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Luxury cars sell well because rich people ‘lack space to spend money’


AmericaCars with a selling price of more than $ 80,000 doubled sales in the fourth quarter of 2020, while a car over $ 100,000 increased 63% over the same period.

It’s a great time to sell really, really expensive cars, according to CNN. And Brian Miller, president of Manhattan Motors, said: “40 years in this industry, I have never seen anything like that.” Miller’s senior dealership sells Bentley, Lamborghini and Bugatti – super car and luxury brands.

While the industry’s car sales suffered from factory shutdowns and other disruptions due to disease, sales of super-expensive cars, such as Ferrari, Lamborghini, and Bentley, increased dramatically in 2020. .

Lamborghini Sián convertible supercar costs about $ 3.7 million, only 19 are produced and all have owners. Image: Lamborghini

In the US, car sales are down 10% in 2020 compared to 2019. Even when purchasing power recovers strongly in the last quarter of the year, the growth will be equivalent to the same period in 2019, according to Tyson Jominy, vice president. data analysis chair of JD Power said.

But sales of cars over $ 80,000 nearly doubled in the fourth quarter of 2020. And for cars that cost more than $ 100,000, the increase is 63%, according to Jominy.

The stock market’s growth also played a big role. And when rich people can’t spend money on expensive vacation trips, they turn to high-end products, like luxury cars.

When buying a luxury car, customers often order according to their own requirements and accept monthly wait for the manufacturer. However, dealers like Miller often keep some models available for those who want to get a Rolls-Royce or Lamborghini on the street on the day of “down money”.

But one of the most remarkable things about the sales boom was the massive influx of young customers. “The rich Millennials (Gen Y, born 1981-1996) tech workers in Austin are now prototypes,” says Jominy.

Bentley – the 101-year-old super luxury brand – has its best year in 2020 despite the plague that forced it to close its factory in Crewe, UK, for seven weeks. And even after the factory reopened, productivity was half what it should have been for the next nine weeks, according to Bentley chief executive Adrian Hallmark.

Bentley sold 11,206 cars in 2020 – 100 more cars than 2019 – a year that also hit sales records.

New generation Bentley Flying Spur special limited edition First Edition appeared in Vietnam, priced at about 30 billion if full of options.

New generation Bentley Flying Spur special limited edition First Edition appears in Vietnam, priced at about 30 billion if all options are available. Image: Bentley

China is a particularly important market for Bentley, with sales growing around 50%, Hallmark said. The new generation of Flying Spur is a huge hit. The super luxury sedan has been absent from the market for a while and is back at the end of 2019.

“When I got back, it was like the desert was raining and all the flowers were in bloom,” commented Hallmark.

Lamborghini also had the highest profit year in 2020 and the second best sales in history. Only 2019 can surpass the sales of 2020. For the whole year, the company sold 7,430 cars, a decrease of 9.5% compared to 2019. But the last quarter of 2020 was the best quarter of the supercar maker and the order list. The first 9 months of 2021 were closed, CEO Stephan Winkelmann said.

Meanwhile, Ferrari sales are down about 10% in 2020, and the factory has to be closed for seven weeks. But also in the fourth quarter, the company hit sales and profit records. Orders were also at a record level.

However, not all luxury automakers have a good year 2020. As Rolls-Royce reduced sales by more than 26% from the previous year. 2019 is also the first full sales year of the Cullinan SUV – the current flagship product. And in 2020, the company stops producing Ghost most of the time to prepare for the new generation.

But according to BMW – the parent company of Rolls-Royce – the list of orders for Ghost is also full for most of 2021 and the Bespoke branch has a busy 2020.

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