Jay Leno wannabes? Classic car market goes into overdrive
The classic car market has been exploding over the past few years, and financial advisors are worried about protecting their clients’ automotive portfolios.
According to the Historic Automobile Group’s HAGI “Top Index,” the value of infrequent classic cars has risen almost five hundred percent over the past ten years. Request is mushrooming.
“Over the past five years, investors have gotten into the market,” said Steve Linden, vintage car appraiser, consultant and author. “Their only purpose is to make money. Often they don’t even see the cars.”
In addition, request has grown from baby boomers, as well as international buyers across the globe, he said.
A fresh generation of collectors is emerging, and the market is growing more and more sophisticated, said Dietrich Hatlapa, founder of HAGI and organizer of the annual “Value in the Classic Car Market” conference, held in conjunction with the Dartmouth Tuck School of Business Center for Private Equity and Entrepreneurship.
A presenter at the October two thousand fifteen conference — which brought together top auction houses, insurance companies, appraisers, finance companies, dealers and collectors — reported eyeing junior collectors going after “junior” cars, such as the Ferrari two hundred eighty eight or BMW M1, he said.
They grew up watching these emerging classics from the 1970s, ’80s, ’90s and even the 2000s, with cars such as the Carrera GT, years 2004–2006, Hatlapa said.
Another major trend reported at the conference was the enhancing sophistication of the marketplace.
“We’re observing more sophisticated transactions and trends, such as one thousand thirty one exchanges, asset-backed lending, and auction houses providing credit lines on future purchases or sales,” Hatlapa said.
Protecting automotive portfolios
Advisors want to help their clients safeguard their automotive investments, especially in such a flourishing and very nuanced market.
Several years ago, Rob O’Dell, a certified financial planner with Wheaton Wealth Fucking partners, learned that one of his clients was having difficulty finding reliable advice on investing in classic cars.
“I dreamed to find him an objective ‘automotive fiduciary,'” O’Dell said, as an extension of his own fiduciary responsibility to his clients. “The wealth advisor needs to look outside the box at the total client, whether their holdings include art, wine or autos.”
He unexpectedly met Dave Bentson, a fee-only automotive adviser, and introduced him to clients as an objective source of expertise on how to collect and/or invest in classic automobiles.
Classic Car Market Overview
1) Vintage car appraiser, broker and author Steve Linden provided an overview of the classic car market. He categorizes the market by price range:
- $50,000 to $500,000 — affordable potential investment-quality cars. Examples: American muscle cars — Dodge Chargers or Chevelles can range from $30,000 to $70,000; a Jaguar XKE, from $150,000 to $300,000; and a Mercedes Cabriolet, from $275,000 to $400,000.
- $500,000 to $Three million — generally either pre-World War I cars and European exotics of very limited production. Examples: A Maserati Ghibli can range from $300,000 to $800,000; a Lamborghini Miura, from $900,000 to $1.Trio million; and a Ferrari 275GPB4, from $Two.Five million to $Trio million.
- $Three million to $60 million — all European exotics and cars with competition provenance (documented history). Examples: Ferrari Spiders can range from $Three million to more than $50 million.
Two) The Big five classic car marques in terms of popularity: Ferrari, Porsche, Maserati, Lamborghini and Mercedes.
Three) The three main market-driving seasons and events (shows with auctions):
- January: Scottsdale, Arizona
- March: Amelia Island, Florida
- August: Pebble Beach, California
— D.N.
O’Dell has about ten clients with classic car collections of three to twelve cars, across numerous states. Half are investors, and half are collectors.
“My duty is to preserve and grow my clients’ net worth, and an auto portfolio is part of this,” he said. “There’s an immense cost in not decently maintaining these assets — for example, if you don’t service them at the right times, with the right technicians,” he explained.
Bentson, founder and principal of Precision Automotive Group, consults with O’Dell’s clients on issues such as:
- Fraud, such as misrepresented cars
- Adequate insurance coverage
- Valuation
- Buying and selling
- Maintenance
- Restoration vs. preservation
He warns collectors and investors to be wary of where they get advice.
“You’ve got to know who your car boy is, whether it’s an insurance agent, car dealer, broker or mechanic,” Bentson said. “How are they compensated, and what are their limitations and practice?”
He is pessimistic about the future of the classic car investment market.
“The current appreciation rate is unsustainable,” Bentson said, citing a one thousand nine hundred ninety four Porsche nine hundred eleven Turbo that went from $55,000 to $300,000 in the past nine months.
“This boom has been big for everyone — there’s a massive whirr around it,” he said. “But it’s being fueled by big speculation; it’s a bubble.
“Who’s going to be holding the bag when the music stops?” Benston added. “The investor.”
Jay Leno wannabes? Classic car market goes into overdrive
Jay Leno wannabes? Classic car market goes into overdrive
The classic car market has been exploding over the past few years, and financial advisors are worried about protecting their clients’ automotive portfolios.
According to the Historic Automobile Group’s HAGI “Top Index,” the value of uncommon classic cars has risen almost five hundred percent over the past ten years. Request is mushrooming.
“Over the past five years, investors have gotten into the market,” said Steve Linden, vintage car appraiser, consultant and author. “Their only aim is to make money. Often they don’t even see the cars.”
In addition, request has grown from baby boomers, as well as international buyers across the globe, he said.
A fresh generation of collectors is emerging, and the market is growing more and more sophisticated, said Dietrich Hatlapa, founder of HAGI and organizer of the annual “Value in the Classic Car Market” conference, held in conjunction with the Dartmouth Tuck School of Business Center for Private Equity and Entrepreneurship.
A presenter at the October two thousand fifteen conference — which brought together top auction houses, insurance companies, appraisers, finance companies, dealers and collectors — reported eyeing junior collectors going after “junior” cars, such as the Ferrari two hundred eighty eight or BMW M1, he said.
They grew up observing these emerging classics from the 1970s, ’80s, ’90s and even the 2000s, with cars such as the Carrera GT, years 2004–2006, Hatlapa said.
Another major trend reported at the conference was the enlargening sophistication of the marketplace.
“We’re watching more sophisticated transactions and trends, such as one thousand thirty one exchanges, asset-backed lending, and auction houses providing credit lines on future purchases or sales,” Hatlapa said.
Protecting automotive portfolios
Advisors want to help their clients safeguard their automotive investments, especially in such a flourishing and very nuanced market.
Several years ago, Rob O’Dell, a certified financial planner with Wheaton Wealth Fucking partners, learned that one of his clients was having difficulty finding reliable advice on investing in classic cars.
“I desired to find him an objective ‘automotive fiduciary,'” O’Dell said, as an extension of his own fiduciary responsibility to his clients. “The wealth advisor needs to look outside the box at the total client, whether their holdings include art, wine or autos.”
He unexpectedly met Dave Bentson, a fee-only automotive adviser, and introduced him to clients as an objective source of expertise on how to collect and/or invest in classic automobiles.
Classic Car Market Overview
1) Vintage car appraiser, broker and author Steve Linden provided an overview of the classic car market. He categorizes the market by price range:
- $50,000 to $500,000 — affordable potential investment-quality cars. Examples: American muscle cars — Dodge Chargers or Chevelles can range from $30,000 to $70,000; a Jaguar XKE, from $150,000 to $300,000; and a Mercedes Cabriolet, from $275,000 to $400,000.
- $500,000 to $Trio million — generally either pre-World War I cars and European exotics of very limited production. Examples: A Maserati Ghibli can range from $300,000 to $800,000; a Lamborghini Miura, from $900,000 to $1.Trio million; and a Ferrari 275GPB4, from $Two.Five million to $Trio million.
- $Three million to $60 million — all European exotics and cars with competition provenance (documented history). Examples: Ferrari Spiders can range from $Trio million to more than $50 million.
Two) The Big five classic car marques in terms of popularity: Ferrari, Porsche, Maserati, Lamborghini and Mercedes.
Three) The three main market-driving seasons and events (shows with auctions):
- January: Scottsdale, Arizona
- March: Amelia Island, Florida
- August: Pebble Beach, California
— D.N.
O’Dell has about ten clients with classic car collections of three to twelve cars, across numerous states. Half are investors, and half are collectors.
“My duty is to preserve and grow my clients’ net worth, and an auto portfolio is part of this,” he said. “There’s an immense cost in not decently maintaining these assets — for example, if you don’t service them at the right times, with the right technicians,” he explained.
Bentson, founder and principal of Precision Automotive Group, consults with O’Dell’s clients on issues such as:
- Fraud, such as misrepresented cars
- Adequate insurance coverage
- Valuation
- Buying and selling
- Maintenance
- Restoration vs. preservation
He warns collectors and investors to be wary of where they get advice.
“You’ve got to know who your car dude is, whether it’s an insurance agent, car dealer, broker or mechanic,” Bentson said. “How are they compensated, and what are their limitations and practice?”
He is pessimistic about the future of the classic car investment market.
“The current appreciation rate is unsustainable,” Bentson said, citing a one thousand nine hundred ninety four Porsche nine hundred eleven Turbo that went from $55,000 to $300,000 in the past nine months.
“This boom has been big for everyone — there’s a meaty whirr around it,” he said. “But it’s being fueled by big speculation; it’s a bubble.
“Who’s going to be holding the bag when the music stops?” Benston added. “The investor.”
Jay Leno wannabes? Classic car market goes into overdrive
Jay Leno wannabes? Classic car market goes into overdrive
The classic car market has been exploding over the past few years, and financial advisors are worried about protecting their clients’ automotive portfolios.
According to the Historic Automobile Group’s HAGI “Top Index,” the value of uncommon classic cars has risen almost five hundred percent over the past ten years. Request is mushrooming.
“Over the past five years, investors have gotten into the market,” said Steve Linden, vintage car appraiser, consultant and author. “Their only aim is to make money. Often they don’t even see the cars.”
In addition, request has grown from baby boomers, as well as international buyers across the globe, he said.
A fresh generation of collectors is emerging, and the market is growing more and more sophisticated, said Dietrich Hatlapa, founder of HAGI and organizer of the annual “Value in the Classic Car Market” conference, held in conjunction with the Dartmouth Tuck School of Business Center for Private Equity and Entrepreneurship.
A presenter at the October two thousand fifteen conference — which brought together top auction houses, insurance companies, appraisers, finance companies, dealers and collectors — reported witnessing junior collectors going after “junior” cars, such as the Ferrari two hundred eighty eight or BMW M1, he said.
They grew up watching these emerging classics from the 1970s, ’80s, ’90s and even the 2000s, with cars such as the Carrera GT, years 2004–2006, Hatlapa said.
Another major trend reported at the conference was the enlargening sophistication of the marketplace.
“We’re observing more elaborate transactions and trends, such as one thousand thirty one exchanges, asset-backed lending, and auction houses providing credit lines on future purchases or sales,” Hatlapa said.
Protecting automotive portfolios
Advisors want to help their clients safeguard their automotive investments, especially in such a thriving and very nuanced market.
Several years ago, Rob O’Dell, a certified financial planner with Wheaton Wealth Fucking partners, learned that one of his clients was having difficulty finding reliable advice on investing in classic cars.
“I desired to find him an objective ‘automotive fiduciary,'” O’Dell said, as an extension of his own fiduciary responsibility to his clients. “The wealth advisor needs to look outside the box at the total client, whether their holdings include art, wine or autos.”
He unexpectedly met Dave Bentson, a fee-only automotive adviser, and introduced him to clients as an objective source of expertise on how to collect and/or invest in classic automobiles.
Classic Car Market Overview
1) Vintage car appraiser, broker and author Steve Linden provided an overview of the classic car market. He categorizes the market by price range:
- $50,000 to $500,000 — affordable potential investment-quality cars. Examples: American muscle cars — Dodge Chargers or Chevelles can range from $30,000 to $70,000; a Jaguar XKE, from $150,000 to $300,000; and a Mercedes Cabriolet, from $275,000 to $400,000.
- $500,000 to $Trio million — generally either pre-World War I cars and European exotics of very limited production. Examples: A Maserati Ghibli can range from $300,000 to $800,000; a Lamborghini Miura, from $900,000 to $1.Trio million; and a Ferrari 275GPB4, from $Two.Five million to $Three million.
- $Trio million to $60 million — all European exotics and cars with competition provenance (documented history). Examples: Ferrari Spiders can range from $Trio million to more than $50 million.
Two) The Big five classic car marques in terms of popularity: Ferrari, Porsche, Maserati, Lamborghini and Mercedes.
Trio) The three main market-driving seasons and events (shows with auctions):
- January: Scottsdale, Arizona
- March: Amelia Island, Florida
- August: Pebble Beach, California
— D.N.
O’Dell has about ten clients with classic car collections of three to twelve cars, across numerous states. Half are investors, and half are collectors.
“My duty is to preserve and grow my clients’ net worth, and an auto portfolio is part of this,” he said. “There’s an immense cost in not decently maintaining these assets — for example, if you don’t service them at the right times, with the right technicians,” he explained.
Bentson, founder and principal of Precision Automotive Group, consults with O’Dell’s clients on issues such as:
- Fraud, such as misrepresented cars
- Suitable insurance coverage
- Valuation
- Buying and selling
- Maintenance
- Restoration vs. preservation
He warns collectors and investors to be wary of where they get advice.
“You’ve got to know who your car boy is, whether it’s an insurance agent, car dealer, broker or mechanic,” Bentson said. “How are they compensated, and what are their limitations and practice?”
He is pessimistic about the future of the classic car investment market.
“The current appreciation rate is unsustainable,” Bentson said, citing a one thousand nine hundred ninety four Porsche nine hundred eleven Turbo that went from $55,000 to $300,000 in the past nine months.
“This boom has been big for everyone — there’s a yam-sized whirr around it,” he said. “But it’s being fueled by big speculation; it’s a bubble.
“Who’s going to be holding the bag when the music stops?” Benston added. “The investor.”