#1 - Vive la Rénaultution
Foreword
First and foremost, if you have read this far…..cheers.
It gave me great pleasure to write the inaugural Market Musings this month. While primarily, this was down to the fact I no longer found myself battling with fellow commuters to secure the only remaining seat on an inevitably delayed South Western Railway service out of Waterloo, I also think it was in part due to the substitution of my Bloomberg computer screens for the 3 cars I currently find parked in front of me.
These cars are by no means the fastest, most expensive or best looking automobiles to ever grace God’s green earth. What they are however is unadulterated examples of not only incredible sports/supercars, but also an increasingly interesting investment proposition.
As emissions regulations become progressively more restrictive and Electric Vehicle production moves to the forefront of all major car manufacturers’ objectives, many of the cars produced over the last 30 years are soon to be confined to the history books. As a result, I believe there are a number of traits you can analyse in order to determine which cars will find themselves becoming revered classics in the near future and with that, appreciating assets. What’s more, we are already seeing this dynamic play out across a host of modern classics. Whether it be Porsche 997 GT3’s or Ferrari 430s all the way to Ford Escort RS Cosworth’s, you are able to see first-hand where their valuations have hit an inflection point from which they have begun to appreciate in value.
These musings are here to highlight to investors, collectors and enthusiasts a like the trends we are seeing in the modern classic car market as well as the cars we believe are experiencing or beginning to experience the transition into an appreciating asset class…..as well as being incredible drivers cars.
Treat as the gospel or press the delete button after reading…..either way, I hope you enjoy what we have to say and always feel free to comment or drop by and grab a coffee with us.
All the best,
Greg Evans
Vive la Rénaultution
The French and sports cars have always had a somewhat tumultuous love affair. Whatever flames of automotive brilliance that did emerge were often short lived, mildly flawed, underappreciated and quickly extinguished. There is however, one marque that has always got back up onto the horse to give it another go……Renault.
Renault know how to make good cars, but more importantly, they really know how to market them. Back in March 1998, Renault launched the second generation of their hugely successful supermini, the Clio. To promote the new model, Tom Walkinshaw Racing (TWR) of Jaguar Le Mans fame was drafted in to help build a race car for a one make Clio race series. The result was a rear wheel drive hyper hatch with a mid-engined 3 litre V6 borrowed from a Renault Laguna known as the Clio V6 Trophy. In a lot of ways, the definition of over engineering, the V6 Trophy was a long way from the cheap and cheerful supermini it was based. That said, it was adored by the public and following the success of the series, was enough to convince the good people at Renault to make a road going version….and the Clio V6 was born.
The finished product was a marketing sensation. I recall seeing the V6 in the flesh for the first time at Goodwood where it was been driven spiritedly up the FoS hill climb by a then still baby faced Jenson Button and it was incredible. The squashed stance, the huge arches, the massive side air intakes and the incredible noise from a howling naturally aspirated V6. It became an instant petrolhead icon alongside the likes of Ferrari F50s and McLaren F1s.
But in typical French fashion….. it had some issues. The initial 230bhp phase I car that launched in 2001 was renowned for unwieldy handling (particularly in the wet) due to its mid-engined layout and short wheel base. Furthermore the turning circle made super tankers look agile, 3 point turns become 6 point and an underground car park trip very stressful. The later and rarer 255bhp phase II car that followed in 2003 did have the vast majority of the early cars handling quirks addressed however like its phase I predecessor, the addition of the V6 and accompanying structural alterations meant it weighed in at 300kg heavier than its younger, thinner brother, the Clio 172. None of that mattered though. It was a homage to the Renault 5 turbo rally cars of the 80s, it demanded a skilled driver to take it to the limit in the same way as a Porsche 996 GT2…….all of its flaws actually propelled it towards cult legend status.
You see the reality is, in today’s nanny state, neither Renault nor any other mainstream manufacturer will ever make a car like the Clio V6 again. It was spawned in a time when you could still smoke in the office, Concorde was still in the skies and Instagram and Facebook were but twinkles in their founders eyes. The Clio V6 was a glorious extension of all things that were great about the early noughties. That’s why today it’s such an interesting investment proposition. With only 1513 phase I and 1309 phase II cars produced globally and with the vast majority left on the roads today either being higher mileage examples or modified for track use, it is very hard to find a clean low mileage example in original specification. What’s more, even though prices are comfortably off their 2014 lows, when you compare valuations to the likes of Ford Escort RS Cosworth prices, a clean Clio V6 for below £40,000 looks very good value indeed. We wouldn’t be surprised if we saw these trading north of £50,000 in the next 3-5years especially given clean examples in Europe are already trading around EUR50,000 (~£44,000 equiv).
Happy Motoring,
CC’s Investment Team
CONTEMPORARY CLASSICS LIMITED
Unit 7, Boundary Business Centre, Boundary Way, Woking, GU21 5DH