Millenials can not wait to ruin C5 Corvettes.
It's no secret that Covid has dramatically increased the prices of the used sports cars that we know and love, but if we look beyond the obvious spike created by these shortages, a pattern tends to emerge.
Even a decade ago one could observe an increase in the price of cars that were synonymous with grass roots drifting. While many chalked this up to the ‘Drift Tax’, this phenomenon could be seen with many JDM vehicles from the 80s and 90s including the civic. In more recent years, prices have steadily risen for all Japanese sports cars from this era, including the endearingly affordable Miata. An inverse relationship can be observed when looking at the C5 or newer used corvettes.
A phenomenon can be observed when looking at the prices of any used sports car that has been in constant production. The older models lose value until they become classics, at which point they begin to appreciate. The resulting price valley creates buying opportunities for any automotive enthusiasts who keep their eyes on the market. For the Porsche 911, the 996 currently sits in this enthusiast valley, while the older 993 saw its value quadruple between 2010 and 2020. This progress is usually steady, with the price of models increasing in value as their older counterparts become less and less common. The Corvette, however, is an exception. Despite the C5 Corvette’s increase in age, its prices remained relatively constant until very recently, while the C4 continued to lose value.
So, what caused these Chevys to hold their value? The answer lies with their owners. The typical Corvette owner is a baby boomer or older gen X. Because people around this age are more likely to own their home and be financially independent, there is little pressure to sell. When these vehicles do hit the market, the price reflects this. You could expect to see C5 Corvettes selling for north of 20 thousand dollars, despite their aging GM grade interiors and fiberglass bodies. C7s are easily over 40k, with the older C4s being readily available for less than 10. Very recently, however, we have seen the price of these American icons gradually starting to come down. This long-awaited depreciation can be attributed to baby boomers finally aging out of the hobby and selling (or having their families sell) their weekend warriors.
On the other end of the spectrum, we are seeing an unprecedented appreciation in 90s JDM cars. While icons like the Mk4 Supra, and Skyline GT-R have always been coveted and expensive, we’ve seen these high prices spread to the Nissan S-chassis and FC RX7. Even models that were less desirable like the NA Z32 and Mazda RX-8 have seen a major spike in price. And driving this massive increase in value are Millennials. Recent surveys show that people aged 25 to 40 have accumulated about 4 % of American Wealth. This small percentage pales in comparison to the 33% controlled by baby boomers, but this is indicative of a trend. The wealth and prosperity, so long hoarded by the oldest in our society, is finally becoming available to a younger generation. As this changes, so will the demands of the market, and these demands will be reflected on American racetracks.
The moment is coming when a C5 Corvette and an NB Miata will be the same price on Craigslist. When that happens, the Corvette will be a ubiquitous sight in grass roots autocross and drifting, even more so than it is now. But the greater observable phenomenon will be what this moment represents. When the public assigns the same value to these two very different driving legends, it will be an indicator that the public itself has changed. Millennials will have more buying power, have better control of their financial futures, and a bigger say in American policy.
The sound of an affordable, factory installed LS engine, will be the sound of a more economically diverse America. By the time the C7 Corvette rests in the enthusiast valley, this country will be a very different place.