Restomod rising: How modern reliability upgrades are impacting classic car values

Audio By Carbonatix

Restomod rising: How modern reliability upgrades are impacting classic car values

The classic car market has changed significantly in the past two decades, with various forces exerted upon it from within and without, leaving it almost unrecognizable today compared with how things stood at the turn of the millennium.

The most pronounced and widely covered shift in this period stems from older vehicles moving from money-losing passion projects to investment prospects. Along with other asset classes like fine art, classic cars of a particular vintage and character saw values skyrocket as investors poured money into them with a view to securing a sizable return down the line.

This practice reached its peak in the recent pandemic, with already high-value modern classics from the ’80s, ’90s, and ’00s achieving new heights in private sales and auctions alike. However, a parallel trend is taking place at the more attainable end of the market. And the driving force here is not resale value, but reliability.

The rise of the restomod is a new chapter for classic cars; one that impacts values, in addition to altering the usability and practicality of otherwise outdated and archaic vehicles. Proform shares an overview of the data defining this trend at the moment and what would-be restomodders need to consider from an economic viability perspective.

Understanding the Classic Car Market

To appreciate the importance of the classic car market from a financial perspective, it’s useful to start with some of its most eye-catching figures, all achieved in recent years.

The most paid for a vintage vehicle so far was the $143 million achieved by a 1955 Mercedes-Benz 300 SLR back in 2022. This may be an outlier in terms of outright price, but the market as a whole is large and growing. Collectible cars topped $800 billion in value last year, according to McKinsey. With revenues for the entire automotive market in the trillions, this is still a modest slice of a larger industry, but the upward trend in values is what earns it so much attention.

It’s also a volatile market, as evidenced by Hagerty’s Price Guide Indexes. The year-on-year changes in values at the start of 2025 varied significantly by vehicle category. So while Ferrari saw a 10% downturn in values over the previous 12 months, the supercar market as a whole was actually up by 2%. Thus, niches and individual brands within it can move out of sync with one another.

What’s more interesting from the viewpoint of our discussion is the RADindex, which grew 2% in Q4 of 2024 and 1% year over year. This covers classic cars built and sold in the ’80s and ’90s, indicating a segment that remains buoyant despite broader demand reductions. So, what is it that’s causing more collectors to pick collectables from this specific era?

The Restomod Revolution

Trends in classic car ownership and demand for particular vehicles change in part because of which generations are economically dominant at a given point in time. As Gen X and Millennials now make up the majority of working-age high earners, it’s the hero cars from their younger years that are beginning to see a spike in values.

While in previous eras the muscle car was among the most sought-after categories, having featured in a wide variety of movies and TV shows throughout the 1960s and ’70s, today’s classics come from a different time altogether. European and Japanese brands found the media spotlight in the ’80s, ’90s, and ’00s, with video games driving awareness of and interest in a wider range of automotive brands beyond the domestic selection.

People who grew up playing Gran Turismo at home and watching “Fast & Furious” films in the cinema now have sufficient disposable income to put their once-dream cars in their driveways. But that’s only part of the story.

The overlooked catalyst of today’s classic car market is the restomod scene. In its simplest form, it involves updating older cars with new components. Parts suppliers cater to this demand, allowing vehicles from bygone decades to be brought in line with modern expectations in terms of performance, economy, and even safety.

Take the example of brake upgrades for classic muscle cars, explained in detail in this Holley article. The main takeaway is that modern buyers can ditch factory-fitted drum brakes and replace them with fully compatible, modern kits that work better for longer.

This exemplifies how the wider market is changing to accommodate the demands and expectations of today’s classic car buyers. From cooling systems to tires, restoration and improvement are eminently achievable.

The EV Angle

Another aspect of the restomod movement that’s bringing more interest to the classic car market, not just for vehicles from the ’80s, ’90s, and ’00s, but also for earlier models, is the possibility of electric vehicle (EV) conversion.

Modern buyers may be put off by the prospect of picking up classics that use combustion engines for many reasons. Aside from the eco issues of relying on fossil fuels, there are the increased running costs and the complexities of maintenance involved. Converting a classic car to an electric drivetrain eliminates all these concerns.

The EV aftermarket is growing 18.7% a year, reflecting this shift in priorities. In short, it’s a new era for classic car restoration and modification, where it’s possible for vehicles from any period in the past to be brought in line with what brand new equivalents can offer in terms of everything from eco-friendliness and reliability to raw performance.

The Future of Classic Cars

Changing tastes, generational preferences, and capital investment will continue to change classic car values going forward. Moreover, the rise of restomods means the vehicles’ capabilities will differ greatly from anything we’ve seen in the past.

For people looking to enjoy their cars on the road, rather than simply seeing them as an investment, this is a particularly significant shift in the market. More people restoring old cars and making them reliable using modern parts means additional support from component manufacturers and suppliers, so it’s a self-perpetuating trend.

It’s an example of how adaptability is one of the most important facets a market must adopt to survive rather than be left behind.

This story was produced by Proform and reviewed and distributed by Stacker.