THE ENJOYMENT OF CLASSIC CARS –TODAY’S INVESTMENT OPPORTUNITY

From a very young age my late brother Julian P. Zammit and I were drawn to the love of cars by my late father Francis. Before we were old enough to have a driving license our courageous Dad had no issues in entrusting us to drive his pride and joy… a 1962 V8 Rolls Royce Silver Cloud 2, which he had bought from HR Owen in Sloan Square, London in June 1969. At the time, when traffic and road rage was non-existent, we enjoyed manoeuvring this car in open grounds at Ta’ Qali on Sunday morning’s when Julian was only 9 and I was 12. Thankfully, the RR was automatic, had power steering and its front bench seat could be set for us to reach the brake and gas pedals. What was and still is so impressive is its long bonnet and unique mascot that defines the Flying Lady – The Spirit of Ecstasy.

As young boys, we bought numerous Classic and Thoroughbred Car Magazines. We shared many dreams together of one day owning a few collectable classics. I used to flick through the pages, photos, marques and was always especially keen to monitor prices. My brother on the other hand would read each magazine cover to cover with no exception. Julian had an elephant memory and was like a walking encyclopaedia went it came to cars and most other things. My Dad bought my first car, a 1963 Facel Vega 111 convertible, when I was only 17. When Julian turned 17 my Dad bought him his dream car… a 6.3L V8 Jensen Interceptor. At the time Malta only allowed the importation 2 Litre cars yet Julian was determined to own one. We eventually had to sell it. Its 5 TRO number alone would cost a fortune today. Thankfully, I still own my Facel.

Over the years and especially during the past decade interest in Classic Cars has grown tremendously. Naturally, this enthusiasm has been fueled by the rise in the number of aficionados and collectors. Furthermore, more and more have realizing that historic and classic cars can be a viable asset. Such popularity is totally evident by the extraordinary prices being reached at caliber car auctions.

The glorious Ferrari 250 GTO, of which only 39 were produced between 1962 and 1964, was in the early 70s selling for over its purchase price of $18,000 according to Hagerty’s Brian Rabold. In 2002 the Ferrari 250 GTO built for Sir Stirling Moss was sold for $8.5 million. In 2014 the desirable 1962 Ferrari 250 GTO Berlinetta sold for a record price of $38 Million. This year at RM Sotheby’s annual collector car sale in Monterey, California the Ferrari 250 GTO set a new world record of $48.4 million, this being the highest price ever achieved at such car auctions. Another batch of 25 cars that included Lamborghinis and Ferraris went for $67 million, the most ever paid for a single car collection.

There are many investment opportunities available in the middle segment of the classic car market too, these cars are both more affordable and useable and are known as modern classics. Cars such as the Porsche 928, Mercedes 107 SL and Volvo P1800 have seen tremendous gains at auction recently and the trend is set to continue. There is a caveat to all this however as the market demands excellent examples with good history and provenance, only cars fitting this criteria will be solid future investments. The best part of course is that these cars are so useable, and as investments can be enjoyed and driven by enthusiasts regularly.

The appreciation in the value of classic cars has by far surpassed the more traditional investment such as property, equity, art, antiques, coins and wine. These have notched considerable gains according to the Knight Frank Luxury Investment Index, however these other acquisitions are still miles apart when compared to classic cars. For example, in 2017 wine offered investors a three per cent return over 12 months. Watches, four per cent. Coins, ten per cent. Classic cars 28 per cent.

As an automobile enthusiast, it gives me immense pleasure to see that the Maltese and Gozitan people have taken up this hobby seriously. Collecting cars is extremely rewarding in several ways. Firstly, cars make a great talking point. One makes numerous friends across the globe who share the same passion. Whether one drives these classic cars regularly, or even admire them whilst hibernating in a garage, the pleasure for me is almost equal. Yes, from time to time they require restoration and the need to search for rare parts, etc., but even that challenge can be satisfying when the final acquisition is made. My hope is that my passion is instilled to my son and daughter’s children.

For those interested in such classic cars as a hobby or even in becoming a potential investor, you can call me or one of my business partners Marcus Harrison and Mario Said. Together we have set up an operation called Connoisseur Classics. Both Marcus and Mario are extremely passionate about classic cars and Marcus is very well known for the pristine condition cars he regularly presents at the more important events here in Malta. If you are seriously looking at acquiring such cars, we can assist you in acquiring your first or next classic.

We will only recommend cars which have a full-service history and have been inspected thoroughly by us. Most of the time enthusiasts get carried away with their heart rather than their head and this is where we come in to guide you through the steps. In my opinion, not taking action or delaying in acquiring the next classic will only see the price go up once again.

For further information or a casual chat feel free to contact Connoisseur Classics and choose to speak to Gerald on 7949 8413, Marcus on 9977 0876 or Mario on 9949 2639.

GERALD J ZAMMIT CONNOISSEUR CLASSICS

Sea View Villa

Bahar ic-Caghaq

MLS ID: 301613

One of a kind ‘Beverley Hills style’ Villa perched on high ground. The designer crafted internal accomodation is spread over two floors, surrounded by landscaped gardens and lawns. Impressive swimming pool with deck and outdoor lounge areas enjoying sea and county views make this a unique home that is both a private retreat and a public statement.

680 sqm interior

1,754 sqm exterior

Seven bedrooms

Six bathrooms

Independent flat-let

Photovoltaic panels

Private drive with car port

Available for sale

Guide Price

Price on Request

Contact Ian Pace +356 9910 8079 ian.pace@sir.com.mt

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MLS ID: 201679

In the heart of the city is this beautifully restored House of Character offering some of the most magnificent views of the South side of the Grand Harbour. Charming indoor accommodation coupled with outdoor entertaining space that make the most of those spectacular vistas. The potential to extend upwards makes this home an excellent investment.

90 sqm interior

70 sqm exterior

Two bedrooms

Two bathrooms

Ownership of airspace

Available for sale

Guide Price

€475,000

Contact Michel Le Brun +356 9914 0514 michel.lebrun@sir.com.mt

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MLS ID: 201302

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300 sqm footprint

Three bedrooms

Three bathrooms

Bespoke kitchen and bathrooms

Private terrace with sea views

Available for sale

Guide Price

€1,650,000

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