Classic Car Collection: A Question Of Governance!

Classic Car Collection: A Question Of Governance!

- Pierre-Yves Augsburger

In this recent contribution, we will not dedicate any time towards examining the classic car market and elaborating about the evolution of prices, but rather focus on the governance aspect of owning classic cars.

In fact, a proper due diligence and risk mitigation/ management is not merely necessary at the time of each acquisition but further critical on an ongoing basis when structuring and managing a collection of classic cars.

As known to most readers, the price surge in classic and exclusive sports cars have been massive over the last 10 years, as quantified by key classic car indices showing increases above 400% over the course of a time period which is considered relatively short when taking into account the typical time horizon for the preservation and growth of HNWI’s wealth. Such an extraordinary price appreciation has largely affected the concept and practicalities of classic car investments.

A passion investment…

Indeed, for illustrative purposes let’s consider a classic car collection initiated in the late 90’s or early ‘00s at a worth of one million Euros at that time. In today’s environment, the same collection could easily be worth tens of millions.