Pink Floyd drummer Nick Mason has joined an investment group that wants to buy $150 million worth of classic cars and make an annual profit of 15 percent on them.
Car mad Mason has competed five times in the Le Mans 24 Hours race. There’s no room for junk in his garage, which houses an Aston Martin, Bentley, Bugatti, Jaguar and a Ferrari. The classic rock hitmaker is now on the advisory board of IGA Automobile, which aims to buy the finest models of top classic cars, and turn them into profit.
‘This is the first classic-car fund that's purely for financial returns, rather than passion,’ said Nick Lancaster to detnews.com. ‘We're looking for a straightforward in-and-out return on our assets.’
While sports cars are still fetching record prices, the IGA enters a market in which collectors have become more choosy. The Historic Automobile Group International (HAGI) Top 50 index of classic-car prices was up 6.6 percent in 2010, which is less than its average annual growth between 2003-08 of 12%.
‘This is an indicator that the market for rare cars has cooled off somewhat after a decade of sustained growth,’ Dietrich Hatlapa, founder and managing director of the London-based research company, said in an e-mail.