Month in Motoring: November 2024 – The Politics of Car Collecting
While “The Month in Motoring” typically steers clear of politics, every four years the November elections can significantly influence the collector car market. Understanding this relationship can help collectors make more informed decisions, both now and in future election cycles.
The Electric Vehicle Transition: Fear vs. Reality
In recent years, many collectors have expressed urgent concern: “I need to buy an internal combustion engine modern super car as they are going to be replaced by electric cars in the coming years.” This anxiety, fueled by the previous administration’s push toward eliminating fossil fuels and plans to ban ICE vehicles by 2035, led to a surge in demand for specific models. The Dodge Demon, Porsche 911 GT models, and Z06 C8 Corvettes saw particularly high interest, resulting in significant Additional Dealer Markups (ADM).
Post-Election Market Shifts
The recent election results have dramatically changed the landscape. The winning party’s pledge to increase oil production could lower fuel costs, potentially reducing electric vehicle demand and maintaining the production of traditional ICE vehicles. For collectors who feared certain models would become unattainable, this shift might present new opportunities as prices begin to moderate.
Tax Implications for Collectors
Beyond vehicle availability, elections can significantly impact collectors’ discretionary spending through tax policy changes. Prior to the election, many collectors were concerned about the scheduled 2025 expiration of current tax rates. This uncertainty led some to sell their vehicles in 2024 to avoid potentially higher capital gains taxes, contributing to a general flattening of collector car values.
Personal Finance and Collection Decisions
The prospect of higher personal tax rates also influenced buying behavior in 2024. Collectors anticipating reduced disposable income adjusted their budgets accordingly, often resulting in more conservative purchasing decisions. However, the incoming administration’s pledge to maintain or even reduce current tax rates could benefit both buyers and sellers in the collector car market.
The Wisdom of Long-Term Collecting
Perhaps the most important lesson is that basing collecting decisions solely on election outcomes is risky. While it’s prudent to consider known policy changes, trying to predict election results and their market impact is challenging. As the saying goes, you’ll have better luck starting a 1957 Bel Air in January than relying on politicians’ promises.
Looking Forward
Regardless of political outcomes, the passion for collecting cars should transcend election cycles. Smart collectors focus on long-term value and personal enjoyment rather than short-term political shifts. Whether buying or selling, decisions should be based on careful consideration of market fundamentals and personal circumstances rather than political predictions.
The one thing you can always rely on is the great team, service and coverage for your collector cars that we provide at Classic Auto Insurance, no matter who wins an election.
Happy Holidays and Happy Motoring.
