Last week, we looked at five vehicles that gained in value this past quarter. Those cars, however, were ones that bucked the trend. Overall, the market has fallen into flat territory, with values softening across the board, from the affordable to the expensive. One consistent trend is that much of the downward movement since the summer has occurred in established, well-known collector cars.
We’ll discuss a few notable models that lost value over the past three months (measured by average value increase across all four condition ratings) and discuss the implications to the rest of the collector market.
Have questions about how we arrived at these changes? You can read more about the methodology behind the Hagerty Price Guide here.
Broad Arrow
Average decrease: -18%
Bentley’s second postwar design was the R-Type, and it shares many fundamental pieces with the Rolls-Royce Silver Dawn. Bentley still offered a variety of special coachbuilt bodies on the R-Type, with styling and customization only limited by the imagination and the buyer’s wallet, but a “Standard Steel” option was available and popular, too. The most notable car of this series is arguably the R-Type Continental, produced by H.J. Mulliner with a lighter weight two-door body and gorgeous aerodynamic styling to go with its higher output engine. These cars are highly prized and trade at an entirely different price level to the standard R-Type. Good Standard Steel sedans can be had in mid-five-figure territory, whereas R-Type Continentals can sell for well over a million dollars.
Coachbuilt luxury cars are experiencing a bumpy patch. They’re hand built, large, and filled with special trim and details. The cost to restore them is labor intensive and therefore pricey to complete. Surprisingly, though, even the best examples are faltering lately. In the case of the R-Type, it was the “concours” level condition (condition #1) that saw the biggest drops. For instance, an R-Type Coupe that was previously $200,000 has dropped to $150,000 in the past three months. Even the expensive Continental dropped a substantial amount, with #3 (good) condition models equipped with the 4.9-liter engine dropping from $1.6M to $1M.
What does that mean for the rest of us then? Well, for the past couple of years about we’ve noted that top-quality cars bring top dollar, regardless of wider trends in the market. For a long-standing blue chip classic like the R-Type Continental to sink in value and for #1 condition prices to drop across the range suggests that “the best cars bring the best money,” may not be universally true anymore.
Mecum
Average decrease: -15%
Following the success of the 1955-57 Bel Air, Chevrolet did a clean slate redesign of its full-size line for 1958. The Bel Air platform was lengthened and lowered with an even lower passenger seating position thanks to a new and innovative (for the time) X-frame. The exterior received a more sculpted look over the previous generation along with what could pass for tail fins, in keeping with the popular, late ’50s Jet Age design. A 283 cid small-block V-8 stayed in the lineup, while the first big-block engines appeared for Chevrolet in 348 cid form, making upwards of 315 horsepower. Just as importantly, Chevrolet introduced the iconic Impala nameplate for 1958 as a trim level to the Bel Air, but the differences go beyond a few strategically placed badges.
Compared to the Bel Air, the Impala boasted a varierty of fundamental changes. The Impala’s roofline was shorter, allowing for a longer decklid that gave the car a sportier look. While the overall length remained unchanged, the Impala’s wheelbase was stretched over the Bel Air, further enhancing its stance. Other, small stylistic changes included the addition to a third round taillight to each side of the rear, and additional chrome trim. The Impala proved incredibly popular, selling over 180,000 cars in its initial run before becoming its own separate model line in 1959.
Although the 1958 Impala was a one-year wonder, examples surface for sale frequently. And, lately, sale prices have sagged. Even the usually optimistic asking prices have softened. While a run-of-the-mill 283 coupe was previously a mid- to high-$30,000 car in #3 (good) condition, it now sits in the high-$20,000 range. The ’58 Impala exemplifies a wider trend in the ’50s American car market. These cars are style and design icons, but they’ve been experiencing a broad softening that continues at a steady rate.
Hagerty Marketplace
Average decrease: -12%
Much of Ford’s lineup received a major overhaul for 1960, with an entirely new design direction for the coming decade. While the previous year was one of squared edges and fins, the 1960 lineup showed off softened edges and swoopy, aerodynamic roof lines. In direct competition with Chevrolet’s Impala, the Galaxie offered good looks and reasonable amenities for a competitive entry price. Engine options ran the entire range from a thrifty six-cylinder to a 289 V-8, a more potent 390 and even a dual-quad, 425-hp 427. Ford sold over 2.3M Galaxies in just four years, so these cars were a staple on American roads and offer a wide range of options for enthusiasts today.
Galaxies are a lot of car for the money, both figuratively and literally. They run the performance spectrum from economical to downright fast when equipped with the R-Code 427, and have an an entry point for all budgets. Most models, however, solidly fall into the “affordable” category with two-door Galaxies falling into the $20,000 range for #3 condition examples. While a 12% average drop is not astronomical in terms of dollars lost, cars like this with high production and a large variety of configurations are typically more resilient to market fluctuations. Seeing more than a 10% change, then, is unusual and a trend worth monitoring.
Chris Stark
Average decrease: -12%
In the mid-1960s, Dodge looked to improve its sporty image and showcase exciting platforms for its soon-to-be-legendary 426 Hemi engine. The new-for-1966 Charger was one of those platforms. Based heavily off of Coronet underpinnings, the Charger received a bold fastback body reminicent of the AMC Marlin. The interior utilized sharp-looking front and back bucket seats like the Chrysler 300, and under the hood lurked everything from a fuel-sipping 318 cid V-8 to the massive 426 Hemi. The 1967 model year saw minor changes, with the 361 cid engine swapped for the 383 and the addition of the 440.
First gen Chargers were never high-volume production cars, selling in the tens of thousands of units for just two years. Dodge wouldn’t see widespread success with the Charger name until 1968 with the second generation of the model. The 1968 Charger was so well received it sold more cars did in one year than its predecessor did in two. The second gen Charger was also a cultural phenomenon, featured in everything from Bullitt to The Dukes of Hazzard and even the Fast and Furious franchise.
That means the earlier, less beloved 1966-67 Charger is a far more affordable classic than the second gen cars already, so a 12% drop on average makes it a pretty attractive entry point for a ’60s American car with some pep under the hood. For instance, a 383-powered 1967 has dropped from the mid-$30,000 range to the high $20,000s. As the market continues to cool for ’50s and ’60s American cars, this is potentially a great model to reconsider and keep an eye out for deals.
Cadillac
Average decrease: -11%
A luxury roadster was nothing new when the XLR came out in 2004, but it was was a bold step for a company like Cadillac, which was just starting to add some sportiness to its lineup. Produced on the Y-platform like the Corvette, the XLR was even built in Corvette’s Bowling Green plant. But it didn’t share the same assembly lines, and instead of an LS-based V-8, the Cadillac got a 4.6-liter Northstar engine. It made a plenty adequate 320 hp on base models, while the XLR-V pumped made a much meaner 443 hp. This made for a legitimately fast car despite its luxury badge. It also received the usual Cadillac treatment of an upgraded interior and tons of electronic wizardry, and a price tag over $80,000 at a time when a base Vette was under $50,000. Sadly, the XLR just couldn’t put up the sales numbers to justify keeping it around, so in the days of bailouts cost-cutting during the Great Recession, the XLR got the axe.
Despite its uniqueness, the XLR occupies this strange space in the enthusiast market. It shares similarities and underpinnings with the C6 Corvette, but lacks the raw grunt and performance cachet of the Corvette name. Perhaps the final nail in the coffin is Cadillac’s Northstar engine under the hood. While very advanced, it just doesn’t have the reputation for performance and tunability that Chevrolet’s LS engine has.
Looking at the many transactions and listings over the past quarter, it’s clear that the XLR is softening in price. These cars are not only niche but their core audience, as measured by insurance quote activity, is overwhelmingly older. This isn’t promising for the XLR as Gen-X and younger enthusiasts take a dominant role in the hobby. While there will always be a butt for every available seat, it would come as no surprise to see this particular seat become a more affordable proposition as time marches on.