Bring a Trailer’s Banner Year: A Record $1.5 Billion in Sales Amid Market Challenges

In 2024, Bring a Trailer (BaT), a leading online platform for classic car enthusiasts, achieved a remarkable milestone by selling a record $1.5 billion worth of vehicles. This impressive figure came despite a broader downturn in the classic car market, where sales at live auctions declined by 11% to $2.18 billion, as reported by Hagerty. BaT’s success can be attributed to its dynamic approach and the continued allure of its platform. The site hosted an impressive 45,000 auctions, featuring not just cars, trucks, and motorcycles, but also memorabilia and parts, attracting over 1.3 million bidders. This surge in activity was partly fueled by favorable economic conditions, with CEO Randy Nonnenberg noting that a robust stock market and fluid money circulation contributed to the strong performance.

The Classic Car Market’s Current Conundrum

The classic car market is navigating choppy waters, influenced by factors such as rising interest rates and shifting collector demographics. Higher interest rates have diminished the appeal of classic cars as investment vehicles, as collectors can now achieve returns of 4-5% through safer financial instruments. This shift is particularly evident among baby boomers, who have long driven the collector market. As this generation ages, many are selling their collections, leading to an oversupply of vehicles from the 1950s and 1960s. These models, once highly sought after, now struggle to captivate younger collectors who prefer modern supercars. Additionally, the boom in older trucks and off-roaders, which surged during the Covid-19 pandemic, has begun to wane, as Nonnenberg describes it as a "Covid bubble that’s cooled."

A New Wave of Collectors: Modern Preferences and Practicality

The collector car landscape is undergoing a significant transformation, with younger generations reshaping the market. Gen Xers, millennials, and Gen Z collectors are gravitating towards modern supercars and sports cars, particularly those from 2005 onwards. These buyers prioritize usability, seeking vehicles they can drive and enjoy rather than merely display. Nonnenberg observes that today’s collectors are less focused on the hobbyist aspect, instead valuing cars that offer both performance and everyday usability. This shift is evident in the strong demand for high-end sports cars priced between $200,000 and $500,000, which remains a robust segment. Conversely, the market for ultra-high-end cars exceeding $2 million has softened, as collectors increasingly prefer accessible, drivable options over rare, museum-grade vehicles.

Standout Sales: Modern Marvels and Celebrity Ownership

Among the standout sales on BaT in 2024 were several modern supercars that commanded hefty prices. The most expensive sale was a 2022 Bugatti Chiron Pur Sport, which fetched $4.1 million. Other notable sales included a 2018 Bugatti Chiron for $3.1 million and a 2022 Lamborghini Countach LPI 800-4 that sold for $2.5 million. Beyond these high-profile sales, there was also significant interest in more accessible vehicles, such as a 1991 BMW 850i 6-speed once owned by basketball legend Michael Jordan. This particular car, which sold for $109,000, generated considerable buzz, attracting a large number of bidders, comments, and views. Its appeal lied not only in its celebrity provenance but also in its timeless design and driving prowess.

Bidding Surge Post-Election: A Season of Strong Demand

Contrary to expectations, BaT experienced a surprising surge in bidding activity following the election, a period typically considered slow. Nonnenberg remarked, "We saw people buying $250,000 Porsches on Election Day. And we even saw awesome stuff selling on Christmas Eve." This unexpected demand highlighted the enduring appeal of collector cars, particularly as enthusiasts sought to treat themselves or find unique gifts during the holiday season. The strong velocity of sales during these periods underscores BaT’s ability to engage its community and facilitate transactions, even when traditional market wisdom suggests a slowdown.

A Platform for the Passionate: Community and Engagement

BaT’s success in 2024 can also be attributed to its strong community-driven approach. The platform has cultivated a loyal following among car enthusiasts, who appreciate its user-friendly interface, detailed listings, and transparent bidding process. By fostering a sense of connection among buyers, sellers, and bidders, BaT has created an online space that feels more like a community than a traditional marketplace. This engagement, combined with the growing preference for modern, drivable cars, positions BaT as a leader in the evolving collector car market. The platform’s ability to adapt to changing consumer preferences and maintain strong sales velocity, even during challenging times, bodes well for its continued success.