Another example is “The Hagerty’s Cars That Matter “Blue Chip” Index”, a benchmark, put together by the automobile appraiser David Kinney, based in Virginia, USA. According to a report by Bloomberg, that index, which contains the estimated values of 25 of the most popular collectible cars, increased more than 161% from September 2006 when it started, to the end of July 2014.
But like the stock market, the diamond investment market, fine wine or paintings, classic car investments require a good deal of sustained study by investors and guidance by experts. If you are thinking of getting into owning a historic and collectible car for investment (as well as a bit of fun) I would visualize four distinct sectors or layers based on price to give you some insight into the market and a starting point from which you can approach it.
£5 million upwards – Historic Art Cars. Cars by manufacturers which have become famous like the famous works of art by the world’s leading artists and regrettably unassailable by mere mortals and only accessible to the super rich. Cars that made a place in motoring history for a firm, for a nation and for a race car driver at historic events such as the 24 Heures du Mans and the Mille Miglia. (Examples:Jaguar D Type. Mercedes Benz SLR )
£100,000 to £1,000,000 – Significant Classics. Noteworthy cars that we all know and love, cars from films or that Dad had or wished he had, and pointed out to us as boys. Cars from posters on our bedroom walls from our youth, that in their day were the best of the best in the car market of that time. These are cars that are always in demand and which will always have a following.
(Examples: Aston Martin DB4, Lamborghini Countach).
£0 to £100,000 Commodity Classic. These are cars we all love to look at , ones we see regularly at classic car rallies and buzzing about on warm Sunday mornings. These are cars which everyone can potentially own. Typically they are the higher end, mass produced cars that chime with us because they are beautiful to look at, had track prowess in their day and readily associate us with a nostalgic past. They are often quite easy and cheap to own and for which there is a ready and buoyant market of collectors. (Examples: MGA Roadster, Austin 7).
£0 to £50,000 Future Classics. I am sticking my neck out here a little, but imagine, you are 50 years old, your children, bless them, are no longer such a big expense and their education largely paid for. It is time to enjoy a little recreational “me” time and a classic car is on the agenda. Well what did you dream of owning when you were 18 years old, and the world lay ahead of you. Go back 32 years from 2014 and we are in the early 1980s. Expect a increasing demand for the Ford Sierra Cosworth, for the real air cooled Porsche 911 and what about beauties like the Vauxhall Chevette HSR and the Lancia Delta Integrale!
Recent statistics speak for themselves, a classic car is a sound investment, but like all investments, seek out an expert advisor, be clear on your budget, your risk tolerance and how liquid your assets must be, and if all these allow for a classic car purchase and, importantly, you have space in the garage, then it is not really a “Leap of Faith“ but more a targeted acquisition of a desirable and valuable collectible.
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Discreet, Professional and Affordable Telephone: 611102
SKYFALL INVESTIGATION SERVICES
Email:
investigations@skyfalljersey.com www.skyfalljersey.com
20/20 Finance & Investment Page 91
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