Certain factors are working in buyers' favor.
First and foremost, this situation does not apply to everyone. Having a fairly sizable bank account is still important. According to an MSN report citing auto analyst firms Thinknum and Sanford Bernstein, prices for supercars and ultra-luxury cars are coming down for a number of reasons. In other words, it’s a good time to buy if you’re in the market. Okay, so what’s going on here? It appears the issue boils down to too many of these vehicles flooding the market.
"Values peaked in 2017 and are now falling – for both old cars and newer stuff,” said Max Warburton, auto analyst at Sanford Bernstein, to investors. For example, average car prices for used Aston Martin, Rolls-Royce, and Lamborghinis, in particular, have dropped sharply, according to Thinknum, which assessed data from over 130 auto retailers across the US for USA Today.
Based on the resulting data, it appears these ultra-luxury carmakers have simply built too many new cars. By flooding the market, the exclusivity factor has diminished. This results in overinflated values and these automakers need to take note. By launching so-called "instant classics” into the market for quick profits, they’re diluting their own brands. "You've got more inventory, and you've got more choices. You've got to wonder if you've got changes in perceived value," said Josh Fruhlinger, editor-in-chief of Thinknum.
Here are a few very recent examples: the average listing prices of used Aston Martins has dropped by 54 percent from their peak in 2018 to $103,000. A used Lamborghini has an average price of a $207,000, a 56 percent decline. Even more staggering is the 48 percent drop for used Rolls-Royces since last year.
Of course, there are always some exceptions, one of them being the Rolls-Royce Wraith and its $332,000 starting price. Compare these plunging used prices to last year’s sales increase for all three carmakers. Rolls-Royce was up by 18 percent, Aston Martin by 26 percent, and Lamborghini an incredible 51 percent.
Another issue is that these brands constantly launch new and better vehicles, and now SUVs are part of the equation. The process of decreasing values is expected to repeat itself for these uber-luxury SUVs as well. So, be on the lookout for hot deals.