Investors now firmly in the driving seat
CLASSIC cars are the raciest alternative investment of recent years, surging ahead of rivals such as coins, art and antiques.
Prices have accelerated by 330 per cent over the past 12 years, despite a short-term reversal of around 10 per cent in 2016.
The latest Coutts Index examining the performance of “passion assets” puts classic car owners into a clear lead, although coins have also made good money, with a total return of 225 per cent over the same period. Fine wine buffs will be raising a glass as values rose a sparkling 153 per cent, while jewellery shone 149 per cent brighter and stamps posted a 103 per cent return.
Most people invest in alternative investments for love rather than money, which is wise as prices can be volatile. For example, rugs and carpets are trading 21 per cent lower than in 2005 while 19th-century art is down 42 per cent.
Coutts managing director Mohammad Kamal Syed said classic cars have provided the sportiest returns since 2005 despite stalling lately.
Last year saw the highest-ever price paid for a Ferrari 250 GT, with a rare 1961 SWB California Spider barn-find fetching $18.15million (£14million).
August saw a new world record price for a British automobile, a 1950s Aston Martin DBR1, which sold for £17.3million, Syed said. “Prices for the most coveted classic cars continue to go up.
“The emotional enjoyment of owning and sharing beautiful items is just as important as the price.”