Rolling back the years: The Silverstone Classic, held annually at the famous English circuit, and featuring many of the world's finest historic racing cars, holds its grand finale today. Darrell Ingham / Getty Images
Rolling back the years: The Silverstone Classic, held annually at the famous English circuit, and featuring many of the world's finest historic racing cars, holds its grand finale today. Darrell InghaShow more

For geared-up investors, classic cars are the new new



This year's Silverstone classic-car racing festival, which is the world's biggest and ends today, comes in the wake of a spectacularly successful year for the classic car market.

The investment research company the Historic Automobile Group International (Hagi) estimates the global market for classic cars priced at more than £100,000 (Dh564,928) is now worth more than £30 billion and growing.

Hagi says the global value of the classic car market grew by just under 28 per cent per cent in the year to the end of last month, increasing by 11.8 per cent in the past quarter alone on the previous quarter.

While the value of global equities has suffered, Hagi says the market for collectors' automobiles has continued to gain, driven by private treaty and auction sales for classic cars by makers such as Porsche, Ferrari, Mercedes-Benz and Bugatti, particularly old racing models.

This month, a Mercedes-Benz W196R became the most expensive car ever sold at auction, fetching US$26.45 million, representing a total price of $29.6m when auction charges and other costs are included.

The five-times Formula One World Champion Juan Manuel Fangio drove the car to victory in two F1 races, the 1954 German and Swiss Grand Prix.

Bonham's the auction house that sold the car, says the deal reflects a healthy and rising market.

"The classic car market is showing good performance across the market and across the globe," says Tim Schofield, the director of Bonham's UK cars department.

Modern transport also plays a part in the growth.

"The global market for cars is expanding, particularly as it now typically only costs a few thousand pounds to air-freight a car from one continent to another," says Mr Schofield.

According to Bonham's, classic car investment in the United States is even bigger than in Europe, with particular interest being shown in cars made before the Second World War such as pre-1940 Duesenbergs and so-called "muscle cars" powered by V8 engines such as Dodges and Corvettes.

"It is a good time for classic cars. In the 1989-90 recession we saw a decline in the trading of classic cars," says Parry Chana, a partner at the UK-based classic car restorer Hilton & Moss.

"But during this recession, classic cars have gone from strength to strength, outperforming equities and property, which was adversely affected by high interest rates."

However, for many classic car owners, the spectacular investment performance compared with other asset classes is secondary. Genuine enthusiasts want to use their vehicles to take part in international events such as Silverstone.

Mr Schofield cites a rare 1955 Maserati 300S that was sold at auction for £4m this month - almost double the previous record price for an example of the marque.

"A car like that almost automatically gives the owner an entry ticket into all the best automobile events on the globe," he says.

Vintage cars can also be surprisingly easy to value for those familiar with the market.

"For most vehicles, valuation can be very accurate," says Mr Schofield.

"For something totally unique, it can be a little more difficult; in that case, I would look at what condition it was in and what did its peers make."

Other factors potentially increasing the value of a rare car can include unique features, such as the left-hand drive on the Aston Martin DB5 that was driven by James Bond in the 1965 movie Goldfinger.

According to Bonham's, the car fetched an additional 15 to 20 per cent simply because it was left-hand drive.

Altogether, just over 1,000 of the model were ever built including 123 convertibles and estate cars.

So who would not be attracted by a solid investment that is outperforming equities and property and also represents an automatic passport to a glamorous and jet-setting lifestyle?

Unfortunately, the classic car market is fraught with pitfalls for the uninitiated. It should be remembered it is at heart simply a used car market populated with, albeit none-too-shady, used-car salesmen.

"Potential investors should be wary of companies they may not have heard of claiming to restore cars," says Mr Chana.

"An investor needs to be careful about buying a car that needs major works."

Mr Schofield believes potential investors should also bear in mind that classic cars can be expensive to run.

"A decrepit [Jaguar] E-Type, for example, would require a great deal of maintenance and any car will obviously need to be garaged."

Bonham's reports there is also a vast and growing internet-based market in classic cars - and that holds particular dangers for the unwary.

"Many enthusiasts believe that they can gain an advantage over the market by studying it online - this may not always be the case as everyone can have internet access," says Mr Schofield.

"In any case, they will still be buying a real car with all its wear and tear and faults."

The investment potential of classic cars also differs across the many various marques and models.

"There is a vast variety of classic cars. Classic cars range from Morris Minors to Maseratis," says Mr Schofield.

"But not everyone sells a car for £17.5m to £20m ... At the low end it is possible to buy an MGB GT for as little as £1,000 to £2,000."

However, the lower down the classic car market buyers go the more risky the investment. According to Hilton & Moss, it is necessary to spend between £250,000 and £500,000 on a car in order to purchase anything like a secure investment.

But for real enthusiasts such as those at Silverstone this weekend, the true attraction of these beautiful machines lies in getting behind the wheel.

"At the end of the day it should really be about getting from A to B in style," says Mr Schofield.

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UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

ARM%20IPO%20DETAILS
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If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.

When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.

How to get there: Emirates currently flies from Dubai to Orlando five times a week.
UAE currency: the story behind the money in your pockets
The specs

Engine: 2.0-litre 4-cyl, 48V hybrid

Transmission: eight-speed automatic

Power: 325bhp

Torque: 450Nm

Price: Dh289,000

COMPANY PROFILE

Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
Initial investment: Undisclosed 

Electoral College Victory

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Popular Vote Tally

The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.

COMPANY PROFILE
Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4
Citadel: Honey Bunny first episode

Directors: Raj & DK

Stars: Varun Dhawan, Samantha Ruth Prabhu, Kashvi Majmundar, Kay Kay Menon

Rating: 4/5

Porsche Macan T: The Specs

Engine: 2.0-litre 4-cyl turbo 

Power: 265hp from 5,000-6,500rpm 

Torque: 400Nm from 1,800-4,500rpm 

Transmission: 7-speed dual-clutch auto 

Speed: 0-100kph in 6.2sec 

Top speed: 232kph 

Fuel consumption: 10.7L/100km 

On sale: May or June 

Price: From Dh259,900  

UAE currency: the story behind the money in your pockets
Abu Dhabi GP schedule

Friday: First practice - 1pm; Second practice - 5pm

Saturday: Final practice - 2pm; Qualifying - 5pm

Sunday: Etihad Airways Abu Dhabi Grand Prix (55 laps) - 5.10pm

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Cinco in numbers

Dh3.7 million

The estimated cost of Victoria Swarovski’s gem-encrusted Michael Cinco wedding gown

46

The number, in kilograms, that Swarovski’s wedding gown weighed.

1,000

The hours it took to create Cinco’s vermillion petal gown, as seen in his atelier [note, is the one he’s playing with in the corner of a room]

50

How many looks Cinco has created in a new collection to celebrate Ballet Philippines’ 50th birthday

3,000

The hours needed to create the butterfly gown worn by Aishwarya Rai to the 2018 Cannes Film Festival.

1.1 million

The number of followers that Michael Cinco’s Instagram account has garnered.