The scorching Ferrari classic car market may be cooling off, Barrett-Jackson CEO Craig Jackson said during an interview on FOX Business Network’s “Mornings With Maria.”
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Ferraris have been the big story for car collectors in recent years, highlighted by the sale of a 1962 Ferrari 250 GTO for $34.65 million in an August 2014 auction. A year earlier, a 1963 edition was privately sold for a reported $52 million, which stands as the most expensive car transaction ever.
“Ferraris have been going up probably the fastest of anything. I think that market has definitely leveled off right now, although one sold in New York this week for $28 million, so it’s hard to say,” Jackson said Monday. “Rare cars are commanding great dollars nowadays.”
Jackson added that soaring prices for Ferraris and other sought-after cars have lifted values for less expensive classic automobiles.
“Certain cars will go up at different times. Ferraris and European sports cars have had a long run,” he said.
Barrett-Jackson, which holds large auctions annually in Scottsdale, Ariz., and other locations, is attempting to expand the collector car market by seeking out younger buyers.
“Originally we sold all pre-war cars, then we got into ‘50s cars, then muscle cars, and we’ve broadened it out because we want new buyers that are X-geners and looking towards Millenials,” Jackson explained.
The market is going strong overall, as more Americans seek out alternative forms of investing. Jackson noted that classic car sales are projected to grow 8% to 9% this year compared to 2014.
“You do not see as much money coming out of Russia and Asia as you have, and also Canadians are not as big a buyer. Canadians are bigger sellers. We are seeing a stronger appetite in U.S. buyers nowadays,” Jackson said.