They are known as the “Lambo Generation” in the classic car world. These are the individuals pensions minister Steve Webb said could spent the money they’ve put aside for retirement to buy a Lamborghini if they wanted. And since April 2015, when new rules allowed anyone over the age of 55 to cash in part or their entire pension, a growing number of people have decided that classic supercars are definitely the way forward.
Seven questions to consider before purchasing supercars as investments
- Is it rare?
- Is it beautiful?
- Is it entertaining to drive?
- Is it technically significant?
- Does it have a great badge on its nose?
- Is it usable?
- Does the model have a competition heritage?
One Magnitude Finance customer – a company that specializes in assisting wealthy people in investing their money – cashed in his pension aiming to diversify it into classic Ferraris. His plan is that low volume specials with the Prancing Horse badge always grow in value over time. Therefore, he has spent approximately £700,000 on a 599 GTO and 360 Challenge Stradale and foresees that these supercars will be worth many times that by the time he wants to retire. It’s likely that he is onto a fairly solid bet. According to the Historic Automobile Group International’s rare Ferrari index, average values have increased by 11% in 2015 alone.
Naturally, the trick here is to find supercars which, like the Ferraris, will increase in value while you are having fun driving them.
You do not necessarily have to purchase old supercars for them to be investments. When it was launched, the Ferrari LaFerrari cost roughly £1 million when it was launched in 2014; however, there is one currently for sale in the UK for £2.3 million. Should you make the choice to dig into your pension pot to fund the purchase of supercars, we seriously doubt you will end up living on state benefits.