Classic cars take pole position among alternative asset classes

Classic cars have taken top position among alternative investment assets after achieving growth of 192 per cent over the past decade, according to new figures.

The Classic Car Report 2017, released in October by global art insurance firm AXA Art, has revealed that classic cars continue to perform strongly against other collectibles and alternative assets, growing by three per cent since last year despite an influx of cars on the market.

According to the report, the market's peak and the greatest year in terms of contributing to its ten year growth level was 2015. However, the first eight months of 2017 still saw a significant increase in the number of cars sold at auction, a total of 7,443 or four per cent.

A more detailed analysis of the figures shows that the small cap index, which includes cars selling for less than £100,000, was the best performer in terms of sales figures, with the top lot segment (cars selling for over £1 million) drew the best turnover. In fact, the cars within the top category accounted for 40 per cent of the market value despite only making up two per cent of the volume.

The mid cap index, which features cars sold for between £100,000 and £1 million), saw middling results, achieving sales numbers and revenue that grew proportionally.

The models found to outperform their peers included the MG A, which increased in value from €17,000 (£14,900) in 2006 to €25,000 in 2017, while the Corvette Stingray V8 achieved 83 per cent growth to €190,000 in the same period.

However, one of the biggest successes in the market is the Lancia Aurelia B24 "Spider". With only 761 models produced, the growth rate between 2008 and 2017 has seen astonishing growth of 450 per cent, rising from €200,000 to more than €1.1 million.

Commenting on the increasing success of the market among the new generation of investors, Chris Bentley, spokesperson for AXA Art, said: "Classic cars are purchased by people who are not typically driven by financial considerations but by an admiration of iconic design and high performance."

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