Used Car Business Development

The Last Place Specialist High Performance Cars Should Be?,,,,, Right Here! 

An interesting shop window into the specialist high performance used car market this and fascinating to see, in terms of where the specialist high performance used car market is heading; a market that I predict is becoming very volatile, as are prices. To those in “The Know” and working within this market, this image tells us a lot about where the market and therefore values are heading. 

Unfortunately and regrettably over the last 18-24 months there has been a lot of hubris surrounding used car values per se, most of it incorrect and mainly peddled by those with no real life experience of these markets; CAP HPI, Auction Houses, Autotrader etc. In reality their commentary and opinions are rendered of little value and/or expertise because the used car market is fragmenting into many individual highly specialised used car markets; the high performance specialist used car market being just one. 

The picture aside, (I’ll come back to this later), working in this market 24-7 I can advise everyone that the market is beginning to struggle for liquidity, with many retailers rueing previous purchasing decisions and still sitting on now loss making stock, purchased at far too much (in terms of pricing) during the latter part of 2021; and it is this lack of liquidity within the market that could be behind the image above. 

Now I can’t comment on the pedigree of the stock concerned, (specification, mileage, ownership and maintenance history – all critical to valuations in this market), but perhaps the fact that these cars are appearing at auction, (the last place some of this specialist high performance used car stock should be – in terms of maximising values), and with number plates on full display, is indicative of the volatility and challenges of volume (combined with a lack experience and expertise in the market), that are beginning to hit this market. All of which will not be helping discerning owners of vehicles like this dispose of (and maximise the value of) similar cars. 

So what did it tell me? Well as much as I don’t know the circumstances surrounding these individual cars, it reaffirms some market realities that I have been experiencing and is probably indicative of the perfect storm forming over all luxury commodities markets. Not just the specialist high performance used car market. 

The most important thing images like this tell me is that those owning and/or responsible for the disposal of the cars concerned do not understand the market and how to maximise the return on investment for specialist high performance vehicles. Unfortunately this lack of expertise then resonates throughout the market because it creates a negative market and therefore pricing narrative. 

Let me expand upon this via one the cars in the image (the Lamborghini Urus) because it is representative of how the market has evolved over the last 10 years, and the challenges that this market evolution has created; the first being increased production volumes leading to more challenging “Supply and Demand” equations to navigate. Now increased volumes of production changes markets because it changes the pivotal “Supply and Demand” ratio – inextricably linked to residual values, and few manufacturers get the balance right. There are some but in the main they are the manufacturers that you wouldn’t expect; more on this in another article. 

Lamborghini are a pertinent example of this; 10 years ago the current model line-up and sales volumes could not have been imagined and they reflect what has happened in this sector as a whole. In reality you could say the same for many other marques that I work with; the likes of Porsche, McLaren, Bentley, Rolls Royce, Lotus, Maserati and Aston Martin, to name just a few. 

This has led to a market sector (both new and used) that is becoming over supplied for, something that you can get away with when the market in awash with money, cheap finance, lax lending criteria and high levels of consumer confidence; as we have had for over a decade now. This period though is ending and the market, (I predict), is about to find that 5 into 1 just does not go. 

Now there will be winners in the market that is coming, those owning the most desirable examples and who are prepared to be patient, whilst blessed with the knowledge and experience to achieve the best valuations. As markets evolve and “Supply and Demand” pivots to favour buyers and those with available funds, those buyers will be able to afford to take a relaxed stance, knowing full well that the sellers may need their money more than they need to rush out and buy the first car they see, as there are few disposal routes available to them. 

In these markets, this makes the publicising of the Lamborghini Urus in this way an inept decision and strategy; why? Well in specialist, niche used car markets, those inhabited by specialist high performance product like Lamborghinis, this car (whether it sold or not at the auction) has just become the cheapest car of its kind available within its market. This is a small world, inhabited by very few professionals, all of whom now know about the car; and worse than this, by publicising the car with number plates on, everyone who is minded to find out, now knows the full specification and history of the car. 

No one wants to buy the car the whole world knows about, unless it is so cheap that it becomes a false economy not to purchase. Not in specialist high performance and niche used car markets, and that goes for the customers, as well those professionals acting as market facilitators and conduits to the market. 

In truth, it could’ve all been so different, if handled correctly in the first place. Unfortunately now and for the foreseeable future, the car will come to market as the Lamborghini Urus that went through the auction; and few professionals operating within the associated market will get involved. So in effect this strategy has rendered the car nigh on unsellable within its specialist market; and to those offering the best prices for specialist high performance vehicles. 

With the market evolving and more owners looking to sell cars in this niche and specialist market, much thought must be given to how to go about this highly skilled liquidation process. The inconvenient truth is that anyone can achieve a below market value for your high performance specialist car, and if this is the route you are intending to use, then be quick; the money will run out pretty soon. But be warned, if you gamble on this process ill-advised, you could end up trying to liquidate your asset in similar circumstances to the Lamborghini Urus in image above, a process after which, those operating in this market, (professionals like me), will then not get involved in. 

That may sound harsh, but no one within this market wants to be acting as a market facilitator and conduit for cars that have been “Prostituted” to the market, because no discerning buyer wants to purchase and own the car that has been “Prostituted” to the market either. In truth in the coming market only the best cars handled with upmost expertise and discretion are going to be exchanging hands at prices likely to acceptable to those with a choice as to whether or not to sell. 

Unfortunately the coming market will almost certainly lead to more distress selling and repossessions, generating volumes of supply that will become a drag on the market as a whole; including prices. A negative trading environment further compounded by some cars being marketed within the market by the professionals without the prerequisite skills to do so. Sadly though I think this situation is unavoidable. 

So where to turn for the owners of specialist high performance cars looking for the right expertise and experience, that required to facilitate in the immediate liquidation of their car; a process requiring skill, expertise, the utmost discretion and excellence in execution. 

Well with unrivalled experience in liquidating specialist cars and the contacts base within the trading community, (both franchised dealers and the most knowledgeable independent specialists), you could contact me for a market consultation. However I am not going to promise you for one moment that I work with every car that is offered, or with every owner that contacts me. 

In truth I choose to advise and help everyone but only work actively with 10% of the owners who contact me; and their associated cars. Offering immediate cash purchase, (should circumstances dictate), or the facility to act as your trusted facilitator and conduit to the market, delivering the best return for your specialist high performance car; I am the ultimate solution provider for those looking to dispose of their vehicle. 

Please feel free to reach out to me directly via LinkedIn should you wish to arrange a consultation call.