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How It Works

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Source

To ensure you get the best, we source and handpick only the finest, most iconic cars from the UK's most prestigious car dealerships which we personally verify.  Everyone is picked based on its potential to appreciate and deliver great potential return on investment. 

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Share

A limited company is created for each individual car. Each company issues a number of fractional shares and once funded, the company owns the car outright - and the company is 100% owned by the shareholders.

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Store

TheCarCrowd take care of all storage, maintenance and insurance up to the maximum term of 5 years. The cost of this is included into the share price. All cars are accessible to investors 6 days a week in our Nottinghamshire storage centre.

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Sell

Investors have an annual vote to keep or sell the vehicle up to a maximum of 5 years.

 

Any profits will be returned to investors in line with their shareholding.

We Got You Covered

What it means to invest with the CarCrowd

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Our Regulation

TheCarCrowdAR is an appointed representative of Infinity Asset Manegement LLP who are authorised and regulated by the Financial Conduct Authority. 

FSCS protected

FSCS Protected

Invested capital is protected by the Financial Services Compensation Scheme (FSCS) up until a car is fully funded via our partner, Goji Investments, who manage your individual investor wallet.   Once funded your investment is backed up by the underlying value of the asset. 

Peace of mind

Peace of mind

All cars are fully insured, stored and maintained by TheCarCrowd. In the unlikely event we cease trading, your investment would be included in a wind-down process.  In this case vehicles would be sold and TheCarCrowdAR would instruct Goji Investments would return all available funds to shareholders

full diversification

Full Diversification

Investing into classic cars with the CarCrowd not only allows your to diversify your portfolio into an alternative asset class, but you can also diversify within the class itself. Unlike a fund you can choose the cars you invest in, from super cars to rally-bred hatch backs.

immersive investment

Immersive Investment

We are not a faceless investment. Investing with the CarCrowd allows you to have full access to your assets at any time. Either by visiting our East Midlands based investor lounge or through our VR garage software coming in 2023.

specialist knowledge

Specialist Knowledge

We use a dedicated team of petrolheads with years of automotive knowledge to hand pick only the finest cars. We select our assets based on data driven criteria, following the 25 year 'export to America rule', nostalgia and motorsport pedigree which have previously proven to show potential for appreciation.

How To Invest

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Register

To start your investment journey with us you must first complete a short questionnaire and declare your investor type. You will then need to pass a KYC check and qualify as an investor.

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Select Your Car

Select the type of car you want to invest into. We only pick the best cars on the market. All our cars are sourced from the most prestigious dealerships and private off-market collections through our network of contacts.

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Buy Shares

You can buy 1 share up to a maximum of 10% shareholding in each asset. The asset will be valued at current market price after 2 years and shareholders will get voting rights on whether they want to sell or keep the car.

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Realise Your Investment

The assets will either be sold at auction or through private sale. A single investor can also offer to buy out all the other investors if they wish to purchase the car. After the sale all profits will be distributed to investors based on their shareholding, minus The CarCrowd's fees.*

*Remember values can go down as well as up

Frequently Asked Questions

  • Can I sell my shares before the car is sold?
    Not initially, you won’t be able to exit until the car is sold which requires at least 15% of shareholders to vote, of which 50.1% to agree to a sale. You should not invest any money you cannot afford to lose or need immediate access to and be prepared to have your funds tied up for a maximum of 5 years.
  • What are the eligibility requirements?
    All customers need to be 18 or over and will be required to pass KYC and appropriateness checks prior to making an investment. Investors now need to be classified as 'high net worth' or 'sophisticated' investors in order to be able to invest into any CarCrowd asset. All customers will need to qualify as one of these investor types prior to investing. This process takes between 5 and 10 minutes and is done completely online. International investors will have to pass manual KYC which can take up to 10 working days. If you are an international investor please email support@thecarcrowd.co.uk for details on the documentation required.
  • What if all the shares into the ownership of the car don't sell, will I get my money back?
    In the event the car doesn’t fully fund within 90 days, all invested capital will be returned to the investors with no fees or charges.
  • What are the fees?
    Customers will pay a fixed curation fee to cover the sourcing, provenance checking, valuation and transport of the vehicle as well as any margin. An operations fee to cover insurance and storage for the first 2 years will also be applied upon share purchase Should shareholders vote to keep the car for longer than 2 years and annual operations fee will be charged each year at point of voting to keep the asset. Additionally 10% of profits will be charged by TheCarCrowdAR on exit. More information on fees can be found in the information memorandum for each car.
  • Personal tax and legal info
    Investing in a car and making profit from it, could potentially incur capital gains tax in the UK. International users should consult legislation specific to their locality. TheCarCrowdAR cannot give tax advice or comment on individual tax circumstances. If in doubt, please consult an independent tax resource or a tax professional.
  • How does the selling process work/how can I exit?
    This is an illiquid investment meaning that there is currently no active secondary market available for your shares to be sold. You should assume that it will not be possible to exit your investment until a periodic shareholder vote decides to sell the asset or after five years, whichever is sooner, and under specific scenarios set out within the information memorandum which is available for download prior to investing. After the car has been periodically revalued, shareholders will be informed of the valuation. They will take a vote on whether to keep or sell the car. Once sold, any profit will be distributed among the shareholders. In order for the vote decision to be legitimate, a minimum of 15% of the shareholders must vote. A 50.1% majority is required to start the process. Additionally, every time an offer to purchase the car is received from a potential buyer with a price at or above the valuation, this will be brought before the shareholders for a vote. If the decision is taken to sell, there are a number of different outlets for potential sale, including private sale, auction, and the potential for other shareholders to buy the car outright. This will all be overseen by the TheCarCrowdAR.
  • Are there any other ways investors can make money?
    There is also the possibility that investors will receive an in-year dividend based on their shareholding, should the car be loaned out for appearances in TV, film, music videos, media events and advertisements. TheCarCrowdAR lists the vehicles with key agencies on behalf of shareholders to attract this work.
  • What is the minimum and maximum investment?
    This will vary for each car, with the minimum always being set to 1 share and the maximum set to 10% of the total share allocation. We cap the maximum investment to 10% of the available allocation to ensure a true community ownership of the vehicle and so no single investor can dictate the outcome of the regular votes.
  • What if the car never sells?
    If after 5 years the car remains unsold, it could be sold below market value. Of course, as with all investing, your capital is at risk.
  • How do returns work once the car is sold?
    Once a car is sold, TheCarCrowdAR will arrange for all necessary taxes and fees to be paid by the Special Purpose Vehicle. Profits will then be distributed among the shareholders..
  • How does investing into the ownership of a classic car work?
    TheCarCrowd sources, verifies and hand picks classic, rare and iconic cars from across the UK for purchase. We then create a limited company with a number of beneficial shares which can be purchased by investors. Once fully funded the limited company purchases the car outright as its sole asset. The assets are kept for a maximum of 5 years but as a shareholder you get to vote each year on whether to keep or dispose of the asset. The voting system is run like a standard limited company Annual General Meeting with a majority rule deciding the outcome of any resolutions. Once disposed of the funds will be returned to investors within 4 weeks of the sale, net of any fees taken by TheCarCrowd. For all investments and disposals any fees relating to the transaction will be clearly documented within the website or supporting documentation. You can view your asset at any time by contacting support@thecarcrowd.co.uk and arranging a visit. You can also visit us at our Nottingham Cafe (TheCarCrowd Cafe), Thursday to Sunday every week.
  • Where are the cars kept and how are they stored?
    The vehicles will be securely stored within TheCarCrowdAR’s East Midlands storage hub. The storage will be secured by CCTV, monitored alarm systems and steel roller shutter gates. The vehicle will undergo one annual service per year including an MOT to ensure it remains in good order and will be moved periodically to ensure no flat spots or ceasing of key components.
  • How are the items valued/who values them?
    TheCarCrowdAR directors estimate the value of each car twice a year. They use a proprietary benchmarking tool which takes data input from sources such as; specialist independent valuations, Hagerty UK, Classic & Collector Car Auctions, Glenmarch and HAGI (historic automobile group index). Ensuring the quality, value and integrity of all assets available through our platform is of paramount importance. So we've enlisted the services of industry leaders, Sotheby's, one of the world’s largest auction houses, to independently value our first car to ensure the CarCrowd’s valuation was accurate. The independent valuation is no guarantee of this valuation or of any returns.
  • Who holds my money?
    TheCarCrowdAR uses Goji Investments which is authorised and regulated by the FinancialConduct Authority (FRN (805323) for cash deposits (client money) and shares issued (asset custody).
  • Can I see the car?
    Investors are welcome to inspect the vehicle prior to investment at either the original collector location or at the secure storage centre in the East Midlands. Once funded the cars are available to view at any time at TheCarCrowd Cafe in the East Midlands as well as on stands at regular events in the UK. To make a viewing appointment please email support@thecarcrowd.co.uk
  • Is it safe and how is this regulated?
    No investment is risk-free and you should consult a financial adviser if you are in any doubt as to investing. TheCarCrowdAR offer asset backed investments and so any investment you make is supported by the underlying value of the asset. TheCarCrowd is a registered trading name of TheCarCrowdAR limited. TheCarCrowdAR Limited (FRN977168) is an appointed representative of Infinity Asset Management LLP (FRN464315) which is authorised and regulated by the the Financial Conduct Authority, as such we are subject to the FCA rules in our dealings with our customers. TheCarCrowdAR work with a partner named Goji Financial Services to provide other regulated activity such as: Managing Client Money and Asset Custody. Goji Financial Services are authorised and regulated by the Financial Conduct Authority (FRN: 805323). Remember as with all investments, your Capital is at Risk and past performance is not a reliable guide to future returns. The value of your investment can go down as well as up and you might get back less than you originally invested.
  • Are fractional investments into the ownership of classic cars covered by the Financial Services Compensation Scheme (FSCS)?
    During the funding stage of the process, before all the shares are sold, all cash deposits held by Goji Investments on behalf of investors are protected by the Financial Services Compensation Scheme (FSCS), which protects investors should TheCarCrowdAR cease trading. The Financial Services Compensation Scheme does not cover investment performance, but eligible investors who invest through the Goji Platform may have rights to compensation in the event of Goji becoming insolvent (for further details, see www.fscs.org.uk) GFSL is a company registered in England and Wales (no. 10234133) with registered office at 133 Whitechapel High St, London E1 7QA.
  • Who are the CarCrowd?
    TheCarCrowd is a classic and prestige vehicle network that allows qualifying investors the chance to own a real stake in classic and prestige cars. As an investor you will benefit from potential yearly dividends if your car is used in press, film, TV or photography – as well as benefiting from any potential appreciation in the car's value. According to Coutts passion index, classic cars have appreciated by 245.8% since 2005 - but until now this level of return had been reserved for the few who can afford to purchase, store and insure the whole car. TheCarCrowd is a trading name of TheCarCrowdAR Limited who are an Appointed Representative of Infinity Asset Management LLP, which is authorised and regulated by the Financial Conduct Authority
  • Where are the cars sourced from?
    Using their network of off-market contacts, dealers and private collectors, the cars are handpicked by TheCarCrowdAR’s experts for their potential to appreciate in value. All cars go through stringent checks before they’re purchased.
  • Can I drive the car?
    In order to maximise potential returns, TheCarCrowdAR's policy is that Shareholders do not not have the right to drive the cars. ‍“We want to ensure that our shareholders get the maximum value from their chosen cars, so we treat them like pieces of art. Every shareholder can book a visit to our storage facility whenever they want to see and interact with the car”, David Spickett, CEO at TheCarCrowd
  • What have the historical returns been on classic cars?
    According to the Historic Automobile Group International (HAGI™), an independent investment research house and think-tank with specialised expertise in the rare classic motorcar sector, the market saw a +9.21% YTD increase. The markets for rare Porsche automobiles, rare Ferrari automobiles and classic Lamborghini automobiles saw YTD increases of +18.92%, +6.09% and 3.81%, respectively. According to figures released in 2019 from the Coutts Passion Index, classic cars had appreciated by 245.8% since 2005. A recent sale of a Renault Clio V6 gave investors a 32% return on their investment within 12 months with TheCarCrowd. However, please note that past performance is not a reliable indicator of future results. You should not rely on any past performance as a guarantee of future returns.
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Please note we can only accept investment from Self Certified Sophisticated and High Net Worth Investors

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