No Reserve: Collector Car Market Soars

Caught a collector car auction lately? If so, you may have noticed participation, prices, and overall enthusiasm are a little higher than usual. We sat down with Mecum’s own John Kraman to unpack what’s fueling the record-smashing results and why enthusiasts seem more determined than ever to bottle the past.

Much like the new and used car markets, the collector scene is ON FIRE right now.

Mecum, the world leader in live auctions, just celebrated yet another record event – with its annual Daytime Auction in Monterey marking the company’s most successful to date. This comes on the heels of unprecedented success at the Orlando Summer Special and an inaugural Tulsa auction that exceeded expectations. Not to mention, a truly spectacular Indy auction back in May. That event raked in more than $100 million in overall sales — a first within the collector car auction industry.

Currently, Mecum is wrapping up its Dallas auction, where an estimated 1,000 rides are set to cross the block and hopefully head home with happy bidders. Chances are pretty good they will, since Mecum’s sell-through rate has been sitting pretty at or above 80% lately.

“Pre-pandemic, if we had a 65-70% sell-through auction, we were really happy,” said John Kraman, Director of Company Relations, Lead TV Commentator/Analyst at Mecum Auctions, and walking encyclopedia of automotive history. “Really, anything over 50% was pretty good. Now, we’re operating 85-90% sell-through, which more than any other barometer – even dollar numbers – is a direct measurement of how well we’re doing.”

Growing Online Participation

According to Kraman, a major contributing factor to this recent success is Mecum’s willingness to embrace flexible bidding – particularly through online channels. Internet participation and an overall heightened interest in the collector car market creates a “one-two punch,” he said, noting absentee bidding rose from roughly 5% to over 20%.

“It’s a sign of the times,” said Kraman. “And, as we move forward, getting back to a more ‘normal’ live-action environment, I still think a lot of folks are going to want to participate online.”

Notably, Mecum began laying the groundwork for increased digital interaction long before COVID threw a wrench at in-person events. The company launched its completely-revamped online internet bidding platform in January 2020. With the ability to preview and inspect items and vehicles of interest, as well as view lots through a live video stream, online participants can enjoy all the excitement of a live-action event from the convenience and comfort of home. (Pretty much an ace in your pocket when a global pandemic strikes, eh?)

Mecum even accepts bitcoin as payment now, ensuring it doesn’t fall behind ever-emerging technologies. While Kraman admitted the nuances of cryptocurrency are a mystery to him, he considers the move “a step in the right direction” for Mecum. “We’re working with the folks at BitPay, and we’re really excited because we think this could open up a new portion of the market,” he said.

The alternative payment method has already found some traction, too. The service launched at the Indy auction, and Kraman noted at least 2-3 registered bidders paid with crypto during the event.

Talk about a Doozy. Watch this 1930 Duesenberg Model SJ Rollston Convertible Victoria sell for nearly $3 million at Indy.

Greater On-Air Presence

Another way Mecum continues to build excitement and momentum is by bolstering its entertainment side. The auction house remains devoted to connecting buyers and sellers, but it clearly realizes growing spectatorship opportunities as well.

In April 2020, Mecum’s podcast “On the Move” debuted. Hosted by Kraman and car historian/writer Matt Avery, the regularly scheduled podcast covers auction updates and news, as well as industry happenings and buzzy interviews. As for viewership, Mecum has long held a TV arrangement with NBC Sports Network, but also uploads full coverage to its YouTube account for easy non-cable viewing. In August 2021, right before the Monterey auction, Mecum announced it would air live on NBC’s very accessible streaming service, Peacock.

“We’re on track for another record year with the interest, excitement, and participation,” Kraman said. “The results we’ve had so far are utterly astonishing. We could not have written a better script for how to do things right.”

Mecum’s targeted efforts to attract more (and new) enthusiasts to the collector car market is contingent upon demand. And, according to Kraman, the current fervor for classic rides is astounding.

“We started to notice about a year ago that this market has all of a sudden caught fire. And we wondered: Is it a fluke? A blip? Will it be a temporary thing? What are the reasons why?”

Lockdown-Led Nostalgia

The pandemic, oddly enough, helped unearth some answers. Mandatory stay-at-home orders revealed an interesting lesson in the power of nostalgia, Kraman explained.

While many people found themselves stuck at home with an anxiety-inducing amount of free time, they began to rummage. And what did they find? Decades-old baseball cards in attic boxes, dusty outdoor gear at the back of the closet, and under that dirty tarp in the garage… an old passion, quietly awaiting reignition.

“It seems like there’s a real heightened interest in things that make people feel happy – like comfort food,” Kraman said. “Whether or not people had more time to buy, sell, restore, or whatever during COVID, they had a renewed interest in the things that make them happy. They also had a safe way to navigate the pandemic: Cruising in an old car, working on it in the garage, ordering parts; there’s no real risk there.”

People reshuffled their priorities, he said. And the new order played out front and center on the auction block. “The collector car market is as strong as it’s ever been in the history of the automobile,” Kraman stressed. “The love affair we have with automobiles – including parts of our collective past that we weren’t alive for – it resonates with people.”

New Buyers, New Trends

Mecum results prove this new brand of nostalgia also transcends generations. Baby Boomers might still lead the charge, but a new group of younger enthusiasts is making its mark. More interested in the “heritage of the automobile,” Kraman said these buyers aren’t chasing their own youth. “These younger enthusiasts are interested in the history, the mystique, the styling and the romance — the story of the bygone era,” he stressed. “And the cars tie into that.”

“It’s one heck of a ride that has gained a lot of momentum – and it’s one that I’m going to predict will not ease off once we get past this pandemic. I think people have reset their priorities and they’re going to forge ahead with things they always wanted. They’re not going to put it off anymore.”

Rugged Charm

For example, the number one best-selling vehicle in America today is the pickup truck. “Does it make sense then that maybe an awakening of the significance and cool factor of vintage trucks might resonate with today’s buyers if they want something to fix up or a second vehicle to have some fun with?” asked Kraman. “That’s the market and that’s what’s happening. It’s a more mainstream buyer jumping into this.”

Clean vintage 4x4s, like second-gen Broncos, K5 Blazers, International Scouts, and Toyota Land Cruisers are fetching impressive sums at auction. (Even the not-so-clean ones are rising in price.) Square-body pickup trucks are also skyrocketing in popularity, with even some rare 1990s F-150s reaching comfortably into the $40,000-$50,000 range. More often than not, observed Kraman, the bidders scooping up these rides are younger than the vehicles.

“The technology of a bygone era still has some appeal,” he said, noting one particularly hot segment of the market belongs to collectible cars with manual transmissions. “Many of these low-tech, analog rides are getting the same interest – and bringing a premium – over more modern, high-tech versions.”

Old-School Styling

Classic American muscle still tops many a Mecum sales record, but demand and selling prices are quickly picking up for those rides formerly deemed “non-collectible,” Kraman said. Fox-body Mustangs, Pontiac Firebird variants, IROC Camaros, and even Buick Grand Nationals can draw some eye-brow raising big bucks. Low-mileage, good condition examples are seeing a “vertical” trajectory in value, Kraman said, reaching well into the $20,000-$30,000 range.

“Restomods are still huge, and continuing to grow,” he added. “They’ll keep on growing, too – and appealing to a younger crowd.”

Obviously, a younger crowd also brings with it younger tastes. The Japanese import scene has practically exploded on the collector car market, with vehicles like the Mitsubishi Evo X, Honda CRX Si, and Mazda RX-7 steadily growing in value. Some low-mileage Nissan Skylines and Toyota Supras are already cresting six figures at auction.

The aftermarket’s role cannot be understated, Kraman said. “Without that support, we wouldn’t see these market segments come alive because you wouldn’t be able to get the parts to restore them.”

“Plus, the vehicle manufacturers are paying attention,” he continued. “We have a brand-new, retro-styled and reissued Ford Bronco on the road. That’s hardly a coincidence.”

Kraman perhaps understands the nostalgic-fueled tug toward simpler times better than anyone.

He waited 16 (long) months to take ownership of his most recent purchase – a 2020 C8 Corvette – partly because he ordered the option package with… well, virtually no options. “No cameras, no high-tech – I wanted the driving engagement,” he said. “I wanted it to be Me and The Car.”

“Electric vehicles, autonomous technology, sedans going by the wayside – these are all trends and evolutions,” he continued. “But that doesn’t mean in a few years we’ll all be sitting in an autonomous egg being transported from one locale to another. I think that driving engagement: the pleasure of driving, handling, braking, the acceleration, the sound, the sensation, down to the dashboard aesthetic and seating position – all these things drive car enthusiasts. There’s millions and millions of us out there and we’re not going to give that up.”