Month in Motoring, July 2025
Collector Car Investment Strategy: Buy, Sell, or Hold?
As the automotive world turns its attention to Pebble Beach Car Week this August, collector car enthusiasts and investors find themselves at a critical crossroads. The market dynamics that have driven spectacular gains in recent years are shifting, forcing a fundamental reevaluation of investment strategies. Whether you’re a seasoned collector or a newcomer to the market, understanding these changes is essential for making informed decisions about your automotive investments.
The End of Easy Profits: When “Buy and Hold” Fails
For several years, collector car investors followed a seemingly foolproof strategy: Buy the right new cars and hold them for guaranteed profits. This approach worked remarkably well across various segments, from Alfa Romeos and Mustangs to Porsches and pickup trucks. A limited supply, combined with abundant capital seeking hard assets, created a perfect storm that sent valuations soaring well above their original MSRPs.
However, this golden era appears to be coming to an end, and the warning signs are becoming increasingly difficult to ignore.
Case Study: The 2023 Mustang Mach 1 Reality Check
A recent sale on Bring a Trailer perfectly illustrates how dramatically the landscape has changed. A virtually new 2023 Ford Mustang Mach 1 Premium with just 28 miles recently sold for $54,500—a significant loss from its nearly $65,000 MSRP. This wasn’t just any Mustang; it was number 1,842 in a limited series, fully optioned, and finished in the desirable Grey color that was hot for 2023.
On paper, this car should have commanded a premium over its original sticker price. Instead, the owner faced a substantial loss without even factoring in two years of carrying costs. This outcome signals a fundamental shift in market dynamics that investors can no longer ignore.
The “Collector Dinner Plate” Phenomenon
We may be entering an era where some modern cars become the automotive equivalent of late-night TV collectibles—mass-produced “limited editions” that lose their appeal when everyone saves them. When every car is preserved in pristine condition, rarity disappears, and with it, the potential for appreciation.
The 1978 Corvette Indy 500 Pace Car serves as a cautionary tale from automotive history. Priced at $13,000—three times the cost of a standard Corvette and nearly equivalent to the median household income of $15,000—collectors viewed it as a retirement investment. Many were stored away with dreams of future riches. Today, a 7,000-mile example recently sold for just $20,000 on Bring a Trailer, far from the windfall early buyers had anticipated.
This pattern is now emerging across the modern collector car spectrum. While opportunities still exist, investors must exercise unprecedented caution and selectivity.
Should You Sell Now?
For many collectors, the answer is a qualified “maybe.” If you own a car from any era that’s currently experiencing strong demand, and particularly if your enthusiasm for it has waned, now might be an opportune time to sell. The old adage “there’s no time like the present” holds particular relevance in today’s uncertain market.
Consider selling if you can achieve a profit, reduce holding costs, and free up capital for other investments. Remember, it’s impossible to perfectly time any market, and ultimately, your personal timeline is the only clock that truly matters.
The Hold Strategy: Balancing Risk and Reward
Deciding to hold presents its own challenges, as the future remains inherently unpredictable. Multiple factors influence collector car values, with broader economic conditions typically serving as the primary driver. A robust economy can lift values across the board, while a recession can quickly reverse years of gains.
However, the most crucial factor in any hold decision is personal: Do you genuinely enjoy the car you’re holding? Does it add value to your life, whether through driving pleasure or simply the satisfaction of ownership? While great memories don’t pay bills, they create happiness—something everyone should invest in.
Navigating the New Reality
The collector car market is entering a more mature and discriminating phase. The days of easy profits from simply buying and holding new limited editions are largely behind us. Success in this new environment will require greater expertise, more careful selection, and a deeper understanding of what truly drives long-term value.
Whether you choose to buy, sell, or hold, remember that the best automotive investments are often those that provide both financial potential and personal satisfaction. In an uncertain market, the joy of ownership may prove to be the most reliable return of all.
As we head into Pebble Beach Car Week, use this time to reassess your strategy, evaluate your holdings, and make decisions that align with both your financial goals and personal passion for automobiles. The market may have changed, but the fundamental appeal of great cars remains timeless.
____________________________________________________________________________
Collector cars will always represent more than mere investments—they are rolling pieces of history, embodying the dreams, innovations, and craftsmanship of their era. Whether it’s a muscle car from the golden age, a European sports car that defined elegance, or a pickup truck that built America, these vehicles connect us to stories larger than ourselves. If you’re fortunate enough to own one of these automotive treasures, you become a custodian of that history, ensuring these mechanical marvels continue to inspire future generations.
Happy Motoring.
