Paul Sullivan of the Wall Street Journal recently attended the Greenwich Concours d’Elégance in Connecticut. Delving through the concept cars, roadster, and muscle cars, he spoke with several experts on exactly what to look for in developing your exotic car collection.
Of course there is that initial love, whether it is spurred by nostalgia for the good ‘ole days or just appreciation for an exquisite, beautifully made vehicle. Yet when assessing exotic cars as an investment, there are numerous other factors to consider.
Exotic cars have significant value, but it also depends on the type, kind, and social value. For example, sedans from the 1920’s and 30s are losing value because the people who remember riding in them are dying. Of course, rare cars are ideal- for example a 1954 Packard Panther entered in the show was one of only four made.
However, age alone doesn’t work. To stand out from the crowd, cars must have a distinguishing feature. One 1955 Mercedes-Benz 300 SL Gullwing sold for $4.2 million at the annual classic car auction in Scottsdale, Ariz.- it was one of only 29 made with an aluminum body. Sometimes the make matters. Ferraris are more sought after than Camaros or Corvettes. At an auction in Greenwich, a 1965 Ferrari 275 GTB was sold for a record $1.25 million, a record price for a car sold in New England.
Obtaining an exotic or collector car can be the fulfillment of a lifetime dream. Each era has its style and attraction with prices to match. You may be undertaking a lengthy restoration, or looking to make your retro ride a lazy Sunday indulgence. Whatever your intentions, because of the significant dollar investment of your collector car and its unique nature, special insurance is what’s needed.
In evaluating the investment, restoration and insurance costs also must be considered. It is essential to assess all costs compared to the value. Especially when it comes to protecting your investment, you’ll need auto insurance that specifically addresses the unique needs of exotic cars.
For example, Sinclair Risk & Financial Management can tailor a program to include a zero deductible feature so that you have no out-of-pocket costs; high liability limits; mileage plan options based on one that fits your needs; automatic coverage for newly acquired vehicles for a specified time; inflation guard; and other unique coverages designed for this niche.
For more information, contact Sinclair Risk & Financial Management today.