Market Intelligence
Supercars at Bonhams... Fascinating but cruel
The article discusses the current state of the modern supercar market, which is akin to stock market speculation, where risky products are being sold, with the potential to earn serious money but also to lose money quickly. The article cites the recent Bonhams Contemporary Cars auction, where only 12 out of 31 cars were sold, indicating the modest result of the auction. The article also compares the situation to the classic car market, which is determined by well-defined trends and supply and demand. Finally, the article suggests that the modern supercar market is driven by an irrational demand, which is fed by manufacturers such as Ferrari, who sell their special cars only to those who guarantee not to use them as a speculative opportunity.
The original sin was the F40. How can you stem a demand which led to three, four, five, even six times the market price to take one home? Even Ferrari’s blatant violation of the limited number series did not calm this frenzy and today this model continues to be a dream for collectors. A very well-paid dream.
But let us speak of sins, as sins tend to be burdened with guilt and punishment. The guilt in question here lies in the models proposed as special and valuable. Let’s make a comparison: the F40 was a pure, hardcore Ferrari, a symbol of a fifty-year old legend, one that remained unique, without a second series or variants to attract new customers. Another legend similar in vein is the McLaren F1. In this case, the reason for the astronomical rise of its price derives from its original failure: initial sales difficulties and the interruption of the production run before the promised cycle was completed, made the car very rare indeed. Whereas more than 1,200 F40’s were produced, McLaren stopped production after just over a hundred cars had left the factory. And the books, well I’m not saying they balanced, but you can see why.
