INVESTING IN CLASSIC CARS

The Rationale

It is now widely recognised that classic cars have outperformed other asset classes over the last thirty years, with returns exceeding those of the Dow Jones, the S&P 500, gold, wine and other commodities by a significant margin.

This trend has accelerated over the last fifteen years in particular, with a low to negative correlation to other asset classes, as shown by the near-stability of classic car prices during the 2008 global financial crisis.

Classic cars therefore offer a rare, if not unique, opportunity to diversify a portfolio into tangible assets that are not prone to the volatility of mainstream asset classes, while still offering significant return prospects. Supported by strong underlying macroeconomic factors, this now global market will continue to expand. Furthermore, there can be no new supply of classic cars: their scarcity increases mechanically over time, which reinforces the low probability of a fall in prices.

The Silverstone Model

A few investment funds already exist, all based on “blue chip” classic cars, i.e. cars whose average value exceeds half a million euros and often passes the million mark. Our model is different: we target an intermediate class of cars valued between €50k and €150k. This allows a much more flexible investment approach, thanks to the wider availability of intermediate-value cars on the market, better liquidity and even lower volatility, with prices set by hundreds of transactions rather than by rare, infrequent sales, mostly at auction.

Our Investment Targets

Based on extensive market knowledge and price monitoring, we target a carefully selected list of makes and models to build our portfolio. Within a small group of manufacturers, mostly Porsche, Mercedes-Benz and Ferrari, we invest in specific variants of well-known models that either have a proven track record of price appreciation (e.g. air-cooled Porsche 911s) or carry a slightly more speculative element (e.g. Porsche 996 Turbos).

We also diversify the portfolio across a long period of time, from oldtimers (e.g. the 1958 Mercedes-Benz 190 SL or the 1964 Porsche 356 SC) to more recent youngtimers (e.g. the 1995 Porsche 993 or the 2002 Ferrari 575). What they all have in common: pristine condition, best of their breed, with a documented history and maintenance records.

The Cherry on the Cake

Not only do we offer the prospect of higher-than-average returns in an asset class far more exciting and passionate than government bonds, but the real treat is the opportunity to actually drive your assets. The cars are stored in central Paris and are available for our investors to take out for a weekend on the beautiful roads of the French countryside, or to add a memorable, classy touch to a special occasion such as a wedding or a family gathering.