Whats a Classic Car? Younger Collectors Prize Less Heralded Models.

For decades, car collecting has been a hobby largely by and for baby boomers, whose tastes have favored chrome, fins and strapping muscle cars from the 1950s and ’60s.But later generations are entering their peak earning years, and with cash to spend on a hobby, they have their own ideas about what defines a classic car.Hallie Krala, a 39-year-old car buff from Allentown, Pa., has a collection that includes a 1984 AMC Eagle Wagon, a 1992 Mercury Topaz and multiple Ford Escorts from the 1980s.

She has never spent more than $1,000 on a car, and is attracted to the look and feel of cars from that era.“Price is definitely a big part of it,” Ms.Krala said.

“Something from the ’50s is not as relatable to the younger crowd.I do like the aesthetics of the ’80s cars, and they’re functional.”They’re also becoming big business.

Hagerty Inc., an insurer in Michigan that specializes in classics, said values for cars from the 1980s and ’90s had risen 48 percent in the last five years.“This is a serious segment,” said McKeel Hagerty, the company’s chief executive.So much so that in 2022 his company bought RADwood, which puts on a series of 1980s and ’90s themed-car events, as an investment in the future.

“I think the RADwood cars are the hot ticket to get now,” Mr.Hagerty said....