The lucrative business of used luxury cars

Used cars in Australia grew by 45.2% from 2020 to 2021 according to the Bureau of Labor Statistics, making 2021 the year of the used car in Australia.

Supply chain issues are to blame, with new car imports expected to return to pre-pandemic levels by mid-2022.

When it comes to lucrative investments, usually expensive luxury cars or supercars are not what the seasoned buyer will consider, but the past few years of the global pandemic have taught us otherwise.

Before the pandemic, the average depreciation of any motor vehicle, as soon as you rolled it out of the showroom, was between 10-15% and the average car depreciated at the same rate every year. However, it seems that the tide has turned and the trend has changed, especially in the luxury car market. So which luxury car makers have outperformed other investments during the pandemic?

The popularity of a particular model will affect the demand for used versions of that vehicle, an example being the rugged Toyota Landcruiser, which is not quite a luxury car but demand for which has outstripped the supply of new ones. versions in Australia.

Double-cabin 79-series Land Cruisers GXL introduced to the market in 2012 sold for A$80,000 new, but now cost around A$100,000 for a used model.

Popular means less depreciation when used, but for a car to really appreciate in value it has to be something particularly special and what about high end, luxury supercars?

The Ferrari 812 Superfast is a 6.5 liter V12 two-door coupé and has risen in value over the past 3 years to between AU$220,000 and AU$750,000.

It’s, as the name suggests, not a car for the faint-hearted – output from its huge petrol engine is 585kW at 718Nm of torque.

The Ferrari 812 Superfast can go from 0 to 100 km/h in 3.2 seconds, cover a quarter mile of 10.8 seconds at 230 km/h, has a top speed of 342 km/h and a long list of Luxury additions like electronic brakeforce distribution, electronic stability control, multifunction steering wheel and automatic/self-leveling suspension, among other additions.

But pandemic or not, they’re obviously objects of desire for those with wallets big enough to afford one and have seen the unprecedented rise for 2019 models in particular.

Perhaps they remind us of simpler, pandemic-free times.

If you’re looking for an investment driver for the next few years, it’s another Ferrari that has seen steady depreciation and started to rise in 2021, the Testarossa.

For those familiar with Ferrari, this car will undoubtedly hold a special place in hearts, the 12-cylinder mid-engined beast that sold for A$250,000 in 1987 but now sells for around A$400,000.

With the huge rise in used car prices, there’s never been a better time to sell your car, with even some high performance luxury models fetching far more than they used to, however, make sure you have a back-up plan for transportation as new cars have never been in more demand and your average Uber ride is more boring than arriving at work in a Ferrari.



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