Wine And Classic Cars On The Luxury List

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In the index of Knight Frank Luxury made available on Thursday, it was revealed that wine and classic cars have made an entrance to the chequered flag.

What the index does is to take note of the performance of 10 “investments of passion.” Looking at the trend, the 2 categories made 8% returns in the course of a year which ended by the middle of 2016, the latest trend indicates that the two are heading towards different directions.

While the investment in wine seems to be having a recovery that is buoyant, which was triggered by the decline in the enthusiasm that buyers have concerning Bordeaux while the growth experienced in classic cars is hitting major potholes that have not been witnessed in the last 5 years.

Sotheby, the auction house got a 98% increase in sale for the London wine that amounted to £1.47 million ($1.79 million) for the high-end bottles that were bidden.

Sotheby’s wine head, Stephen Mould, in a chat with CNBC said that their major focus was on French wines that are of good quality coming only from cellars that are most prestigious.

The same quality pursuance is obtainable in the classic car market where buyers were seen to be interested in cars that are in the niche, most exclusive and that has been under good maintenance.

According to Knight Frank, the market may have seen a decline of 485% in growth in the last 10 years; it, however, sold 4 of the most expensive cars that were at the auction in 2015.

Among those sold is the Ferrari Sport 335 of 1957 that went for €32 million which is $35.3 million that was topped by Ferrari 250 GTO Berlinetta that was sold for $38 million at Bonham’s Quail Lodge two years ago.

Apart from the fact that the most expensive and prestigious cars are doing quite well, the influx of newer investors in recent times has boosted the classic car market making it look like the latest trend to follow.

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Historical Automobile Group International founder, Dietrich Hatlapa, said that they are optimistic that the attraction for younger models that go for such low prices that are below $1 million with some well below $100, 000 is a trend that will continue.

Hatlapa also said that besides predilections from buyers, the macro influences seems to be having a positive effect on the dynamics of the market.

He also noted that it was important to note what the central banks intends to do as regards to interest rates since the global liquidity decline while urging those that are still skeptical to take advantage of the situation. He pointed that due to the fact that the volume of transactions is low, buyers will be able to make negotiations and select the examples they consider to be the best.