WHY MORE PEOPLE ARE BUYING CLASSIC CARS AND 5 EXAMPLES WORTH INVESTING IN

Did you know that Greenday's album Dookie is 30 years old this year? So is MTV's live Nirvana album, and Korn's debut album (imaginatively named Korn). That's the era I grew up in, and the two gnarliest cars during that period were the McLaren F1 and the Mercedes-Benz CLK GTR. The former was meant to be the ultimate road car that eventually went racing, while the latter was a racing machine made road legal. The interesting thing about these cars is that their respective power outputs are relatively tame by modern standards. The CLK GTR Strassenversion had just over 600 horses, while the Mac had 618 hp. Today, there are sedans and SUVs that you can buy for less than $100k that have 400 hp more.

In my humble opinion, the automotive industry has gone in the wrong direction. The main focus for the last 20 years has been more power. You'd think the makers of gas-powered cars would stop now that EVs have won the power war, but no. It just keeps on going, and I'm fairly sure I'm not the only one that's losing interest. A 1,000-horsepower Lamborghini Revuelto sounds good in theory, but where am I supposed to use it? Even the baby Lambo has more than 900 horses these days, and the uncomfortable truth is that for 99% of the time you own this car, you'll hardly scratch the surface of what it's capable of.

That's why, at 40 years old, I find myself constantly looking at classic cars on the internet. The two cars that keep grabbing my attention are the Series 1 Lotus Elise and the Vauxhall VX220, which will be eligible for import under the 25-year rule from next year. And I know for a fact that I'm not the only one, as the research shows the classic car market is, Mugato from Zoolander would put it, so hot right now.

How Big Is The Classic Car Market In The USA?

North America is the largest market for classic cars in the world. According to Statista, the classic car market has grown steadily year-on-year. In 2020, it was worth $30.89 billion and this year so far it's already standing at $43.37 billion. It's expected to grow by roughly 8% per year, which is quite good compared to the negative growth rate projected for the new passenger car market. But why is it growing so much? I'm going to give you three logical reasons, and we'll save the most important one for last.

1. People Have Disposable Income

The research shows that America's middle class is slowly shrinking, but they still make up more than 50% of the populace. Being middle class means you have disposable income, which you can spend on expensive hobbies like skiing, scuba diving, flying, or car collecting. Not car collecting on a Jay Leno scale, but rather having three affordable classics in the garage. We'll get to some examples later.

2. It's Easier Than Ever To Buy A Classic

You're on the internet right now, so you know how easy it is to find the car you've been lusting after for decades. It took me less than 20 seconds to find a 1996 Lotus Elise, and it saddens me to report that it costs $55,000, which is way more than you should pay for a fiberglass car with a Rover engine. But I'm thrilled to report that it also took 20 seconds to find a first-generation Mazda Miata with 50,000 miles on the clock for $10,000. You get the idea. Shopping is so much easier now that it's online, and available via several reputable sources.

3. Affordable Cars With Historical Significance

The '90s and early 2000s were a great time for the automotive industry. There are loads of historically significant cars that were made in great numbers that are affordable. Examples include the evergreen NA and NB Mazda Miata, the Foxbody Mustang, BMW M3 and M5, Toyota MR2, Subaru Impreza and Mitsubishi Evo, the Mazda RX-7, the OG 8-Series, and the original Viper.

The Most Important Reason The Classic Car Segment Is Booming

To be frank, 0-60 mph times don't matter, because most sports cars on sale today won't see which way a Tesla Cybertruck went. I think we're now entering an era where people are buying an experience, and numbers be damned.

Let me substantiate that with an example. A Tesla Model 3 Performance is a brilliant car, and it will get you to 60 mph in 2.9 seconds. Compared to this EV, the first-generation Dodge Viper is a snail, taking a leisurely 4.6 seconds to reach the same milestone.

But which one would you want to drive on a Sunday drive to nowhere on your favorite road? The EV, which would be faster in every possible way, or the analog sports car that lets you row your own gears and provides a howling 8.0-liter V10 soundtrack? The EV might be the future, but the Dodge is a moment in time that will never be repeated. Governments across the globe have all but banned cars like the Viper, so it will never be replicated. Five years from now, the Tesla will still be available.

Other unique experiences include driving an NA Miata with the roof down shortly after a burst of rain and enjoying a MK1 Golf GTI's lift-off oversteer because it was built before the era of electronic nannies. New cars allow you to buy impressive figures, but with classic cars you buy an adventure.

5 Experiences (Cars) Worth Investing In

It's tricky selecting cars for somebody else because you don't know their budget, or their preferences. For this selection, we tried covering as many experiences as possible. We also kept the budget below the average new car price, which is roughly $50,000. Also, keep in mind that classic cars are a money pit, so there's no way you can use them as a daily car, unless you're a sucker for punishment.

1990s Rover Mini Cooper

Our first classic is one yours truly tried to daily for a year because I'm an idiot. You can naturally go much older when it comes to the Mini, but the final version is the best compromise. It still uses the same 1,275 cc engine that was in use for 35 years, but added some modern amenities, like a full-width dashboard and an airbag for the driver. It still didn't have ABS, but that's what made it fun to drive. I had to give mine up because of the ABS brakes. While the Mini is fast enough to keep up with modern traffic, it just can't slow down as quickly. And nothing spoils a daily car quite like the rear wheels locking up in the rain.

Still, the Mini provides an epic front-wheel drive experience. It has a wheel at every corner, which is where the go-kart-like handling myth comes from. Rest assured that you can chuck it into a corner at epic speeds if you opt for more modern tires. You can surprise quite a few modern sports car owners with one of these. They might be faster on the straights, but watch them stare in agony when this little 1,400-pound pimple bombs by in the corners.

E39 BMW M5

This one is a bit of an outlier because it still feels modern enough to use daily. But you might now want to, as the value of its successors, the E34 and E28, are already worth $50,000 - and that's for models that aren't even in mint condition. The E39 is already on the up, but if you have between $25k and $35k lying around, you can get a mint example with a full service history.

Why would you want this car? Many would argue that it's BMW at its absolute best. The upcoming M5 is a plug-in hybrid and a bit of a fatty, while this is classic old-school performance sedan. A big naturally aspirated V8 under the hood, a six-speed manual in the middle, and all the power going to the rear.

1st-Generation Audi TT

The Audi TT isn't here because of its performance or handling prowess. If that's what you're after, the Nissan 350Z and Honda S2000 are much better bets. The TT is here because it's the antidote to overcomplicated, large-grille-obsessed contemporary design language. Also, how many times in automotive history has a car made it from concept to production reality with almost no change? The original TT is something you can just look at and enjoy. It can also be fun, if you opt for the high output 1.8-liter turbocharged four-cylinder engine.

Base C5 Chevrolet Corvette

With more than 250 units made, there's no shortage of C5 Corvettes available. It also means they're dirt cheap, and because the base model is equipped with an LS1, it will keep going forever. It's actually cool to see how many used examples have more than 200,000 miles on the clock. Not only does it mean the 'Vette is reliable, but people are enjoying the heck out of them.

The Corvette has always been a thorn in the side of supercars, and the C5 was a thorn in the side of the Ferrari 355. Even the base model could give the Italian thoroughbred a run for its money. It also came standard with a manual gearbox, which is no longer an option on any C8 model.

996 Porsche 911 Carrera

I think it's ugly with its fried egg headlights, but beauty is subjective, right? Porsche was trying to save money and basically welded the front-end of the then new Boxster to the rear of a 911. You also can't see the car when you're on the inside, where you'll get to enjoy a rather lovely interior that you can upgrade with a modern infotainment system via Porsche.

What this car excels at is being a Porsche. It has a flat-six engine hanging over the rear wheels, and a manual gearbox. It revs beautifully, and the handling is sublime. That being said, the 996 is not without issues. The 3.4 and 3.6-liter flat-sixes had rear main seal and intermediate shaft bearing problems. Thanks to the car being around for so long, the biggest flaws are well-known and Porsche improved these parts. We'd shop around for one that already has all the known flaws sorted. It's not like there's a supply problem. All in, Porsche made more than 175,000 996s. For around $30,000, you can get one with 60,000 miles on the clock, while high-mileage examples go for as little as $16k.

Sources: Statista, Porsche, Chevrolet, Audi, BMW, Mini, AutoTempest.com

2024-10-12T12:18:32Z