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Alternative investments: classic cars

Like stamps and wine, classic cars need to be kept well to retain their value. But it’s difficult and expensive to do so especially if you want to drive your four-wheeled investment. 

Still, there’s gold in them thar wheels.

Car enthusiast Marcus Carlton, executive director of HFM Columbus, says a large number of things can change a rare car’s value, not least timing and provenance. A 1970 Porsche 911s is worth around £50,000 in today’s market, but if Steve McQueen once drove it (as in the case of one sold in August) then change that figure to $1.3m.

The HAGI Top Index measures the value of the super-premium car market, much as the FTSE 100 tracks the most highly capitalised UK companies listed on the London Stock Exchange, and is up 14 per cent this year. 

“It’s a niche market, not a substitute for other investments,” cautions Dietrich Hatlapa, founder of HAGI and a former managing director of ING Barings financial markets. But if you have property, art and private equity, a collector’s car is an excellent complement to your portfolio, something you can enjoy and touch.”

Read our series on alternative investments here.


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