By Darius Sanai, Editor-in-Chief
A few months ago I was invited to take part in a panel discussion on investing in modern classic cars, by the Financial Times, at its annual reader event in London. It was a very FT-type of festival: intellectuals, entrepreneurs, CEOs and private equity principals lining up quietly to listen to the likes of Zanny Minton Beddoes, editor of the Economist, superchef Heston Blumenthal, and economic and political commentators of the likes of Martin Wolf and Gideon Rachman. I had a little chat with Jancis Robinson, the most thoughtful of all wine commentators, ahead of her talk on discovery wines, and then took to the stage myself to converse with the FT?s own classic cars guru Simon de Burton.
Modern Classics are a new category of collectible, loosely defined as cars made from 1985-2005. As well as being newer, more refined and more comfortable than traditional classics like a Jaguar E-Type or Mercedes 300SL Gullwing, and appealing to a younger generation, they tend to have been made in greater numbers. I made a good return on selling my own Ferrari Testarossa last year, but there were more than 7000 of those cars made, compared to dozens or hundreds of the multimillion dollar classics like the original Ferrari GTO or 275 GTB.
My message to FT readers was that they should choose carefully, because abundance will act as a natural brake on values, and modern cars can suffer hard-to-solve electrical problems that older, simpler cars do not.
For yo...