Classic-car market poised for strong 2026, says Hagerty CEO

A version of this article first appeared in CNBC's Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign up to receive future editions, straight to your inbox.The strength in the classic-car market is expected to continue in 2026 as a new generation of collectors revs up demand, said the CEO of Hagerty.Auctions and online sales of collectible cars surged 10% in 2025 to $4.8 billion, according to Hagerty, the classic-car insurance company and collector platform. Hagerty CEO McKeel Hagerty said based on the sales pipeline and activity in the private classic-car market, demand appears strong for next year."We've seen a lot of momentum on the private side," Hagerty told CNBC. "We're seeing a lot of private transactions take place of very significant cars, of all kinds, of all ages. We're looking forward to 2026."The biggest driver is a new generation of collectors. As baby boomers age out of the market and downsize, members of Generation X, millennials and Gen Zers are taking over and redefining the market. They're more comfortable buying online, with online classic-car sales surging 12% this year to $2.5 billion, according to Hagerty.Younger buyers also want younger cars. The 1950s and '60s sports cars that have long dominated the classic-car market are being replaced by high-performance supercars of the '90s and later. Ferrari F40s and F50s, Bugatti Veyrons and Chirons and McLaren F1s, along with Paganis and Koenigseggs are among the most sought-after prizes today.Get Inside Wealth directly to your inboxThe Inside Wealth newsletter by Robert Frank is your weekly guide to high-net-worth investors and the industries that serve them.Subscribe here to get access today. Hagerty said that because many of today's supercar makers are also increasing production, supply will remain strong. "You think Ferrari, Porsche, all of them just seem to be setting record sales numbers every year," he said. "That's the future of what people will be buying, and they'll be collecting and they'll hang on to them. So we like that as the tail wind."The great wealth transfer will also shake up the industry, as a wave of older cars owned by baby boomers are passed down to the next generations. An estimated $100 trillion is expected to be inherited by spouses and families by 2048, according to Cerulli Associates. The amount includes real estate, collectibles and other hard assets."Some of that will be cars," Hagerty said. "Those families will have to decide if they want to keep it, do they want to put it in a garage? Do they want to sell them? I think it's really just beginning."McKeel Hagerty, CEO, Hagerty at the NYSE December 6, 2021.Source: NYSEFor those looking for good investments in today's classic-car market, Hagerty just published its Bull Market List. The annual ranking uses Hagerty data to find cars that are good value, fun to drive and likely to increase in price due to strong demand — or as Hagerty says, "sweet buys for the year ahead."The list includes the pricey 2004-2007 Porsche Carrera GT (typically over $1.5 million), the 1969-1972 Alfa Romeo GTV (typically $50,000 to $150,000) and the 1999-2005 Mazda MX-5 Miata (usually $9,000 to $26,000).In the end, Hagerty said the classic-car market is ultimately powered by wealth creation. With stock markets poised for their third year of double-digit growth and interest rates falling, he said collectors have plenty of fuel to keep buying."They're feeling pretty good about their personal balance sheets," he said. "They log into their accounts and see their portfolio is doing OK. People, I think, are feeling that strength to be able to go out there and make those purchases."