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Prince Walid bin Talal may have the world’s only $4.8 million dollar diamond studded car, but that doesn’t mean you too can't be the owner of a highly exclusive auto ... or does it?
Luxury Cars: Automotive Exclusivity
The fewer, the better. Exlusive car ownership has its own rewards
When Lamborghini unveiled its ultra-limited edition 2008 Reventón at the 2007 Frankfurt Motor show, every single car initially built sold out in a matter of days. Considering that the Italian luxury sports car manufacturer produced only 20 cars in the series, this news doesn’t sound all that remarkable. But, add the fighter-jet styled super car’s base price tag of $1.4million to the equation and combine it with the fact that, according to Lamborghini Chief Executive Stephan Winkelmann, some buyers were already Lamborghini owners, then inventory depletion in less than four days is enough to make even the most incredulous of auto aficionado blink twice.
What's even more startling is the fact that this occurence is not all that unusual. Ferraris, Maseratis, Aston Martins, and Bentleys priced in the high six-figure range are being scooped up faster than they can be made. Dealerships in the United Kingdom report a 40% increase in sales for these status symbols on wheels. Mercedes Benz has seen a 30% jump in sales in China, and luxury car dealers in the United States are said to be keeping pace as well. Luxury car ownership is on a powerful roll and there appears to be no hint of a trend reversal.
The reason behind the surge is many-fold, primarily having to do with increased wealth in developing markets such as India and Russia. But the drive for luxury car ownership also has a lot to do with baby boomers taking advantage of a life freed from the burden of supporting their now grown children. Having succeeded in getting their children through college and set upon the path of their own adult lives, these empty nesters finally have disposable income and a burning lust to do something with it. With this newfound sense of wealth, they can at long last purchase the car they’ve always wanted. And for many, that means a luxury vehicle. Additionally, hedge fund millionaires are growing like trees, and along with them is the existing breed of billionaires lusting to always look the part. Put all factors together and you have a self-perpetuation of the exclusive club of luxury car owners.
These days, buyers of ultra-exotic and super expensive cars aren’t just looking for comfort, unique design and performance. That can all just as easily be found in a $30,000 Volkswagen. What selective buyers seek today is the ultimate in luxury and that is, in one word, exclusivity. The rarer the beast, the more valuable the conquest. When it comes to luxury cars, the fewer available, the greater the desire.
Recall once more that one of a kind, diamond covered Mercedes SL owned exclusively by Saudi Arabian Prince Walid bin Talal. With a reported 4.8million dollar price tag and its astoundingly handmade design, the prince is all but assured no one else on earth will be seen copying his ride. And while cars like that, and the sleekly designed Lamborghini Reventón, may be coveted by many, they are realistically only within the reach of a few mere mortals. Manufacturers are well aware that by releasing a limited number of such vehicles, the field of ownership is considerably narrowed. Put simply, limited supply increases the demand and makes the product a much more sought after acquisition, attainable only by those with extra deep wallets. Maintaining the demand for such an in-demand brand requires astute sales and marketing strategy, and that means keeping supplies limited just enough so that not everyone who can afford a luxury car can actually get one.
If a car is highly exclusive (meaning, there are less than 50 to 70 vehicles in production at even given time), price becomes a non-factor in the purchasing decision. Granted, if a specific car model is priced in the upper hundreds of thousands of dollars, chances are there won’t be many of them stuck in the same traffic jam at any given time. But the penultimate in luxury car ownership is not defined by sticker price alone. That particular achievement is signified by being among the very select few driving such an automobile. It is about being on an extremely elite waiting list and being in the position to ask, “ just how few of those cars are available and when can I have mine delivered? “
Mercedes Benz, for instance, has some pretty exclusive, distinctive models under its AMG line priced over $100,000, equipped with voice-activated GPS, state-of-the-line interiors, Parktronic sensors, dashboard mounted rearview video monitors and heated steering wheels. Similarly priced must-have autos from Swedish carmaker Koenigsegg (below) are said to be the most powerful street driving cars available, each one created specifically for the individual buyer. Koenigsegg builds only 12 per year, per model. But with such limitations on availability, even the wealthiest buyers are forced to take a number and get in line.
 Seen as status symbols, exclusive cars speak volumes about their owners. Possessing such a vehicle is a visual testament to where one stands in the pecking order of power and influence. Consider for a moment the message that is being sent when someone is on a waiting list for less time than anyone else, or what it says to be the one who some how rises to the top of that list and gets to reap the reward of being the first (and perhaps the only one) in a limited circle to drive the latest, most expensive, most elite car.
It says a lot.
There's now a typical wait time of two years on many of Ferrari’s models. The company, like some other dealerships around the globe, adhere to a centralized system in which repeat customers are placed higher on the waiting list, resulting in them having access to those few, just released vehicles well before anyone else.
Maybe this explains how all those previous Lamborghini owners were among the first to get their hands on the new Reventón. Exclusivity does indeed have its own rewards.
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