Hagerty’s Kenneth Ahn and Brian Rabold join TheStreet’s James Ochoa to explain how they know if a car will become a future classic.
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00:00Like how do you exactly spot like a future classic?
00:06By the way, I'll let you handle that first.
00:07Yeah, it's art and science for sure. And Hagrid actually puts out a list every year
00:15of the 10 cars we think are going to go up the most in value in the next 12 months.
00:19We take a very data driven approach. So for us, we're looking at just trends in pricing,
00:24are they increasing? We're looking at a competitive set. So similar cars to this,
00:29either in the era or as the market's matured, what are they doing? And if there's a gap forming,
00:36is that justified? We look at a lot of demographic data. So cars that tend to be
00:42owned by older folks and don't have a lot of youth appeal probably don't have a good prospects
00:48long-term just because those newer buyers, those cars don't resonate with them. So those are a lot
00:54of the things that we look at. But cars are an emotional purchase. So every individual
01:03likes a car for a different reason. And that can be really tough to predict.
01:08I think that's key. I think there are for sure people who buy it as investment or speculative
01:15buys. But I would say by and large people buy it because it's something that it resonated with them
01:20or it's a car that they've always wanted, whether it's one collector car outside from their daily
01:27driver that they always wanted or a collection of cars. But a lot of this is emotional. Just
01:33like any collecting, if the value goes down, you feel less better. And if the value goes up,
01:40you feel even better about it. But I would say financial return isn't necessarily the primary
01:45goal for most that are in the hobby. It's really, oh, I've always wanted an E39 M5 and
01:53there's one down the street. That's kind of what drives a lot of the motivation.
01:57It just helps that those values have been going up as well.