The Initial Boom: Escape and Nostalgia

On Wednesday, march 18, 2020, as Belgium, like much of the world, entered lockdown, an unexpected phenomenon occurred in the classic car market. With newfound time on their hands, people initially grappled with uncertainty. xavier Molenaar, head of Oldtimerfarm, recalls the eerie silence: “During the first confinement, indeed, the phone seemed to be disconnected. No more calls, even for facts. There was something to be worried about!”

However, this quiet period was short-lived. As restrictions eased, a wave of enthusiasm swept over the market. People, yearning for an escape, began to invest in classic cars. This trend mirrored the real estate boom seen in the U.S., where many Americans fled urban centers for larger homes in the suburbs or rural areas. The desire for open space and recreational opportunities drove demand for properties with ample yards and garages – spaces where classic cars could be stored and tinkered with.

Molenaar notes this dramatic turnaround: “It was then a wholly different world,I was constantly called,the market was revitalized.” This resurgence was fueled by the anticipation of car shows and rallies, events that offered a sense of community and a connection to a bygone era. Like Americans restoring vintage Airstream trailers or collecting vinyl records, Belgians embraced the tangible connection to history that classic cars offered.

The Market Today: A More Nuanced Picture

Five years later, the initial fervor has subsided. While the classic car market remains active,certain segments are facing challenges.

According to Molenaar, cars from the “Thirty glorious” years (roughly the post-World War II economic boom) are particularly affected by a decrease in demand. This segment is facing an “abundance of supply and very reduced demand.” Several factors contribute to this shift. The generation that grew up with these cars is aging, leading to more vehicles entering the market. Together, younger buyers may be less interested in these models, preferring more modern classics or electric vehicles.

Geopolitical instability, such as the war in Ukraine, is also contributing to buyer hesitancy. “The world is today completely different, with many owners who are too old for their hopping machine and very wait -and -see buyers, fearful in front of war.” This uncertainty is impacting consumer confidence across various sectors, including the classic car market.

The Rising Cost of Restoration

Despite the cooling of some segments, classic car values remain relatively stable, particularly for well-maintained or expertly restored vehicles. Molenaar points to the rising cost of labor as a key factor: “We must not forget that in recent years, The price of labor has become much more expensive. Make a gorgeous car by a specialized workshop costs much more money than before the pandemic. It is indeed thus logical, in a way, that it affects the price. Starting from a wreckage,an owner must now spend a real fortune to obtain a car in competition!”

This increase in restoration costs mirrors trends seen in the U.S., where skilled mechanics and bodywork specialists are in high demand, driving up prices. The complexity of restoring older vehicles, coupled with the scarcity of original parts, further contributes to the expense.

Opportunities for Buyers and Sellers

The current market conditions present both challenges and opportunities. Molenaar emphasizes that “today, for cars of the 50s and 60s, we are in a buyer market. The potential buyer therefore has large assets in his round to negotiate prices.” Sellers, he notes, are frequently enough willing to lower prices to move inventory.

Conversely, “Youngtimers, or cars that are between 15 and 30 years old, always benefit from a strong enthusiasm and especially those who benefit from a prestigious badge!” This segment, which includes cars from the late 1990s and early 2000s, is attracting younger buyers who appreciate their blend of classic styling and modern technology. These cars frequently enough represent a more accessible entry point into the classic car world.

Expert Insights and Future Trends

While the market has cooled somewhat, experts remain optimistic about the long-term prospects of classic cars. These vehicles represent a tangible asset, a piece of history, and a source of enjoyment for enthusiasts. As the automotive landscape shifts towards electric vehicles and autonomous driving, the appeal of classic cars, with their unique character and analog driving experience, may only grow stronger.

Several factors could influence the future direction of the market. The increasing adoption of electric vehicles may spur demand for classic cars as a counterpoint to modern technology. Government regulations regarding emissions and vehicle safety could also impact the market, possibly increasing the value of older, unrestored vehicles that are grandfathered in under existing laws.