The collector car industry is fluid, changing and evolving with the economy as new financial trends present themselves to investors, according to a panel of experts speaking at a Barrett-Jackson collector car industry symposium.
Currently, as the world starts to get back to some form of normalcy from the pandemic, the collector car industry is heating up and investment opportunities are available. But caveat emptor to those looking to invest in the industry and possibly overpaying for a collector car.
“I warn everybody, yes, the cars have gone up in value,” said Mark Hyman, founder of Hyman Ltd Classic Car, a St. Louis-based collectible car dealer. “The cars have given us a good return, but I warn everybody don’t overpay for that reason.”
During a collector car symposium held at the Barrett-Jackson Scottsdale auction on January 27, the state of the industry was the focus as investment opportunities increase and collectors are using increasing home values to diversify their financial portfolios, while also having some fun.
Sam Stockham, co-founder of Mortgage Pros Loan Lab and contributor to Sports Car Market magazine, maintains that the growth in the collector car industry will continue.
“I don’t see this slowing down any time soon,” Stockham said. “I think there is a little bit of a euphoria, but I do believe that the collector car world is going to be here strong.”
With refinance opportunities available for many homeowners, there could be a trend towards having fun with your assets as they continue to rise in value. Equity in your home is financial security but doesn’t lend itself to increased wealth or interesting conversations.
“I think a lot of people are realizing that equity in your home doesn’t make you money,” Stockham said. “It doesn’t provide fun. You can’t brag about it at a cocktail party, and it doesn’t do anything otherwise. You might as well have fun with it.”
