The market for collectables such as classic/rare cars may be a niche but as private bankers know, it is a topic that their well-heeled clients care about.

JP Morgan Private Bank has dialled into clients’ love of classic, rare and custom-made cars with a new lending solution. 

The US bank’s automobile collection financing is available to qualified collectors with diversified portfolios. Credit is secured for vehicles that have investment quality, subject to appraisal, insurance, and documentation requirements.

The solution applies to automobiles held in select jurisdictions in Europe.

“Europe’s classic car history is a blend of tradition and innovation, inspiring some of the world’s most celebrated private collections,” Folarin Oyeleye (pictured below), head of Europe, Middle East and Africa Lending Solutions, said. “Classic and rare automobiles have become a distinctive asset class, offering collectors an opportunity to preserve wealth and diversify their portfolios.”

Folarin Oyeleye

The offering highlights how the market for “collectables” – a field spanning art, fine wine, jewellery, watches and cars – may be a niche, but is also an important one. It can be a means for private banks to entrench relations with clients on topics that are hobbies as well as about making money.

“At JP Morgan Private Bank, we understand that collecting automobiles is driven by both passion and investment,” Steven Hawkins, head of specialty lending for JP Morgan International Private Bank, said. “Our financing solutions help clients unlock liquidity from their collections, allowing them to pursue what inspires them while meeting their financial goals.”

The bank added that although clients throughout Europe, the Middle East, and Africa can access this service, automobile collections physically located in England and Wales, Italy, Germany, Switzerland, France and Spain are eligible for financing.

Earlier this year, this news service spoke to the founder and CEO of TheCarCrowd, based in the UK. He said it provides a way for individuals to build a collection of cars on their own, or join with other members via a syndicate. This is a large sector, although dwarfed by the mainstream equity market. For example, according to Statista's estimate in 2023, based on the US, UK and German sectors, the global classic car market revenue was $31.6 billion dollars for 2022, with an expected growth rate of 9.6 per cent annually until 2026. Price performance can vary, and it appears that certain brands stand out.