Simon Hunt, Co-Founder & CEO of Brego, a vehicle valuations and data company, highlights how luxury cars can be a high-powered investment too.
How Modern Luxury Cars are Outperforming Traditional Investments
Regular investments such as shares and bonds are usually the backbone of most investment plans. But now, there’s a new player gaining popularity — modern luxury cars. Brands like Ferrari and Lamborghini, as well as top-end luxury cars from Rolls-Royce and Bentley all have vehicles that have risen in value.
In recent years, data has shown that some models of modern luxury cars have been outperforming traditional investments, providing impressive returns and introducing an element of excitement and passion into the investment equation. This article aims to take you on a journey down the road to luxury, exploring how and why modern luxury cars have emerged as an attractive and rewarding alternative investments.
There are several cars that have risen in value from their initial release, we can take a look at some Brego valuations to see their return:
Porsche 911 Speedster
As one of the most iconic sports cars ever created, the Porsche 911 has been a symbol of luxury and performance for decades. The Speedster variant, introduced in 2019, carries a rich history dating back to 1954. Combining classic elements with modern technology, the 911 Speedster offers a visceral driving experience and has a limited production run, which adds to its exclusivity. Its sleek design, powerful flat-six engine, and open-top motoring make it an attractive investment option for car enthusiasts and collectors alike. The Porsche 911 Speedster started at a list price of £211,600 but retail around £320,000 – an increase of £110,000 in 4 years!
Combining classic elements with modern technology, the 911 Speedster offers a visceral driving experience and has a limited production run, which adds to its exclusivity
Ferrari 296 GTB/GTS
As with the majority of new Ferraris, the 296 has shot over list price (£245,000) with one being sold for £320,000 just a few weeks ago
Porsche 911 GT3
The GT3 has increased in value by £80,000 in the last two years, retailing now at £210,000 but this will likely start to decrease down to around £160,000 within the next 3 to 4 years
While you certainly wouldn’t want to dedicate an inordinately large proportion of your wealth to luxury cars, these and other such passion assets have posted some very strong returns figures over the years.
You can certainly seek outperformance through collectibles, you must always pay heed to proper diversification as part of risk management. If you would like to discuss the composition of your portfolio, simply take our short wealth manager matching questionnaire and you can meet a selection of expert advisors fast and free.
Ferrari 812 Superfast Competizione
While you need to be in Ferrari’s good books to be invited to buy these types of cars, the Competizione is the hard core, track focused version of the standard road car
While you need to be in Ferrari’s good books to be invited to buy these types of cars, the Competizione is the hard core, track focused version of the standard road car. Its appreciation in value however is truly impressive. If you were to buy this car new, it would cost £450,00 (not including options). One has recently sold for £1.9m with others listed in a similar region. This is fairly normal for the special edition Ferrari’s but most supercars the company makes of this type start at a much higher asking price – the 812 Superfast Competizione is one of ‘cheapest’ special edition cars they have made which makes it one of the most appreciating modern-day supercars.
There are several modern-day luxury cars that will appreciate in value – most often the appreciation comes at the very start, when supply is low but excited demand is high
Modern-day supercar investments are rare, and more often than not, these supercars depreciate or hover at a certain value. McLaren are known for their low residual values compared to their rivals, but cars like the 765LT and 675LT have held their value well – likely due to the models perceived build quality and low production numbers. While modern-day supercars that rise in value are the exception, it is possible to find cars that you can enjoy driving while they gain value with each mile – unless you’re planning on doing thousands of miles… in which case, the Porsche range is for you!
The investment strategy and financial planning explanations of this piece are for informational purposes only, may represent only one view, and are not intended in any way as financial or investment advice. Any comment on specific securities should not be interpreted as investment research or advice, solicitation or recommendations to buy or sell a particular security.
We always advise consultation with a professional before making any investment and financial planning decisions.
Always remember that investing involves risk and the value of investments may fall as well as rise. Past performance should not be seen as a guarantee of future returns.