CDA
May 04, 2023
Do you have money to invest? Well, classic cars are the second best investment today after works of art.
Classic cars are one of the great hobbies of (wealthy) car lovers. However, it is something more than that. The classic car market is experiencing a wave of investment, as its value has increased by 185 percent in the last decadeoutpacing the growth of other luxury products that investors have traditionally focused on, such as wine, watches and art.
According to Knight Frank’s 2023 wealth report, the market has expanded beyond a comparatively small community of collectors to include investors attracted by the prospect of high returns.
The value of classic cars has increased by 25 percent
Ferrari models are especially valued.
For sample, an example. In 2018 a Ferrari 250 GTO became the most expensive car ever sold when it reached 43.7 million euros at auction. Last year, just four years later, that record was smashed by a 1955 Mercedes-Benz 300 SLR Uhlenhaut Coupé for which €135 million was bid.
This year, the Italian Azimut launches what it describes as the First evergreen fund in the world to invest in vintage vehiclesand affirms that he will only bet on cars of more than 1 million euros each.
While Azimut’s fund will not have an end date and can receive new money indefinitely, the small Swiss asset manager Hetica Capital launched a “closed” fund of 50 million euros in 2021, which he also said was the first of his class.
The Hetica fund, whose objective is to obtain a return of between 9 and 15 percent after seven yearshas so far bought a dozen cars and aims to get to 30-35 cars in the fifth year, leaving the last two years to sell the vehicles and pay off investors.
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While the classic car market is expanding as the number of wealthy people increases, the value of vintage cars has grown by 25 percent in 2022its biggest growth in nine years and second only to art’s 29 percent increase, according to Knight Frank.
The global race to give up combustion-engined cars will only serve to increase interest in these relics of a vanishing era, some market players say. “Electrification will favor classic cars”says Cristiano Bolzoni, director of Maserati Classiche, Maserati’s vintage car unit. “Over time they will become objects of worship.” Ferraris are the most appreciated vintage cars. Classic cars of this brand reached an average auction value of 537,000 euros in 2021-22, followed by Mercedes-Benz, with 344,000 dollars, and Porsche, with 317,000 euros.
