by Heritage on Wheels: $570 Billion in Classic Cars
According to estimates by Hagerty, there are over 43 million collector cars in the United States. Approximately 12 million of these vehicles, with a total value of $570 billion, will change hands over the next 15 years. This is part of the so-called ‘Great Wealth Transfer’ — the process where wealth passes from the Silent Generation and Baby Boomers to their heirs. The total value of this transfer is estimated at $90 trillion.
What Qualifies as a Collector Car?
Hagerty defines a collector car as one that is desirable due to its heritage, design, and performance. This covers a wide range of vehicles that can span an entire century! If you have a classic (or modern classic) car in your garage that meets at least two of these three criteria, you potentially own an appreciating asset. According to Hagerty, the total insured value of the collector car market in the U.S. is approximately $1 trillion.
The Cost of Ownership: Not Just Pleasure
Of course, maintaining such cars is not cheap. As reported by Bloomberg, an anonymous owner of a 1965 Studebaker said he spent over $40,000 on storage and maintenance. He eventually sold the car earlier this year because the costs exceeded its market value.
‘The amount of money I had to spend just to get it running was absurd,’ he told the publication. ‘I would rather invest that money in cars I actually enjoy.’
Global Trend: Classics Are Appreciating Everywhere
This phenomenon is not limited to the U.S. The story of Benjamin Charles from Cambridgeshire, England, is a vivid example. He is the custodian of a 1962 Jaguar E-Type, which his father bought for just £700 in 1972. The car passed to Charles in 2018. Today, that is equivalent to approximately $11,300. Despite having to spend a significant amount on a major engine rebuild (£4,500 / $6,000), he still comes out ahead, since Series 3 E Types sell for around $57,000, and some examples go for twice that amount.
In Manila, Miguel Cervantes had long dreamed of a 1984 Mercedes-Benz 300TD wagon that belonged to his wife’s grandfather. In 2018, he offered to buy the car but was sharply refused. When the grandfather passed away in 2024, a family member offered Cervantes the chance he had been waiting for.
‘At first, I couldn’t believe it,’ Cervantes said of the moment he was offered the car, ‘but now we have it, and we are doing a complete restoration.’
More Money, More Problems
Not all stories have a happy ending. Beyond the enormous financial value, cars can carry immense sentimental value. This inevitably leads to disputes. Some family conflicts can be long, bitter, and a true minefield. Klaus Gottlieb, an estate planning attorney in California, knows this firsthand.
‘In one case, the parents had a plan but weren’t specific enough, leaving room for interpretation, and there was significant value at stake,’ he explains.
Different family members may see the car differently. Grief therapist and author Claire Bidwell Smith notes:
‘For one sibling, it might be a sacred connection to the deceased person… For another, it could mean responsibility, a burden, or even an insult tied to the relationship.’
Some heirs may face taxes only if they sell the inherited car for a price higher than its value at the time of the previous owner’s death. Bloomberg reports that there is no federal inheritance tax in the U.S., and the federal estate tax applies only to estates worth over $15 million per individual. For the vast majority of inherited cars, this means the keys pass from hand to hand without the taxman’s intervention.
This wave of classic car handovers presents new owners with a range of challenges: from the financial costs of restoration and storage to difficult emotional decisions within the family. While the market shows increasing value, the real worth of such vehicles is often determined not just by money, but by the history they carry and the willingness of heirs to accept this responsibility. Successfully managing such a legacy requires not only financial savvy but also a delicate approach to family ties and personal preferences.
