Liquidity for Luxury Collectors: When the Dream Car Calls

A rare classic car is coming up for auction, but your capital is tied up? Georg von Waldenfels from Collector’s Capital explains in an interview how his company provides collectors with millions in short-term liquidity by lending against exclusive vehicles.

Automotive exclusivity meets short-term capital needs: The market for luxury collector vehicles is booming, yet even wealthy enthusiasts sometimes face liquidity bottlenecks when a unique purchasing opportunity arises. At the same time, they do not want to give up the appreciation potential of their existing collection. This is exactly where Collector’s Capital comes in. We spoke with Georg von Waldenfels, one of the founders, about his innovative business model, which enables fast liquidity through the lending of high-end vehicles while maintaining discretion and keeping an eye on the future potential of these unique cars.

Over 25 years of experience in financing and marketing highly exclusive collector vehicles

Mr. von Waldenfels, as one of the founders of Collector’s Capital, you offer a completely new service for collectors of exclusive vehicles. Could you briefly explain who you and your team are?

Our founding team has over 25 years of experience in financing and marketing highly exclusive collector vehicles. Worldwide, we are one of the most successful players in this sector, with a financing volume of approximately 750 million euros in the high-value vehicle segment.

What is the concept of your company, what do you offer your clients?

Let’s suppose a collector has invested his money, among other things, in five classic cars, and then his dream car appears at an auction. An opportunity that may only come once in a lifetime because the vehicle is so rare. But the customer is not liquid at that moment because his money is tied up in stocks, companies, and, of course, in his cars. That’s where we come in: We lend against one or more pieces from the enthusiast’s existing collection with up to 60 percent of the market value of the exclusive automobile.

Couldn’t I simply sell one of my vehicles?

These enthusiasts would rather obtain the financial means from somewhere else than sell one of their beloved vehicles. You have to imagine it like this: When a new supercar or a sought-after classic car comes on the market, collectors have to act quickly. Most of these enthusiasts do not see their exclusive cars just as a hobby but also as an investment, as an asset, like real estate. The vehicles are usually fully paid for. Then they need money quickly to be able to strike. This is where Collector’s Capital comes into play. We offer a worldwide unique service that does not exist in this form anywhere else.

What is the advantage of your offer compared to a conventional loan?

Our offer is short-term, very discreet, and refers only to the most exclusive vehicles. Banks are too slow and have hardly any expertise in this area. There might be an employee who knows a little about art collections, another who superficially knows something about classic cars. Banks lack the valuation models and risk assessment for niche assets. A holistic approach like the one we offer is something they cannot provide. And our customers receive the money within two to three weeks. No bank can keep up with that.

The annual interest rate is about 15 percent

How long are the terms of the contracts with Collector’s Capital?

They usually range between six and twelve months. But periods of up to three years are also possible. The annual interest rate is about 15 percent.

To help us imagine it better: How exactly does the process work? Let’s say I want to pledge my exclusive vehicle with you. What happens then?

The customer first submits an inquiry for his vehicle with us. Then we check whether it fits into our portfolio. In the first step, we only lend against vehicles that are marketable, meaning there is demand for them. With Ferrari, for example, not all models are equally in demand. Then the customer comes to us with his car, we look at the vehicle documents and check whether a legal transfer is even possible. This is followed by two appraisals, one from one of our partners and one from an external expert.

How transparent is that for the customer?

Completely. We inform our customers how and according to which criteria the appraisal is carried out, and at the end, they receive our assessment. If the collector vehicle is worth, for example, five million euros, the collector can pledge it with up to 60 percent of it, meaning three million euros. This way, the customer quickly receives money without having to give up the appreciation potential of his exclusive cars.

We store the car securely in a high-security garage with bulletproof glass and 24-hour surveillance in the immediate vicinity of our company.

So the advantage for the customer is that he does not have to sell his vehicle to become liquid, but only deposits it as collateral with you?

Exactly, we enable him to access capital in the short term, which he can use economically, while the car and the vehicle registration document remain with us. The customer can reinvest the sum, for example, by buying another vehicle or investing in a company he wants to participate in, which then yields a certain margin during the contract term with us. So, he makes a profit during this period since the value of these rare automobiles continues to rise. There is no risk for the customer; he does not have to sell his collector’s item to become liquid. We store it securely in a high-security garage with bulletproof glass and 24-hour surveillance in the immediate vicinity of our company. It is fully insured and not moved. The customer can also “visit” the vehicle at any time if he feels the longing.

What happens after the end of the contract term?

The exclusive vehicle is returned to the owner. Or he pledges it again, or another hypercar, another sports car, or classic car. But he can also redeem it before the end of his contract term; however, the contract and the accruing interest must still be fulfilled during the previously agreed term.

Is your service limited to Germany?

No, we operate globally and serve an international clientele, meaning we are not limited to the German-speaking area and its legislation. However, the car to be pledged must always be stored with us on site. For this, we work with logistics companies that safely transport the vehicles to us. Concluding a contract with Collector’s Capital is therefore also possible if the Ferrari or the Lamborghini is in Dubai. It is important for us that we personally inspect the supercar or classic car beforehand.

In what financial range are the vehicles that you accept at Collector’s Capital?

We focus on truly exceptional vehicles on the market. Our focus is on collector brands — super sports cars, hypercars, sought-after classic cars. But we are also not afraid of exotics like Bugatti, Pagani, and Koenigsegg. They start in a value range of over 500,000 euros and go up to several million euros.

Many of these collectors are very keen to remain anonymous. How do you guarantee that?

Our customers receive the discretion of a private bank combined with exceptional service. These are our highest values.

What are your future plans with Collector’s Capital?

We want to position our business globally and serve a worldwide market. At the same time, we are working on a digital platform for exclusive collector cars, which may also include a digital marketplace, for example. Digitalization is an important topic for us in order to optimize all processes related to the sale of these vehicles. Our exclusive clientele expects the best possible service. That is what we want and are able to offer them.