WORDS AND PHOTOS: ELLIOTT HUGHES
It’s no secret that the collector car market has exploded in recent years. A recent study by Vanorama and Hagerty found that classic car values increase by around 97 percent over ten years, compared to just 45 percent for gold and 50 percent for UK property.
As a Magneto reader, this will be no great shock to you. The problem for many who wish to take advantage of the buoyant collector car market, however, is the cost of entry. That’s where group investment schemes come in, one of the latest of which is TheCarCrowd.
Based in Nottinghamshire, UK, TheCarCrowd is an FCA-regulated* online investment platform that purchases collector cars, registers them as a limited company and then offers up to 1000 shares for purchase.
Investors can acquire between one and 100 shares per car. As with any investment, share values can increase and decrease, so shareholders are exposed to a certain level of risk.
Once the shares in a particular car are sold, shareholders then decide when to sell their asset via a democratic voting process. Currently, shares in a Ford Escort RS1600 BDA, a Ferrari 360 Spider and a TVR Cerbera Speed 12 are available to acquire.
Due to TheCarCrowd’s desire to preserve the condition and mileage of models and reduce the risk of crashes, shareholders are not permitted to drive the vehicles in their portfolio, which may be the make-or-break clause for many enthusiasts. Investors are, however, invited to view the cars at shows and TheCarCrowd get-togethers.
TheCarCrowd is the brainchild of co-founder and CEO David Spickett. “We’re building a motor museum of an investable-grade collection of cars that people can benefit from if they go up in value, but also enjoy coming to see.”
Vehicles are sourced for the platform by an expert panel that shortlists cars based on their provenance, rarity and originality. TheCarCrowd will only buy low-mileage, low-owner, original examples of a certain car with full history.
Each shareholder is given voting rights, and votes whether or not to keep or sell the vehicle up to a maximum term of five years. Meanwhile, TheCarCrowd deals with the associated storage and maintenance costs that are often a barrier to classic car investment.
TheCarCrowd also offers a concierge service that provides secure, dehumidified temperature-controlled car storage, as well as transportation and maintenance services. This provides the company with another revenue stream, and means privately owned cars will rotate among TheCarCrowd’s owners.
For more information on TheCarCrowd, click here.
*TheCarCrowd is regulated via appointed representative status by Infinity Asset MGMT LLP.
