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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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Not company earnings, not data but vaccines now steering investor sentiment

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Not company earnings, not data but vaccines now steering investor sentiment 1

By Marc Jones and Dhara Ranasinghe

LONDON (Reuters) – Forget economic data releases and corporate trading statements — vaccine rollout progress is what fund managers and analysts are watching to gauge which markets may recover quickest from the COVID-19 devastation and to guide their investment decisions.

Consensus is for world economic growth to rebound this year above 5%, while Refinitiv I/B/E/S forecasts that 2021 earnings will expand 38% and 21% in Europe and the United States respectively.

Yet those projections and investment themes hinge almost entirely on how quickly inoculation campaigns progress; new COVID-19 strains and fresh lockdown extensions make official data releases and company profit-loss statements hopelessly out of date for anyone who uses them to guide investment decisions.

“The vaccine race remains the major wild card here. It will shape the outlook and perceptions of global growth leadership in 2021,” said Mark McCormick, head of currency strategy at TD Securities.

“While vaccines could reinforce a more synchronized recovery in the second half (2021), the early numbers reinforce the shifting fundamental between the United States, euro zone and others.”

The question is which country will be first to vaccinate 60%-70% of its population — the threshold generally seen as conferring herd immunity, where factories, bars and hotels can safely reopen. Delays could necessitate more stimulus from governments and central banks.

Patchy vaccine progress has forced some to push back initial estimates of when herd immunity could be reached. Deutsche Bank says late autumn is now more realistic than summer, though it expects the northern hemisphere spring to be a turning point, with 20%-25% of people vaccinated and restrictions slowly being lifted.

But race winners are already becoming evident, above all Israel, where a speedy immunisation campaign has brought a torrent of investment into its markets and pushed the shekel to quarter-century highs.

(Graphic: Vaccinations per 100 people by country, https://fingfx.thomsonreuters.com/gfx/mkt/azgvolalapd/Pasted%20image%201611247476583.png)

SHOT IN THE ARM

Others such as South Africa and Brazil, slower to get off the ground, have been punished by markets.

Britain’s pound meanwhile is at eight-month highs versus the euro which analysts attribute partly to better vaccination prospects; about 5 million people have had their first shot with numbers doubling in the past week.

Shamik Dhar, chief economist at BNY Mellon Investment Management expects double-digit GDP bouncebacks in Britain and the United States but noted sluggish euro zone progress.

“It is harder in the euro zone, the outlook is a bit more cloudy there as it looks like it will take longer to get herd immunity (due to slower vaccine programmes),” he added.

The euro bloc currently lags the likes of Britain and Israel in terms of per capita coverage, leading Germany to extend a hard lockdown until Feb. 14, while France and Netherlands are moving to impose night-time curfews.

Jack Allen-Reynolds, senior European economist at Capital Economics, said the slow vaccine progress and lockdowns had led him to revise down his euro zone 2021 GDP forecasts by a whole percentage point to 4%.

“We assume GDP gets back to pre-pandemic levels around 2022…the general story is that we think the euro zone will recover more slowly than US and UK.”

The United States, which started vaccinating its population last month, is also ahead of most other major economies with its vaccination rollout running at a rate of about 5 per 100.

Deutsche said at current rates 70 million Americans would have been immunised around April, the threshold for protecting the most vulnerable.

Some such as Eric Baurmeister, head of emerging markets fixed income at Morgan Stanley Investment Management, highlight risks to the vaccine trade, noting that markets appear to have more or less priced normality being restored, leaving room for disappointment.

Broadly though the view is that eventually consumers will channel pent-up savings into travel, shopping and entertainment, against a backdrop of abundant stimulus. In the meantime, investors are just trying to capture market moves when lockdowns are eased, said Hans Peterson global head of asset allocation at SEB Investment Management.

“All (market) moves depend now on the lower pace of infections,” Peterson said. “If that reverts, we have to go back to investing in the FAANGS (U.S. tech stocks) for good or for bad.”

(GRAPHIC: Renewed surge in COVID-19 across Europe – https://fingfx.thomsonreuters.com/gfx/mkt/xegvbejqwpq/COVID2101.PNG)

(Reporting by Dhara Ranasinghe and Marc Jones; Additional reporting by Karin Strohecker; Writing by Sujata Rao; Editing by Hugh Lawson)

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BlackRock to add bitcoin as eligible investment to two funds

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BlackRock to add bitcoin as eligible investment to two funds 2

By David Randall

(Reuters) – BlackRock Inc, the world’s largest asset manager, is adding bitcoin futures as an eligible investment to two funds, a company filing showed.

The company said it could use bitcoin derivatives for its funds BlackRock Strategic Income Opportunities and BlackRock Global Allocation Fund Inc.

The funds will invest only in cash-settled bitcoin futures traded on commodity exchanges registered with the Commodity Futures Trading Commission, the company said in a filing to the Securities and Exchange Commission on Wednesday.

A BlackRock representative declined to comment beyond the filings when contacted by Reuters.

Earlier this month, Bitcoin, the world’s most popular cryptocurrency, hit a record high of $40,000, rallying more than 900% from a low in March and having only just breached $20,000 in mid-December.

Bitcoin tumbled 10.6% in midday U.S. trading Thursday.

Other U.S.-based asset managers will likely follow BlackRock’s lead and add exposure to bitcoin in some form to their go-anywhere or macro strategies as the cryptocurrency market becomes more liquid and developed, said Todd Rosenbluth, director of mutual fund research at CFRA.

“It’s easy to see how strong the performance has been of late and look at a historical asset allocation strategy that would have included a slice of crypto and how returns would have been enhanced as a result,” he said. “Large institutional investors are going to be able to tap into the futures market in a way that a retail investor could not do.”

There is currently no U.S.-based exchange-traded fund that owns bitcoin, limiting the ability of most fund managers to own the cryptocurrency in their portfolios.

BlackRock Chief Executive Officer Larry Fink had said at the Council of Foreign Relations in December that bitcoin is seeing giant moves every day and could possibly evolve into a global market. (https://bit.ly/2XXFHrB)

(Reporting by David Randall; Additional reporting by Radhika Anilkumar and Bhargav Acharya in Bengaluru; Editing by Arun Koyyur and Lisa Shumaker)

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Bitcoin slumps 10% as pullback from record continues

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Bitcoin slumps 10% as pullback from record continues 3

LONDON (Reuters) – Bitcoin slumped 10% on Thursday to a 10-day low of $31,977 as the world’s most popular cryptocurrency continued to retreat from the $42,000 record high hit on Jan. 8.

The pullback came amid growing concerns that bitcoin is one of a number of financial bubbles threatening the overall stability of global markets.

Fears that U.S. President Joe Biden’s administration could attempt to regulate cryptocurrencies have also weighed, traders said.

(Reporting by Julien Ponthus; editing by Tom Wilson)

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