Last week, I attended the annual conference of the International Society of Appraisers. This event offers the opportunity to network with fellow members in other areas of personal property appraisal, understand the state of the industries in which we appraise, and further our education. As many of my fellow appraisers are in the fine art field, a hot topic of discussion was the overall state of the art market in 2024 and where it’s headed in 2025. In today’s Market Monday, I’m going to describe how the markets for fine art and classic cars are similar and why it matters to car collectors.

The “art market” comprises the marketplace of buyers and sellers trading commodities, services and works of art. In this discussion, we’re focusing primarily on works of art, which is segmented by medium (painting, sculpture, etc) and category (Old Masters, Contemporary art, and so on). It’s a massive industry, with around $10 billion in global profit generated in 2024 and 804,000 lots sold.

Compared to 2023, the global art market experienced a significant 33.5% decline in turnover, mostly due to a contraction in sales at the top end of the market (sales for artwork over $500,000 were down by 24% for example. At the same time, total lots sold was well up over the previous year and sell-through rates ticked up year-over-year.

At the macro level, the ups and downs of the market over the last year show a clear dip when the stock market plunged in 2020, then a massive rebound during the pandemic. The fun ended in 2024 when a period of geopolitical turmoil flipped a seller’s market into a buyer’s market. Much of the dollar volume during the pandemic bump was attributed to the sales of single owner works and collections hammering for princely sums. These types of sales have decreased significantly in 2024.

Despite works from Old Masters appearing in fewer numbers, high-quality works still bring the money in a turbulent market. For example, Jean-Baptiste Chardin’s still-life Le Melon entamé set a world record for the artist with a $28.9 million sale at Christie’s.

After a meteoric rise, resales of art at auction are bringing less money than they did during the pandemic-induced boom. For example, Ladies in the Grass by Genieve Figgis sold for $242,000 at Christie’s Hong Kong sale in 2020, yet the same work brought just $105,000 in 2024.

While the number of high-dollar works coming to auction has decreased, activity for affordable art has boomed. Passion for the art market remained high in 2024, but many buyers shifted to cheaper art with half of the works in 2024 selling for under $600. Online sales have also expanded access to art — in particular affordable art — attracting younger and more diverse audiences.

The total sales volume for the collector car market in 2024 was $4.14 billion, which was slightly down compared to 2023 performance. While this is half the total of the art market, it’s a significant rise from $1.3 billion in 2021.

In terms of sales volume, the market was relatively stable. Why then, does it feel like the market has changed so dramatically? While sell-through rates are about the same and the total number of listings is up, average prices realized have slid by 7% year-over-year.

Of interest is that the overall collector car market is heavily weighted toward cars valued under $40,000, making up 60% of all listings. Vehicles with values above $250,000 represent just 10% of the market.

Hagerty has released an update to their Hagerty Market Rating, which measures the current status of the car market in terms of activity and directional momentum. Unsurprisingly, their assessment is that the market has returned to pre-pandemic levels and is currently flat.

Similar to fine art, the classic car market has seen a pretty dramatic shift in where sales are taking place. Looking at dollar volume by year comparing online auctions to the major live auction events, you can see the dramatic rise in sales for the online space. Interestingly, the growth of those platforms seems to have leveled off after significant pandemic-era gains.

Much of the growth of online platforms seems to be fueled by budget-friendly and lower-quality lots, whereas live auctions continue to be the best place to sell blue-chip collectibles and higher-quality specimens.

That said, blue chip cars struggled in 2024 and for the first time since 2007 the S&P 500 outperformed these collectibles.

In all, the collector car market was more stable than the art market in 2024, however both fine art and classic cars share a number of macro similarities in how they’ve performed over the prior 5-6 years. Additionally, both markets are experiencing similar challenges and trends.

Both the art market and collector car market saw the same increases in value during the pandemic and decreases in overall sales volume during the post-pandemic period. The decline was significantly higher for the art market, however, completed sales for the art market were up in 2024, bolstered by more affordable works and auction houses and sellers having more realistic expectations. Based on 2025 data so far, we’re seeing similar trends in the car market which may signal a stable market for collector cars during the rest of the year.

Younger buyers are starting to enter the fine art market spurred by access granted by new technologies and sales platforms such as social media and Artsy. Similarly, a generational shift is taking place in increased interest in collector vehicles from the 1980s and 1990s coupled with the rise in online auction platforms like Bring a Trailer and Cars and Bids. These vehicles tend to be priced lower than the blue-chip cars from the 1950s and 60s, such as the Mercedes 300SL Gullwing and Ferrari 250 California Spyder.

Both fine art and collector automobiles are passion-driven in addition to having significant industry around them. While money can certainly be made, the driver for the acquisition of both is an emotional enthusiasm for the object. In periods of turmoil, we often turn to interests that provide a relief from stress and give us both enjoyment and a safe haven.

Following a trend in the art market, the collector car market has similarly become driven by investment and speculation in recent years, so much so that platforms that allow for fractional ownership have opened in both markets. Masterworks is a well-known tool for fractional ownership in art, while Rally provides a similar service for alternative assets like cars, comics and more.

Like fine art, the collector car market can be seen as a tangible safe haven during periods of significant market volatility. Those who have these assets already in their possession may be less inclined to sell while some may feel inclined to move their assets from equities to art or cars as a hedge until the market becomes more certain. For example, during the 2008 global financial crisis, contemporary art prices dropped only 10% where equities and real estate saw losses of up to 40%. Blue-chip classic cars demonstrated resilience during the same period and consistently outperformed the stock market until just recently.

Beyond the acquisition of the object itself, care and maintenance can make up a significant expense for both collector cars and fine art. Climate controlled storage, repair and restoration, insurance and more add additional expense beyond the purchase price that can eat into investment gains.

After a rough 2024 the art market was making some positive headway in the first quarter of 2025, though it was somewhat tentative and cautious. Any optimism for a rebound in 2025 quickly reversed after the “Liberation Day” announcements last week. Appraisers in the room at the International Society of Appraisers conference were polled, and the majority now predict a down market for fine art in 2025. For what it’s worth, my vote was for a flat market.

With a global economy with an uncertain future and economic policies whose intentions are unclear, we may see a shift toward tangible assets — like fine art and classic cars — in 2025. In contrast to 2008, however, we are entering a trade war that will likely impact pricing for the parts and materials necessary to keep collector cars on the road. The ripple effect of the recent tariff policy from the United States is anything but known at this point.

While the collector car market is slowing down a bit between the two big selling seasons of Spring and Fall, the art market continues to hold significant sales throughout the same period. When the car market is quiet, fine art auction results may provide some insight into the performance of future collector car sales.

Navigating the 2025 car market is significantly more challenging than in recent years, making it even more important to consult with professionals who are committed to understanding and monitoring market trends on a regular basis.

Do your best to have a great week, everyone.

Wolf and Mare provides car finding, appraisals, and auction services for buyers and sellers of collector European cars. If you’re interested in acquiring an overseas car, give us a call or drop a line!