Classic car values and revenues on the rise
Some of the first things that people cut from their expenses during rough times are luxury items and activities,and that’s precisely what happened to the classic car market when the Great Recession began in late 2007. Faced with the choice between continuing their mortgage payments or repainting their El Camino, classic car enthusiasts had to go with staying in their house. Not only did this make people less happy, it also meant that the industry itself, including shops that service such vehicles and lots that sold them, suffered declines in revenue and business that, to this day, it has yet to fully reclaim.
However, as pointed out in a recent Bloomberg article, the economy is on the mend, and the car industry in particular has come roaring back. The piece profiles Ed Syrocki, owner of EMS Classic Car Care in Warren, Michigan, whose shop experienced increased revenue of 10 percent in 2011 and 15 percent in 2012. He says people had decided to forego repairs to their hobby vehicles during the recession.
“Everybody just kind of held back waiting for that sunshine to come back out and be able to drive the car again when they got a new job,” Syrocki said. “There’s a lot of cars out there to be fixed, and there’s a lot of cars out there cruising around.”
The article also points out that classic car owners are getting much higher bids on their vehicles. The Blue Chip Collector Car Index, which tracks the value of popular vintage autos, rose 54 percent between August 2009 and April 2011 to $1.45 million.
Have you been spending more money on your classic ride now that the recession’s over?