The Value Story of Vintage & Classic Motor Cars
Some eye-opening prices go along with the eye-catching looks.
The Big Q: What is the value story behind vintage and classic cars and their worth?
In the late 1920’s, Ettore Bugatti built the largest and most powerful luxury car the world had yet seen. Featuring a massive 8-cylinder in-line engine, the Bugatti Type 41 became known as the Royale.
This luxury creationwas everything one would desire.
Mr. Bugatti initially planned to build 25 Royales for Aristocrats and Royals but along came the Great Depression, and so only 6 were built and just 3 were sold.
This motor car was not just an ultra-luxurious car, as a prototype of the Royale won the 1927 German Grand Prix at the Nürburgring. Mr. Bugatti put a sculpture of a rearing elephant, designed by his brother Rembrandt, on the radiator cap of each Royale. The Royale remains the largest production car ever constructed.
The Royale holds legendary status among classic car enthusiasts of the pre-WWII era.
All 6 were last seen together, gathered by their respective owners, for the 1985 Pebble Beach Concours d’Elegance. The 6 original cars survive, with 5 kept in private museums around the world. A 6th is reportedly on confidential offer via a secretive Swiss classic car broker, who is reportedly representing the last available Royale.
More Big Q’s…
What would it be worth?
Would it go up in value over the next few years?
It is Questions like this that can drive gear heads nuts.
To answer the growing interest in collecting vintage and classic cars, several indices have started up in the last few years to try and put a number on the vintage and classic car market.
The results have been striking, and encouraging to prospective collector/investors.
In December 2015, the Knight Frank Luxury Investment Index revealed classic cars as a luxury asset were experiencing the fastest price growth over 1-year, 5-year and 10-year time frames. http://www.knightfrank.com/wealthreport
Vintage and Classic cars as an asset class has outperformed art, wine, jewelry, colored diamonds and watches by large margins. In a 1-year frame ending Q-3 Y 2015, classic car assets rose in value by 18%, compared to art rising by 15% in the same period. Over a 10-year frame, the comparable rise was 496% to 239% overall.
Vintage and Classic Ferrari sports and racing care, the most recognized and sought after in the market, with public auction prices in the tens of millions of dollars, private treaty trans actions are rumored to have reach $55-75-M.
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