Sunday, January 21, 2018

Is Buying That Dream Car Looking a Little Pricey? How About a Lease?

 A Bristol Bullet and a Bristol 405 Drophead coupé on display at Salon Prive'. Photo by Nauyop Taiwan.
If you're finding that the prospect of finally putting that classic or exotic dream car in your garage is still looking a little too costly, maybe leasing is a solution to consider. And according to one financial services firm, demand among car enthusiasts for just that solution is growing and positioned for continued growth.

Premier Financial Services (PFS), a specialty finance company providing operating leases for exotic, vintage and high-end motorcars, said recently that the overall demand and average price for those vehicles have been increasing since 2012. Over that 5-year period, Ferraris, Porsches, McLarens, Aston Martins and Lamborghinis have continued as the most popular marques in their leasing portfolio, which the company reports is worth over $100 million in annual financing.

While the individual price tags for many of PFS's leased vehicles are well over $1 million, the average vehicle sale price since 2013 was nearly $228,000, representing a more than 19% increase over the prior 5-year period's average sale price of $191,000. Over the 10-year period since 2008, owners financed approximately 80% of their leased vehicle's value. And according to PFS, it's the ability to lease expensive vehicles that has "put dreams in driveways" for many individuals who choose not to purchase their vehicles outright.

The company views this sustained market trend as good news for automobile enthusiasts at the outset of the 2018 season of auctions, rallies and other motorsports gatherings for owners and collectors; which begins in January with a week of events in Scottsdale, Arizona, and with the Ferrari-focused Cavallino Classic in Palm Beach, Florida.

According to CEO Mitchell Katz, the majority of exotic and vintage car owners want to change vehicles every two or three years, with nearly 70% of leases terminating within 36 months on a 60-month lease. He stated, "That's another reason why leasing continues to fuel the growth of the high-end car industry. Flexible leasing terms can accommodate their desire to try something new or different on a frequent basis. Automobile enthusiasts have an insatiable appetite for fine cars."

Some of the other exotic marques that have grown in popularity over the past 5 years include Bentley, Rolls Royce, Maserati, Bugatti and Tesla.

No comments:

Post a Comment