MARKET WATCH: A Buyer's Market
The signs were beginning to show at the end of the summer 2022, but the ultra-buoyant market of the last 18 months has started to subside, and things seem to be returning closer to normality. Whilst I would stop short of saying the bubble has burst, we are witnessing a correction in values across many models, and at least where new and nearly new cars are concerned we are transitioning into more of a buyer’s market.
If any of you have ordered a new car in this time, you will likely have had to wait a very long time to receive it and many of you are
possibly still waiting. With abnormally large premiums on offer for regular production cars, you can be forgiven for wanting to jump on the bandwagon and speculatively place orders for cars you might not have even particularly wanted, in the knowledge that you can probably make a pretty penny when it turns up.
With component shortages now easing and waiting lists getting shorter, the tide is clearly turning. Finally bucking the trend of rising values, we’ve seen a sharp drop in premiums for the likes of the Porsche 992 range which seemed especially inflated at one point, and perhaps a more moderate drop in value for various other luxury and performance cars. A gradual decline in overall demand is likely to continue through the recession as rising finance interest rates take a bite out of affordability and people delay decision- making. Despite the negativity, economists do have the data to prove that, during a recession, the rich tend to get richer and the poor tend to get poorer, and whilst not everyone can be a winner, the wealth and income inequality is bound to grow.
This should ultimately bode well for the highest end of the market and particularly collector’s cars where there is plenty of capital still circulating with the potential to hold long-term. High-quality, low-mileage examples of limited-production supercars, especially from previous generations are still very difficult to find. With electrification becoming more aggressively marketed by all the manufacturers, not to mention the slightly deranged Just Stop Oil protestors, you can’t get away from this increasingly poignant ‘end of an era’ narrative in automotive history.
Cars such as the F12 TDF continue to benefit from this with values now knocking on the door of £1m again and the halo Ferraris still proving ultra-desirable with record prices achieved recently. Not to mention there will always be demand for the very latest models, and with many exciting cars to look forward to in 2023 such as the 992 GT3 RS, the Aventador replacement and let’s not forget the Ferrari Purosangue, there is certainly plenty to whet one’s appetite.
Dealers, manufacturers and consumers have all had it pretty good over these last couple of years as the wider world battles through global crises so we must be grateful for the unique circumstances which have led to that. In these tougher times, we will look to work a
little harder and smarter to maintain business, but Romans has been through this many times before and whilst some may not survive, the best businesses will always stand the test of time. The market craziness may have come to a slight halt for now, but the love, passion and opportunities to use and enjoy these cars have not and we look forward to welcoming many of you to the showroom next year and seeing you at the various SCD events.
Bring on 2023!
Written Exclusively for Supercar Driver Magazine by Tom Jaconelli