THE BUSINESS OF CAR COLLECTING: A BILLION-POUND INDUSTRY BETWEEN PASSION AND INVESTMENT

Car collecting is much more than just a passion for vintage engines and bodywork: today it represents a real economic sector, with a global turnover worth billions and involving a wide range of players, from restorers to auction houses, from spare parts manufacturers to insurance companies. It is a fascinating world in which history, culture and luxury merge with business logic, alternative investments and increasingly sophisticated marketing strategies.

According to several international reports, the classic car market is booming. In 2024, the classic car sector was valued at around £39.7 billion and is estimated to reach around £77.8 billion by 2032, with a compound annual growth rate of close to 8.7%. Some analyses, such as those by McKinsey, estimate a total “value pool”, i.e. the sum of transactions, services and related businesses, of between €75 and €90 billion per year. This is therefore not a marginal sector, but an asset class in its own right, on a par with art, luxury watches or fine wine. In the United States, for example, Hagerty estimates that over 43 million vehicles can be considered collectibles, with a total insurable value of nearly $1 trillion.

The core of the business remains buying and selling, which takes place through international auctions, digital platforms and specialised dealers. Auction houses such as RM Sotheby’s, Bonhams, Barrett-Jackson and Gooding & Company alone generate colossal sums, often with individual transactions worth millions of euros. At the same time, online platforms such as Bring a Trailer and Collecting Cars have gained ground in recent years, making a market that was once reserved for the few more transparent and accessible. According to McKinsey, the auction and trading segment alone accounts for almost half of the sector’s total value, around £30-35 billion per year.

Alongside trade, another fundamental pillar is restoration and maintenance. Historic cars require specialist work, from bodywork to interior reconstruction, from engine overhaul to electrical systems. There are thousands of restorers around the world, often craftsmen with a long tradition handed down through generations. Added to this is the spare parts business, with suppliers producing original or reproduced components in small series: from windscreens to chrome trim, steering wheels and upholstery. It is a niche market but one with very high value, as the cost of restoration can often exceed the purchase price of the car itself.

There is no shortage of special productions: some car manufacturers have decided to bring iconic models back to life with so-called “continuation series”, such as Aston Martin with the DB4 GT or Jaguar with the D-Type. In other cases, we talk about “restomods”, i.e. historic cars equipped with modern technology, from upgraded brakes to electric motors. This segment is smaller, estimated at between £170 million and £240 million per year, but growing rapidly thanks to demand from collectors seeking the charm of the past with the reliability of the present.

A range of essential services revolve around this universe. Insurance for classic cars is a billion-pound business in itself, with policies that take into account historical value and revaluation over time. Transport and storage in climate-controlled facilities are equally important: these are not simple garages, but veritable vaults for vehicles worth millions of euros. The events sector also plays a crucial role: fairs, rallies, concours d’elegance and museums generate tourist flows, sponsorships and partnerships with luxury brands, from watchmaking to fashion, wine and design.

Car collecting is not just a passion, but increasingly an investment. Data shows that some cars have recorded higher revaluations than traditional assets such as shares or real estate. Hence the growing interest in innovative formulas, such as tokenisation and fractional ownership, which allow even small investors to participate in the ownership of rare cars. This phenomenon opens up new perspectives, bringing even those without multimillion-pound capital closer to the sector.

The opportunities, therefore, are enormous. The growth of disposable income in emerging countries, the digitalisation of the market and the intrinsic scarcity of many classic cars are helping to sustain prices. At the same time, the sector faces significant challenges: restoration and maintenance costs, the need to certify authenticity and provenance to avoid counterfeiting, and environmental and tax restrictions that limit the circulation of historic vehicles in some countries. Sustainability is also a crucial issue: the electrification of restomods is just one of the possible responses to a market that will have to balance tradition and innovation.

In summary, car collecting is now a dynamic and global sector, capable of attracting collectors, investors and enthusiasts from all over the world. It is a business that combines craftsmanship and technology, luxury and passion, but above all, staggering figures: a market that moves fast, just like the racing cars that are its protagonists.

Giuseppe Piro