Insights into the supercar and sports car market:
For those that don’t know me, being a world famous podcaster and youtube presenter is only part of what I do. I also write insightful and witty blog posts btw. But my day job entails selling cars. Specifically sportscars, supercars, classics – the kind of stuff that makes our blood pump.
This gives me a unique look behind the curtains as to what exactly is happening in the market. And what we are seeing now, is quite strange. Sales are still good – in our market it’s never really fireworks, but a steady turnover of stock. What has become a problem, and not only for us, other dealers I have spoken to as well, is finding good stock!
But why is this happening?
Exactly why this is happening is probably a combination of far more complicated factors, but what it boils down to is one of 2 scenarios.
Firstly, there is a perception that all older cars will go up in value. Now whilst this might be true in Rand Value, many of the kinds of cars we sell aren’t really moving much in terms of Dollar- or Great British Pound- Value. In other words, the values aren’t going up, the Rand is just weakening against international currencies. So owners are holding onto their cars hoping for a bigger pay-day when they come to sell.
New car prices
Secondly, and I think this may be a bigger factor, is replacement cost. New cars have become so eyewateringly expensive, that even at this end of the market, they are very hard to justify, or afford. So the guy who has a Porsche 991 for example, now needs to spend twice the value of his car to afford its replacement, knowing full well that in a couple of years time, it’s going to depreciate again. Therefore, he’s rather holding onto his 991.
So should you buy or sell in the current car market?
So what does this mean? Well, rather ironically, it means that now is actually a really good time to buy a used sportscar or supercar. The demand is still there, it hasn’t dropped off, but supply IS dropping off. Now I may not have an advanced degree in economics, but if demand remains high and supply drops, prices can only go one way. They haven’t yet…. But they will…
Don’t forget to support what we do and spoil your car with some premium lubricants and additives from ROWE MOTOROIL, exclusively available from our site!