Classic cars and fine wine in dead heat at the top of the Knight Frank Luxury Investment Index

The value of classic cars and investment-grade wine both increased by 8% on an annual basis, according to the latest (Q2 2016) results of the Knight Frank Luxury Investment Index (KFLII), which tracks the performance of 10 investments of passion. However, while the wine market is bouncing back strongly following a slump in Bordeaux values a few years ago, the classic car market is actually decelerating. The last time annual growth slipped below 10% was five years ago. But if we pop the hood and look behind the headline performance, it’s clear that the very top of the market is still firing on all cylindars.

Four of the most expensive cars ever to go under the hammer have sold in the past 12 months and records have been tumbling on both sides of the Atlantic.

The iconic Monterey classic car event this summer was a prime example of the trend. An historic 1962 Shelby Cobra overtook a Ford GT40 (sold for $11m in 2015) to snatch the top price paid for an American car at auction when it was sold by RM Sotheby’s for over $13m. The eye-watering sum makes it the twentieth most expensive car ever sold publicly.

It was the Brits though that claimed the chequered flag. A gorgeous 1955 Jaguar D-Type was the week’s best seller fetching almost $21.8m, well and truly smashing the previous top price paid for a British car and claiming seventh place in the overall top 10.

Pre-war cars were also jostling for pole position with a 1939 Alfa Romeo Lungo Spider making just under $20m.

For the full report:  Source Knight Frank Research, Wealth Report Update 2016