Supercars, Storage and Strategy: Inside the high-octane world of investment-grade automotive wealth

Date: 21 May 2025

Karen Jones

As collectible cars gain ground as serious investment-grade assets, ultra-high-net-worth individuals (UHNWIs) are increasingly turning to advanced wealth structures to manage and preserve their automotive portfolios.

Offshore trusts, professional asset managers, and high-security freeport storage are now part of a sophisticated ecosystem designed to hold and protect luxury vehicles. However, post-Brexit regulatory shifts have complicated cross-border ownership and transport, underscoring the need for expert guidance.

This article explores how lawyers and specialist firms are steering their clients through an evolving landscape—where finance, fun, and Ferrari all converge.

The Regulatory Road: Brexit, VAT & Cross-Border Complexity

Since Brexit, new customs and VAT rules have reshaped the movement of luxury vehicles between the UK and Europe. Temporary admission procedures, import/export declarations, and tax liabilities now demand meticulous planning. Richard Hawken, CEO of EMM London—a private office for the management and storage of supercars—notes, “An EU car coming into the UK under 30 years old triggers 20% VAT, and 10% duty if not EU or UK built. That liability falls to 5% if over 30 years old. The same applies for cars heading to Europe and Monaco. Tax-efficient structures can be created, but with many restrictions for those wanting to drive their cars.”

Brexit has effectively increased the value of UK taxes-paid vehicles, as import liabilities now add a significant cost burden to foreign alternatives.

The Supercar Vault: Climate, Security & Monitoring

Infrastructure for Investment: From Pig Sheds to Purpose-Built Vaults

The infrastructure supporting automotive wealth has evolved dramatically. Secure, climate-controlled facilities with 24/7 surveillance and fire detection are essential for preserving high-value cars. “We’ve seen too many cars stored in pig sheds or leaky barns. After several car storage fires recently, insurers are clamping down on sub-par facilities,” says Hawken. EMM London recently opened a state-of-the-art storage facility in Esher, complete with bollards capable of stopping a 12-ton truck.

What Makes a Supercar “Investment-Grade”

Collectors vs. Drivers: Two Tribes of Ownership

Matthew Ball, Partner at Sherrards Solicitors, identifies two camps in supercar ownership. “There are those who revel in the smell of petrol and rubber, and those who treat cars as static ‘museum’ pieces, awaiting a favourable ROI. Some straddle both, but many are now treating rare vehicles as exciting alternative investments—alongside art, fine wine, and whisky.”

Ball also notes that some manufacturers discourage speculative ownership. “Certain marques restrict onward sales or limit how many rare models a buyer can own. Some even require vehicles to be sold back to the factory. This keeps the cars in the hands of true enthusiasts.”

While supercars and hypercars can deliver lucrative returns, they remain an emerging asset class. Classic cars, in particular, pose unique challenges. “Restoring older cars can cost tens of thousands, yet sale prices rarely yield a ROI. That said, certain iconic vehicles—especially with famous ownership—can buck the trend.”

Secure Storage, Insurance & Provenance

Ball points to rising interest in preserving a vehicle’s provenance. “We’ve seen growing demand for preserving historical records with third parties like The Motor Chain.” The Zürich-based company specialises in documenting and authenticating the history of classic and collectible vehicles.

Provenance: When History Drives Value

Establishing provenance is increasingly seen as a decisive factor in a car’s long-term worth—particularly for classic models with links to significant historical events or figures.

Provenance & Documentation: Protecting Asset Value

As Joshua S. Rubenstein, National Chair of Private Wealth at Katten Muchin Rosenman LLP, observes. “There is no question that there is a market in luxury cars, but to hold their value, it helps to have provenance. I once represented an offshore trustee in its purchase of a non-functioning, dilapidated 1941 Mercedes road car from a seller’s garage in California. We had it shipped across the United States to a specialist repair shop in Vermont. It cost $1 million to purchase, $1 million to repair, and $1 million to ship—first across the U.S. as a wreck, and then on to Oslo once restored. It sold at an antique car auction in Oslo for $6 million. The difference for this car? It had belonged to Hermann Göring, a convicted, Nazi war criminal and was confiscated by a U.S. marine as a war prize.” Such examples illustrate the significant premium that historical context—and the right documentation—can command.

The Asset Management Approach: Passion Meets Precision

Founded by ex-City trader and semi-pro racing driver Richard Hawken, EMM London is the only private office solely dedicated to managing UHNW investments in car collections. “Cars blur the line between investment and lifestyle. With a tax-efficient return of around 20% per annum (Knight Frank luxury assets report each year), collector cars have outperformed many traditional asset classes—and gains can be CGT-exempt if unstructured.” 

While consistent 20% annual returns are not guaranteed, the potential has proven compelling for many. Hawken’s firm offers services ranging from portfolio construction and secure transport to storage, detailing, insurance, and chauffeur-driven Bentleys.

Financing & Lending Against Collections

“Identifying model-year trends, matching engine and chassis numbers, and understanding cross-market arbitrage—these nuances can determine the difference between profit and loss,” he explains. A case in point: the Ferrari F40. “We advised clients to buy F40s under £1 million in 2021. Those cars are now worth £2.5 million or more. Similarly, our McLaren P1 buys at £850k have appreciated to around £1.4 million within 18 months.”

He notes that newer classics from the 1980s to 2000s are now outpacing older icons like the E-Type or DB5, as Gen X, Millennials and even Gen Z shape demand.

Market Momentum & Demographic Shifts

Susannah Streeter, Head of Money and Markets at Hargreaves Lansdown, supports this view. “The luxury car market reached $21.7 billion last year. Although tariff headwinds may slow growth, a 7.4% compound annual growth rate is projected until 2034. Rising global wealth and tech developments in electrification and ADAS are driving demand.” BMW led the luxury segment in 2024 with 2.2 million deliveries, while Rolls-Royce—its subsidiary—is investing more than £300 million in bespoke production at Goodwood.

Tax Advantage: A Wasting Asset with Wealth Potential

Arthur Byng Nelson, Partner and Head of Art & Heritage, Sherrards Solicitors, points to a critical tax benefit. “The great thing about classic and supercars is that they satisfy the definition of a ‘wasting asset’ under CGT legislation—making them exempt from tax on gains.” This renders unstructured car investments particularly attractive relative to other tangible assets.

The Prestige Factor: Buying the Badge

At the retail end of the market, prestige continues to command premiums. In South Kensington, H.R. Owen reportedly sells over 12,000 Lamborghinis annually. A fully specified Lamborghini Urus in the UK can easily exceed £300,000—well above the £208,000 base for the SE model—especially when personalised through Ad Personam options.

Celebrity Collectors & Cultural Cachet

Automotive passion extends well beyond the financial sector. Jay Leno, Ralph Lauren, Lewis Hamilton, Elvis Presley, Steve McQueen, and Paul Newman are among the many who have lent their star power—and financial muscle—to car collecting. Their vehicles often fetch premiums at auction, enhanced by the cultural significance of celebrity ownership.

The Showroom as a Stage: Car Shows & Concours Culture

Events such as Pebble Beach Concours d’Elegance, Villa d’Este, and Retromobile Paris remain central to the collector car ecosystem. Success at these concours events not only builds a vehicle’s profile but can significantly boost its market value.

Conclusion: Driving the Future of Wealth

The collector car segment is evolving—from enthusiast pursuit to structured asset class. As legal, tax, and regulatory complexities deepen, UHNWIs are increasingly turning to expert advisors and bespoke structures to steward these high-performance assets.

Whether driven for joy or parked for profit, collector cars remain one of the few investment avenues where indulgence and income can meaningfully intersect. In today’s world of private wealth, steel, rubber and strategy now share the same road.

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