The collectible cars market's future with EVs, including the Tesla Roadster, BMWs, and Ferraris.

• Despite weaker demand and lower-than-anticipated value in the used auto market, early electric and hybrid vehicles are gaining interest from collectors.
• The rarity, design, and historical significance of collector cars greatly influence the market.
• The Tesla Roadster and BMW i8 are popular due to their combination of power and beauty.

Collectible vehicles are no longer limited to classic cars; all-electric and hybrid vehicles are now gaining popularity among collectors, despite the decline in new EV prices and the unpredictability of the used market, where EVs depreciate significantly and hybrids hold their value better than most categories except trucks.

Which EVs and hybrids may increase in value and become collectible in the future?

"According to Daniel Strohl, editor of Hemmings Daily, what people enjoy during their youth becomes valuable when they grow older. This is evident in the muscle cars that boomers collect and the 1980s trucks and Japanese imports that are currently popular among younger collectors."

According to John Wiley, manager of valuation analytics at Hagerty, the most significant factors that determine collectability are design, performance, and historical significance. In his opinion, if a car has made a significant contribution to history, looks great, and is enjoyable to use, it will be highly sought after by collectors.

Dietrich Hatlapa, founder of the Historic Automobile Group International, stated that rarity and condition are crucial factors in determining the collectibility of cars. He added that small production numbers contribute to the value of a car, and only the most pristine examples with low miles are highly sought after.

Cars that boast high performance and eye-catching beauty are more desirable, and as a result, command a premium price tag.

Early EV collectibles

Some early electric vehicles and hybrids are already highly sought after, such as the Owen Magnetic hybrid from 1915 to 1921 and the EV1 made by General Motors in 1996 to 1999.

Some recent limited-production models from major automakers have already risen in value and may continue to do so in the future, according to experts' criteria for collectability.

Acura NSX (2017-2022)

The original NSX, launched in 1991, demonstrated that mid-engine sports cars could be both reliable and comfortable for daily driving. These cars are highly sought after and bode well for the second-generation NSX, an all-wheel-drive hybrid with up to 600 horsepower sold from 2017 to 2022. The newer NSX can accelerate from 0 to 60 mph in just 2.9 seconds and maintains the legacy of its predecessor with a comfortable interior and user-friendly controls. The hybrid NSX had an initial MSRP of $157,000 and has already surpassed $230,000 at auction.

BMW i8 (2014-2020)

The i8, a 2+2 coupe and two-seat convertible plug-in hybrid, was offered by BMW. Although it's not rare, with over 20,000 units built in seven years, its 0-to-60 time of four seconds wasn't particularly impressive given its nearly $150,000 starting price. However, the i8 has two advantages: its beauty and presence. It resembles a supercar with dramatic "Lambo-style" butterfly doors, and BMW is a renowned brand with a rich history of cars that are sought after by collectors.

Cadillac ELR (2014 and 2016)

The ELR coupe, based on the Chevrolet Volt, boasted a luxurious interior and more power, with an initial run of 217 horsepower and 37 miles of electric range. In 2016, the horsepower and range increased to 233 and 39 miles, respectively. Despite selling less than 3,000 units, the ELR's rarity and sleek styling could make it a future collector's item. However, used ELRs have depreciated heavily and generally sell for less than $20,000 today.

Tesla Roadster (2008-2012)

The Roadster, a targa-topped two-seater, was founded in 2003 by Martin Eberhard and is the first production car from the groundbreaking company. With an initial MSRP of $98,000, well-kept examples have sold for more than $200,000 to collectors. The Roadster boasts more than 200 miles of driving range and a 0-to-60 time of 3.7 seconds, making it a formidable competitor among modern EVs. Despite being produced in limited numbers, fewer than 2,500 were produced through 2012.

The new Roadster from Tesla, set to begin delivery in 2025, is a four-passenger coupe that is expected to cost $200,000. CEO Elon Musk claims it will accelerate to 60 miles per hour in less than one second, making it the quickest road-legal car sold in the U.S. if it's true.

Volkswagen XL1 (2013-2016)

Although Volkswagen is the largest automaker globally, it only constructed 250 of these spaceship-like hybrids. The XL1 is the world's most efficient road car with a combustion engine, achieving over 261 miles per gallon thanks to a unique diesel-electric plug-in hybrid system, minimal weight, and a highly aerodynamic shape. These vehicles sold for around $150,000 when new and can fetch more than $111,000 at auction. Despite never being imported to the U.S., anyone with the financial means to purchase one might be able to do so.

Hyper-expensive exotic EVs and hybrids

Rare, fast, and beautiful cars can depreciate, but they often become collectible and increase in value over time. For example, the 1992 to 1998 McLaren F1, which sold for about $1 million when new, has commanded up to $20.5 million at auction. This car was the fastest production car of its day, with a top speed of over 240 miles per hour, and only 106 were produced.

The car market's top operates independently, promoting collectability.

Ferrari has a reputation for offering exclusive sales of limited edition cars to its loyal customers, which creates a sense of envy among potential buyers and helps maintain the value of used Ferraris. In addition to this, Ferrari, like other luxury brands such as Porsche and Aston Martin, provides restoration and certification services for its classic cars. This business model has proven successful, as Ferrari sold all 1,398 SF90 XX Stradale plug-in hybrids it planned to produce before the car's official launch in June.

Rolls Royce threatened to blacklist buyers of its first all-electric vehicle, the Spectre coupe, last year, demonstrating luxury automakers' practice of monitoring used sales.

EV aging challenges

One issue with owning older electric vehicles is maintaining their roadworthiness. While internal combustion engines have been widely used for over a century and mechanics are familiar with their repair, electric vehicles are still a relatively new technology. As a result, repairing them requires specialized knowledge. Additionally, the rapidly evolving battery, charging, and computer technology can make it challenging to obtain parts.

"Strohl stated that batteries, typically, have a lifespan of 15 to 20 years, and the market for replacing or repairing EV batteries is still in its early stages. Additionally, even if a new battery can be used in an older car, the software may not be compatible."

Collecting cars can be driven by passion, nostalgia, and the desire to connect with like-minded enthusiasts. However, generating significant profits from a collector car can be challenging. If your primary objective is financial gain, it may be more advantageous to invest in a diversified index fund, even with cars that have experienced substantial appreciation.

If the initial purchase price of the 1997 Toyota Supra Turbo had been invested in an S&P 500 index fund at the beginning of 1997, it would have grown to $322,477 by the end of 2022, minus a few thousand in fees — a far larger profit of more than $283,000.

The S&P 500 has experienced nearly as much growth, 1,900%, since January 1992, as the McLaren F1 has appreciated more than 20 times since its debut, but without the additional costs such as insurance, storage, fuel, and maintenance that come with owning a supercar.

You can't flaunt an index fund or display it in public.