Classic cars prices soared in COVID pandemic

Classic cars prices soared in COVID pandemic
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Experts of Knight Frank, an international consulting company, released a market survey of the most expensive cars at the time of COVID-19 pandemic.

The global health crisis caused restriction regime to fight the COVID-19 pandemic has negatively affected sales of luxury goods. At the same time, two markets have shown growth since the beginning of 2020: classic cars and art. These prices have increased by 3.3% and 1%, respectively, as shown in the data, provided by a recent Knight Frank update of their Index of investment attractiveness of luxury goods (KFLII).

According to HAGI (Historic Automobile Group International), the classic car market was stable during the outbreak, and as of the first four months of 2020, it showed growth of 3.29%. Cars of the Ferrari brand showed the highest index. Knight Frank notes that at the end of 2019, classic cars fell in price by 7%, but over the past 10 years, their value increased by 194 percent.

Before the start of the quarantine, cars were sold for a high price at the main auctions in Paris, Scottsdale and Amelia. For example, $2.8 million was given for the 2003 Ferrari Enzo model (Sotheby's) and $2.2 million for the 1914 Rolls — Royce Silver Ghost model (Gooding & Co). However, the main deal of the year was the sale of a 1932 Bugatti Type 55 Super Sport Roadster for $7.1 million at the Bonhams auction.

However, activity in this market has significantly decreased, as almost all subsequent auctions were canceled. Therefore, recovery can take months or even years.

At the same time, Dietrich Hatlapa from HAGI notes that the name and rarity of the car cannot always have enough weight for a buyer who will not be ready to buy a very expensive car without a preliminary inspection. According to the expert, in this situation, the most successful cars will be those in good condition and can be used for daily trips.

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