My Kingdom for a Horse (or a Classic Car)

CentER Discussion Paper No. 2018-037

54 Pages Posted: 3 Jan 2019

See all articles by Dries Laurs

Dries Laurs

Tilburg University

Luc Renneboog

Tilburg University - Department of Finance; European Corporate Governance Institute (ECGI); Tilburg Law and Economics Center (TILEC)

Date Written: September 11, 2018


This paper investigates the price determinants and investment performance of classic cars comprising various categories starting from veteran cars (built between 1888 and 1907) up to modern classics (built between 1975 and 1990). We examine a sample of 29,000 classic car auction sales conducted globally between 1998 and 2017. A hedonic pricing methodology is used to construct several classic car price indices, which enable a risk-return analysis. Classic cars appreciated annually by 3.37% and 5.63%, respectively in real and in nominal terms before transaction costs. Investments in ‘blue chip’ classic cars (12.50%) and Italian classics (11.28%) generate the highest annual nominal returns. On a risk-adjusted basis, classic cars have outperformed equity and other emotional assets such as art, but underperformed bonds and gold over the past two decades. The risk-adjusted returns on the category of affordable classics are similar to those of equity investments.

Keywords: alternative investments, collectibles, emotional assets, hedonic regression, collectible cars, vintage cars

JEL Classification: G11, G12, Z11, Z23

Suggested Citation

Laurs, Dries and Renneboog, Luc, My Kingdom for a Horse (or a Classic Car) (September 11, 2018). CentER Discussion Paper No. 2018-037, Available at SSRN:

Dries Laurs (Contact Author)

Tilburg University ( email )

P.O. Box 90153
Tilburg, DC Noord-Brabant 5000 LE

Luc Renneboog

Tilburg University - Department of Finance ( email )

P.O. Box 90153
Warandelaan 2
5000 LE Tilburg
+13 31 466 8210 (Phone)
+13 31 466 2875 (Fax)

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels

Tilburg Law and Economics Center (TILEC) ( email )

Warandelaan 2
Tilburg, 5000 LE

Do you have negative results from your research you’d like to share?

Paper statistics

Abstract Views
PlumX Metrics