REAL DIVERSIFICATION
Passion assets are an integral part of wealth building amongst ultra-high-net-worth individuals.
81%
Of billionaires invest in alternative assets- motley fool
$29.2tn
Projected value of total alternative assets undermanagement by the end of 2029 - Prequin
10-YEAR DEVELOPMENT OF COLLECTIBLES
Collectible cars are an overlooked but highly interesting asset class. They are a top performer in the alternative investment category and have remarkably low volatility <10% and are resilient against global economic downturns, making classic cars a stable investment you can count on.
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10-YEAR DEVELOPMENT OF COLLECTIBLES
Collectible cars are the top performer amongst other alternative asset classes, consistently delivering returns from the last decade and beyond¹
1 - According to the Knight Frank Index
SECURE & TANGIBLE ASSETS
Placing capital into collectible cars presents a secure choice for wealth preservation and growth. The market for collector cars has generally shown attractive portfolio characteristics.
Returns have been consistently high, values have not been impacted by global downturns, and correlations with other asset classes such as equities, bonds and property have been low.
Unlike intangible assets, cars possess intrinsic value and cannot go bankrupt. This stability, together with the substantial potential returns, makes cars a compelling option for those seeking both security and financial growth.
THE CAR CROWD STUDY
This stability, together with the substantial potential returns, makes cars a compelling option for those seeking both security and financial growth.
Recognising trends driven by variables such as nostalgia, motorsport pedigree, film notoriety and import/export legislation, the team can create asset shortlists that meet requirements.
The graph shows the appreciation curve of 90s Supercars. A portfolio of 90s supercars* in 2019 would have yielded a portfolio growth of 76% in just 5 years.
*Example portfolio - Ferrari 355, Lamborghini Diablo, Lamborghini Countach, Ferrari Testarossa, De Tomaso Pantera and Lancia Delta
Tax Free
Returns released from classic car investments are exempt from Capital Gains Tax (CGT) in the UK.
Asset Backed
In a world of uncertainty and with some investors still reeling from the crypto crash, choosing an asset-backed investment option is a sound choice.
Durable Investment
Classic car investments demonstrate consistent growth despite geo-political and macroeconomic factors, whereas more traditional investments, such as property, stocks, and commodities, may not. Classic car investments remained strong even through the 2008 financial crisis and the more recent COVID pandemic.
Strong Returns
A proven track record of returns. In the last 10 years, Classic Cars have been delivering an average annual return of 18.5% for investors. It is the second-highest performing asset class and remains resilient against inflation.
Tax Free
Returns released from classic car investments are exempt from Capital Gains Tax (CGT) in the UK.
Asset Backed
In a world of uncertainty and with some investors still reeling from the crypto crash, choosing an asset-backed investment option is a sound choice.
Durable Investment
Classic car investments demonstrate consistent growth despite geo-political and macroeconomic factors, whereas more traditional investments, such as property, stocks, and commodities, may not. Classic car investments remained strong even through the 2008 financial crisis and the more recent COVID pandemic.
Strong Returns
A proven track record of returns. In the last 10 years, Classic Cars have been delivering an average annual return of 18.5% for investors. It is the second-highest performing asset class and remains resilient against inflation.
WHAT DRIVES VEHICLE APPRECIATION?
RARITY
The scarce nature of the world's rarest, high-performance cars plays a huge part in future values. These cars command attention from enthusiasts and collectors alike, leading them to become sought after items.
DEMAND
The rarity of these highly desirable cars drives demand, which in turn drives value. Nostalgic demand in particular occurs when cars are immortalised as icons of their time. Therefore, appearances in film, computer games or motorsport all help drive appreciation.
APPEAL
With stringent emissions regulations and electrification sweeping the automotive sector, pure analogue driving experiences are a thing of the past and so interest in these high-performance vehicles has never been greater.
QUALITY
Vehicles which present in showroom condition and have strong history will create the best potential for growth. Identifying the right cars that are on the cusp of sky-rocketing appreciation is where the prime opportunity lies.
