Supercar Dealers Navigate Economic Changes: Car Dealer News in the Motor Trade

September 20, 2023

In a world dominated by headlines of rising interest rates, inflation, and the cost-of-living crisis, it's not just the average citizen feeling the impact. Supercharged changes have swept through the world of supercar dealers, reshaping the landscape in ways both challenging and opportunistic. This insightful report, sourced from cardealermagazine.co.uk, delves into the intriguing dynamics affecting high-end car retailers in these uncertain times.

Car Dealer Magazine had the privilege of engaging in candid conversations with industry stalwarts – Amari Supercars, Romans International, and Tom Hartley – all of whom have been subjects of their acclaimed "Selling Supercars" video series. These luminaries offer a unique perspective on the shifting tides in the supercar market.

At Romans International, Tom Jaconelli, head of buying and marketing, emphasizes the pivotal roles played by Covid and Brexit in the current scenario, particularly regarding new car sales. Two critical factors stand out: the surge in interest rates, once at record lows, and the pandemic-induced squeeze on new vehicle production. Jaconelli observes a return to normalcy after a period of abnormality, with supply and demand rebalancing. Previously, supercar enthusiasts paid hefty premiums, but now prices are stabilizing or even dipping slightly.

The surge in interest rates has also altered the financing landscape for supercars, prompting a shift in buyer preferences. In the £150-£250k bracket, historically financed purchases have dwindled due to higher interest rates. More buyers are downsizing to free up funds, contrasting the earlier trend of upgrading to newer, more expensive models.

However, Simon Hunt of Brego, an expert in vehicle valuation, points out that not all supercars have suffered equally. For instance, a 2017 McLaren 570S Spider saw only a modest £4,000 depreciation over the past year. In contrast, a Porsche 911 (992) GT3 recently sold for £15,000 below its expected price but still significantly above its list price.

Cap HPI's latest data exclusively shared with Car Dealer reveals McLarens dominating the list of supercars experiencing the most significant depreciation in the last year. However, despite these fluctuations, industry experts like Derren Martin and Clive Wilson suggest that the supercar market remains resilient, with wealthy buyers still showing strong interest.

Romans International notes a shift in their financing mix, with interest-only deals gaining popularity, while the million-pound plus market remains robust. Tom Hartley, of the eponymous luxury car retailer, underscores the enduring value of supercars with good history and provenance, asserting that they consistently command top prices, regardless of market fluctuations.

Hartley's ability to purchase cars outright has been instrumental in safeguarding his business during these challenging times. He believes that in any market condition, seizing opportunities and maintaining cash power is paramount.

Amari Supercars in the North West echoes these sentiments, purchasing all its supercars outright. Sheikh Amari credits their flexibility in dealing directly with finance companies for their continued success.

Despite the economic climate making it challenging to sell more affordable supercars, Amari highlights that there's still a market for them, particularly among those with rising incomes and crypto-millionaires. Amari's recent success stories, including LaFerrari Apertas and an upcoming Bugatti Chiron sale, showcase the resilience of the supercar market.

In conclusion, the supercar market, like other sectors, has felt the impact of economic shifts. However, it remains an exciting playground for enthusiasts, with buyers willing to invest in luxury and performance. As Amari aptly puts it, "The super-rich are not quibbling at all; they are still buying the cars." While challenges persist, the allure of supercars endures.

Source: cardealermagazine.co.uk