Gen X, Millennials Drive Shift from Muscle Cars to Modern Classics

The classic car market is witnessing a significant shift, with Gen X and older millennials leading the charge towards modern classics. This demographic, now entering the collector car market, is driving demand for vehicles from their eras, reshaping the market landscape. Hagerty, an automotive enthusiast brand and leading specialty vehicle insurance provider, has identified this trend in its 2025 Bull Market list, highlighting 11 collector cars poised to gain value in the coming year.



The nostalgia factor plays a significant role in this shift. Cars like the 1981-1983 DeLorean DMC-12, popularized by the 'Back to the Future' franchise, have appreciated 73% since 2019, reflecting their cultural significance. Similarly, the 1978-1983 Datsun 280ZX offers a slice of classic Z-car nostalgia at an affordable price. This nostalgia-driven demand is reshaping the classic car market, with younger enthusiasts seeking modern classics that resonate with their personal history.



Practicality and affordability are also key factors in this trend. Cars like the 2005-2008 Dodge Magnum SRT-8 ($32,600) and 2002-2006 Mini Cooper S ($12,000) combine power and practicality at accessible prices. In contrast, muscle cars often lack practicality and can be expensive to maintain. Modern classics offer a blend of nostalgia and modern features, appealing to these generations' desire for a balance between tradition and innovation.

The increasing interest in modern classics by Gen X and older millennials has affected the demand for muscle cars. According to Hagerty's Daily Muscle Car Index, values for muscle cars have dropped significantly, with nearly 40% of models experiencing value reductions in the UK and 35% in the US. This trend is reflected in auction results, with combined sales at Monterey auctions falling 9% below forecasts. However, the overall classic car market has shown signs of stabilization, with 90% of UK Hagerty Price Guide values remaining unchanged.

In conclusion, the classic car market is experiencing a generational shift, with Gen X and older millennials driving demand for modern classics. This trend is fueled by nostalgia, practicality, and affordability, reshaping the market landscape. While muscle cars have seen a decline in popularity, the overall classic car market remains stable. As these generations continue to enter the collector car market, the demand for modern classics is expected to grow, further solidifying their place in the classic car market.