Buyers and sellers of classic cars have enough detail to concern them without having to deal with forex market gyrations. An auction house and currency firm have teamed up to deal with that issue.

UK-based collectors’ car and motorbike auction house H&H Classics aims to make it easier for buyers to steer around twists and turns of the sometimes volatile forex market through a partnership with Currency Solutions.

Under the partnership, Currency Solutions enables those buying or selling a car or other vehicle at auction to have a fixed exchange rate in place “on the hammer” at the H&H sale the person is attending, removing risks of forex losses in the aftermath of the deal.

Currency Solutions says it is typically able to beat banks’ forex rates by up to 5 per cent, which can translate into significant sums in the case of the large prices fetched these days by marques such as Ferrari, Aston Martin, Jaguar, Porsche, and others. 

With collectibles such as classic cars, fine wines, watches and fine art seen as ways for high net worth individuals to diversify wealth and have some fun at the same time, the idea of helping soothe potential forex pains drew Currency Solutions to the field, said Steve Geoghegan, senior broker at the firm.

“We’ll be attending the auctions as currency brokers to speak to people, help them, and let them get on with the market,” he said. “We know they [H&H] have a very cosmopolitan clientele.”

Currency Solutions will adopt a “consultative approach” in working with clients, he added.

Currency Solutions was formed 14 years ago, while H&H was founded in 1993 by Simon Hope, devoted entirely to collectors’ cars and motorcycles. It has handled machines ranging from pre-20th century cars to Formula 1 motor racing machines. It is headquartered in Cheshire.

Recent data in the UK show a slight fall so far this year for major classic marques. According to Historic Automobile Group, or HAGI, its HAGI Top 50 benchmark fell by 0.32 per cent in February. Various sector indices, such as those tracking Ferraris, also fell.

Taylor Wessing, the law firm, last year issued a guide on collectibles and “trophy assets” – see here for one of its articles on cars.