Modern Classics Are Reaching Historic Highs As Australia’s Second-Hand Market Booms

In what is being called the “COVID-tax,” the market for second-hand cars, specifically modern classics, is booming in Australia.

Local experts like Mark Haybittle, a classic car investor with Supercar Secrets, a business that invests in classic cars whose value is likely to grow, believes that the money saved by not vacationing during the pandemic is being funneled into the used car market.

“Things could have gone a number of ways with the arrival of the pandemic,” Haybittle told 9news.com.au. “But as it turned out, Aussies have been redirecting the cash they might otherwise have spent on holidays into this booming market of classic cars, and reaping the benefits.”

Read Also: Pandemic Causes Shift In Classic Car Market, Modern Classics Come To The Fore

The boom, which is similar to the one occuring in other countries, has led to high values for ’90s Japanese classics. A 1999 Nissan Skyline GT-R sold new in Australia for $40,000 ($30,744 USD) now retails for as much as $240,000 ($184,463 USD) per the outlet. Similarly, older off-roaders are also seeing their values rise.

“Vintage 4WDs are also very popular,” said Haybittle. “A 1971 Toyota Landcruiser FJ40 is currently worth $119,990 ($92,200 USD). Just 24 months ago, the 50-year-old veteran would have cost you only $27,000 ($20,747 USD).”

Although Japanese cars are the biggest booming segment, values for Aussie cars like the Holden Commodore and the Holden Kingswood are also rising as nostalgia reaches all-time highs following the closure of many of the nation’s automotive plants.

In December 2020, Commsec, an investment fund, found that used car values had risen more than 35 percent over the course of the year. That’s the largest increase in 21 years, according to the report.

This, of course, is good news for anyone who already owns a classic car, but it might not be great for young enthusiasts looking to get into the market. Whether the market will contract after the pandemic eases and people can use their money on travel again remains to be seen, but for sellers, 2020 has been a profitable year.