_Classic car investment special: Aston Martin, McLaren & Ferrari take top 3 auction slots in 2017
It seems slightly discourteous for the classic car market to come off the boil during Ferrari’s 70th birthday party and even ruder for two British marques to grab most of the headlines, however there was still plenty for the tifosi to cheer about in 2017.
Eight of Maranello’s finest, led by a record-breaking 1966 275 GTB/C, broke the $5m barrier. The silver 275, which had a racing pedigree and fetched $14.5m at Gooding & Co’s Pebble Beach sale in September, was the most expensive of that particular model to ever go under the hammer.
A LaFerrari Aperta, Ferrari’s first hybrid model, also sizzled when it made around $10m for charity at RM Sotheby’s Ferrari-only sale later in the month.
Image credits - Ferrari 275 courtesy Gooding & Co, Aston Martin DBR1 courtesy RM Sotheby's, McLaren F1 courtesy Bonhams
But even these big beasts couldn’t see off the challenge from Aston Martin and McLaren. A stunning Aston DBR1, once raced by the legendary Stirling Moss, was sold by RM for $22.5m at its Monterey sale. A record not only for the marque, but also for any British car. McLaren also set a marque record in Monterey when Bonhams hammered an F1 for $15.6m.
“It shows that people are still prepared to pay for unrepeatable opportunities,” says Brian Rabold of specialist insurer Hagerty. “But elsewhere it’s much more of a buyers market.”
This is reflected in the Knight Frank Luxury Investment Index (KFLII), where classic cars have slipped down to sixth place in our ranking of 10 asset classes.
Credit: llxcarrental
The Hagerty Vehicle Rating index also illustrates the trend. This time last year, the cars in most demand were mainly expensive European models, but now it’s cheaper US vehicles that are leading the pack.
“Collectors still want to buy something new, but rather than going for things that look fully priced at the moment they’re going to have some fun with an American classic like a ’66 Ford Bronco,” says Mr Rabold.
Investors are also sensing opportunities, despite the slowdown. “When I was growing up there were two great streets in New York where I dreamed of living, Fifth Avenue and Central Park West.
Even if the market dipped those were the ones that were best placed to recover,” explains Peter Neumann, CEO of New York-based fund and investment consultant Chrome Strategies Management. “It’s the same with cars. Of course there is elasticity in the market, but we’re still very positive for those really special cars.”
Dietrich Hatlapa, who compiles the HAGI index used in KFLII to track the value of classic cars, says very strong promotional activity from the big manufacturers is helping to cushion the market from greater falls.
“They are pushing their heritage in a big way. You have the continuation models from Jaguar and Aston Martin, and the big presence from marques like Mercedes at Goodwood and other events. Without all that I do think the market could be weaker.”
Sources: Cars – HAGI; Wine – Wine Owners; Coloured Diamonds – The Fancy Color Research Foundation; Stamps and Coins – Stanley Gibbons; Art, Watches, Jewellery, Chinese Ceramics and Furniture – Art Market Research
While cars have been dropping down the grid, wine has been positively roaring to pole position in KFLII. By the end of June, the value of the Knight Frank Fine Wine Icons Index, compiled for us by Wine Owners, had increased by 25% on a 12-month basis. The index has been driven by the continued recovery of the Bordeax market and strong growth in Burgundy and wines from Northern Italy.
Nick Martin of Wine Owners says growth is likely to be less heady in the second half of the year, but he still expects wine to show a double-digit jump in performance over 2017.
However, it will take a while for any other asset class to overtake the long-term performance of classic cars, up 362% over the past 10 years.
And even if Ferrari hasn’t quite dominated the market this year, the statistics, clearly show that marque’s overall dominance at the top of the market – it accounts for seven of the top-10 most expensive cars ever to sell at auction, remains secure.
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