For years now, prices for classic cars have only moved in one direction – upwards.
Since 2025, however, demand for cherished vehicles from the 1950s and 1960s has suddenly dropped off, and some coveted models have plunged in value.
Some pundits say the classic car bubble finally seems to have burst, but this is an oversimplification. A market shake-up or correction is certainly taking place and it has a lot to do with demographics and changing preferences.
Whereas enthusiasts once got excited about hairy-chested roadsters such as the Austin Healey 3000 and the sexy Jaguar E-Type, buyers now want more comforts like electric windows, decent heating systems, power steering and winter-proof hardtops.
Big Healeys can now be had for €65,000 ($76,000) – much less than the €100,000 ($117,000) being demanded a few years ago. Meanwhile, the elegant Mercedes Pagoda roadster has dropped in price by 30%.
A near-perfect 280 SL Pagoda sold for more than $255,000 (€218,000) in April 2021, yet a fine example failed to sell at $72,000 (€62,000) at a recent US auction. Well-maintained, low-mileage Mercedes-Benz 280 SLs used to go for an average price of $98,000 (€84,000).
The handsome Pagoda, with its concave roof reminiscent of an Asian temple, is the epitome of what is known as “garage gold”, cars which have so far generally appreciated in value like other investments such as art or antiques.
The US Hagerty Price Guide is a good bellwether of what is happening in the market and the organization said recently that fancy coachbuilt luxury cars “are experiencing a bumpy patch”.
Even the 1950s blue-chip R-series Bentley Continental dropped a substantial amount, with good-condition models equipped with the 4.9-litre engine dropping from $1.6 million to around $1 million (€1.37 million to €0.85 million).
Hagerty’s latest UK Price Guide, which came out in summer 2025, shows 46% of the 3,000 models they track fell in value last year. Another 46% stayed flat. Only around 8% rose. Their global market index has slid back to pre-pandemic levels after being sky high in 2021-22.
Of interest now are more modern classics from the 1990s onward, and this trend has been spurred by comparatively low purchase prices, as well as the solid availability of spare parts and strong identification with brands and models remembered from people’s own youth.
In addition, such vehicles from the 1990s have a catalytic converter, which makes them usable in urban low-emission zones, and they can often be driven as everyday cars without any problems.
Modern automatic gearboxes fitted from around 30 years ago are also ideal for city driving which is reflected in higher prices. It used to be the case that the stick shift version of most classics was always worth more.
These days though driving a highly strung 1970s sports car with a heavy clutch through city traffic is just a pain.
In 2025, baby boomers who bought cars they once ogled through showroom windows as teenagers are stepping back, selling off their vehicles or collections, or are simply getting out of the market.
Generation X, born between 1965 and 1979, are still enthusiastic owners, but Millennials and even Gen Z are now entering the market.
And what they want is different. They don’t drool over walnut dashboards, Connolly leather hide seats and wire wheels.
They want the cars they grew up with, whether they remember them as bedroom posters or even drove them virtually in video games like “Need for Speed” or “Gran Turismo”.
In recent months even souped-up Ford Escorts, Mercedes G-wagons and quirky DeLoreans have been selling for big money. Going against the grain is the Peugeot 205 GTi hot hatch, which was once a favourite but is now one of the biggest losers.
Meanwhile, a boxy but very rare and pristine Ford Escort RS1800 Mk 1 sold for £276,000 pounds (€315,000 or $369,000) in Britain and even lesser versions go for up to £60,000 (€68,000 or $80,000).
These are the kind of go-faster models which ended their days as clapped-out bangers on UK council estates. Only a few good ones survived, which is what makes them valuable.
The development means that a lot of owners will find it hard to sell older and less sophisticated cars even if they are in good condition, although there is the silver lining for potential buyers.
Swiss expert Dietrich Hatlapa believes the long-overdue price adjustment reflects an overheated market. “There are currently more cars on the market than for many years and buyers are spoilt for choice,” he told Switzerland’s Blick newspaper.
“Owing to the large supply, interested buyers can now afford to choose only the best models,” said Hatlapa. “Low mileage remains one of the most important criteria. Currently, only top-of-the-range models with unique selling points continue to fetch the highest prices.”
