Now you can ‘own’ a classic car for less

Now you can ‘own’ a classic car for less

After a considerable slump a few years ago in the wake of the global financial crash, classic cars are once again a very hot property indeed. New record prices for sought-after classics are being set on both sides of the Atlantic at the moment, but the most desirable cars are well out of the range of most mere mortals. However, thanks to something called the Rally Rd. iPhone app, just about anyone can now afford to invest in classic cars.

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Other vintage cars during a preview of an auction by Swiss Oldtimer Galerie International in Zurich, Switzerland (Reuters picture)

Of course, with prices starting from around $50 you’re only going to be buying a share in something like a Jaguar XJ220 or a Lotus Esprit, so you’re not going to be getting behind the wheel of the car you buy into.

The cars themselves are being bought and maintained by a subsidiary company called RSE Collection LLC, but the cars bought by the team at Rally Rd. are all being bought because they’re expected to appreciate in value. Rally Rd., launched late last year, is therefore an investment firm just like those dealing in stocks and shares in companies, but the risks here are perhaps a little easier to assess, and cars are a lot more fun to invest in for enthusiasts than tiny bits of corporations.

If you like the idea but are worried about the legitimacy of Rally Rd, the whole operation is regulated by the US Securities & Exchange Commission, and investors will be given ownership history, photos and videos, and market prices for comparable assets on each vehicle made available to buy into.

The only time these valued assets will be driven will be for maintenance purposes as keeping the mileage to a minimum enhances the value, and all the vehicles will be stored in a climate-controlled facility in Pennsylvania under 24/7 surveillance. But to maintain the unique nature of the investment opportunity and to enhance the appeal to auto enthusiasts, Rally Rd. is currently looking at ways of being able to let investors visit the collection and even drive similar vehicles at special events.

It’s not the first business of its kind as in 2011 the IGA Automobile Fund was introduced under the guidance of Nick Mason, the Pink Floyd drummer, renowned car collector and honorary president of the Guild of Motoring Writers. In this case though, being app-based adds an extra level of convenience for potential investors.

The company plans to finish a round of funding this summer and may start offering up shares of sports memorabilia in August, according to a report in Bloomberg.

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