Coutts Index: value of classic cars is down again

Coutts Index: value of classic cars is down again
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According to Coutts Index, the value of classic cars has gone down by more than 10% over 2016. That is the second consecutive year that classic cars go down. On the other side of the spectrum, both rare musical instruments and fine wines have gone up.

The British Coutts Bank has a clientele of rich and even extremely rich people. To help their clients manage their wealth, Coutts has developed an index that keeps track of the value of all sorts of ‘passion assets’: things that people buy as an investment, but also because they are passionate about them.
So it’s not about real estate or the stock exchange, no, we are talking here about all the good things in life, things like fine wine, fine art, luxury properties and classic cars.

This month, Coutts published their Index over the past year. Coutts Index shows a rise of 1.2% over 2016, since the start of the index in 2005, the rise comes to 76.6%.

Rare musical instruments

In the index for collectibles, classic cars are compared to fine wines, rugs and carpets, coins, stamps and rare musical instruments. The biggest rise in 2016 is for rare musical instruments, they went up 16.4%. Fine wines went up by 10%.

Classic cars have gone down in 2016 by -10.4%. But as the graphic clearly shows, no other item has gone up as much over the past 12 years as classic cars.

Values boomed for instance in 2013 (+27.4%) and 2014 (+40%) and went down again in 2015 and 2016.

On average, the value of classic cars has increased by 14.2% from 2005 until 2016, according to Coutts. In other words, it has increased fourfold.

The only category that managed to increase year after year is coins, on average they went up by 11% every year.

Apart from collectibles, Coutts Index also keeps track of the value of precious items (like jewelry and watches), fine art and trophy real estate.