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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