The Hagerty Market Rating has dropped 10 out of the last 12 months, so eye raising data. Despite the continued auction records and top dollar supercar prices, some of the car segments are holding back, particularly “instant” collectors. In the case of the C8 Corvettes, the C8 Corvettes’ presence in this trend is even more obvious, because market conditions can rapidly undermine the value of even the nicest cars.
Demand over the last ten years
During the past decade, instant collector cars such as the C7 Corvette ZR1 and the C8 Z06 have proven a strong demand. And companies like Chevrolet and Ford have even been able to induce manufacturer buzz, enabling high dealer markups and large premiums on the used market for their halo cars. But these tides are on the rise, and the values within are beginning to recede, with prices and with the perception of these vehicles on the part of collectors.
Car Model Information: 2023 Chevrolet Corvette Z06
Price: $121,048
Exterior color: Orange
Interior color: Gray
Drivetrain: Rear-wheel Drive
Transmission: 8-Speed Automatic with Auto-Shift
Engine: 5.5L V8 32V GDI DOHC
VIN: 1G1YF2D31P5300167
Mileage: 16,245 mi.
Summary: The Z06 is an LT6-powered version of the Corvette, unveiled on October 26, 2021; it entered production in 2022 as a homologation vehicle for the 2023 model year.
Get more information about: Chevrolet Corvette (C8)
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Hagerty’s data certainly reflects these changes; it’s tracking the value of vehicles over time. Hagerty offers a guaranteed value policy to help owners know the vehicle’s market replacement value so it’ll be easier to appreciate or depreciate. The 2019 Chevrolet Corvette ZR1 is a prime example, where the coupe version appreciated nearly 70 percent (in 30 months!), while the convertible appreciated almost 60 percent.
It should be noted, however, that in the 2023 Z06’s case, the MSRP was exceeded, but the trend suggests slowdown in value appreciation – much like the Porsche 911 GT series we’ve noticed here before. These performance vehicles have been losing their allure, ironically, the higher the interest rates and tougher standard auto loan are now being used as factors to a market shift.
But even more interesting is that they appeal to a younger, wealthier demographic. Despite a volatile economy and production snags, Chevrolet sold more than 20,000 of the mid-engined C8 in 2020. But while it’s a spike in sales, it hasn’t led to lasting value for the cars as new models continue to appear that would eclipse its predecessors.
Reasons for depreciation
The differences in the C8 Corvettes compared to the C7s are in things that make up the Corvette experience. Driving the C8, especially in manual transmission, is full of fun and many of those enthusiasts, who can only spot the missing manual transmission feature, bemoan its absence. The C8 is a phenomenal vehicle for the conditions that it can thrive off of, being an incredible machine when it comes to performance and outward appearance, but putting the C8 up against Corvette generations past and foreign competition is a war Winning.
Even for its performance, C8 models are still relatively affordable; but core Corvette affordability makes older models’ value elusive. What’s more, why would somebody pay extra for a used C7, when they could have a new C8, often for not much extra money? That dynamic places a tremendous amount of pressure on the older generation models, with an added complexity for the C8.
Increasing presence of financing in the auto market is another important part of the narrative of the depreciation of cars. At higher interest rates, fewer buyers are willing or able to push their budgets to get a vehicle. Hagerty notes there are hints that the share of modern supercars sold on finance is declining, which could have serious consequences for market trends, too.
Finally, the flipping car for profit market is also beginning to record signs of slowing down in its collector market. Averages returns on flips have increased in 2021 and 2022, but decreased in 2023, showing a deviation from the collector landscape as a whole. Because they can give information about what is to come in the automotive world, buyers and collectors will need to stay informed about these trends.
C8 Corvettes depreciate more than C7s is a case study on how things change over time with market dynamics. The C8 was a leap forward for the Corvette with new engineering and new design, but external factors like economics and changing consumer preferences surprised everyone with inconsistent value retention. The automotive world changes, and as we move forward, so too does the landscape for the collectors or enthusiasts, once again the world of the cars is never stagnant.
Still an exciting journey as we look to the future of the Corvette brand. Regardless of the allure of the new C8, the classic new style of the C7 and sooner models will continually pull in ages of auto fans. The market goes up and down, but there’s always a passion for these iconic vehicles (that just might inspire you to explore, invest, or just celebrate the different history each generation offers). In understanding this, the collectors are then able to traverse the path, ready to make the best calls for their automotive investments to maintain the legacy of the Corvette.
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