American Bank Begins Issuing Loans to Europeans Secured by Luxury Cars 0 6

American bank JPMorgan has started issuing loans to Europeans secured by luxury cars. This was reported by Bloomberg.

The private bank has allowed wealthy clients to take out loans against classic and rare or custom-made cars stored in England, Italy, and Germany. Previously available only to Americans, this service is now open to clients from France, Switzerland, and Spain.

Bank representatives note that classic cars from European brands such as Ferrari NV, Porsche AG, and Mercedes-Benz Group AG have outperformed stock markets in recent years. Premium cars are the most popular luxury item that young ultra-wealthy individuals aspire to own, besides real estate, and they surpass the popularity of private jets, wine and art collections, as well as superyachts.

"We understand that collecting cars is not just a hobby, but also an investment," said Stephen Hawkins, head of specialized lending at JPMorgan's international private bank.