Collectible cars for pleasure or investment
Business Daily - October 5, 2018
There are cars that look cinematic. They are historic, antique, classic and even rare. They ooze elegance, like a glass of Château Lafite 1797 that soothes the soul. But how do you differentiate antiques from classics and vintage cars?
The legendary Speed Six Bentley known as The Blue Train.
Julius Kruta, the head of tradition at Bugatti, a French car manufacturer, explains that the word classic and vintage have been overstretched and used inappropriately. ‘‘Not every old car is a thoroughbred. For cultural development of a nation, then you can describe car like Renault 5 as being historic to France but that’s not a vintage car. They were mass produced. It isn't limited or extraordinary or special,” he said in an interview.
“A car without a story, history or a reputation isn’t extraordinary. It is haute couture, a car of rarity or specially built. For example, Bugatti only built 8,000 cars in 30 years. Also, human beings love competition, therefore the most sought out brands have been known for racing and for speed such as Lamborghini and Ferrari, hence their reputation,” says Mr Kruta.
“Antique is a phrase used largely to describe any old car. But by a more strict definition, a veteran car was made before 1918, a vintage car was made between World War I and World War II while a classic car is any collectable car aged more than 30 years old,” says Poppy McKenzie Smith, a motoring press officer at Bonham’s, one of UK's auction houses that holds sales of classic motor cars, motorcycles and related memorabilia.
The most sought-after cars at auctions include a Ferrari 250 GTO which is considered to be one of the rarest and desirable cars, as only 39 were ever made. In 2014, Bonham’s auctioned one of these Ferraris at a world record-breaking Sh3.8 billion.
Other sought-after cars include Lightweight Jaguar E-Types, Blower Bentleys and Aston Martin DB4GT Zagatos. Different aspects are taken into consideration during the valuation of these cars to arrive at the price.
It depends on the rarity of the model, the desirability of the marque, its condition and its history. History of entering in certain races and special ownership can add value to a car. If it has been raced in a race such as the 24 Hours of Le Mans by a celebrated racing driver, it adds considerable value.
Celebrity ownership or a very long-term single-family ownership is important too. There are several famous collectors like the Sultan of Brunei whose collection has been speculated between 3,000 and 6,000 cars.
American rapper Wyclef Jean’s collection includes a Rolls-Royce Phantom and a Bentley Arnage. American stand-up comedian Jerry Seinfeld loves Porsches so much that he owns more than 15 types, ranging from 1949 Porsche 356/2 to Porsche 959, which is one of 333 ever built. Renowned fashion designer, Ralph Lauren is known for his rare and designer collections of cars. These include: McLaren F1, 1955 Jaguar XKD, 1958 Ferrari 250 Testa Rossa, 1938 Alfa Romeo 8C2900 Mille Miglia and a 1937 Mercedes Benz Count Trossi SSK.
African collectors
The US, the UK, France and Germany are the top three leading global countries for collectors. From Africa, there are some auction buyers from South Africa and Nigeria. Enthusiasts who collect cars or intend on collecting cars can attend global events, museums or join clubs where they engage and interact with the other enthusiasts and specialists.
For instance, the Concours d'Elegance which has become a must-attend event in Kenya started years ago in France, where aristocrats paraded their horse-drawn carriages in the parks of Paris during summer weekends and holidays.
There are other events such as the Sotheby’s global auctions, Rallyes Classic Car, Chantilly Arts & Elegance (France), Porsche Classics at the Castle (UK).
Museums are also an option. The Musée national de l’automobile, in France, for instance, has 125 Bugattis. “These museums have a lot of history that show the story, romance, tragedy and pleasure. Ettore Bugatti the creator of Bugatti cars died two weeks before World War II started and his son Jean died after World War II. That is Bugatti’s tragedy,” says Mr Kruta.
The Porsche museum in Germany has more than 550 cars in its collection with about 80 of them being on display at the Porsche Museum in Stuttgart-Zuffenhausen.
For collectors and prospective, auctions are a good place to engage with the cars and the specialists and also learn how to collect cars.
“We have up to 20 auctions a year, but we have 18 that take place annually across the globe at the most exclusive and glamorous motoring events across the world. Some are at classic races such as our Monaco sale in May, and some take place on site at our flagship saleroom on Bond Street in London such as the London to Brighton Sale in November. They are all different and focus on different cars, but all have a wonderful and impressive selection of lots on offer ranging from veteran touring cars to F1 racing cars,” said McKenzie Smith of Bonham's, one of the largest brokers of collectibles.
The most-expensive cars sold in 2018 at public auction were a Ferrari 275 GTB Special, a Porsche 550A Spyder, a Ferrari 500 Mondial and three Bugattis: a Chiron, Type 55 Roadster and a Type 57C Atalante Coupé.