JPMorgan expands car-backed lending in Europe

JPMorgan Chase & Co. is expanding its private banking services in Europe by allowing wealthy clients to borrow against classic and luxury car collections, tapping into one of the fastest-growing alternative asset classes.

The bank will offer loans secured by classic, rare and custom-designed automobiles stored in countries including the UK, Italy and Germany, with the service also extending to France, Switzerland and Spain. The product has already been available to JPMorgan’s private banking clients in the United States.

The move reflects growing demand among high-net-worth individuals who increasingly view luxury cars as both passion assets and investment vehicles. Classic models from brands such as Ferrari, Porsche and Mercedes-Benz have outperformed equity markets in recent years, even as the broader luxury sector faced a slowdown.

“We understand that collecting automobiles is driven by both passion and investment,” said Steven Hawkins, head of specialty lending at JPMorgan’s international private bank.