Porsche tokenization: Finexity makes a start

As an investment company, Finexity’s goal is to provide investors with access to attractive alternative investments, according to its offering documents. The Internet platform is now making a start with a first car of the Porsche brand and is entering the business with tokenized cars.

New asset class for tokenization

“With special classic cars, it is becoming increasingly difficult to find vehicles in their original condition,” says classic cars expert Guido Frank. “This Porsche 911 Turbo with the larger 3.3 liter engine, Matching Numbers and mileage under 35,000 km is an absolute rarity.” “Matching Numbers” refers to vehicles that still have the original engine, transmission and paint color.

Finexity has thus added a new asset class to its offering. The tokenization platform already has tokens in real estate, wine, art and diamonds on offer. Interested investors in the United States, England and around the world can reserve shares in the 911 Porsche before the official early subscription period. To do so, they must submit the investment on the at Finexity.

Porsche 911 Turbo with large rear spoiler

According to Finexity, the tokenized Porsche 911 Turbo’s unique blend of sportiness, innovation and quality German engineering make it a “special classic car of the highest collector quality.” Its main distinguishing feature is the large rear spoiler. It gives the 911 Turbo a unique appearance and makes an impression at first sight. In addition to the turbocharger, the 911 Turbo model took design elements from the 911 Carrera RS 3.0 race car.

Porsche as a good token investment

This led to the finesse from racing finding its way into the normal street scene through the 911 Turbo. From 1979, the engine increased to 3.3 liters. The car featured an intercooler installed for the first time in production vehicles. Porsche ‘s vision for the 911 Turbo was to combine the unbridled power of a rear-mounted Porsche engine with the best possible comfort. Passengers should be able to converse even at high speeds without having to raise their voices. Among car enthusiasts in England or the USA, the Porsche model is therefore an interesting car token investment.

Risks ride along with car investments

Finexity states that it only accepts high-quality cars for investments in the marketplace. Nevertheless, caution is advised for the following reasons:

• As an investor, you have to rely on the valuation from the token platform.
• The Porsche token is a tokenized debt security. This is associated with considerable risks and can lead to the complete loss of the invested assets.
• There is no guarantee of appreciation. The Porsche can lose value, and in the process you lose your invested capital.
• If you want to sell your Porsche tokens, you need a buyer. If no one can be found in the small market, you are left with your tokens.
• The fewer traces of use the cars get, the better it is for the value. Therefore, it is important to find a place where the car can stand dry and safe – this is also not in the hands of the investors.

Rising market price

Porsche has been able to call on many collectors and enthusiasts for decades. They all ensure that the value of the cars increases, as the following figures show:

• All models produced between 1964 and 1998 are worth more today than they were a decade ago, as Driven Luxuscars writes.
• More than 400,000 examples were produced during this period.
• Seventy percent of them are still in operation today.
• Over the past seven years, the market price of the Porsche 911 Turbo has nearly tripled.
• This means that an investment in the Porsche seven years ago would have meant an average performance of around 30% per year.

Performance of the Porsche 911 in Euro

On the Classic Car market, the Porsche 911 Turbo behaved like a used car until 2014, when the stock suddenly started to rise. The big boom occurred between 2014 and 2018. Since then, the market price has behaved stably and is now almost breaking through the 100,000 euro mark (see chart).

Source: Price trends passenger cars

IHK appraisal confirms good condition

The good condition of the selected Porsche 911 Turbo is confirmed by an expert opinion issued by Dipl.-Ing. (FH) Bernhard Haag on August 3, 2021. Haag is a publicly appointed and sworn expert for motor vehicle valuations by the Chamber of Industry and Commerce (IHK). The report attests to a condition rating of 2+ and a replacement value of 170,000 euros.

PROFILE Porsche 911 Turbo

Financing volume: 115,500 euros

The token platform provides the following information on the investment launch of the Porsche classic car:

• 4.9% projected performance p.a.
• Financing volume: 115,500 euros
• Total acquisition price is 46.2% below the appraised replacement value
• Well maintained vehicle with only 34,464 km mileage
• Model in constant demand due to strong imprint of automotive history
• Porsche certificate and matching numbers

What are Classic Cars?

Classic Cars are vehicles that are at least 20 years old. A distinction is made in particular between so-called everyday cars and vehicles that serve as capital investments. There are various differentiating and classifying characteristics:

• A distinction is made between youngtimers and classic cars.
• Youngtimers must not be older than 20 years.
• Oldtimers must be at least 30 years old.
• They are all relics from the past and have had a decisive influence on automotive history. That is why they are particularly valuable.
• Classic cars are professionally stored, maintained and exhibited as required.

Classic Cars as an investment for private investors

The majority of Classic Cars are held in private collections or museums. As a result, potential investments often present a difficult entry hurdle for private investors. According to the 2020 BBE Classic Study, only 8% of all Classic Cars are in the core market. The core market is made up only of vehicles that can show a value of 50,000 euros. Classic Cars thus account for 38% of the total market value.

The history of Porsche Automobil Holding S.E.
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The roots of the Porsche Automobil Holding S.E. automobile group lie in a Stuttgart automobile design studio founded by Ferdinand Porsche in 1930. Porsche has been manufacturing its own sports cars since 1947. The company generates revenue mainly from dividend payments from the Volkswagen Group. By 2009, Porsche had acquired the majority of VW's ordinary shares. The Porsche automaker was spun off and completely acquired by VW by 2012. Porsche shares have been traded on the stock exchange since 1984. As an investment company, Porsche Automobil Holding S.E. is almost exclusively active in the automotive sector, which is decisive for the share price. The Porsche SE share has recently been on the way up again in the slipstream of the VW share.

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