Monterey Car Week Auction Sales Decline

Monterey Car Week, a renowned event for classic and collector car auctions, experienced a 3% decline in sales compared to the previous year. This shift in the market reflects a change in demand, as a younger generation of collectors gravitates towards newer vehicles, while older classic cars struggle to find buyers.

• Total sales at the five main auctioneers (RM Sotheby's, Broad Arrow, Gooding & Company, Mecum, and Bonhams) amounted to $391.6 million, a slight decrease from $403 million in 2023.
• The sell-through rate, or the percentage of cars that sold, was 72%, with 821 out of 1,143 cars finding buyers.
• The average sale price dropped slightly to $476,965, compared to $477,866 in the previous year.

Shifting Preferences and the Rise of Gen Xers

Experts attribute the decline in sales to the changing preferences of collectors, particularly Gen Xers and millennials, who favor cars from the 1980s, 1990s, and 2000s. This shift in demand has left a surplus of older classic cars, particularly from the 1950s and 1960s, struggling to find buyers.

• The sell-through rate for pre-1981 cars priced at $1 million or more was a meager 52%, indicating a lack of interest.
• In contrast, the sell-through rate for cars less than 4 years old was a strong 73%, showcasing the dominance of younger collectors in the current market.

The Impact on Ferrari Prices

The shifting market has also impacted the prices of classic Ferraris. While some rare and iconic models still fetch high prices, the broader trend suggests that prices for older Ferraris might continue to decline in the coming years.

• A 1960 Ferrari 250 GT SWB California Spider sold for $17 million, setting the highest price of the week.
• Another notable sale was a 1938 Alfa Romeo 8C 2900B Lungo Spider, one of only five in existence, which sold for $14,030,000.

High Interest Rates Add to the Pressure

High interest rates have further contributed to the challenges facing the classic car market. Buyers at the lower end of the market, who often rely on financing to build their collections, are finding it more expensive to acquire cars. At the higher end, rising rates present an opportunity cost for purchasing classic cars.

• Collectors are increasingly considering the potential returns from investing their money elsewhere instead of buying a classic car.
• The investment angle, which has been a key driver of the classic car market for decades, is now being questioned.

Top 10 Most Expensive Cars Sold at Monterey Car Week

Here are the top 10 most expensive cars sold during Monterey Car Week, highlighting the shift towards newer and more modern models.

Rank	Car	Price	Auction House
1	1960 Ferrari 250 GT SWB California Spider	$17,055,000	RM Sotheby's
2	1938 Alfa Romeo 8C 2900B Lungo Spider	$14,030,000	Gooding & Company
3	1955 Ferrari 410 Sport Spider	$12,985,000	RM Sotheby's
4	1969 Ford GT40 Lightweight	$7,865,000	Mecum
5	1997 Porsche 911 GT1 Rennversion Coupe	$7,045,000	Broad Arrow Auctions
6	1959 Ferrari 250 GT LWB California Spider	$5,615,000	RM Sotheby's
7	1995 Ferrari F50 Coupe	$5,505,000	RM Sotheby's
8	1955 Ferrari 857 S Spider	$5,350,000	Gooding & Company
9	1967 Ferrari 275 GTB/4 Alloy Coupe	$5,285,000	RM Sotheby's
10	1958 Ferrari 250 GT TdF Coupe	$5,200,000	Gooding & Company

Conclusion

Monterey Car Week has highlighted a turning point in the classic car market, driven by a generational shift in preferences and the influence of economic factors. While rare and exceptional Ferraris still command high prices, the market for older cars is facing headwinds. The demand for newer supercars is on the rise, and interest rates are adding further pressure to the market.