Vintage cars a rising asset
There was excitement at auction house Bonhams recently when a 1935 Alfa Romeo sold for almost £6m, a world record for the marque.
The £5,937,500 paid for the ex-Tazio Nuvolari 1935 Alfa Romeo Tipo smashed the previous Alfa record of £4,245,118, for a 1933 Alfa Romeo 8 cylinder Monza 2300 sold in 2010.
The sale at Bonhams Goodwood Revival meeting was the latest in a year marked by booming prices paid for classic cars as collectors indulge their passion while picking up a valuable rising asset.
Over the past six months classic cars, such as Ferraris, Bugattis and Bentleys, have shown the strongest growth of any alternative investment, rising 21%.
Over the past decade classic cars have done even better than gold, rising 430% in value, according to Knight Frank's Luxury Investment Index. Over the same period, the FTSE 100 climbed just 55%.
But there are tax benefits too, as Susan Spash, partner at London chartered accountant Blick Rothenberg, explained.
"Classic cars are an investment free from capital gains tax, which would otherwise be chargeable on UK residents selling investment assets and making a profit," she said.
"This specific exclusion is because they are categorised both as 'wasting assets' and passenger vehicles."