Brian Rabold of Hagerty agrees. For Millennial and Gen X investors, he said, the focus has been on vehicles that would have been aspirational in their youth but don’t necessarily fall into the super-high price brackets. Low-production or unique Honda S2000s, Mazda MX5s, BMW M3s and Porsche 911s are some examples that fall into this category. It’s a sign that, unlike previous generations of American car collectors, today’s collectors operate in a globalized market and desire more than just American cars. Rabold did, however, also point to the growing appeal of SUVs of the past — classic JEEP Grand Cherokees or first generation Ford Broncos, for example — as nostalgic American models that have appealed to the new generation.
With this change in investor comes a change in investment strategy — and companies looking to tailor to it. Today, it’s believed more and more non-Boomers may see car collecting less as a hobby, less tinkering on a vintage Mustang in their father’s garage, and are instead viewing once-tangible assets simply as emotion-driven investments, perhaps without even touching the vehicle itself.
Enter Rally Rd, a new company that looks to make collector car investing available to anyone, by allowing individuals to essentially buy stocks in high-quality cars that would usually be reserved for the super wealthy. To help appeal to the emotions of the investor, Rally Rd. tells the story of the classic car by sharing background and photographs of every vehicle it offers. To date, the company says it has more than 100,000 members and has had around 45 offerings. They hope to reach 100 offerings by the end of 2019.
“While our largest demographic is younger, Millennial-aged individuals, we have users from all ages, income levels and geographic locations,” said Christoper Bruno, CEO of Rally Rd. “It’s rare for an investment platform to have an 18-year-old participating in an offering side-by-side with someone who is retired and has spent 40 years investing in public markets — but this is common on Rally Rd. Of course there is a common theme, “he added, “which is that many of our users derive certain emotional value from investing in assets of significance as well as experiential value from being a part of a community.”
Where that community’s hearts will lie next — be it through an app or getting behind the wheel of a nostalgic purchase — will continue to fascinate.