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Risk and return of classic car market prices: passion or financial investment?

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  • Eric Fur

    (INSEEC Grande Ecole)

Abstract

This paper examines the risk and returns of classic car price indices over the 1994–2021 period. We calculate the central tendency, dispersion, shape of risk and returns, the unit root tests, and correlations. The results indicate a moderated volatility, a low range of returns, and a weak expectation of financial gain given the ancillary costs related to the auction, transport, insurance, guarding, maintenance, and restoration. There are low correlations among the classic car markets. These results provide a better understanding of the risk and returns of the classic car market for many actors such as individual and professional investors, collectors, and wealth managers. Investing in a classic car is more of a passion and emotional investment than a simple desire for financial gain.

Suggested Citation

  • Eric Fur, 2023. "Risk and return of classic car market prices: passion or financial investment?," Journal of Asset Management, Palgrave Macmillan, vol. 24(1), pages 59-68, February.
    • Handle: RePEc:pal:assmgt:v:24:y:2023:i:1:d:10.1057_s41260-022-00288-8
    DOI: 10.1057/s41260-022-00288-8
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    References listed on IDEAS

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