The idea of current value is something that rarely leaves the mind of an exotic car owner. Most of us aspire to own many of these cars throughout our lives. Residual value and liquidity are obviously cornerstones of making that possible. So I get asked quite often, what is my Aventador worth? How much can I trade my 650S for? The answer is really difficult. The idea of pre-owned cars over $200k is fairly new, really only in the last 3-5 years. I noticed it a bit before that in the Murcielago market slightly before that but there is a unique phenomena that when a buyer is looking at pre-owned cars that are still that expensive, you cannot overcome preference anymore. If someone is buying a Gallardo, F430, Porsche, or other miscellaneous sports car for $150k; if they really want a red car and you have a yellow one you still have a shot. If they are spending $400k, you don’t. You can’t talk someone into owning it at a discount either. They buy what they want. So what does that mean for the market of used Aventadors, McLarens, 458’s, F12s, Huracans, etc.? It means that as a dealer you have to plan on sitting on them for a little while. When a person comes along and falls in love with the car, you sell it. Not much need for price movement. You just never know how long that will take. So does that mean that your car becomes worth less on a wholesale/trade basis? Maybe. Dealers have to plan on sitting on inventory for a lot longer because you are searching for a much more specific buyer. It increases the appeal of consignment arrangements where you have the opportunity to narrow the spread between wholesale and retail by retaining the risk of carrying costs and value changes. It also means that some of the 3-6 month terms of ownership flipping that we have enjoyed for the past few years might be a little more difficult to achieve.
