Knight Frank Luxury Investment Index, but Collectors Are Still Spending Big for the Best Machines

RESIDENTIAL RESEARCH CLASSIC CAR SPECIAL Luxury Investment Index Q1 2018 ART MOVES INTO FERRARI 250 GTO SETS LAND ROVER’S 70TH POLE POSITION NEW WORLD RECORD BIRTHDAY WEALTH REPORT UPDATE 2 LUXURY INVESTMENT INDEX Q1 2018 Art accelerates past wine to take the chequered investment flag Classic cars have dropped down the grid in the Knight Frank Luxury Investment Index, but collectors are still spending big for the best machines This time last year art was almost at who know what they are doing and exactly the back of the Knight Frank Luxury what they want.” Investment Index (KFLII), but 12 months Such buyers won’t pay over the odds later it has moved through the field to for cars that don’t have a great pedigree or overtake wine and claim first place with aren’t in the right condition, but they are growth of 21% to Q1 2018. still prepared to dig deep when they find a Salvator Mundi, a work by the Old car they really want to buy. Master Leonardo da Vinci, turbo charged Auctioneer Bonhams is hoping that the headlines when it was sold for a will be the case when it puts an extremely staggering $450m last year, but paintings rare lightweight 1961 Aston Martin DB4GT by less well-known artists have also been notching up multi-million dollar Zagato (see front cover) under the hammer results, says Sebastian Duthy, of Art at the Goodwood Festival of Speed in July. Market Research. No guide price has been released for the “Prices for works by Impressionists and car, which was raced by F1 legend Jim post-war artists have dominated auction Clark, but Bonhams expects it to break sales for the past two decades. But this the £10m barrier, making it the most Once again we have a new leader at picture has been changing, with works by expensive car to be auctioned in the UK. the top of the Knight Frank Luxury some contemporary artists appreciating The Aston was famously involved in Investment Index. Wine has been rapidly in the last few years. a crash with a Ferrari 250 GTO and 250 relegated to second place with “In March, artist Mark Bradford hit the GT SWB at Le Mans in 1962. Only 39 art now some way in front. The headlines when his painting ‘Helter Skelter 250 GTOs were ever made and the US I’ was sold by ex-tennis star John McEnroe performance of cars, meanwhile, floor-mat magnate David MacNeil has just for a record $10.4m at Phillips in London. has been relatively sluggish. That, paid a reported $70m for a well-known In May, rapper Sean Combs, aka P Diddy, however, hasn’t dampened the 1963 model. paid $21.1m at Sotheby’s for a painting by appetite of genuine collectors for If accurate, it makes the Ferrari, known the most desirable vehicles. artist Kerry James Marshall. The figure represents an 800-fold increase on the by its chassis number 4153 GT, in all Several marques and models are $25,000 paid for the same work in 1997.” probability the most expensive car to sell celebrating milestone birthdays The Knight Frank Fine Wine Icons ever. Such is the car’s pedigree – as well this year. Porsche and Land Rover Index, compiled for us by Wine Owners, as winning the Tour de France it finished are both 70, while the iconic recorded overall growth of 9% over the overall fourth at Le Mans – an entire Ferrari 365 GTB/4 – better known same period, but the various sectors of the book has been written about its history. as the Daytona – is 50. To help market are running at different speeds, Ownership also provides entry to exclusive celebrate we’ve included the says Nick Martin of Wine Owners. “The events held solely for 250 GTO owners. prices of some classic Porsche very top of the Burgundy market is on fire, Access to such rarefied events is a big models on page 4, while I take with growth of between 20% and 70%, but driver for specific segments of the market, a trip to the Jaguar Land Rover Bordeaux is more of a mixed bag.” points out Mr Hatlapa. “We’ve seen very Classic Works on page 5. Classic cars, meanwhile, have shown strong prices paid for cars that are eligible negative growth over a 12-month period for I hope you enjoy reading this report for the legendary Monaco Historic Grand the first time since the creation of KFLII. as much as I enjoy writing it. Prix, which is open only to cars that raced The value of the HAGI Top Index that we there in period,” he explains. Please get in touch if you have use to track the market slid by 1%. This any comments. sharp deceleration from the double-digit A Mclaren-Cosworth car driven to growth of recent years is largely because victory at the 1993 Monaco Grand Prix by ANDREW SHIRLEY speculative investors have left the market, Ayrton Senna was the star of Bonhams’ The Wealth Report Editor says HAGI’s Dietrich Hatlapa. recent auction at Monaco where it was “The most active buyers are the really brought by former F1 supremo Bernie knowledgeable collectors and enthusiasts Ecclestone for €4.2m (about $5m). WEALTH REPORT UPDATE 3 LUXURY INVESTMENT INDEX Q1 2018 Luxury investment performance versus other asset classes (to Q1 2018) 10-year asset price volatility Most FTSE 100 PCL* KFLII CARS GOLD volatile 25 500 £ 20 400 15 £ 300 10 £ £ £ £ 200 £ % Volatility 5 £ £ £ £ £ Index (Q1 2008=100) (Q1 Index 100 0 £ £ Least volatile Art PCL Cars 0 Gold Wine KFLII Coins Stamps Chinese Watches Coloured ceramics FTSE 100 FTSE Furniture 08 09 10 11 12 13 14 15 16 17 18 Jewellery Diamonds *Knight Frank Prime Central London Residential Index Based on annual price points Source: Knight Frank Research Source: Knight Frank Research KFLII performance by asset class (to Q1 2018*) COLOURED STAMPS JEWELLERY COINS WATCHES KFLII WINE ART CHINESE CARS ANTIQUE DIAMONDS CERAMICS FURNITURE 1% 4% 4% 5% 6% 9% 21% -1% 0% 12 MONTHS -2% -1% COLOURED STAMPS WATCHES ART KFLII JEWELLERY COINS WINE CARS DIAMONDS 5 YEARS CHINESE 11% 23% 29% 40% 41% 50% 58% 91% ANTIQUE CERAMICS 9% FURNITURE -12% -20% CHINESE ART WATCHES COLOURED STAMPS KFLII JEWELLERY WINE COINS CARS ANTIQUE DIAMONDS 10 YEARS CERAMICS FURNITURE 55% 69% 103% 108% 138% 174% 182% 288% -4% 77% -32% *Chinese ceramics, coins, stamps, furniture, watches and jewellery to Q4 2017 Source: Knight Frank Research, Art Market Research, HAGI, Wine Owners, Fancy Color Research Foundation, Stanley Gibbons 4 WEALTH REPORT UPDATE LUXURY INVESTMENT INDEX Q1 2018 Under the bonnet With the help of HAGI we look at the nuts and bolts of the classic car market Top marques Endurance race Number of cars sold at auction for over $5m* Five-year price change by era* 1950/60s 225% 4 1970s 4 7 200% OTHERS 3 MERCEDES-BENZ 1990s BUGATTI 3 7 60% 1980s 210 % FERRARI PORSCHE 40% ALFA ROMEO 3 190% Pre-war OTHERS MCLAREN 2 AC/SHELBY 110% Modern rare 2 JAGUAR 9 supercars ASTON MARTIN 1 200% 11 FORD 11 BENTLEY * Based on representative models 4 9 7 4 DUESENBERG with sub 1,000 production ROLLS ROYCE OTHERS TALBOT LAGO Source: HAGI DELAHAYE HORCH Porsche Source: HAGI *Prices converted to US$ at exchange rate prevailing at time of sale at 70 PodiumFERRARI finish Average price of PORSCHE Annual price change by marque (12 months to April 2018) MERCEDES-BENZ iconic models* $400,000 $40,0000 1958 356 A Speedster 1958 356+5.4 A Speedster% % $3,500,000 $350,0000 -3.7 1955 550 Spyder 1955 550 Spyder $600,000 $600,000 1973 Carrera 2.7 RS Touring 1973 Carrera 2.7 RS Touring $1,100,000 $1,100,000 1989 type 959 1989 typeFERRARI 959 $250,000 MERCEDES-BENZ 1992 type 911/964 RS PORSCHE $250,000 Source: HAGI 1992 type 911/964 RS $800,000 2004 Carrera GT $800,000 Chequered flag 2004 Carrera GT $1,500,000 2013 type 918 Spyder Top-priced model sold at auction from$1,500,000 10 of the key collectors’ marques* 2013 type 918 Spyder +16% +1.6% -0.1% Source: HAGI * prices can fluctuate significantly depending on condition, mileage, delivery specs, provenance & originality Aston Martin FERRARI Bugatti $22.5m McLaren DBR1 (1956) $10.4mPORSCHE $15.6mMERCEDES-BENZ Type 55 Roadster (1931) F1 (1995) Ferrari Porsche Jaguar $38.1m $10.1m $21.8m 250 GTO (1962) D-Type (1955) 956 Le Mans winner (1982) AC/Shelby $13.8m Mercedes-Benz Cobra 260 (1962) Bentley $29.5m W 196 Grand $7.9m Alfa Romeo Prix (1953) $19.8m 4.5 litre Blower Birkin (1929) 8C 2900B Lungo Spider Ford (1939) $11.0m Source: HAGI GT 40 (1968) *Prices converted to US dollars at exchange rate prevailing at time of sale Aston Martin $22.5m Bugatti McLaren $10.4m $15.6m DBR1 (1956) Type 55 Roadster F1 (1995) (1931) Ferrari $38.1m Porsche Jaguar $10.1m £21.8m 250 GTO (1962) D-Type (1955) 956 Le Mans winner (1982) AC/Shelby £13.8m Mercedes-Benz Cobra 260 (1962) Bentley £29.5m W 196 Grand £7.9m Alfa Romeo Prix (1953) $19.8m 4.5 litre Blower Birkin (1929) Ford 8C 2900B Lungo Spider £11.0m (1939) GT 40 (1968) Aston Martin $22.5m DBR1 (1956) Bugatti McLaren $10.4m $15.6m Type 55 Roadster F1 (1995) Ferrari (1931) $38.1m Porsche Jaguar 250 GTO (1962) $10.1m £21.8m D-Type (1955) 956 Le Mans winner (1982) AC/Shelby £13.8m Mercedes-Benz Cobra 260 (1962) Bentley £29.5m W 196 Grand £7.9m Alfa Romeo Prix (1953) $19.8m 4.5 litre Blower Birkin (1929) Ford 8C 2900B Lungo Spider £11.0m (1939) GT 40 (1968) 5 WEALTH REPORT UPDATE LUXURY INVESTMENT INDEX Q1 2018 Something old, something new… Andrew Shirley pays a visit to Jaguar Land Rover’s Classic Works near Coventry to say happy 70th birthday to the world’s most iconic off-roader and meet some other amazing classics V8 is speed-limited to 106 miles an hour.

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