The Little Black Dress

‘Stocks might give you dividends, but a classic Ferrari gives you adrenaline.’

Are classic motor cars more than just petrol-powered nostalgia?

With returns outpacing stocks and bonds, these engineering icons are gaining traction as a legitimate asset class.

From Jaguars to Ferraris, they combine financial performance with undeniable emotional appeal.

But can they hedge against market volatility?

Read on to discover why classic cars might be the ultimate investment for enthusiasts and savvy financiers alike.

Defining Classic Cars as an Asset Class:

Classic motor cars are increasingly seen as a legitimate asset class, meeting key investment criteria:

Rare models, such as the Jaguar E-Type or Ferrari 250 GTO, have appreciated over 200-300% in the past two decades.

Market Liquidity is provided by Auction houses like RM Sotheby’s, which provide a transparent platform for trading these assets.

Classic cars have a low correlation with equities, making them a hedge against market volatility.

In 2000, a Jaguar E-Type averaged £45,000; by 2023, values soared to £140,000—a 200% appreciation, compared to a mere 24% gain for the FTSE 100.

The 1955 Mercedes-Benz 300 SLR Uhlenhaut Coupe broke records in 2022, selling for €135m.

Classic cars have shown resilience during financial downturns, functioning as a store of value.’

Owners enjoy financial returns and the joy of restoring, driving, and showcasing these vehicles.

Concours events and Sunday drives add lifestyle benefits unmatched by traditional investments.

Challenges and Risks:

High Entry Costs: Rare models can cost millions, limiting accessibility to only the wealthiest investors.

Illiquidity: Finding a buyer can take time, and quick sales often result in discounts.

Storage, insurance, and upkeep are costly, and irregular market activity can complicate accurate valuation.

Key Influences on Value:

Cars with motorsport history or celebrity ownership (e.g., James Bond’s Aston Martin DB5) command premiums.

There is cultural nostalgia; the transition to EVs has made combustion-engine classics even more desirable as symbols of a bygone era.

Classic cars may be niche, but they’re an emerging asset class for High-Net-Worth Individuals.

They’ve become the perfect intersection of passion and profit, combining financial returns, diversification, and emotional appeal.

For the savvy investor with a love for motoring heritage, they’re more than just vehicles—they’re opportunities on wheels.

‘The Jaguar E-Type isn’t just an investment—it’s the automotive equivalent of a little black dress: timeless, elegant, and always in fashion.’