EconPapers    
Economics at your fingertips  
 

My kingdom for a horse (or a classic car)

Dries Laurs and Luc Renneboog ()

Journal of International Financial Markets, Institutions and Money, 2019, vol. 58, issue C, 184-207

Abstract: This paper investigates the price determinants and investment performance of classic cars comprising various categories starting from veteran cars (built between 1888 and 1907) up to modern classics (built between 1975 and 1990). We examine a sample of 29,000 classic car auction sales conducted globally between 1998 and 2017. A hedonic pricing methodology is used to construct several classic car price indices, which enable a risk-return analysis. Classic cars appreciated annually by 3.37% and 5.63%, respectively in real and in nominal terms before transaction costs. Investments in ‘blue chip’ classic cars (12.50%) and Italian classics (11.28%) generate the highest annual nominal returns. On a risk-adjusted basis, classic cars have outperformed equity and other emotional assets such as art, but underperformed bonds and gold over the past two decades. The risk-adjusted returns on the category of affordable classics are similar to those of equity investments.

Keywords: Alternative investments; Collectibles; Emotional assets; Hedonic regression; Collectible cars; Vintage cars (search for similar items in EconPapers)
JEL-codes: G11 G12 Z11 Z23 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1042443118303639
Full text for ScienceDirect subscribers only

Related works:
Working Paper: My Kingdom for a Horse (or a Classic Car) (2018) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:intfin:v:58:y:2019:i:c:p:184-207

Access Statistics for this article

Journal of International Financial Markets, Institutions and Money is currently edited by I. Mathur and C. J. Neely

More articles in Journal of International Financial Markets, Institutions and Money from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-08-20
Handle: RePEc:eee:intfin:v:58:y:2019:i:c:p:184-207