Do classic cars appreciate in value?

If you own a vintage or collector vehicle, then you know how important insuring your classic car is. However, before purchasing classic car insurance, you will need to consider the value of your car, especially if you want to have adequate coverage. With a modern car, you will need to account for depreciation when evaluating its worth, but with a classic car, it’s the opposite. Below, we explore whether classic cars appreciate in value and how this works.

Classic car appreciation

One of the main advantages of car collecting is that they are valuable assets. In contrast to brand-new, modern cars losing value (depreciation) extremely quickly, sometimes by as much as 20% to 30% in the first year alone (according to the Canadian Black Book), classic cars have the opposite trajectory.

Classic cars tend to appreciate in value and are among the best-performing collectibles available. In fact, according to Hagerty, from 2018 to 2023, collector cars had an average annual return of 4.6%. Further, Hagerty says that cars listed in their Price Guide since 2007 have gone up an average of 229% in value.

As long as you maintain your classic car well, it is very likely to appreciate in value over time. Why? Largely due to the fact that collector cars have limited supply, as well as historical significance, both of which increase desire and demand. For more information on classic car insurance and the costs of insuring a classic car, contact BrokerLink.

What makes classic cars go up in value?

If you want to make sure that your old car appreciates as much as possible from the time you buy it to the time you sell it, be sure to read through the list below. This list outlines the most important factors that contribute to classic car values:

Vehicle condition

Perhaps the most significant factor that determines the value of a vintage car is its condition. You could have the rarest Bentley on the planet, but if the paint is chipped, it’s rusting, and it isn’t roadworthy, you will have trouble selling it for a profit. The reality is that most classic car collectors still want a car that they can drive, even if just for certain times of year.

Thus, vehicle maintenance on a classic car is of the utmost importance. If you do not have time to maintain the vehicle yourself, be sure to have a professional restore it before selling. One of the main things to look for when buying a classic car is a vehicle in excellent condition.

For this reason, one of our top tips for buying a classic is to have a professional inspect the car you are interested in buying before the deal is done.

How rare the vehicle is

Rarity is the second factor that can make a classic car go up in value. The rarer the car is, the more valuable it’s likely to be. A car is typically determined to be rare if only a limited number of the vehicles were ever produced or if there are only a few that still exist in the world today.

Furthermore, the older the vehicle is and the fewer of them there are, the rarer it becomes, and the more it increases in value. Consider the rarity of the vintage car you want to buy before purchasing it, especially if your goal is for the vehicle to appreciate as much as possible.

The year that the classic car was produced

Age is a factor that comes into play, whether you are evaluating the worth of a modern car or a classic car. However, again, age has the opposite effect on value for both types of cars. Whereas an older modern car will be less valuable, the older the classic car, the more valuable it will be, so long as it’s in good condition.

That said, there are also specific years of cars that may be more popular than others, regardless of which one is older. For example, there are often tiny, subtle differences between models that come out in consecutive years.

Some of these minor details could be enough to increase a car’s rarity, which means a car produced two years later than another might actually be worth more. Make sure that you research your classic car’s specific year to determine whether it is viewed as more or less valuable than the models produced in the years before and after it.

How popular the vehicle is

Contrary to what is written above, a popular classic car can also appreciate in value quickly. Generally, you want your classic car to either be rare or popular - both will serve you well in the long run. The reality is that iconic collectible cars, even if they aren’t rare, can still appreciate in value. The reasons for a car’s popularity range widely. For instance, the car could:

• Have experienced success in the racing world
• Hold historical significance
• Have been featured in pop culture, like a famous movie, TV show, or video game

If you don’t have the money to buy a rare classic car, and you’d prefer to purchase a cheap classic car model, consider one that is popular, as demand is likely to be higher for these.

Mileage on the vehicle

Next, mileage can also determine a car’s value. This is one factor that applies to both modern and classic cars. The more mileage a car has on it, the less valuable it will be. Why? Due to the fact that mileage shortens a car’s lifespan. Thus, the more miles that have been racked up, the fewer miles remain on the car.

That said, classic car owners tend to be forgiving when it comes to mileage, as high mileage is often expected given that many of these vehicles are decades old. Thus, a vehicle’s mileage won’t be factored into the same degree as it is for modern cars.

Upgrades or modifications

Not all modifications increase a classic car’s value. In fact, many aftermarket changes can hurt resale value if they stray too far from the car’s original specs. However, certain tasteful upgrades can enhance a car’s desirability and appreciation potential, such as:

• New tires
• Fresh paint (if done professionally)
• Upgraded brakes (switching from drum to disc brakes)
• Air conditioning installation (for older models)
• Electric conversion (becoming increasingly popular for sustainability-minded collectors)

On the other hand, extreme customizations—such as oversized body kits, non-original engine swaps, or heavily altered interiors—can reduce a car’s value, especially among purist collectors.

Market trends

Beyond the car itself, market conditions play a huge role in determining value. Classic car prices are influenced by a range of factors, including:

• Inflation and economic conditions
• Shifting collector preferences
• Auction trends

Staying informed about these trends can help you buy at the right time and choose models with strong appreciation potential.

Classic car market trends for 2025

Not all classic cars appreciate in the same way—some slow down in value, while others skyrocket. Right now, the hottest cars on the market aren’t necessarily the ones you’d expect. Here’s an overview of classic car market trends for 2025:

1960s muscle cars

The ‘60s gave us some of the most legendary muscle cars—Mustangs, Camaros, Chevelles—but while they’re still collector favourites, their appreciation has levelled off a bit. These cars had a long run of steady value growth, but compared to other segments, they’re not climbing as quickly anymore. That said, they still hold strong appeal, and clean, well-maintained examples will always have a place in the market.

For instance, early Ford Mustangs, despite their cultural significance, can still be found at reasonable prices, though values have been climbing steadily. According to the Financial Times, the Mustang remains a safe bet for classic car investors.

1980s & 1990s popularity skyrocketing

Meanwhile, cars from the ‘80s and ‘90s—especially Japanese sports cars—are surging in value, according to Hagerty. Why? The buyers who grew up dreaming about these cars are finally in a position to buy them. Demand has skyrocketed, pushing prices up fast.

As of 2024, the classic car market is seeing a major generational shift. According to Hagerty, Generation X now makes up about 34% of the market, surpassing Baby Boomers, who hold 33%. Meanwhile, Millennials and Gen-Z collectors are quickly gaining ground, now accounting for 30%. This changing landscape is reshaping demand, with younger buyers gravitating toward cars from the 1990s and 2000s—vehicles they grew up admiring and now have the means to collect.

Vintage SUVs in demand

Classic SUVs have become one of the biggest surprises in the market. What used to be seen as just practical, no-frills vehicles are now some of the hottest collectibles on the market. In recent years, classic SUVs have caught the attention of both car enthusiasts and investors, and for good reason. They bring together nostalgia, timeless style, and rugged charm in a way that few other vehicles can.

With demand climbing, prices for certain models are following suit, making them not just fun to own but also a great investment. First-gen Ford Broncos, Toyota Land Cruisers, and other rugged off-roaders are now commanding six-figure price tags at auctions.

Examples of cars that have appreciated over time

Credence Research reports that Canada makes up about 20% of the North American classic car market, showing just how strong and active our Canadian car collector community is.

It also reports that the North American classic car market is on the rise, expected to nearly double in value, from about $17.8 billion in 2023 to an estimated $37.2 billion by 2032. That’s a solid 8.57% annual growth rate over the next decade. And thanks to that rising market, here's a look at some classic cars that have appreciated significantly over time:

*Current average sale price and top sale price are based on market prices from CLASSIC.COM in March 2025. Prices are in USD.

Common mistakes when investing in classic cars

Investing in classic cars can be exciting and profitable, but it’s easy to make costly mistakes if you’re not careful. Here are some common pitfalls to watch out for:

Not doing your research

A lot of first-time classic car buyers make the mistake of jumping in without doing their homework. Before you meet the seller or take a test drive, take some time to research the make and model, especially for the specific year you’re considering. Some cars have well-known mechanical issues that could turn your dream ride into a nightmare.

It’s also important to know what similar cars are actually selling for. Check multiple reputable sources to get a realistic idea of pricing. Not all restored cars are equal—some have been meticulously maintained, while others have just had a fresh coat of paint slapped on them. Knowing the value range for your specific year, make, and model will help you avoid overpaying.

Only caring about profit

When buying your first classic car, passion should come first, profit second. If you’re only buying a car because you think it will appreciate, you might be in for a frustrating experience. Classic cars take time, effort, and money to maintain, and if you’re not excited about the car itself, all that work can start to feel like a chore.

Collecting classic cars is a labour of love. Chances are, you’ll need to invest in repairs, maintenance, and maybe even some restoration work after your purchase. If you’re not truly into the make or model, you might find yourself resenting the time and money it requires.

To avoid that, choose a car that excites you—one you’ll love driving, working on, and talking about. That way, even if the market shifts or appreciation slows, you’ll still be happy with your investment.

Underestimating maintenance and restoration costs

And speaking of repairs, you don't want to underestimate the cost of restoring or even maintaining your classic car. Owning a classic car isn’t just about buying it—it’s about keeping it running. Some classic cars require constant upkeep just to stay roadworthy and insured. Before jumping in, do your homework on what it actually costs to maintain your dream car.

Skipping a professional inspection

One of the most overlooked steps when buying a classic car is getting a pre-purchase inspection. Even if you know your way around cars—or are a mechanic yourself—it’s always a good idea to get a second opinion from a trusted professional. A thorough inspection can catch hidden issues like structural damage, rust, or worn-out parts that could turn into costly repairs down the road.

Before committing to a purchase, take the car to a reputable service center or hire a professional inspection service.

Buying the right classic car insurance for your vehicle

When you purchase a classic car, you will also need to buy classic car insurance. There are many types of auto insurance to choose from, as well as different deductibles and coverage limits. You will need to select the coverages, deductibles, and limits that suit your needs and budget, as well as reflect the rising value of your car.

For instance, when purchasing comprehensive car coverage for your car insurance policy, you will need to consider how much your classic car is worth to ensure your investment is protected. This way, if your car was stolen or suffered extensive damage while parked, you would receive an insurance payout that accurately reflects the value of your car, allowing you to fund a new car purchase if need be.

Classic car insurance is different from regular car insurance

Further, it is worth noting that classic car insurance is a little bit different than standard car insurance. For example, most insurance companies have an age limit for classic car insurance —it is usually around 25 years old.

There are also other conditions that must be met to qualify for this type of policy, such as the fact that the classic car cannot be your primary vehicle, which means that you may be required to purchase multiple auto insurance policies, or that the policyholder cannot drive it more than 8,000 kilometres each year. To receive a free classic car insurance quote, contact BrokerLink today.

Get in touch with BrokerLink to learn more

If you’re ready to purchase a car insurance policy for your classic car, get in touch with BrokerLink today! We can explain how classic car insurance works, what you need to qualify, and how much it will cost you to purchase this type of policy. We can also outline how mandatory coverage, like liability car insurance works, and offer advice on what types of optional coverage might be worth adding to your policy.

You can reach us by phone, by email, or in person at any one of our locations throughout Canada. No matter how you choose to get in touch, a BrokerLink insurance advisor will be happy to assist you. We also encourage you to take advantage of our free online quote tool that can provide you with a competitive quote in minutes.

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