As luxury carmakers flood markets with new rides, their old cars lose value
Luxury car sales recently shifted into high gear: New car sales are up 26% for Aston Martin, 51% for Lamborghini, and 22% for Rolls-Royce.
But, in the exclusive world of luxury cars, that’s also bad news.
The value of those same companies’ used cars are skidding out: Prices of used Aston Martins are down 54%; Lamborghinis are down 56%; and Rolls Royces are down 48%.
The Rolls-Royce paradox
Luxury car brands are built on exclusivity, so selling lotsa Lambos brings in mountains of money for Lamborghini… in the short term.
But, in the long term, selling too many Lamborghinis also erodes the exclusivity of the brand, threatening the future value of the cars as collectibles.
After all, luxury Lamborghinis aren’t supposed to be *gasp* common — otherwise, why would billionaires bother spending $300k on them?!
The conundrum of the ‘instant classic’
As more and more consumers prefer new styles of cars (like SUVs) and new features in cars (like lane-departure systems and collision-avoidance sensors), it may be harder for vintage car owners to sell old rides that may once have seemed “timeless.”
Now, luxury car collectors could be in for a conundrum as luxury rides become less like trophies and more like, well, cars.