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FIVE OF THE BEST: JBR CAPITAL NAMES TOP FIVE AUTOMOTIVE INVESTMENTS

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Aston Martin Vanquish S, 2007
  • Cars remain one of the best investments to yield growth over the last decade
  • JBR Capital names top five automotive investments, which are more affordable than you think
  • A future classic could be yours for less than jetting off to Edinburgh on a city break

Investing in classic cars can cost less than economy return flights from London to Edinburgh*, according to premium vehicle finance provider JBR Capital, which has identified five modern classics set to become standout automotive investments.

Classic car investments have the potential to yield growth of up to 457% for the right vehicle** and are among some of the best-performing investment opportunities available in the UK, while comparatively the cost of other forms of domestic travel can be steep.

Over the last decade classic cars have ranked as one of the most attractive luxury investments ahead of traditional items such as jewellery and art. Only fine wines (24% increase) appear to have proved a better investment in the last 12 months, with cars from Porsche, Ferrari and Mercedes-Benz generating the most increase in value over the last year.

Luxury property – traditionally a favourite among investors – has been hit by increased property taxes and the impact of Brexit, with premium land and property values going down and sales of luxury London properties collapsing by 86% during last year.

Meanwhile, a 1989 Mercedes 300SL (R107), valued at around £35,000, can be financed at £386.33 a month over a 48 month term on lease purchase (see the representative example below), which is over £125 cheaper than Euro Traveller peak time return flights available from London Heathrow to Edinburgh*. JBR Capital’s finance specialists believe this is one of the models that should increase in value over the coming years.

The trend towards buying a classic car via lease purchase has increased in recent years, with JBR Capital finding that the use of finance in classic car purchases has become increasingly popular over the last five years. A more flexible way to own a classic car, customers pay an initial deposit and then make regular monthly payments, taking advantage of highly competitive rates. They then have several options at the end of the term, owning the car outright or refinancing and releasing equity.

Darren Selig, CEO and Co-Founder at JBR Capital, said: “The classic car investment market has calmed down slightly over the last 12 months, but prices are still rising and it is modern classics – cars from the 1980s, 1990s and 2000s – that are one of the safest investments. These are the poster cars, the cars that graced bedroom walls and, in many cases, found fame on TV or in the movies. They are in hot demand from buyers who are now able to realise a dream.

“Our advice is to always buy the best. Perfect condition with a full history, few owners and low mileage – or fully restored – is vital when it comes to investing your hard-earned cash. Most importantly though, buy a modern classic because you love it. Do all this and you will be rewarded.”

Selig has selected the following five vehicles which show great promise for increasing in value over the next five years and sets these out alongside a lease purchase scenario for each one in turn:

  • 1989 Mercedes 300SL (R107)
  • 1998 Ferrari F355 Berlinetta (manual)
  • 2007 Aston Martin Vanquish S
  • 2012 Porsche 997 Turbo S
  • 2000 BMW Z8 
1989 Mercedes 300SL (R107)

1989 Mercedes 300SL (R107)

1989 Mercedes 300SL (R107)

Representative Example
48 monthly payments of £386.33
Final balloon payment £15,750
Cash price £35,000
Customer deposit £7,000
Total amount of credit £28,000
Total charge for credit £6,293.84
Total amount payable £41,293.84
Fixed rate of interest per annum 3.72%
Duration of agreement (months) 48 months
Representative APR 7.9% APR

 Terms and conditions apply. Finance subject to status. Guarantee/indemnity may be required. 18s or over. Finance provided by JBR Capital Limited.

Darren’s verdict: “In our opinion, this is a great car for those interested in collecting a classic. Made famous by TV series such as Dallas and Hart to Hart, the R107 is in strong demand with values rising in recent years and showing no signs of slowing down. It’s an understated beauty for weekend motoring with the soft top down.” 

1998 Ferrari F355 Berlinetta (manual)

1998 Ferrari F355 Berlinetta (manual)

Ferrari F355 Berlinetta (manual), 1998

Representative Example
48 monthly payments of £718.96
Final balloon payment £35,000
Cash price £70,000
Customer deposit £14,000
Total amount of credit £56,000
Total charge for credit £13,510.08
Total amount payable £83,510.08
Fixed rate of interest per annum 3.9%
Duration of agreement (months) 48 months
Representative APR 7.9% APR

Terms and conditions apply. Finance subject to status. Guarantee/indemnity may be required. 18s or over. Finance provided by JBR Capital Limited.

Darren’s verdict: “The car that replaced the much-criticised 348, the F355 was faster and better in every way. In Berlinetta coupe guise, with a traditional Ferrari open-gate six-speed manual gearbox, it’s a textbook modern classic. For similar money you could get a 2005 Ferrari F430 – both boast a powerful V8 with terrific performance – but we think the F355’s iconic styling will see its status soar in years to come.” 

Aston Martin Vanquish S, 2007

Aston Martin Vanquish S, 2007

 Aston Martin Vanquish S, 2007

Representative Example
48 monthly payments of £1,969.95
Final balloon payment £85,000
Cash price £170,000
Customer deposit £25,500
Total amount of credit £144,500
Total charge for credit £35,057.60
Total amount payable £205,057.60
Fixed rate of interest per annum 4.01%
Duration of agreement (months) 49 months
Representative APR 7.9% APR

 Terms and conditions apply. Finance subject to status. Guarantee/indemnity may be required. 18s or over. Finance provided by JBR Capital Limited. 

Darren’s verdict: “The last car produced at Aston Martin’s Newport Pagnell factory and a starring role in the 2002 James Bond movie Die Another Day mark the Vanquish out as very special indeed. Our pick is the Vanquish S, a genuine 200mph machine, of which less than 1,100 examples were made. While not cheap, we believe they are modern classics in the making.”

 Porsche 997 Turbo S, 2012

Porsche 997 Turbo S, 2012

 Porsche 997 Turbo S, 2012

Representative Example
48 monthly payments of £927.95
Final balloon payment £45,000
Cash price £90,000
Customer deposit £18,000
Total amount of credit £72,000
Total charge for credit £17,541.60
Total amount payable £107,541.60
Fixed rate of interest per annum 3.94%
Duration of agreement (months) 49 months
Representative APR 7.9% APR

 Terms and conditions apply. Finance subject to status. Guarantee/indemnity may be required. 18s or over. Finance provided by JBR Capital Limited. 

Darren’s verdict: “Air-cooled Porsches have risen hugely in value over the last ten years, and now the spotlight is being shone on the more special water-cooled cars. One of these is the 997 Turbo S. Built in relatively low numbers, it combines 530bhp with everyday usability – it’s a high performance supercar that offers great investment potential.”

2000 BMW Z8

2000 BMW Z8

 BMW Z8, 2000

Representative Example
48 monthly payments of £2,077.41
Final balloon payment £100,000
Cash price £200,000
Customer deposit £40,000
Total amount of credit £160,000
Total charge for credit £39,715.68
Total amount payable £239,715.68
Fixed rate of interest per annum 4.02%
Duration of agreement (months) 49 months
Representative APR 7.9% APR

 Terms and conditions apply. Finance subject to status. Guarantee/indemnity may be required. 18s or over. Finance provided by JBR Capital Limited.

Darren’s verdict: “Inspired by the stunning BMW 507 of the 1950s, the Z8 is one of the most beautiful BMWs ever made and now a highly sought after and appreciating roadster. Under the bonnet lies the same V8 as the E39 M5 while its interior is a masterpiece in quality and style. Values have doubled in the last decade.”

JBR Capital is the UK’s only independent finance provider dedicated to high end vehicle finance for supercars, classic, prestige, historic and racing cars. Finance options include hire purchase, lease purchase, equity release, refinance, auction finance and restoration finance. JBR Capital is also the exclusive finance provider for McLaren Automotive.

For more information on classic car finance, visit www.jbrcapital.com/classic-car-finance/.

Please note that the value of investments can go down as well as up and so investors could get back less than they invested in certain circumstances.

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Investment Roundtable: Live with Jim Bianco

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With Q4’s macro picture still looking grim amid the return of exponential coronavirus waves in Europe and the U.S. and Europe, we speak with veteran macroanalysis strategist Jim Bianco, CMT for a data-driven deep-dive into the global economy and financial markets on Sept. 7th at 12pm EDT.

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Key themes:

  • Learn from Jim’s unique combination of quantitative and qualitative analytics which provide an objective view on Rates, Currencies and Commodities to make smart investment decisions
  • Identify important intermarket relationships he is watching with respect to Global Equities
  • Roadmap a global outlook for 2021 in view of socio-political backdrop giving viewers key takeaways and intermarket perspectives on global investing.

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Jim’s robust technical analysis includes a broad look at trends and themes in the markets, market internals, positioning such as the Commitment of Traders (COT), sentiment, and fund flows. Don’t miss out on this exclusive session from one of the investment world’s most insightful thought leaders.

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Equity markets react to a rise in Covid-19 cases, uncertain Brexit talks and the upcoming US election

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Equity markets react to a rise in Covid-19 cases, uncertain Brexit talks and the upcoming US election 1

By Rupert Thompson, Chief Investment Officer at Kingswood

Equity markets had another choppy week, falling for most of it before recovering some of their losses on Friday and posting further gains this morning.

At their low point last week, global equities were down some 7% from their high in early September. US equities were down close to 10%, hurt by the large weighting to the tech giants which at least initially led the market decline.

The market correction is nothing out of the ordinary with 5-10% declines surprisingly common. Indeed, a set-back was arguably overdue given the size and speed of the market rebound from the low in March.  As to the cause for the latest weakness, it is all too obvious – namely the second wave of infections being seen across the UK and much of Europe and the local lockdowns being imposed as a result.

These will inevitably take their toll on the economic recovery which was always set to slow significantly following an initial strong bounce. Indeed, business confidence fell back in September both here and in Europe with the declines led by the consumer-facing service sector. A further drop looks inevitable in October – fuelled no doubt in the UK by the prospect that the latest restrictions could be in place for as long as six months.

The job support package announced by Rishi Sunak did little to boost confidence. Its aim is to limit the surge in unemployment triggered by the end of the furlough scheme in October. However, the scheme is much less generous than the one it replaces as the government doesn’t want to continue subsidising jobs which are no longer viable longer term.  A rise in the unemployment rate to 8% or so later this year still looks quite likely.

Aside from Covid, for the UK at least, there is of course another major source of uncertainty – namely Brexit. Another round of trade talks start this week and we are rapidly reaching crunch time with a deal needing to be largely finalised by the end of October.

Whether we end up with one or not is still far from clear. That said, the prospects for a deal maybe look rather better than they did a couple of weeks ago when the Government was busy tearing up parts of the Withdrawal Agreement. With significant Covid restrictions quite probably still in place in the new year and the Government already under attack for incompetence, it may not wish to take the flack for inflicting yet more chaos onto the economy.

Markets remain unimpressed. UK equities underperformed their global counterparts by a further 2.7% last week, bringing the cumulative underperformance to an impressive 24% so far this year. The UK weighting in the global equity index has now shrunk to all of 4.0%.

It is not only the UK which faces a few weeks of uncertainty. The US elections are on 3 November. We also have the first of three Presidential debates this Tuesday. Joe Biden’s lead looks far from unassailable, a close result could be contentious and control of Congress is also up for grabs.

All said and done, equity markets look set for a choppy few weeks. Further out, however, we remain more positive – not least because the focus should hopefully switch from the roll-out of new lockdowns to the roll-out of a vaccine.

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What Investors are Looking for in the Next Fintech

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What Investors are Looking for in the Next Fintech 2

By Shaun Puckrin, Chief Product Officer, Global Processing Services

Are investors getting pickier when it comes to fintech? It’s hard to say for sure, but there are recent developments that point towards a shift in investor interests.

Firstly, research from Innovate Finance shows that investment in UK fintech dropped by 39% in the first half of 2020, compared to the same period in 2019. In H1 2020, $1.8bn of venture capital was invested in 167 startups compared to H1 2019, when $3bn was invested in 263 startups.

However, it’s worth mentioning that the $1.8bn UK fintech investment earlier this year was still a 22% increase over the second half of 2019, when funding totalled $1.5bn. Therefore, all signs suggest that investors will make significant increases in capital investments during the rest of the year.

Secondly, it appears that the current investor appetite is for more mature, later-stage fintechs: more than half of the $1.8bn went to just five companies: Revolut, Checkout.com, Starling Bank, Onfido and Thought Machine. Perhaps it is the ongoing economic uncertainty surrounding the COVID-19 crisis that is prompting inventors towards perceived “safer bets”, but what we do know for a fact is that early-stage fintechs raised just 8% of the total investments.

Is there a silver lining? The coronavirus crisis has rapidly accelerated the digitisation of financial services, with lockdown restrictions encouraging those previously resistant to engage with digital financial services. The stage is set for fintechs to thrive and deliver offerings that meet shifting consumer demands. To be in with a shot of wooing investors, fintechs will need to demonstrate certain qualities that set them apart from other companies.

So, what are the four things investors are looking for in the next big fintech?

  1. A strong, differentiated proposition

The fintech marketplace is crowded and filled with mature innovators setting a high standard for everyone else. Against this backdrop, “challenging the incumbents” is, unfortunately, no longer a USP.

To really catch the attention of investors, you must be addressing a clear, pressing market need that no one else is tackling. Not just that, your proposition must be easily articulated and backed to the hilt with market research that proves the opportunity is worth pursuing.

Ultimately, investors are going to ask the question: why you? What are you doing that’s unique? What do you have that means you – and only you – can do this? They will also want to know how defendable that proposition is once you’ve built it.  What is your moat? Getting this right means a foot in the door with investors.

  1. A path to profitability or exit

This is an extremely pertinent point, especially given recent news surrounding the financial results for many of the big challenger banks, and how they show the route to profitability for challengers isn’t necessarily straightforward or easy.

In the current environment, an attractive fintech must be able to demonstrate a concrete, long-term plan for the financial viability of the business. There are different paths for investors to make their returns, be it a trade sale or IPO, but the fundamentals of securing a successful outcome are usually the same. By being able to demonstrate how you can plot a course to attract and serve your customers for less than you can monetise them will be at the route of any subsequent valuation, no matter how its outcome is achieved.

Whatever the goal, you need a plan to support your ambitions. You need to demonstrate an understanding that building a scalable and sustainable fintech is likely to require significant capital – you must invest in the right people, partners and technology to make money. Developing competitive services, attracting customers and, crucially, monetising your offerings, requires hard work and the ability to adapt to your customer’s needs.

  1. Strong leadership and core team

Ultimately, securing investment is about building relationships and what often tips the scales is having the right people in the room. This is why a great team is crucial.

A great team means many things: Strong leadership with the vision to build something revolutionary. The skills and expertise to turn that vision into reality. The experience to traverse the pitfalls and opportunities you’ll face. And finally, the ambition and determination to make the business successful no matter what.

Building the right team with the right qualities is often what convinces investors that they’re putting their money in the right place.

  1. The right partnerships

Partnering with the right organisations can give you strategic access to the solutions that will help build and scale your offering. Their expertise and experience are often invaluable; many partners have been in the game for years and may have already solved problems you might be encountering for the first time.

From an investor’s perspective, seeing that you’re working with credible partners and proven tech helps build confidence. It shows that you’re a less risky investment, and that you respect their investment and are going to be using their money to build real value.

Fintech investment is not dead

After this recent blip, we expect the amount of investment into fintech to continue to be significant, at least in relation to other industries. But there’s no avoiding the fact that investors will be looking to stress test potential investments much more than before.

By creating a differentiated proposition, planning a clear route to profitability, building a strong team, and finding the right partners, fintechs will be in with a shot of securing the funding they need to make their grand vision a reality.

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