When you are feeling a bit worn out by the uncertainty in financial markets, then alternative investments such as classic cars may be worth a second look. Consider this: a quintet of mostly 1960s-era Ferraris recently sold for an average of US$24.4 million (Dh88m). According to data from Bloomberg, vintage cars outperformed all major asset classes over a three-year period, including stocks, property, private equity and hedge funds.
While it’s clear that these cars have genuine horsepower when it comes to investment potential, there are caveats for local car enthusiasts. Cars that are more than 10 years old, for example, are ineligible for comprehensive insurance and although owners can get third-party cover, this is hardly reassuring given the high value and rarity of many classic cars. Many other countries offer special cover for classic cars. In a country where cars evoke so much passion, it’s time, perhaps, for insurers to offer similar options.