AUSTRALIA’S FIRST DEDICATED CAR FUND, Chrome Temple Investments (“CTi”) has recognised the emergence of a new era in the classic car market – the age of instant collectables. Today’s instant collectables are vehicles that can be categorised as the last of their type and do not fit exclusively into an age or brand category – in fact, some vehicles are so new, some haven’t even been delivered to their first owner yet.
CTi believes that the age of a vehicle no longer determines its collectability or value. “Everyone is familiar with the concept of a classic or modern classic vehicle, those technological, style or performance icons that demand attention and garner high prices – these vehicles have developed in value over decades, but this has changed to now also include instant classics,” said CTi founder Lex Pedersen.
According to CTi, the advent of stricter emissions legislation, safety and design standards is ushering in an era of the instant classic for vehicles that are in essence the last, or one of very few, of their type to be produced before aural performance and pleasure falls silent to the march of electrification. Recent sales via Chrome Temple Motors (a partner business to CTi that helps owners sell their vehicle through curated marketing) provide market evidence to support this view.
In demand vehicles, which sold in record time include the brutal, yet highly desirable 1993 Dodge Viper, a first for the American marque, which represents the last time such a raw sports car – devoid of any safety aids – would be produced anywhere in the world. And at the other end of the instant classic spectrum representing the ‘last of’ is a 2013 Ferrari F12 berlinetta, a vehicle that marked the last time the Pinninfarina name would grace a Ferrari.
Additionally, American based Hagerty reported that analogue supercars posted substantive value jumps in 2021, with iconic vehicles such as the Ferrari F50 and Lexus LFA posting ~65 per cent growth in a single year. This impressive growth was attributed to Gen-Xers, who grew up with the sounds of internal combustion engines, reaching their peak earning potential, driving demand and the associated growth of their favourite cars.
According to CTi, the impending end of the pure internal combustion engine, a shrinking pool of marques manufacturing these models, finite supply, and a growing awareness of their eventual demise, are resulting in demand outstripping supply and ushering in a new age of instant appreciation, causing the “hottest” vehicles to skip used and go straight to “collectable.”
“Just as property, wine and artwork appreciates over time, so do vehicles that mark a milestone in the history of the automobile. These vehicles speak to the emotional side of collectors and could be the last of their type, a limited run or highly collectable because of their pristine condition and rarity – more recently they represent the pinnacle of the internal combustion engine, or vehicles that just cannot be had any longer as they have ceased production due to mandated emissions legislation.”
“These vehicles have all the hallmarks of a classic or modern classic vehicle, but in some cases appreciate in price before they even reach the customer because people know they won’t be produced like this again.” said Pedersen.
In identifying the trend toward instant classics, CTi has secured one of the world’s most in demand vehicles, a 2022 Lamborghini Aventador LP 780-4 Ultimae, the last naturally aspirated V12 from the raging bull marque. With just 350 Ultimae coupes to be produced worldwide and a fraction of these destined for Australian shores, CTi predicts that this vehicle will skip “used” becoming instantly “collectable” owing both to its scarcity and historical significance as the last of the Aventador line – making it the ideal addition to CTi’s Mach 1 Investment Fund.
While the motoring world isn’t new to instant appreciation, CTi posits that the market has changed. “When Enzo Ferrari passed away, all Ferrari’s experienced a post-mortem spike in price and became instant blue chip investments, including some not so special Ferraris. Eventually the market settled and prices for the not so special Ferrari’s corrected,” said Pedersen
“Our observation at CTi is that what we are seeing today is not an episodic spike but early recognition that the rules around last of the line vehicles and collectability are radically changing. We believe that what we are seeing today is more akin to an extinction and that it is giving rise to the term instant classic.” added Pedersen
By staying ahead of trends and identifying instant classics, CTi has been able to amass an enviable portfolio of vehicles within Australia’s first automotive investment fund dubbed the Mach 1 Fund. The Mach 1 Fund offers Chrome Temple members the opportunity to foster their passion for collectible vehicles while growing their wealth via asset backed “passion investments”. Their investor base, composed of fund managers, financial advisors and enthusiasts alike, is open to wholesale investors, including Self-Managed Super Funds (SMSF).
CTi rounds out the CHROME TEMPLE offering, which consists of Australia’s only full service, multi-location, vehicle storage, maintenance, transport, investment fund and managed sales provider through different business lines.
Further information about Chrome Temple, including its Investments, Storage and Motors business lines, and the Australian team behind the growing automotive ecosystem, can be found here