When it comes to luxury car collecting, spotting the modern classics before they truly venerate is an art that can potentially turn into gold. And let’s face it, you can’t store that Monet in the garage and take it for a spin on a sunny afternoon. That’s precisely why today, we're exploring the lucrative world of investing in limited edition luxury cars. It’s okay to ogle... these masterpieces gladly return the favor.
Why Invest in Limited Edition Luxury Cars?
We're not saying it's time to swap your Picasso for a Porsche, (although have you seen that Porsche 911 GT2 RS?) but consider this: Rare automobiles are considered 'passion investments', alongside wine, whiskey, and art. The top-performing asset class in luxury investments in the past decade was luxury cars, with prices surging over 330%! That’s faster than any bustling stock market!1
The 'Art' of Picking the Right Luxury Car
As every cigar-smoking, whiskey-loving uncle ever has said – 'They don’t make ’em like they used to.' But when selecting investment-grade cars, newer might be better. It’s the limited-edition, high-performance exotic beasts from elite manufacturers that are stirring the investor pot. These aren't your grandpa's old Buicks, we’re talking about Ferrari LaFerrari, Aston Martin One-77, or Porsche 918 Spyder! Panting yet?
Preservation is Key
Gentlemen (and ladies), start your engines... but not too often. Irrespective of how much your lead foot itches, try to keep your asset's mileage as low as possible. It's like popping open a '61 Haut-Brion; once uncorked, its value plummets.
Due Diligence
A fat bank account can't teach you everything about luxury car investing. For some heavy-duty horsepower knowledge, reputable car clubs, well-known car collectors, and exclusive vehicle auctions are your buddies. And remember, if the deal seems too good to be true, it probably is. Always opt for a proper due diligence service with a mechanic you trust.
Insuring Your Investment
Your precious new asset requires protection, and this isn’t the time to shun the warranty (just think 'mint-condition'). Specialized insurance policies for collector cars generally offer 'Agreed Value Coverage', so if your car faces an unfortunate event, you’ll receive its full insured value.2
Time to Let Go?
Liquidating your investment requires knowing the market dynamics. Subscribe to price guides, follow auction results, and ensure your timings are impeccable. Sometimes, patience can rev up returns.
Don't let your love for the purr of an exotic engine make you blind to its potential as a (very cool) investment opportunity. While your neighbors might enjoy the shimmer of gold, you, my friend, can enjoy the shimmer of sports car metal under the sun - it’s a whole different kind of luxury.
1 Knight Frank Wealth Report 2018
2 www.hagerty.com
