A vintage red 1956 Ferrari 290 MM Scaglietti Spyder motor vehicle sits on display. (Photographer: David Paul Morris/Bloomberg)

Vintage Ferraris, Jags Drove Negative Return Over the Past Year

(Bloomberg) -- The classic car market may be running out of gas.

The vintage Ferraris, McLarens and Jaguar E-Types whose values have soared in recent years delivered a negative 1 percent return for the 12 months ended in March, according to the latest Knight Frank Luxury Investment Index.

The decline is partly due to less buying by speculators and classic car funds set up in recent years, said Andrew Shirley, Knight Frank’s wealth report editor in London. “That interest has cooled, and there is a return to the collector and enthusiast driving the market,” he said. “People who love them will still pay huge amounts for the best cars, but they are more discerning.”

The best performing luxury asset was art, which clocked a 21 percent growth rate in the past 12 months, according to an index based on auction data provided by Art Market Research. Wine was second with a 9 percent return, followed by watches at 5 percent.

Still, cars were the clear winner over the longer run, delivering a 288 percent return in the past 10 years. That compares with 182 percent for coins and 174 percent for wine.

©2018 Bloomberg L.P.

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