Broad Arrow Auctions Scores European Win, Signaling Shift in Collector Car Market

Zürich, Switzerland – Broad Arrow Auctions, the rapidly expanding auction house backed by Hagerty, has made a significant splash in the European collector car market with a highly successful debut auction in Zürich. The event, which saw over CHF 22 million in sales and a remarkable 87% sell-through rate, signals a potential shift in the competitive landscape and confirms the enduring appeal of both classic and modern supercars.

While established auction houses like RM Sotheby's, Gooding & Company, and Bonhams continue to dominate the global market, Broad Arrow’s performance in Zürich indicates a growing appetite for new entrants and alternative approaches. The auction featured a curated selection of high-quality vehicles, attracting a diverse range of bidders from Europe, Asia, and beyond.

Challenging the Established Order

The Zürich auction wasn't just about high prices; it represented a strategic move by Hagerty to expand its footprint in the European market. The company, known for its insurance, valuation, and digital platforms for car enthusiasts, sees auctions as a natural extension of its business. “We believe there’s an opportunity to offer a more client-focused and transparent auction experience,” said a source close to the company. “The Zürich auction was designed to showcase that commitment.”

The auction house's strategy appears to be working. The event attracted a strong turnout of European collectors, a demographic that has traditionally been served by established players. A private collector who attended the auction commented, “The curation was excellent, and the atmosphere felt more approachable than some of the larger auctions.”

A Market Still in High Gear
The strong sales figures from the Zürich auction confirm that the collector car market remains remarkably robust, despite broader economic uncertainties. The top lot, a 1956 Jaguar D-Type, sold for CHF 5.18 million, a price that aligns with recent comparable sales and demonstrates the enduring appeal of this iconic British sports car. Other highlights included a Ferrari 212 Europa, which fetched CHF 816,000 and a Ferrari 275 GTB Alloy selling for CHF 2.31 million.

“The demand for rare and desirable cars continues to outstrip supply,” explains an industry analyst. “We're seeing strong interest from both seasoned collectors and a new wave of younger enthusiasts who are entering the market.”

The auction also showcased the continued demand for modern supercars, with a 2024 Aston Martin Valkyrie Spider selling for CHF 2.71 million. While slightly below recent private sale prices, the price point suggests good value for a vehicle of this exclusivity.

European Momentum & Expanding Footprint
The Zürich auction's success is particularly noteworthy given the broader trends in the European collector car market. While historically dominated by auctions held in the UK and France, there is a growing demand for events held in other European capitals. “Collectors are looking for more convenient and accessible auction locations,” explains an insider. “Zürich is an ideal location, offering a sophisticated atmosphere and easy access to a wealthy clientele.”

Broad Arrow’s performance in Zürich is part of a wider pattern of expansion for Hagerty. The company reported strong Q3 2023 results, with auction segment revenue up 25% year-over-year, driven by increased sales and a growing number of auctions. Analysts at Morgan Stanley and Goldman Sachs have both expressed positive views on Hagerty's growth prospects, citing Broad Arrow’s expansion as a key driver.

What’s Next?

While it’s too early to declare a complete shift in the auction landscape, Broad Arrow’s success in Zürich demonstrates that there is room for new players in the market. The company is expected to announce additional auction dates in Europe in the coming months, potentially targeting locations like Germany, Italy, and Spain.

“We’re committed to building a world-class auction platform that caters to the needs of both buyers and sellers,” a source at Broad Arrow stated. “We believe we can offer a more personalized and transparent experience, and we’re excited about the opportunities ahead.”

However, established auction houses aren't standing still. RM Sotheby's, Gooding & Company, and Bonhams are all investing in new technologies and expanding their offerings to attract a wider range of collectors. The competition is likely to intensify in the coming years, ultimately benefiting car enthusiasts around the world. The Zürich auction serves as a clear indicator that the collector car market is dynamic, evolving, and ready for a new era of competition and innovation.