Over the past decade, returns to investors in classic cars have vastly outperformed leading hedge fund managers (1).
The Knight Frank Luxury Investments Wealth Report shows annual growth for classic car investments of 17% for 2015, topping the list of 10 ‘investments of passion’ (2).
The report reveals that, over 10 years, classic car investors have achieved returns of 467%. Prequin, the market data provider, report the average returns from hedge funds over the same period were 7.83% (1).
However, in spite of high auction prices achieved at the high end of the market – notably the record £24.7m sale of a 1957 Ferrari 335 Sport in February this year – the luxury car market may be slowing, as supply catches up with demand. Year to date, luxury cars posted growth of just 1.06% (1).
“The number of cars that are being offered has risen significantly,” said Dietrich Hatlapa, founder of the Historic Automobile Group International. “We have more auction houses and more auctions… and the number of dealers has more than doubled over the past five years” (1).
- (1) – Classic cars get top marques as high-powered assets – Financial Times
- (2) – Luxury spending trends – Knight Frank