Expert tips from Filippo Pignatti Morano. Once you have selected which car you would like to add to your garage, the question will be where can I buy one without having to have worries after the purchase? Or shall I rent one, to satisfy my dream and not have to worry about all the worries that are involved with a classic car?
Once you have selected which car you would like to add to your garage, the question will be where can I buy one without having to have worries after the purchase? Or shall I rent one, to satisfy my dream and not have to worry about all the worries that are involved with a classic car?
Unfortunately, where there is a lot of money there is also fraud and crime. Therefore, follow the advice above, and hire only an independent advisor with no conflict of interest. To get started in investing in classic cars you don’t need much. There are classic car starting at EUR 5.000 or investment funds with a minimum investment of EUR 10.000. Here the advantages are, if you don’t want to own the car directly your investment will be diversified into more cars and don’t have to worry about the overheads. Some funds also give you the possibility to drive the cars of the fund or you can join classic cars events hiring a car. In this last possibility, you have to be careful who you choose and read carefully through the hiring car contract. Classic cars have always been regarded as an investment. While, in the past, collectors used to invest out of passion, value growth is increasingly becoming an important driver – especially with the international press reporting about fetched record prices at auctions.
The demand for classic cars will increase, but the number of this cars not, therefore the price will rise in the future. The beauty of investing in classic cars is, that it’s not just exciting to look at the appreciation rate on paper, but also to experience them live, compared to many other in fashion investments of today. Real jewels can be worn on an evening out – but they usually stay in the safe. Chrome jewels, on the other hand, can be shown and experienced much more often and sold, of course in any part of the world being tangible and mobile.
As mentioned, many times over now, we feel that the auction world and its results may not be the right way to judge the classic car market and, by extension, other cars. The market must not be reduced to an unsold car at an auction. Every car must be valued by its own history and supporting documents. We have been asked more often lately to view vehicles to prove how original the car is making sure the numbers match and the vehicle is correctly advertised.
Filippo Pignatti Morano: Classic and supercar collector, market analyst on tangible and emotional assets