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CNBC
5 days ago
- Automotive
- CNBC
Monterey classic car auctions kick off, and sales expectations are tepid
Up to $400 million worth of classic cars will roll across the auction block in Monterey and Pebble Beach this week, marking the biggest test of the year for the collectible car market and wealthy owners. An estimated 1,140 classic cars will come up for sale at Monterey Car Week, the annual gathering of classic car collectors from around the world. The sales total is estimated to come in between $367 million and $409 million, according to Hagerty. The midpoint of that range, at $388 million, would mark the third year of declines in sales, and an 18% drop from the recent peak of $471 million in 2022. The high end of the market is the weakest. The Monterey auctions – held by RM Sotheby's, Gooding & Co., Mecum, Bonhams and others – have traditionally featured at least a half-dozen cars priced at $10 million or more. This year there's only one – the fewest in over a decade. The average sale price has dropped to $473,000 this year from $477,000 last year. "Pebble Beach is the annual health check on the market," said Simon Kidston, a classic car advisor and dealer. "Everybody waits to see what happens at Pebble Beach before committing to a major decision the rest of the year." Like the art market and other types of collectibles, classic cars have been in slow decline since the pandemic rally in 2021 and 2022. Collectibles prices are down 2.7% over the past 12 months, according to the Knight Frank Luxury Investment Index. Classic car prices are down 0.2% overall – better than the 20% drop in the art market but not as strong as jewelry (up 2.5%) or coins (up 13%). Classic car dealers and auctioneers blame global uncertainty, with wars in Ukraine and the Middle East, along with weakness in China. Higher interest rates are also a factor, raising the opportunity cost of buying a classic car, since risk-free cash still earns over 4% or more. Some also point to a surging stock market for the past three years, which makes collectibles relatively less attractive. The Inside Wealth newsletter by Robert Frank is your weekly guide to high-net-worth investors and the industries that serve them. Subscribe here to get access today. Yet experts say the biggest reason for the classic car slowdown is a generational shift. Baby boomers, who have powered the classic car market for decades, are aging out or downsizing. The new generation of millennials and Gen Zers, who are coming into wealth and collecting, want newer and fewer collectible cars. The shift is expected to accelerate as an estimated $100 trillion is passed from older to younger generations, giving fuel to the new breed of collector. "It's a big rotation," said McKeel Hagerty, CEO of Hagerty, the classic car insurance, auction and events company. "Some of the older-guard collectors are framing it, 'The market is soft at the top end.' But here's a lot of depth in this market. It's just rotating to younger buyers and newer cars." That rotation has left the market for 1950s and 1960s cars with oversupply and falling prices. Many baby boomers are trying to clear their garages and sell, while others are passing their cars on to their kids, who often don't share the same passion. Gooding & Co. is selling three Ferrari 250 GT California Spiders this week, including the most expensive lot of the week, a 1961 250 GT SWB California Spider with an alloy body and original hardtop estimated at over $20 million. "Cal Spiders," as they're known, were made famous in the movie "Ferris Bueller's Day Off," have long been a rare and special sighting at auctions. Seeing three at the same auction series is highly unusual. Kidston said the alloy body Cal Spider would have likely fetched $25 million to $30 million a few years ago. "It's one of the great road cars of all time," he said. "It has intrinsic value, with provenance, sophistication, beauty and usability." Prices and demand for many cars that are over 50 years old are down as much as 20% to 30% from the peaks, dealers and brokers say. "It's just the question of what clears the market, and can their egos handle it," Hagerty said. "If it's an $18 million car, and it becomes a $13 million car, it's still a multimillion-dollar car, which is pretty amazing." Hagerty said that falling prices have driven more sales to the private market, directly between buyer and seller, rather than to the auctions. Sellers with prominent cars don't want their discounted sales prices to be public, so they opt to sell privately. "That way nobody has to feel embarrassed," Hagerty said. "We're seeing a surprisingly large amount of private sales. Sometimes a car will hit the market and sell in a couple of hours and close by the end of the day." At the same time, auctions of newer super cars are skyrocketing. Millennials and Gen Zers are bidding up prices for rare cars from the 1980s, 1990s and 2000s. They also prefer cars that are more affordable and practical. Rather than keeping a $10 million 1962 Ferrari 250 GT SWB Berlinetta locked up in a private Garage Mahal, the new breed wants post-1980s Porsches, BMWs and later-model Ferraris they can enjoy every day and not have to constantly repair. Along with affordable exotics, young collectors are also paying up for supercars, especially rare and highly specific Paganis, Bugattis and Rufs, the boutique German builder. A 1989 Ruf CTR "Yellowbird" sold in March for a record $6 million at Gooding & Co. at the Amelia Island sales. Two years ago, the average model year of the cars being sold at Pebble was 1964. This year it's 1974, which still underestimates the bar-bell distribution of cars from the 1950s at one end and the 1980s and 1990s cars at the other. Sales of modern supercars — defined as those from 1975 or later – will likely overtake sales of so-called "Enzo-era" Ferraris (made before 1988) at Monterey for the first time, according to Hagerty. Some experts even worry that the modern supercar segment has become over-inflated and speculative. Like momentum trades in the stock market, which retail investors buy on the basic premise that someone else will buy it for more, modern supercars seem to be rising indiscriminately. "If it's all solely reduced to what is more saleable, then collecting becomes very superficial," Kidston said. "I don't believe collecting should be ruled by investing. You should keep an eye on the financial implications of what you buy. But it should not be the be-all and end-all. Otherwise it just becomes like bitcoin." Here are the top lots from Monterey Car Week, compiled by Hagerty: Sold by Gooding & Co., estimated at more than $20 million Sold by RM Sotheby's, estimated at $8.5 million to $9.5 million Sold by Gooding & Co., estimated at $8 million to $10 million Sold by Gooding & Co., estimated at $8 million to $10 million Sold by Gooding & Co., estimated at $7.5 million to $9 million Sold by Bonhams, estimated at $7 million to $9 million
Graziadaily
03-07-2025
- Business
- Graziadaily
Let's Talk About ‘Passion Investing'
The first time I downloaded an app that helped me buy shares in companies, I scrolled the list of available options aimlessly. 'Do I just invest in companies that have performed well the last few years?', I wondered. 'Or should I be buying shares now while prices are low, hoping for a rise?' It all felt overwhelming, but more than anything, it felt hollow. I was keen to start investing, about the prospect of potentially growing my money and making it work harder than it does sitting in a savings account, but when you feel like you know so little about the market and are time poor, that initial buzz can wear off quick as soon as the numbers and financial jargon buzzwords start blurring in front of you like a scene from a movie. Then, I scrolled upon something that brought my buzz back: a female-founded tech company that prioritises women's safety in how it operates. Its performance looked great on the graph in front of me, but that wasn't what got me so enthused. I realised, if I was going to invest, I wanted it to have meaning beyond potentially making me some extra money. This was a company with a future I really believed in, one with values that clearly aligned with mine and gave me genuine hope that my investment would bring rewards outside of just potential financial gain. Now, I know this to be a type of 'passion investing' – the practice of investing in something that you love. Typically, it involves buying tangible assets that also offer significant cultural value – classic art, for example, or fine wine. Certain cars would be considered a 'passion investment', as would some luxury designer accessories, as well as collectibles like stamps or coins that appreciate in value. For those of us that don't necessarily have the budget to invest in high-price collectables, passion investing has taken on a whole new meaning then. For me, it's more about investing in things – whether that's stocks or tangible assets – that align with what I love. Take sustainable companies, for example, or those that pair closely with your core values – it's all part and parcel of the same method where investing becomes not just about potential financial gain, but supporting products or services you love and really believe in. 'Putting your money into industries, ideas and trends you truly believe in allows you to leverage your personal knowledge to generate potential profit, while aligning your portfolio with your values and vision for the future,' explains Lale Akoner, eToro Global Market Analyst. 'It's where conviction meets opportunity.' In fact, research indicates that women are much more conscious of ethical investments compared to men. According to one UBS study, 71% of women make investing decisions with wider sustainability considerations. For other passion points, luxury bags have also seen a growth in investments - the Knight Frank Luxury Investment Index (KFLII) found that handbags were the best performing luxury asset class in 2024, with prices marginally rising 2.8%. Jewellery followed closely behind, with coins and watches also in the top five. Overall, investments in luxury assets have increased by 72% in the last 10 years. 'I've definitely dabbled in passion point investing in the past,' says Bola Sol, author of Your Money Live. 'During the rise of the 'rich aesthetic' influencer boom from 2010 to 2020, I invested in LVMH because I genuinely loved the brands under its umbrella and saw how influential they were culturally and commercially. That said, this isn't financial advice but a reflection of my personal journey. I think it's only natural for people, especially women, to want to invest in what they understand and resonate with. Whether it's beauty, tech, fashion, or ethical companies that reflect their values, passion point investing makes the process feel more accessible and intentional.' Beyond the emotional fulfilment of passion investing, there's a wider benefit to all women – it shifts the perception of investing entirely. Right now, the gender investment gap is a staggering £678 billion*, the same as the GDP of Switzerland. Women cite a lack of knowledge, time and confidence in their hesitancy to invest – as well as a tendency to be more risk averse. That's why Grazia are working with eToro to tackle the gender investment gap, hoping to dismantle myths around investing and get women taking control of their financial futures and making their money work harder for them. eToro's Smart Portfolios are a great place to start. 'Imagine putting your money into a pre-made basket of different investments that all relate to a specific idea you're interested in, like tech companies or clean energy,' Akoner explains. 'That's what eToro's Smart Portfolios do. These are long-term investment portfolios curated by analysts that offer a convenient and diversified way to invest in different themes. It can help take the guesswork out of picking individual stocks in those areas.' And here's the thing, when you choose to focus on your passion points while investing, it makes the entire process more interesting. These are brands or areas you're already emotionally invested in, believe in their value and want to make the time to understand more about. Cutting out the financial jargon and stress of following markets day to day, it makes the investment process one you can embrace rather than fear. eToro is a multi-asset investment platform. The value of your investments may go up or down. Copy Trading does not amount to investment advice. Your capital is at risk. Past performance is not an indication of future results. Cutting out the financial jargon and stress of following markets day to day, it makes the investment process one you can embrace rather than fear. Find the brands you're passionate about and discover new ones when you start investing on eToro . This communication is for information and education purposes only and should not be taken as investment advice, a personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been prepared without taking into account any particular recipient's investment objectives or financial situation, and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Any references to past or future performance of a financial instrument, index or a packaged investment product are not, and should not be taken as, a reliable indicator of future results. eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication.
Associated Press
21-02-2025
- Business
- Associated Press
Vinho Ltd CEO Jorge Rodrigues Makes a Statement on the Future of Fine Wine Investment
Rodrigues highlights the lucrative potential of fine wine as an alternative asset class and positions Vinho Ltd as the go-to fine wine investment partner for discerning investors. United Kingdom, February 21, 2025 -- Jorge Rodrigues is positioning Vinho Ltd as a trailblazer in fine wine investment, ready to guide investors through the exciting changes happening in the wine investment market. In his forward-looking statement on the future of fine wine investment, the CEO of Vinho Ltd painted a picture of a market ripe with opportunity and innovation. 'The fine wine market has entered an exciting phase,' said Rodrigues. 'We are seeing investors going after rare and prestigious wines taking advantage of the opportunities in the market. These trends show that wine is no longer seen as just luxury purchase, it has become a legitimate and lucrative investment.' Rodrigues cited recent data that indicates that fine wine prices have increased by 146% over the last ten years (Knight Frank Luxury Investment Index), with an average of 10% annual returns for the last 15 years (Liv-ex Fine Wine 100 Index). He explained that all factors from recent wine investment trends indicate that fine wine investment is gaining investor attention. This signals a new era for this market. Based on data from The Financial Times, which showed a downturn in the wine market in 2024, Rodrigues's revealed to investors that now is the prime time for investors to acquire high-quality wines at more favorable prices, especially wines like Burgundy and vintage champagne. To emphasise the unique appeal of fine wine as an investment, Rodrigues presented the benefits of wine investment, saying that fine wine is a tangible asset that appreciates over time. 'Fine wine investment creates a natural appreciation that savvy investors can take advantage of,' said Rodrigues. 'They can display their collections and offer wine tastings which will drive up value because the more bottles consumed, the rarer a collection becomes and the more valuable it becomes.' Vinho's vision for the future of wine investment is one of growth. He envisions an investment market where fine wine becomes a smart and rewarding investment option for anyone looking to diversify their portfolio. Therefore, under his leadership, Vinho Ltd is pioneering new ways to make fine wine investment more accessible and rewarding for investors. The fine wine investment company has positioned itself as the go-to partner for investors looking to sell their current stock, seeking comprehensive wine investment guides, or searching for an entry point to wine investment. 'We are on a mission to simplify fine wine investment and make it more accessible to new potential investors, because we believe fine wine investment is about more than just returns' concluded Rodrigues. About Vinho Ltd: Vinho Ltd is a leading fine wine investment company that specialises in purchasing, storing, and selling fine wines. Led by Jorge Rodrigues and Solomon Dawodu, the wine investment company is helping clients build and grow their portfolios with expertly curated wines and wine investment guides. Visit Vinho Ltd to learn more about fine wine investment and how the company is redefining wine investment. Contact Info: Name: Jorge Rodrigues Email: Send Email Organization: Vinholtd
