Are you less than satisfied with your investments at the Wall Street casino? Would you like to own a piece of history rather than a slip of paper? Do you yearn for an investment that has promise for a better financial future? If you answered in the affirmative, that investment vehicle could be a classic car in your portfolio.
Investing in mutual funds is quite common investment tool and not very exciting. Investing in classic cars is not a new phenomenon. But, there has been a recent move to combine the two into a classic car investment fund can be rewarding and exciting.
Feature articles in the Wall Street Journal on 20-October and again on 29-October tout the logic of investments in the “classics” be it guitars, watches, autographs, photography, motorcycles or automobiles.
Family Classic Cars in San Luis Capistrano, CA is inviting investors to buy a piece of their stable of collectable cars through the Family Classic Cars Fund. Currently, the fund line-up includes a 1958 Ferrari 250 GT, a 1956 Mercedes-Benz 300 SL Gullwing, and possibly a rare Packard. Investors will basically own a piece of each car in the fund and 50% of Family Classic Cars, the operating entity that services, restores and stores cars. See http://familyclassiccarsfund.com for a prospectus.
IGA Automobile LP is an investment group that is interested in purchasing $150 million worth of classic and exotic cars to gain a 15% ROA. It is possibly the first classic car fund that is poised for returns, rather than a passion for automobiles. Pink Floyd fans will recognize the name of Nick Mason. Nick was the drummer and has invested his significant earnings into classic cars. Mason is on an advisory board of Mason has competed in the Le Mans 24 Hours race five times. In his garage lurk the likes of Ferrari, Porsche 962, Bentley, Aston Martin, Jaguar, and Bugatti. The classic cars or ‘acquisition targets’ the investors are seeking are distinguished by racing or ownership histories, iconic cars with low series production. Some of the targets on the list are the Ferrari 250 GTO, Aston Martin DB4 Zagato, Ford GT40, McLaren F1, Shelby Daytona Coupe and the Porsche 918. See http://igafunds.com.
You can track the classic car market by checking with the Historic Automobile Group International, an independent investment research house and think tank with specialized expertise in the rare classic motorcar sector. The group has created benchmarks which track this alternative asset class accurately for the first time, using rigorous financial methodology usually associated with more traditional investments. The HAGI Top Index is published monthly on the Financial Times website at www.financialtimes.net.