Pitfalls of market with classic cars

  • Only in the last 7 years, indices tracking market of classic cars began to appear, until then, there were no public indicators
  • For a long time there were no financial analysis and therefore this part of the market stood outside the viewfinder of professional institutional investors
  • The market for classic cars is less liquid compared to others, eg. the capital markets, ...
  • When investint in classic cars it is necessary to have deep knowledge of the market (from the perspective of brand history, technical condition, ...)

Market Inefficiency:

  • Sales dominant party: high fees that distort the market
  • unsophisticated approach of the big players

Forms of investment

 

SPECIALIZED FUND DIRECT PURCHASE
  •  It is not necessary to have a professional knowledge of the market
  • Necessary knowledge of the market
  • Team of experts - minimizing the risk of incorrect selection and thus investment losses
  • Less liquid investments
  • Better liquidity - equities and modified rules for entry and exit
  • Higher costs for storage, maintenance and car insurance
  • Lower unit costs for storage, maintenance and car insurance
  • Lower diversification - higher risk of poor purchase and of investment losses.
  • Diversification of risks

Partners

logo BBI BESTBUY

BBI Classic Investment s.r.o.
Balbínova č.p. 22
120 00, Praha 2 - Vinohrady Czech Republic

Tel.:+420 221 590 111
E-mail: kontakt@bbi.cz