PaddlUp breaks down the supercar investment market
The supercar market is largely on the rise in 2022. Although projections for the long-term financial future of the global economy remain unclear, much of the automotive investment sphere continues to see appreciating values and high yield return on investment (ROI).
The area where most gains can be made, as it stands is in rare and unique supercars of the 1990s and 2000s, whilst more modern examples and classics of several decades past are holding their value at a consistent rate if seeing a slight drop in recent months but of course, there are exceptions.
Our guide to supercar investing highlights a booming market experiencing continued growth in many areas, but it also inspired us to look at supercar sales in broader terms and fluctuations in other areas of the market to analyse the other appreciating automotive assets (AAAs) that are currently out there.
In 2021, the global market for supercars was estimated to be worth approximately 13.6 billion pounds sterling and is forecast to remain largely consistent over the next five-year period. With a shareholding in excess of 30 per cent, Europe stands as the single biggest market globally, whilst North America and China share a large portion of what remains, making up a further 40 per cent between the two. The top four supercar manufacturers worldwide dominate 70 per cent of the market, those being Ferrari, Porsche, Lamborghini and Bentley.
With that being said, we begin by taking a look at Ferrari. Namely, the F12 and the 812. This duo of V12 prancing horses are excellent case studies to highlight a prosperous period for automotive investment. Having recently sold an 812 at The PaddlUp Rooms, we have plenty of insider, in-depth knowledge on these stunning Maranello masterpieces.
These models are the last of a dying breed with a long, storied lineage – the non-hybrid V12 Ferrari – and the market for both models is currently more populous than it has been in a number of years, showing the increasing desirability of supercar derivatives that have ceased production. The sheer number of cars currently available on the market indicates a possible shift to a buyer's market and a chance to add a potential AAA to your portfolio.
With the exponential introduction of hybrid and electric cars, these 'last of' examples look set to become more and more frequent, presenting abundant opportunities for ground-floor supercar investments for those that identify them early.
Whilst still on the subject of Ferrari, we can segway into the upper echelons of automotive exclusivity and the modern-day hypercar tripartite. As discussed in our Ferrari F40 market value analysis, recent auctions indicate that the LaFerrari remains stable at around the £3 million mark whilst the McLaren P1 and the Porsche 918 values are on the up, recovering from a Covid-19-induced low in 2020 to now sit, on average at £1.5 million.
The key factor for future values of the proclaimed 'holy trinity' is the World Endurance Championship (WEC). For those querying that statement, consider the much talked about WEC 2023 entries for both Porsche and Ferrari in the aptly named Hypercar category, with this comes growing anticipation of the concomitant road-going iterations.
As a loose rule, the introduction of a newer, more technologically advanced model generates a desire for a less electronically-assisted experience. This could lead to a spike in values for the legendary trio, or it could mean a dip in value for any number of reasons. Either way, we wait with bated breath for the official reveal of the next generation of road-legal hypercars.
In a similar vein, Koenigseggs are as elusive a beast as ever but could present an intriguing investment opportunity in the current climate. A record four of the self-titled 'megacars' went under the hammer in 2021, all of which fell short of initial estimates suggesting a bargain could be on the cards for the opportunistic investor.
Rare or particularly sought-after classic cars such as the Mercedes-Benz 300 SLR Uhlenhaut Coupe or the Ferrari 250 GTO have reached astronomical prices in recent years. However, some of the more accessible examples from the same era are witnessing a stagnant market, with some even seeing a dip in value. This points toward a generational shift with those who had Diablos, Countachs and F40s on their bedroom wall becoming the predominant nostalgic demographic in the classic car market.
Our wildcard mention is undoubtedly the BMW Z8. As the first M Power V8, this roadster is seeing a surge in popularity owing to its famed history. Having appeared in The World is not Enough among other films, the Z8 has developed an automotive cult following and, with Ferrari 360 Spider-matching performance, it's easy to understand why.
In under a decade, the Z8 has more than doubled in value. With prices averaging £100,000 in 2014 and now hitting approximately £250,000, this car is certainly one for investors to keep their gaze fixed on.