A New Global Asset Class
There has been a great deal written in the last few years about the investment value of classic car collecting. Wall Street Journal columnists, Bloomberg analysts, CNN reporters, and many others have observed that in the last 12-15 years, classic cars have financially outperformed many traditional investments. Classic car investing has the added benefits of being a fascinating avocation, while providing tangible enjoyment through an appreciating asset, which makes the investment that much more appealing.
The classic car marketplace has never been more dynamic than it currently is. An insatiable appetite exists for these cars, and at the same time more cars and collections have become available. Cars are still selling at an increasing pace year over year, and they are holding or exceeding 2008, 2009 and 2010 values. One significant opportunity today is that there are more private car collections becoming available for purchase than ever before. These are primarily coming from collectors that have decided to selectively “cull the herd” and turn these investments into cash. Others are looking for cash flow to offset other financial setbacks. Regardless of the reason, today’s opportunity is unique. While the supply of collector cars is increasing, the demand from other collectors is outpacing this expanding inventory. This is the market driven demand that Ultimate Classic Car Fund (UCCF) seeks to capitalize on.