The prestige and performance car market is an exciting and fast-paced place to be and has seen phenomenal growth over the last 2 to 3 years.
Whilst new car sales are down in terms of volume, many car manufacturers, such as Bentley and VW have just reported their best year in terms of profit margins. With the price of a new car now averaging around £25K, this is driving an uptake in the used car market, including the prestige and performance car sector.
The average change cycle of these cars is every 18 months and there is a lot of choice on the market for those looking to buy a used performance car. What is important, however is to know what you are buying and to have an exit plan in place for when you want to move a vehicle on.
Firstly, the importance of buying the right specification for the model you are considering buying cannot be understated. This will have a significant impact on its potential re-sale value. For example, the Sports Chrono is a must-have package on any Porsche. Secondly, look for a model that not only has a high specification, but also low mileage. This will help it to hold value further down the line. Thirdly, look at previous ownership and car service history. And never, ever buy on colour alone!
My top picks for those models that are guaranteed to hold their value right now are the Porsche 911 Turbo S and the Ferrari 488, which is powered by the most powerful V8 engine in the company’s history, meaning it has strong residual value. The Porsche has held a steady re-sale value of around £100K for the past 5 years now, so it is a secure way of ensuring a return, should you want to move the vehicle on.
People have several reasons for deciding to buy or sell prestige and performance cars. For some it may be a second vehicle and for others purchases can be seasonal. How they buy is also changing. Online car dealing has risen by 32% since the pandemic and at Baytree we have had to adapt to these trends by introducing an online showroom to our website, which allows visitors to view the full specification of any of our vehicles, finance options available, and reserve the car online all from the comfort of their own home.
The market is expected to evolve further over the next 3-5 years as we will see more electric, hybrid, and hydrogen cars coming into the higher end of the used car market. Range Rover are currently developing an electric model whose battery will last for over one hundred miles before requiring a re-charge. This is anticipated to be a real game changer. I predict the pace of development for electric cars will slow off over the next 2 years at which point we will see an influx of hydrogen models hitting the market.
Whatever happens, we will continue to evolve our offering here at Baytree and ensure we are best placed to support the purchasing needs of our customers, as well as offering a transparent exit strategy.
To find out more about us visit www.baytreecars.com