CLASSICS NOW A GREAT INVESTMENT

ALL INDICES DOWN AS MARKET CONTRACTS

The numbers are in, and rare automobile collecting, once considered a pastime for only the eccentric rich, is now a legitimate wealth-creation strategy. It is hard to pinpoint the exact moment when an industry matures, but the regular publication of the Historic Automobile Group International (HAGI) Top Index in London’s Financial Times is a strong indication that the trade in rare automobiles is now, as an industry, well beyond that point.

HAGI TOP INDEX DATA DECLINED TO price levels last seen in September 2016: Down 0.49% MOM and 4.30% YOY reaching a price of £331.12.

Lower transaction volumes continue to weigh on the market. We observe similar characteristics to a period running up to 2012 and before the bull market, whereby discerning participants and hobbyists were able to play a prominent role in the supply and demand.

More realistic price levels have been reached for many models, others are still under pressure. Our index for classic Ferrari (HAGI ‘F’) is down a further 2.42% MOM (4.54% YOY) and is currently priced at £328.00.

While the market correction does not bode well for existing owners looking to sell in the short term, new investors eager to enter the market will likely find price barriers dropping in the near future.

Although Ferdinand Porsche had established his independent automotive design consultancy in the early 1930s, his name would not appear on a car until 1949. When it did, it graced one of the all-time great sports cars, the Porsche 356