Historic Automobile Group International HAGI™ is an independent investment research house and think-tank with specialised expertise in the rare classic motorcar sector. They have created benchmarks which track this alternative asset class accurately for the first time, using rigorous financial methodology, as befits any serious investment. The HAGI Index is published monthly in Octane magazine and referenced regularly in the financial media including FT.com, Wall Street Journal, the Economist and Welt online et al.

It lists the ‘HAGI Top Index’, which tracks vintage collectible cars from Porsche, Ferrari, Bugatti, Alfa Romeo and other brands. The Top Index was up more than 500% over the preceding 10 years largely due to wealthy investors and enthusiasts chasing a limited number of top-end, highly desirable and super-collectible cars. By comparision the S&P 500 was up only 60% in the same period.

The high end of the classic car market

We are talking costs in excess of $1 million. Obscure & older classic brands such as Hispano-Suiza and Delahaye are in this bracket, as well as badges that are still well-known today, such as Rolls-Royce and Jaguar. Even brands not known for high-end ‘exotics’ may become collectable: Toyota’s (TM) beautiful 2000GT, built from 1967 to 1970, can command more than million at auction. A 1934 Packard Twelve 1108 Dietrich sold for $3.6 million earlier this year, and a 1998 McLaren F1 sold for $13.75 million.

Toyota 2000GT

Rolls Royce – with matching private jet.

What makes a car collectable?

There are myriad considerations. Being good-looking is an advantage. It’s not just about age or rarity, although of course these can be factors. Look for vehicles with some historical significance, for example, cars that raised the bar for driver expectations or cars that pioneered new technology. A racing history can add to a car’s desirability, as can association with a respected designer or racing driver. Celebrity ownership can also help, especially if the individual is associated with cars in some way. The most expensive collectable cars combine all these attributes. The British auction house Bonhams sold a 1962 Ferrari 250 GTO for $38.1 million in 2014, which is the highest confirmed and published price ever paid for a car. The race car had been driven by legendary driver Stirling Moss at the height of his career. (Another 250 GTO reportedly exceeded $50 million in a private sale.) In 2010, a museum purchased one of the only four Bugatti 57SC Atlantic ever built for between $30 million and $40 million. In 2013, a 1954 Mercedes-Benz W196 Silver Arrow sold at an auction in the U.K. for $29.7 million.

The Risks

Every investment has a downside risk. Cars are ‘tangible’ personal property, and you’ll probably owe capital gains tax if you sell it on at a profit. Restoring a seven-figure car to ‘showroom-new’ condition— restoring a car using original or exact replicas of parts, paint, and bodywork — can double your costs. Take into account ongoing maintenance costs, storage, and insurance expenses. Profits from the eventual sale of the car will also likely incur commissions/consignment fees, transaction fees, and transportation costs. All these costs and more should be factored in. 

Ferrari 360 Spider

Dodge Viper GTS 1996

Want to Invest in Collector’s Cars?

Buying a new or newish car because you think it will be collectable some day is risky. Becoming collector of high-end cars can take a pretty significant investment and comes with not-insignificant costs. Buy quality, know your demographic and market factors, and make sure you’re not buying while in ‘bubble’ territory.

So, what are the ultimate collectible cars? It’s hard to say definitively. Red and Italian tend to be good bets! Tastes change over time, private sales are difficult to track, and the high end of the collectors market focuses on exceedingly rare cars. So which models are tipped to be ‘hot’ in the future? A few suggestions below. Do your own due diligence! 

• Land Rover Range Rover
  mid-1990s $20,000-$30,000
• Jaguar XK 120 Roadster
  1948 – 1954
• Ferrari 360 Spider
  2002
• Ferrari 360 Modena
  1999 – 2005
• Jeep Cherokee
  1984 – 2001
• BMW Z3 M Roadster
  1998 – 2002
•  Acura Integra Type R
  1997 – 2001
• Ferrari 275 GTB
• Jaguar XJ220

Porsche 996

Rolls-Royce Silver Shadow II

Looking for something a little more secure than classic cars?

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