LUXURY INVESTMENT INDEX
FIGURE 2.
HAGI TOP Index 2009 - September 2013
240 ISSUE 01
220 200
• NOVEMBER / DECEMBER 2013
180 160 140 120 100 31/12/08
19/07/09
04/02/10
23/08/10
11/03/11
Note: Index is market cap weighted, 31.21.2008=100
Most valuable classic cars are located in Europe and North America because the infrastructure for maintenance is there and there are no legal barriers for ownership. Many countries even offer favourable tax conditions for to classic car owners." These attributes make investment in classic automobiles a highly attractive diversification option for high net (and ultra high net) worth individuals.
27/09/11
14/04/12
31/10/12
19/05/12
05/12/13
55
© HISTORIC AUTOMOBILE GROUP INTERNATIONAL (HAGI)
It’s not only Ferraris that are achieving stratospheric prices. Other European marques such as Alfa Romeo, Bugatti, Aston Martin and Porsche are all achieving new highs on the auction block. The evergreen Mercedes Benz variants are also receiving a lot of attention and the price reflects this. American manufacturers of automobiles with established classic and historical value have seen their automobiles reach new heights as well.
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grow, attracting new enthusiasts, investors and speculators, for instance a 1967 Ferrari 275 Spyder was sold in Monterey, California for (a then record) USD $27.5 million in August. “Today the GTO is considered the top car to own,” the California-based dealer Don Williams of Blackhawk Collection said in an interview. If you have a GTO, you have a great collection.” According to an index of classic cars compiled by Historic Automobile Group International (HAGI), valuations rocketed by 25 percent year-on-year to the first quarter 2013. Since 1980, HAGI's index of collectible Ferrari's has grown on average more than 15 per cent every year. London based Historic Automobile Group International (HAGI) founder, Dietrich Hatlapa gave Investment Life some insight into both the market and the psychology of an investor in classic automobiles, “Within the segment of tangible assets classic cars have been a strong performer for various reasons. This has to do with the lifestyle that comes with classic car ownership. There are many attractive events especially in the US and Europe and the cars are the entry ticket for participation. It is also related to the changing role of the automobile. Modern cars are hi-tech items whereas classic cars are almost completely mechanical and represent a return to simplicity. Classic cars are not as mobile as art but the market is certainly global.