Supercar values could fall if rising interest rates and war in Ukraine spook the market, premium car salesman Tom Hartley suggested. Such as factors might make motorists less willing - and less able - to spend large sums on fast cars. If demand for supercars becomes low relative to how many are for sale, prices will inevitably fall. As is always the case, the car market will adjust if required to suit what buyers are willing and able to pay.
Interest rates and inflation
In March 2022, The Bank of England raised its base interest rate several times in recent months to control inflation. If inflation continues to increase sharply there could be further changes. Mr Hartley suggested it is only a matter of time. ‘The interest rate will go up’, he stressed. The recent rises in the overall cost of living might also make motorists reluctant to buy supercars. Petrol, diesel, gas, and countless other essentials are now more expensive.
War in Ukraine
The Ukraine war might make supercar prices fall, too People naturally consider their life priorities at times of crisis. Mr Hartly said there was an immediate change once the fighting started. ‘The minute this guy Putin started dropping bombs, I noticed the level of inquiries went down about 50 percent’, he emphasised. So far though, whereas there have been fewer enquires the dealership has continued to sell a typical number of supercars.
Supercar prices strong for now
Mr Hartley revealed that whatever the future holds supercars sell for very, very, strong money as of now. ‘I have never in all my life known the market the way it is’, he emphasised. ‘We are giving the same money for cars we sold almost 18 months ago to customers to buy them back’. In other words, some cars have risen considerably in recent times. Mr Hartley stressed that this is a short term situation. ‘It will not be like this forever’, he added.
