According to Knight Frank's Luxury Investment Index,

the value of these assets has grown by 288% over a decade.

So, why are classic cars so popular?

The idea of collecting a mode of transport can be traced all the way back to 17th century France

when the crème de la crème of society would gather to judge their horse-drawn carriages.

But Karl Benz's development of the first true, practical automobile in 1885

revolutionized the way people traveled. And it wasn't long before cars replaced carriages at these events.

Collecting these assets is still popular today, attracting wealthy car lovers, from Italy to Kenya,

who can dish out as much as $48 million on a single car.

These collectors tend to join exclusive car clubs and gather at various events called Concours d'Elegance,

which is French for "competition of elegance.”

"Hey guys, welcome to my Triumph Stag channel."

More recently, classic car enthusiasts have also built communities online,

showing off their collections on social media platforms such as YouTube.

I want an inside look at this exclusive world, so I've come to meet up with Luke Madden,

the events director of one of London's classic car events, the City Concours.

What brings everyone together is the passion.

A lot of people will know each other just from coming to these events and sitting down having

a glass of champagne and talking about what they love, which is classic cars.

One man who shares this passion is multimillionaire Rodger Dudding,

who claims to own the largest collection of classic cars in Europe.

I know it looks like I'm in a regular garage, but don't be fooled.

It holds Rodger's $49 million collection of more than 400 classic cars,

which he has been amassing for more than 50 years.

If I see something I like and it appeals to me and I can afford to buy it, I've bought it.

I like things mechanical. That's what I think attracted me to cars and motorcycles in the first instance.

By the time I was 16, I had my first motorcycle which I had built at home.

And Dudding is not alone.

His cars are so popular that they have been featured in many films and television shows

like Peaky Blinders, Bohemian Rhapsody, Downton Abbey, the Crown, Mary Poppins and more.

So, what makes these classics so special?

It's the design function with classic cars as opposed to most modern, present-day vehicles.

They really all come out in a singular jelly mold.

At the start of the 20th century, cars were relatively expensive and unaffordable for the masses.

Many of the cars created during this time, such as this 1912 Rolls Royce Silver Ghost,

were stylish, bespoke and of limited supply.

In 1908, the first Ford Model T rolled off the factory line, making it the first mass-produced and affordable car.

But Ford wasn't the only low-cost manufacturer.

General Motors CEO Alfred Sloan famously wanted to create "a car for every purse and purpose,”

with GM's Chevrolet brand leading the charge in the low-cost segment.

Perhaps even more importantly to classic car lovers, GM also invented the yearly model change.

Unlike the Model T, which was produced for 19 years, GM rolled out a new version of its vehicles annually.

Their release became highly anticipated national events.

In the 1930s, GM's market share of cars in the U.S. overtook Ford's,

and it wasn't long before car ownership reached over 80% of American families.

In the 1970s, many economies were flourishing, pushing up car ownership rates worldwide.

The boom of the Japanese automotive industry during that period helped fuel that growth.

But an oil energy crisis in 1973 caused fuel prices to skyrocket

and spurred change in the automotive industry.

Automobile manufacturers reacted to this change by focusing more on the practical aspects of a car,

like safety and efficiency, rather than just the style.

With mass production, it's much simpler to turn out a car like a sausage,

without a great deal of individual styling, which keeps the price down, therefore makes cars very affordable.

Collectors like Rodger are nostalgic for the stylish, bespoke cars produced in the 20th century.

When selecting their ideal classic car, these collectors tend to look out for the car's make and history.

Also important is the condition of the parts of the car, such as the engine and the interior.

They're also looking for lower mileage and of course rarity.

These factors determine the market price for a classic car.

The global classic car collection industry is estimated to be worth between $21 and $24 billion.

The United States is the world's largest market for classic cars. It generated revenues of $863 million,

more than four times as much as the United Kingdom and continental Europe.

Ferrari was the top performing car and brought in revenues of $158 million,

Porsche came in second with $55 million and Aston Martin drew in $40 million.

But Dudding's wealth hasn't grown from investing in classic cars.

In fact, if you want to make a quick buck, you might want to think twice about investing in these assets.

The classic car market hit a stumbling block in 2018, when it saw a 1% decline in value over the past year.

Experts attribute this decline to the number of speculative investors leaving the market.

Changing demographics have also contributed to the decline.

Baby boomers, who have more spending power, are leaving the market

because of global uncertainties and age, which means they can no longer drive.

Despite this, many car enthusiasts like Rodger are still excited about collecting cars.

It's not just about the money for them. Sometimes it's the story behind the cars.

It's for this reason Rodger bought the late Princess Diana's 1994 Audi Cabriolet

and Dodi Fayed's Aston Martin Lagonda Wedge for undisclosed amounts.

He also splashed more than $82,000 on a bespoke Rolls Royce Wraith made in honor of George Martin.

It very much is for the love of cars and also the heritage of that car.

This brings this piece of metal back to life.

Thank you so much for watching my video!

Comment below and tell me what you've learnt about classic cars. And don't forget to subscribe.