ID: 336  \nPath: /Sample Content/Documents/classic-car-2016-3857.pdf  \nclassic-car-2016-3857.pdf RESIDENTIAL RESEARCH CLASSIC CAR SPECIAL Luxury Investment Index 2016 FERRARI SETS NEW AUCTION RECORD CLASSIC CAR PERFORMANCE FOCUS BUILDING CLASSIC CAR COLLECTION WEALTH REPORT UPDATE LUXURY INVESTMENT INDEX 2016 Quality takes centre stage luxury markets let off steam Classic cars set new records auction but buyers are becoming more discerning the asset classes include the Knight Luxury Investment Index (KFLII) classic cars arguably capture the imagination more than anything else. Not only has their performance terms price over past decade been staggering but thrill owning such visceral and often historic vehicles hard beat. I’m therefore delighted that this edition KFLII focuses these amazing machines including host fascinating facts and figures from our data partner HAGI. hope you enjoy reading much did writing and researching it. ANDREW SHIRLEY The Wealth Report Editor Classic cars were once again top performing luxury asset annual basis (see graphic page according latest figures from Knight Frank Luxury Investment Index (KFLII). While overall value KFLII increased just months end March 2016 lowest annual increase since first quarter 2010 outperformed with 17% surge. Fine wine saw second strongest growth with rare coins third position rising 6%. The Bordeaux market bouncing back strongly after falling sharply between 2012 2014 while north Italian wines are continuing enjoy annual double-digit growth explains Nick Martin Wine Owners which compiles Knight Frank Fine Wine Icons Index. Coins remain strong demand investment asset says Keith Heddle Stanley Gibbons. rare 1933 Pattern Penny smashed world auction record for copper bronze coin when went under hammer with Baldwins for £72 000 May while 1839 Queen Victoria proof set sold for £504 000 double previous record last September. Art furniture were biggest losers dropping respectively. “We are seeing natural correction rates growth weren’t sustainable says Viola Raikhel-Bolot art advisor 1858 Ltd. “However stellar prices still being paid really important works art fresh market she adds. Recent figures suggest that classic car market has also decelerated over shorter term despite seeing highest price sterling euro terms ever achieved car sold auction. Since beginning year HAGI Top which tracks value world’s most desirable motor has risen just 1%. “May was first month ever when index didn’t move all says HAGI founder Dietrich Hatlapa. “The been treading water since end 2015 adds. But Hatlapa talk “bursting bubbles” premature. “This more about that gone quiet. Good still selling very well but buyers less hurry perception they now have time track down what they want via dealer rather than getting into bidding war auction.” This evidenced some recent relatively lacklustre auctions Monaco where many remained unsold after failing meet their low estimates. James Group Motoring Director auctioneer Bonhams not surprised year ago said was letting off steam motor had become very fashionable acquire could bought every weekend year. “We still have many collectors wanting buy these examples they naturally want feel they’re paying fair price. They will find new homes they’re priced accordingly perhaps down 20% from highs couple years ago. Only ‘best-inclass’ examples will knock door previous high levels.” there was interest bidders willing pay over £3m Jaguar C-Type original condition auctioned Monaco May 2016. The car sold £5.75m. However standout sale year our cover star gorgeous 1957 Ferrari 335 Scaglietti which fetched €32.1m (£24.7m) when Paris Artcurial Retromobile Salon event this February. Hatlapa car’s virtues explain why Ferraris dominate rankings rarefied group only about total have equivalent £5m (see graphic page 4). “Ferrari produced hand-made very small series always had strong competition pedigree.” But you don’t need big cat prancing stallion bonnet achieve eye-watering prices. same Artcurial sale rare Citroen Sahara fetched almost €192 000 way its high estimate €90 000. WEALTH REPORT UPDATE LUXURY INVESTMENT INDEX KFLII performance versus other classes (to 2016) FTSE 100 PCL* CARS 10-year price volatility GOLD Most volatile 600 Volatility 400 300 200 100 *Knight Frank Prime Central London Residential Source Research Gold FTSE Cars Stamps Art Wine Coins PCL* Coloured Diamonds Jewellery Chinese ceramics Watches Furniture (Q1 2006=100) 500 Based points Source Research YEARS YEARS MONTHS performance class (to 2016*) ANTIQUE FURNITURE -6% ART -5% CHINESE ANTIQUE CERAMICS FURNITURE 12% -22% CHINESE CERAMICS -2% ART 16% COLOURED DIAMONDS STAMPS 21% CHINESE WATCHES COLOURED ANTIQUE CERAMICS 65% DIAMONDS FURNITURE 129% -30% COLOURED WATCHES DIAMONDS 32% 31% STAMPS JEWELLERY 133% 163% *Except data stamps coins updated annually. Coloured diamond data bi-annual until 2014. Source See back page details suppliers COINS WINE CARS WINE 32% 50% JEWELLERY 63% COINS 73% CARS COINS 195% 206% WINE STAMPS JEWELLERY WATCHES 189% ART 245% 17% 161% 467% Least volatile WEALTH REPORT UPDATE LUXURY INVESTMENT INDEX OTHERS MERCEDES-BENZ BUGATTI JAGUAR MCLAREN ALFA ROMEO Under bonnet ASTON MARTIN BENTLEY DUESENBERG FORD With help HAGI look nuts bolts classic PORSCHE Top marques Endurance race Number auction £5m (all time) Five-year change era* 300 1950/60s 300% 1970s 280% 250 OTHERS FERRARI 33% MERCEDES-BENZ BUGATTI JAGUAR MCLAREN ALFA ROMEO ASTON MARTIN BENTLEY DUESENBERG FORD PORSCHE OTHERS 150 ased representative models sub production Podium finish Buyers guide Affordable/ overlooked classics bracket Annual change marque (12 months May 2016) +3% +16% £500 Ferrari 365 GTC/4 (71-72) £500 Ferrari 365 GTC/4 (71-72) £1.0m £1.0m £1.0m Pegaso Z102 Pegaso Z102 Pegaso Z102 MERCEDES-BENZ 1951-1958 1951-1958 1951-1958 £250 Aston Martin DB2/4 (53-57) £150 Facel Vega 500 (54-62) Chequered flag 9.71 £100 Bristol 411 (69-76) £250 Aston Martin DB2/4 (53-57) £150 000PORSCHE Facel Vega 500 (54-62) (51-58) (51-58 FERRARI Modern supercars 200% Pre-war 110% 100 +11% 1990s 250% 1980s 220% 200 £100 Bristol 411 (69-76) 24.5% 5.62% Best selling model sold%at key collectors’ marques* £50 Jensen Interceptor (66-76) £50 Jensen Interceptor (66-76) £25 MGB Roadster (62-80) £25 MGB Roadster (62-80) MERCEDES £6.5mer (1982) 956 Zagato (1962) £1.0mDB4 Jaguar Alfa Rom £8.5might (1953) £5.9Prixm (1935) C-Type Lightwe Grand kin lower Bir 4.5 litre 1931 Duesenberg Model Mercedes-Benz £18.8m (1953) 196 Grand Prix Ford entley £7.0 1929 £5.1m 335 Sport (1957) (1998) Model (1931 £24.7m £8.8m £6.3m Romeo Prix McLaren Duesenber £10 £9.4m PORSCHE £10 winn 956 Mercedes-Benz SEC (81-91) Mercedes-Benz SEC (81-91) Aston £10 (81-91) PorschSEC (1929) 1998 McLaren (196 *Prices converted sterling exchange rate prevailing time sale Driving passion Record-breaking auctions may dominate headlines you don’t need spend millions build collection entrepreneur enthusiast Sean Nutley explains Andrew Shirley Classic investment potential come all shapes sizes collector Sean Nutley Cars left right 1982 Jaguar XJS Coupe 5.3 V12 1982 Series 88” Land Rover Station Wagon 1971 Lancia Fulvia Saloon 1.3S Andrew Shirley What inspired start collecting cars? Sean Nutley Cars blood. dad coachbuilder who younger used hand build new panels like Martins needed repairing brothers I’d spend hours watching him his workshop. That where love affair began really blossomed around years ago. Having just company bought modern XKR walked into Essex showroom Classics near where live. simply spellbound were gorgeous level restoration amazing. What your own collection? I’ve owned all sorts quite few I’ve sold. had Mark E-Type Roadster gorgeous 1954 XK120 time world’s fastest production top speed 140 mph I’ve got Rolls Royce 1976 Silver Shadow bought two Series Land Rovers. But favourite XJ12 Classics previous owner spent £150 restoring looks stunning. there anything regret buying? Not really. even managed make profit Renault after drunken karaoke session France. biggest regret actually not buying something. almost DB4 £90 2007 it’s one favourite mind even better than DB5 accountant told not invest cars. That same DB4 worth £300 today. driving experience stands out being really special? took dad out XK120 I’d it. belted A12 grinning ear ear. Like many his generation wasn’t emotional man later found out he’d told friend best experience his life. he’d loved own younger think explains motivation lot collectors owning something fell love growing up. What would your advice anybody thinking investing should even viewed investments? definitely made money buying selling been lucky enough turn hobby into bit business. also add diversity investment portfolio that’s reason done it. collect because love them. Definitely some research cherry pick think undervalued about become popular always buy something want drive will make happy. wouldn’t spend money couldn’t afford lose rely any increase value fund pension. Which recent times think going turn classics future? 348 hidden gem 220 should there F40. Ford reboot iconic Mans winning GT40 built between 2004 2006) also continue rise value. don’t need buy supercar Jaguars Mercedes late 1980s early 1990s demand Lancia Delta Integrales shooting up. Anything some kind heritage like Camper Vans any Italian built 1970s one piece got worth buying. would look early series Land Rovers now stopped making Defender. CEO Lumina Prime www.luminaprime8.co.uk GLOBAL BRIEFING For latest news views analysis world prime property visit KnightFrankblog.com/global-briefing Data digest (KFLII) tracks theoretical basket selected collectable classes using existing third-party indices (see below). Each class weighted reflect its relative importance within basket. third-party indices selected widely used media analysts track each class can take responsibility their accuracy independence methodological differences may affect like-for-like comparisons. index does take account any dealing storage management costs. Methodological differences could impact like-for-like comparisons. Research Andrew Shirley Wealth Report Editor +44 1234 720534 andrew.shirley#knightfrank.com Media Marketing Jamie Obertelli +44 7861 1104 jamie.obertelli#knightfrank.com change Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 105 115 129 151 166 173 164 166 178 193 201 211 217 226 241 256 263 276 291 289 12-month Five-year SOURCES 10-year Art AMRD Chinese ceramics AMRD Antique furniture AMRD 15% 23% 32% 28% 15% -2% -4% 16% 13% 10% 11% 13% 10% Jewellery AMRD Watches Owners Historic Automobile Group International (HAGI) 93% 92% 85% 68% 50% 45% 48% 61% 66% 63% 50% Stamps Stanley Gibbons Coins Stanley Gibbons Coloured diamonds Fancy Color Foundation Please contact andrew.shirley#knightfrank.com details each index 189% Front cover 1957 335 Sport Scaglietti Pierre Bardinon collection. Auctioned Artcurial Motor February €32.1m ©Artcurial Photographe Christian Contacts acknowledgements provides strategic advice consultancy services forecasting wide range clients worldwide including developers investors funding organisations corporate institutions public sector. All our clients recognise expert independent advice customised specific needs. www.historicautogroup.com Gibbons www.stanleygibbons.com Owners www.wineowners.com Fancy Color Foundation www.fcresearch.org AMRD www.artmarketresearch.com. AMRD tracks movement sculpture silver porcelain toys carpets clocks photography prints other collectibles. THE global perspective prime property RECENT MARKETLEADING RESEARCH PUBLICATIONS RESIDENTIAL RESEARCH 10th Edition Wealth Report part published annually March Frank. For details please www.knightfrank.com/wealthreport SKI PROPERTY 2015 ASSESSING CURRENT PROPERTY MARKET CONDITIONS THE FRENCH AND SWISS ALPS 2015 RESULTS FRENCH VS. 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