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  • Over the last 10 years, classic cars have been one of the best-performing luxury assets.

  • According to Knight Frank's Luxury Investment Index,

  • the value of these assets has grown by 288% over a decade.

  • So, why are classic cars so popular?

  • The idea of collecting a mode of transport can be traced all the way back to 17th century France

  • when the crème de la crème of society would gather to judge their horse-drawn carriages.

  • But Karl Benz's development of the first truepractical automobile in 1885

  • revolutionized the way people traveledAnd it wasn't long before cars replaced carriages at these events.

  • Collecting these assets is still popular today, attracting wealthy car lovers, from Italy to Kenya,

  • who can dish out as much as $48 million on a single car.

  • These collectors tend to join exclusive car clubs and gather at various events called Concours d'Elegance,

  • which is French for "competition of elegance.”

  • "Hey guys, welcome to my Triumph Stag channel."

  • More recentlyclassic car enthusiasts have also built communities online,

  • showing off their collections on social media platforms such as YouTube.

  • want an inside look at this exclusive world, so I've come to meet up with Luke Madden,

  • the events director of one of London's classic car events, the City Concours.

  • What brings everyone together is the passion.

  • A lot of people will know each other just from coming to these events and sitting down having

  • a glass of champagne and talking about what they love, which is classic cars.

  • One man who shares this passion is multimillionaire Rodger Dudding,

  • who claims to own the largest collection of classic cars in Europe.

  • I know it looks like I'm in a regular garagebut don't be fooled.

  • It holds Rodger's $49 million collection of more than 400 classic cars,

  • which he has been amassing for more than 50 years.

  • If I see something I like and it appeals to me and I can afford to buy it, I've bought it.

  • I like things mechanical. That's what I think attracted me to cars and motorcycles in the first instance.

  • By the time I was 16, I had my first motorcycle which I had built at home.

  • And Dudding is not alone.

  • His cars are so popular that they have been featured in many films and television shows

  • like Peaky Blinders, Bohemian Rhapsody, Downton Abbeythe Crown, Mary Poppins and more.

  • Sowhat makes these classics so special?

  • It's the design function with classic cars as opposed to most modern, present-day vehicles.

  • They really all come out in a singular jelly mold.

  • At the start of the 20th centurycars were relatively expensive and unaffordable for the masses.

  • Many of the cars created during this time, such as this 1912 Rolls Royce Silver Ghost,

  • were stylish, bespoke and of limited supply.

  • In 1908, the first Ford Model T rolled off the factory line, making it the first mass-produced and affordable car.

  • But Ford wasn't the only low-cost manufacturer.

  • General Motors CEO Alfred Sloan famously wanted to create "a car for every purse and purpose,”

  • with GM's Chevrolet brand leading the charge in the low-cost segment.

  • Perhaps even more importantly to classic car loversGM also invented the yearly model change.

  • Unlike the Model T, which was produced for 19 years, GM rolled out a new version of its vehicles annually.

  • Their release became highly anticipated national events.

  • In the 1930s, GM's market share of cars in the U.S. overtook Ford's,

  • and it wasn't long before car ownership reached over 80% of American families.

  • In the 1970s, many economies were flourishing, pushing up car ownership rates worldwide.

  • The boom of the Japanese automotive industry during that period helped fuel that growth.

  • But an oil energy crisis in 1973 caused fuel prices to skyrocket

  • and spurred change in the automotive industry.

  • Automobile manufacturers reacted to this change by focusing more on the practical aspects of a car,

  • like safety and efficiency, rather than just the style.

  • With mass production, it's much simpler to turn out a car like a sausage,

  • without a great deal of individual styling, which keeps the price down, therefore makes cars very affordable.

  • Collectors like Rodger are nostalgic for the stylish, bespoke cars produced in the 20th century.

  • When selecting their ideal classic car, these collectors tend to look out for the car's make and history.

  • Also important is the condition of the parts of the carsuch as the engine and the interior.

  • They're also looking for lower mileage and of course rarity.

  • These factors determine the market price for a classic car.

  • The global classic car collection industry is estimated to be worth between $21 and $24 billion.

  • The United States is the world's largest market for classic cars. It generated revenues of $863 million,

  • more than four times as much as the United Kingdom and continental Europe.

  • Ferrari was the top performing car and brought in revenues of $158 million,

  • Porsche came in second with $55 million and Aston Martin drew in $40 million.

  • But Dudding's wealth hasn't grown from investing in classic cars.

  • In fact, if you want to make a quick buck, you might want to think twice about investing in these assets.

  • The classic car market hit a stumbling block in 2018, when it saw a 1% decline in value over the past year.

  • Experts attribute this decline to the number of speculative investors leaving the market.

  • Changing demographics have also contributed to the decline.

  • Baby boomers, who have more spending power, are leaving the market

  • because of global uncertainties and age, which means they can no longer drive.

  • Despite this, many car enthusiasts like Rodger are still excited about collecting cars.

  • It's not just about the money for them. Sometimes it's the story behind the cars.

  • It's for this reason Rodger bought the late Princess Diana's 1994 Audi Cabriolet

  • and Dodi Fayed's Aston Martin Lagonda Wedge for undisclosed amounts.

  • He also splashed more than $82,000 on a bespoke Rolls Royce Wraith made in honor of George Martin.

  • It very much is for the love of cars and also the heritage of that car.

  • This brings this piece of metal back to life.

  • Thank you so much for watching my video!

  • Comment below and tell me what you've learnt about classic cars. And don't forget to subscribe.

Over the last 10 years, classic cars have been one of the best-performing luxury assets.

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    Summer posted on 2020/08/12
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