The Big Picture: A Decade of Growth
Global classic car market data suggests sustained appreciation: the market reached $40.8 billion in 2025 and is projected to grow at 8.72% annually, reaching $94.13 billion by 2035. For Australian collectors, this reflects genuine demand for vehicles with heritage, rarity and performance credentials.
The pandemic-era boom that inflated values has subsided and the market has entered a more selective phase. Some segments are softening, some flat, but others particularly modern enthusiast cars continue rising.
The 2026 Market Shift: Enter the 90s and 00s
Hagerty’s 2026 Bull Market List represents a watershed moment for the collector car market. Instead of focusing exclusively on pre-1970s classics, the list “shifts gears into the ’90s and ’00s,” highlighting growing collector interest in modern speed and mechanical engagement.
This shift reflects changing collector demographics and values. Younger collectors prioritise manual transmissions, limited electronic interference and affordable entry points. A mint 2000 Honda S2000 or Nissan Skyline GT-R now appreciates faster than many 1960s muscle cars, not because they’re rarer, but because they’re becoming increasingly desirable.
What’s Actually Appreciating?
Low-Mileage Premiums Have Tripled
The collector market’s obsession with low-mileage vehicles has intensified. Low-mileage premiums the price premium for extremely low-kilometre examples have tripled year-over-year. This means that condition and mileage now matter more than ever.
A 1980s Mercedes with 15,000 km now commands significantly more than a similar example with 50,000 km. For investors, this suggests preservation matters: storing your classic properly and minimising usage directly impacts future resale value.
European Imports Surging
European classics, particularly German and Italian sports cars, are seeing significant value increases. This reflects both global demand from international collectors and growing Australian appreciation for European engineering heritage.
Vehicles like Porsche 911 variants from the 1980s–1990s, BMW M-series cars and Italian sports cars have appreciated 15–25% annually in recent years. Their mechanical sophistication, relative scarcity in Australia and passionate international collector base support continued appreciation.
Modern Enthusiast Cars Outpacing Expectations
The surprise story of 2026 involves 1990s–2000s performance vehicles. Toyota Supras (particularly A80 models post-2020 film), Nissan Skyline GT-Rs, Mazda RX-7s and first-generation Honda NSXs are appreciating faster than many traditional classics.
These vehicles combine:
Relative affordability ($30,000–$80,000 entry points versus $100,000+ for equivalent 1960s muscle)
Mechanical engagement (manual transmissions, responsive engines, driver-focused design)
Investment accessibility (younger, less wealthy collectors can participate)
Cultural resonance (film, gaming and social media have elevated their status)
Market Cooling and Selective Demand
Hagerty reported in early 2026 that collector car market ratings sank to 15-year lows, indicating cooling from the post-COVID surge. However, this cooling is selective. The best examples in desirable segments continue commanding strong prices.
This sorting reflects market maturation. Speculative buying has subsided and pricing increasingly reflects genuine demand and rarity rather than pandemic-era enthusiasm.
Investment Considerations for Australian Collectors
Diversification Strategy
The most successful classic car investors maintain diversified holdings: a mix of established classics (1950s–1970s), modern classics (1980s–1990s) and emerging collectibles (2000s performance cars). This balances appreciation potential with current enjoyment.
A portfolio might include:
One established classic (appreciating 5–8% annually, but expensive to maintain)
Two modern classics (appreciating 8–12% annually, more affordable to own)
One emerging collectible (higher risk, but highest appreciation potential if you select correctly)
Storage and Maintenance
Low-mileage premiums have tripled, making storage discipline financially important. Proper climate-controlled storage prevents rust, interior deterioration and mechanical issues that reduce value.
For Australian collectors, regional variations matter. Coastal properties face salt air corrosion challenges; desert regions face heat damage. Investing in proper storage ($100–$300 monthly) protects $50,000+ assets.
Mechanical Condition Over Aesthetics
Modern collectors increasingly value original mechanical condition over cosmetic perfection. A stock 1990 Honda Civic EF9 with original engine and minimal modifications now commands more than a heavily modified example.
This shift favours collectors with mechanical knowledge. Understanding a vehicle’s provenance, modification history and original specifications becomes investment-critical.
The Verdict
The classic car investment market in 2026 rewards selectivity over speculation. Post-COVID euphoria has cooled, but the fundamentals remain compelling: classic cars continue appreciating ahead of inflation, offer genuine enjoyment and provide portfolio diversification.
The surprising story involves modern classics. As a new generation of collectors enters the market with less capital but more enthusiasm for mechanical engagement, 1990s and 2000s performance vehicles are becoming the new classics. European imports maintain steady appreciation and low-mileage premiums continue rewarding preservation.
For Australian collectors, the opportunity lies in finding undervalued modern classics before international demand drives prices higher. The vehicles your parents dismissed in 2000 are tomorrow’s investment classics.
Market Performance Summary (2026)
Global market size: $40.8 billion (2025)
Projected CAGR: 8.72% (2025–2035)
10-year Australian appreciation: 467%
Low-mileage premiums growth: Tripled YoY
Best-performing segment: 1990s–2000s modern classics
Collector sentiment: Cooling from pandemic peaks, but selective demand remains strong