Yield object, passion or memories – there are many good reasons to invest in cars

We all get newsletters about the classic car market and read petrol head magazines with beautiful cars offered through the magazine or auctions, but would like to know more details on best buys depending on purpose. The first thing to understand is why you would like to buy a classic or modern super car. Is it for passion reasons or to feed your memories or just simply as an investment?

A a renowned London auction house said some of the uncertainties of the last 24 months have begun to “settle down and seek direction”. The historic motor car market has remained stable and resilient due to its global attraction. Now more established than ever as a lifestyle choice for investors and collectors worldwide and out-performing virtually all other known investments over the last decade, the outlook for this marketplace is optimistic and established. There is a new maturity in the historic car market which gives it international credibility which can now only move forward.” So if you are buying for an investment this could be good moment.

So let’s investigate cars that could be interesting starting at the lowest end. Happily, there are still classics out there that I believe have not yet realised their true potential. I don’t want to brag, but only the other day I bought a one-owner Alfa Romeo GTV6 with 26,000 miles on the clock for £10,000“ this is Jeremy Clarksons (who is this guy?) latest purchase and I totally agree with his choice.

Then I would personally advise buying Ferrari’s that are under EUR 100'000. Their value has been rising recently and this cars will soon not be available at that level anymore, apart the ones in bad condition. As you know I always suggest buying the best of the best, looking out for the certificato Ferrari.

Another great investment are the brand new, limited Ferrari 488 Pista and the Porsche 911.2 Speedster. These cars have been produced in a limited edition and have been offered only to selected clients, they are trading them for 30-50% more then the purchase price.

On the high level budget the trendiest pick at the moment is the Mercedes AMG Project One. It will be delivered in the first quarter 2019. Sadly, if you haven't ordered it, you are already too late. All 275 production Project Ones have already been sold. The original sale price was EUR 3 million and even if Mercedes forbids resale of the car, you can find some on the market for a 50% plus then the order price.

At fifteen million Euros, the rare Pagani Zonda HP Barchetta is an amazing car for an investment. But it would be better to say, that this was the list price. However, as only three have been made and none are on the market, the asking price will be much higher.
A couple of weekends ago, a convoy of Paganis (estimated to be worth some £35m) snaked their way from the company’s UK Headquarter in north London, through central and down to the Goodwood Festival of Speed. What a a great sight for collectors of rarities.
Heading up that convoy was Horacio Pagani’s personal Zonda HP Barchetta. The other two he plans on building have already been pre-sold, as mentioned.

If you are fortunate enough to have an unlimited investment budget available, then you should try to buy one of the 39 Ferrari 250 GTOs. The last one sold in June this year, for over USD 70 milion, achieved a new world record for a car.

The collecting field has attracted a lot of people who dont know much about cars. They are merely interested in an investment. They now appear to be less active, and leave the market once again to specialists. This statement I wrote in my last article here, so be aware and get advice from a professional and independent advicer.

Grow your wealth and diversify your financial exposure with an asset class that generates emotions and can be passed on to the next generation. Classic-, Sports-, Racing- or Vintage cars all have something in common: they generate passion. Countryside rides with Sports- or Racing cars, track days’ introduction on racing cars or gourmet rallies, all sure to please the palate! Last but not least, Bankers in Germany’s automotive heartland have a recommendation for newcomers in the car collectors scene or investors seeking alternatives to low interest rates: vintage cars from their country.

Our autor Filippo Pignatti Morano
Classic and supercar collector, market analyst on tangible and emotional assets

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