Is the classic car market falling apart – or are we witnessing the best opportunity in years to buy your dream motor?
The classic car world is buzzing right now, and not necessarily for the right reasons. Prices that seemed unstoppable in the post-pandemic boom have cooled dramatically. Nearly 90% of collectible cars either dropped in value or stayed flat last year. That sounds grim, doesn’t it? But hold on – it’s not all doom and gloom. Around 8% of models did rise, and the surprising part? It wasn’t the usual suspects like E-Types and DB5s. No, it was the Datsun Zs, Toyota MR2s, Porsche 996s, and Cosworths that stole the show.
State of the Market – Correction, Not Collapse
Here’s the thing – the market isn’t imploding. It’s correcting. And there’s a big difference.
Hagerty’s UK Price Guide (Summer 2025) shows 46% of the 3,000 models they track fell in value last year. Another 46% stayed flat. Only around 8% rose. Their global market index has slid back to pre-pandemic levels after ballooning in 2021-22.
For many, that might feel scary. But actually, it’s healthy. The post-Covid “short-term savings boom” sent people flocking to the market. Prices spiralled. Cars that had been steady climbers suddenly rocketed. That wasn’t sustainable. A slowdown, a flattening, even a drop in overhyped stuff? That’s a return to reality.
And crucially, this correction is not uniform. The genuinely desirable cars – the ones that stir the soul – are still strong. In fact, some are stronger than ever.
Adding to the optimism, the DVLA has just announced sweeping reforms to the UK’s vehicle registration rules. From 26th August 2025, like-for-like repairs and restorations won’t need reporting, cars with structural modifications can keep their VIN and reg, and EV conversions will be allowed to retain their identity. This is massive. It secures the future for three million historic vehicles in the UK and over 100,000 jobs in the restoration and classic industry. If there was ever a sign that classic cars aren’t going anywhere, this is it.
Generational Shift – Boomers Out, Xers & Millennials In
But perhaps the most exciting change isn’t in the numbers, it’s in the people. The market is undergoing a generational reset.
Baby Boomers – who once dominated the scene – are stepping back, selling off collections, or simply exiting the market. Generation X (that’s my lot, born 1965-79) now rule the roost, accounting for 64% of Hagerty’s UK policy quotes. But the real story? Millennials and even Gen Z are streaming in.
And their tastes are different. They don’t dream of walnut dashboards and wire wheels. They want the cars they grew up with, saw on posters, drove in Gran Turismo and Need for Speed, or idolised in Fast & Furious.
Their icons?
- Nissan Skylines (R32, R33, R34)
- Toyota Supras (Mk4 especially)
- Honda Type Rs (Integra, Civic)
- Mazda RX-7s
- Ford Escort & Sierra Cosworths
- Early 2000s supercars like the Ferrari 360, Lamborghini Gallardo, and Porsche 911s with a manual box
It’s no coincidence that 2000s cars were the only era to post positive growth last year. For younger buyers with money, these are the dream machines. And crucially, they’re still analogue enough to deliver that authentic driving experience.
Winners – The Cars on the Rise
Let’s name names. Here are some of the standout risers:
- Datsun 280ZX – up a staggering 138% since 2019.
- DeLorean DMC-12 – boosted 73% over the same period.
- Toyota MR2 Mk2 (SW20) – rose 18% just in the past year.
- Ferrari F355 – climbing steadily, dragging the once unloved 348 with it.
- Porsche 996 (911) – the “fried-egg headlight” model is finally having its day as younger buyers look past the stigma.
There’s also momentum in early 2000s modern classics: the Lamborghini Gallardo, especially rare manuals; the Ferrari 458 Italia, the last naturally aspirated Ferrari V8; and even hot hatch heroes like the Mini Cooper S R53. Rugged 4x4s – Mercedes G-Wagens, Toyota Land Cruisers, and even classic Ford Broncos – are hot commodities too.
Losers – The Icons Cooling Off
On the flip side, here are the cars slipping down the charts:
- Aston Martin DB4/5/6 – even the Zagato fell last year.
- Jaguar E-Type – still a masterpiece, but values softening.
- Peugeot 205 GTi – once the bubble darling, now one of the biggest fallers.
- American Muscle – Mustangs, Camaros, and ’50s Chevys are down 10-15%.
- Pandemic classics – cheap hot hatches and bread-and-butter saloons that spiked during lockdown have now corrected sharply.
But here’s the silver lining: affordability. Many of these cars are becoming accessible again to enthusiasts priced out in recent years. A cooled market means more opportunities to get into the hobby.
Auctions, Trends & The Way to Buy Smart
Auction sales are softening. Global totals are down, and the median sale price has slipped to around $27k – the lowest since 2020. But online platforms? They’re booming. Collecting Cars, Car & Classic, Bring a Trailer – all thriving as buyers and sellers turn to digital platforms, particularly for cars under £100k.
The golden rule hasn’t changed though: buy the best you can afford. In a flat or cooling market, condition, provenance, and originality are king. A car with full history, receipts, and provenance will always hold value better than a rough example.
Buy, Sell or Hold in 2025?
So what should you do this year?
- Buy – If you’re a first-time buyer, this could be the best window in years. Prices are softer, stock is plentiful, and registration rules have just swung in your favour.
- Sell – If your car soared during the boom, this might be the right moment to cash in.
- Hold – If your car’s value dipped but you love it, sit tight. Enjoy it. It’ll come back.
- Speculate Smartly – Out-of-fashion cars like pre-war saloons or 60s–80s four-doors are undervalued now. Today’s bargain could be tomorrow’s cult classic – then people will be like ‘you got that for HOW MUCH?!’.
Final Thoughts – It’s About Passion, Not Numbers
Here’s the bottom line: the classic car market isn’t dead. It’s evolving. The faces are changing. The icons are shifting. And that’s a good thing.
Whether you’re eyeing a £5K hot hatch, a £50K JDM legend, or a million-pound Ferrari, the golden rule holds true: buy the car that speaks to your soul.
Because at the end of the day, classic car ownership isn’t about spreadsheets and percentage points. It’s about the drives, the meets, the smiles, and the memories.
And right now? 2025 might just be the perfect time to start creating yours.
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