offerings—and the perception of high value that surrounds collectibles could extend to more recent models.
See sidebar “The Goodwood Revival” for more information on community events.
‘Revive & Thrive’: How engaging the public and advancing sustainability built a unique ethos for The Goodwood Revival
By Charles Henry Gordon Lennox
The owners of the Goodwood Estate, seat of the Dukes of Richmond for over three centuries, have always welcomed their friends and guests to share in their love of sport. Horseracing, golf, flying, shooting, and cricket have all been introduced by family members since the first Duke came to Goodwood in 1697. For automotive enthusiasts worldwide, the Goodwood Revival, a historic motor racing event, has long been a major attraction. In this commentary, Charles Henry Gordon Lennox, Duke of Richmond and Gordon, reflects on the Goodwood Group’s history and looks to the future.
Since its launch in 1998, the Goodwood Revival has redefined what a historic motor racing event can be. From the outset, we were set apart by our ability to attract the very best cars, including many that didn’t race anywhere else. This was helped by an underlying good will toward Goodwood, due in part to its popularity in period, and also to what we had achieved since 1993 with the Festival of Speed. In addition, we worked very hard to look after the competitors in every way possible, so they all had a fabulous time, which made it easier for them to choose Goodwood as the one place a year they would come to race.
The circuit itself—uniquely unspoiled by the passage of time—presented a fabulous challenge, just as it had in the years from 1948 to 1966, when Goodwood was the spiritual home of British motorsport. There was a tangible sense of following in the wheel tracks of the greats, and the fact that so many of those past champions came back to race with us at the Revival only heightened the connection with history.
And the decision—regarded as folly by many at the beginning—to invite everyone to dress up in period clothing turned out to be a masterstroke. Long before people talked about “immersive experiences,” the set dressing and period dress code at the Revival gave it a very special atmosphere, and made it about so much more than just historic motor racing.
As well as looking after the racing competitors, Goodwood was unusual, at both the Festival of Speed and the Revival, in really thinking about the spectators. Prior to Goodwood, spectators at historic motorsport events were an afterthought—something to be taken for granted as long as the owners and drivers were having a good time. By providing better facilities, and always concentrating on delivering an entertaining show, Goodwood attracted hundreds of thousands of visitors annually.
In turn, the creation of a social scene around historic racing had a profound effect on the desirability of the cars. Whereas before, classic car ownership had been a niche hobby, owning the right car now became a ticket into a range of exclusive social occasions. With the proliferation of events globally over the last 25 years, this huge increase in the desirability of significant cars has resulted in a corresponding inflation in values, to levels of which nobody could ever have dreamed.
Remarkably, the Revival has now been around for far longer than the circuit was open in its original guise. The very best historic motor racing and period lifestyle continue to be at the heart of its appeal, but it has evolved to also become arguably the world’s greatest celebration of second-hand culture. Under the ethos of ”Revive & Thrive,” which really underpins everything we do, the event espouses the virtues of “buy once, buy well,” “made to last,” and “make do and mend.”
Of course, the cars themselves are at the very heart of this mindset. The cars racing at the Revival are among the very best in the world, and have been lovingly maintained, repaired, and restored throughout their lives. They are, in effect, like a really well-made pair of shoes, which, if looked after properly, will last a lifetime.
It’s easy to think of the Revival as being backward-looking and nostalgic, but in fact it is thoroughly modern in its outlook. At a time when we all need to think more about our impact on the world, and move away from a disposable culture, the relevance of the “Revive & Thrive” message has never been stronger.
In recent times, faced with ever-changing public opinion, and a need to make classic cars more relevant in the modern world, we have championed the transition toward sustainable fuel. The cars themselves have long since paid their debt to the world in terms of the materials needed to construct them, and powering them in a greener way reduces yet further the environmental harm of their use. Viewed objectively, a classic car running on sustainable fuel is less harmful to the environment than a new electric car.
I am proud that we have been able to take a leading position on this. In 2023, we were the first historic event to hold a race exclusively for cars running on sustainable fuel. And at the 2024 Revival, all cars raced on sustainable fuel—again, a world first. Other events are now following suit, and the adoption of sustainable fuel in all forms of motorsport is imminent. This, for me, is a perfect example of how the Revival’s message can have a positive impact on the world.
His Grace Charles Henry Gordon Lennox, Duke of Richmond and Gordon, CBE DL, is the owner of the Goodwood Estate Company, President of the British Automobile Racing Club, Patron of the TT Riders Association, and President of the Motor Racing Cycle Industry Association.
Comments and opinions expressed by interviewees are their own and do not represent or reflect the opinions, policies, or positions of McKinsey & Company or have its endorsement.
A greater focus on quality, authenticity, and trust could improve relationships with collectors
In our survey, many respondents focus on a car model’s brand and heritage when selecting a collectible. They are also concerned about practicalities, however, including the availability of authentic spare parts. Of course, the relative weight of these elements varies depending upon a vehicle’s value: while availability of spares might be a significant influencer in the decision to buy a 1990s mass production sportscar, it may be less relevant in the purchase of a highly valuable 1950s racing vehicle with a documented history.
When asked about the greatest challenges related to acquiring, restoring, and reselling collectible vehicles, most respondents focus on trust issues (Exhibit 7). They worry that sellers are not being fully transparent about the condition of their cars and that prices and commercial terms may not be fair. Related to this, many respondents feel that deeper vehicle knowledge, including information on specific models, is hard to come by. Traders that strive to provide complete information about collectible cars, including any repairs or flaws, could gain a long-term edge by attracting a loyal following, even if the disclosures may cost a short-term sale. Likewise, sellers might win more repeat business by ensuring that prices reflect a vehicle’s condition and providing warranties or restoration support.
Some respondents also have concerns about delivery logistics, storage, serviceability (for instance, availability of authentic spare parts), physical protection of vehicles from damage or theft, and the bureaucracy involved with importing, registration, and emissions testing. Businesses that can mitigate problems in these areas are poised to capture opportunities. Some “car concierge” offerings are already growing rapidly in large urban areas or at track-clubs around the globe and are playing an increasingly strategic role in making collectible car ownership an enjoyable experience.
Innovation as a driver of growth and preservation
It may seem counterintuitive to believe that collectible cars can be a catalyst for innovation, but the numerous technologies used to support the preservation, usage, and enjoyment of collectibles can indeed open new business opportunities. Already, companies are deploying innovative services and new operating models to address some of the challenges that collectors face and developing new products that could trickle up to mass market adoption. Relevant fields of innovation include:
- Digital and AI. Thanks to AI, it is now possible to attribute a value to a car by aggregating millions of data points across multiple sources, enabling more accurate and informed decisions. Buyers are already benefitting from the increased transparency, and this, in turn, might increase trading frequency and support long-term growth in asset pricing. Similarly, the development of a “digital passport” for collectible cars, which would involve identifying a vehicle through image-recognition of individual parts associated to a vehicle identification number and then leveraging blockchain technology to secure its authenticity, could simplify vehicle authentication. In another development, the industry could leverage a combination of AI and augmented reality to improve driver training for collectible cars. This technology, which is already being tested, could help younger generations develop a passion for collectible cars.
- Sustainable materials and fuels. As the world contends with the growing impact of climate change, the collectible car sector is under increasing pressure to adopt sustainable practices. With evolving regulations and shifting consumer expectations, the industry must innovate to remain both relevant and environmentally responsible. Fossil-free and carbon-neutral fuels can offer a critical solution for significantly reducing the environmental impact of collectible cars, and their broader availability and adoption might allow enthusiasts to enjoy their passion even more responsibly, while possibly meeting future regulatory requirements. Increasing the availability of sustainable fuel at collectible car events and racetracks will be critical to accelerating this transition. Fueled by carbon-neutral fuels and with their vehicle-manufacturing carbon impact already behind us, collectible cars can be a sustainable answer to the desire for a recreational vehicle.
- Modern craftsmanship. Companies that maintain collectible cars or manufacture continuation-series vehicles or restomods require highly skilled workers with knowledge of bygone manufacturing techniques and the ability to use new technologies for parts fabrication and assembly. For example, workers must know how to apply innovative “additive manufacturing” techniques to produce otherwise unavailable parts and improve frequent-failure parts, thereby extending the lifespan of vintage vehicles. Many of our interview subjects highlighted talent availability as a future challenge for the collectible-cars sector, and companies must become more aggressive in recruiting and training skilled preservationists. Select industrial districts are increasingly promoting education of technical and engineering personnel to ensure the serviceability and preservation of collectible vehicles. The required knowledge—for instance, on restoring aluminum bodywork, carburetors, or wooden interiors—often resides exclusively in an aging generation of mechanics and specialists. Codifying and retaining this expertise and craftsmanship will be an enabler for the future of collectible cars.
- Better experiential offerings. To help customers appreciate and enjoy collectible cars, companies are increasingly designing ad-hoc hospitality offerings and creating dedicated infrastructures for storage and maintenance. From custom-made tours in iconic locations to historic car racing events to next-generation interactive museums, experiential automotive offerings are becoming more sophisticated and blending the boundaries between high-level hotels, travel management, and traditional automotive experiences. Innovative technologies such as digital interfaces for booking, can facilitate a smooth customer journey for these experiences. Similarly, innovative event formats may attract more customers and help them share their enjoyment with friends and followers.
Collectible cars have an appeal that extends beyond the design, heritage, and driving experience they offer. For many buyers, they represent the fulfillment of a dream, inspire strong emotions, constitute a path of personal growth, and serve as a legacy for future generations. Car manufacturers and ecosystem players have the opportunity to build upon the growing enthusiasm for collectibles to improve brand perception, capture economic opportunities, and strengthen customer loyalty. They may find that these masterpieces from the past provide a solid path to future growth and customer engagement.