The Allure of Hypercars | TIGER 21 Member in Financial Times 

Why do some people spend millions on cars? For some, it’s about owning a masterpiece of engineering, a symbol of exclusivity, an investment opportunity, or all of the above. Welcome to the world of hypercars – vehicles built to racetrack specifications but designed for road use that have been increasingly attracting investors who can afford them. 

Unlike typical cars that depreciate the moment they leave the showroom, hypercars defy this trend, often appreciating in value. A recent article in FT Wealth by Hugo Cox covers the allure of hypercars, including potential investment gains and thoughts around hypercars by experts in the space. 

In recent years, the most coveted hypercars have seen resale premiums exceed 50% even before the first model is constructed. Take the McLaren F1, which initially sold for £541,000, now fetching around £15 million. The global landscape of hypercar ownership has transformed, driven by rising wealth and prolonged low-interest rates. 

A notable trend among collectors is the premium placed on low-mileage cars, which allows for higher prices. In some countries, keeping a car off the road can lead to significant savings.  

In FT Wealth, TIGER 21 Member Robert Verdun brings up a diverse perspective. “These are more museum pieces than things you’re going to use.” Verdun is passionate about driving his Ferraris, but while he finds hypercars fascinating and acknowledges their remarkable return potential, Verdun has no plans to buy one. “The most enjoyable thing about high-end cars is driving them,” he says. “I’m not a guy who wants a big collection of stuff in a vault.” 

Verdun underscores the diverse motivations and approaches among investors. While some see hypercars as lucrative financial assets, others, like Verdun, prioritize the experiential joy and personal fulfillment that come from driving these engineering marvels. 

Read the full article.