Super rich may avoid super expensive cars because of bad image
Click the image above for a hi-res gallery of the Rolls-Royce Phantom Coupe
If you've got it, flaunt it. The super high-end automotive market has been counting on that attitude for years, and it may now be coming back to bite them. It seems that sales of luxury marques such as Bentley, Maybach and Aston Martin have been on a downward trajectory over the last year. Despite the fact that there are a number of people who still have plenty of dough to purchase these expensive toys, public perception is causing some of them to hold back and keep those fat wallets in their pockets.
To combat the problem, some high-end brands are choosing to aim even higher. If ex-customers with a net-worth of less than $5 million find it socially unacceptable to make a purchase, Bentley has said it will begin marketing to those with at least a net worth of $25 million. Let us add that we've driven a few Bentleys and Rollers and can say with certainty that they are definitely conspicuous in a sea of CamCords and Mustangs.
[Source: Advertising Age]
Reader Comments (Page 1 of 2)
MoonRover 7:33PM (10/02/2008)
WOWsie!
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Artie Lange 7:53PM (10/02/2008)
A net worth of $5 million isn't that much. I'm surprised that people with that little amount of money buy these brands. Considering these cars cost $300K+, to purchase one would represent an investment of nearly 10% of their worth. I'd think you'd need at least $15 million liquid to feel comfortable about plunking down that amount on a car.
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Kingus 9:15PM (10/02/2008)
So how much is the average person worth? If you don't have your own house then your worth might be pretty much just the value of the car you have. Or even negative if you have an outstanding loan on it!
Gardiner Westbound 7:39PM (10/02/2008)
Being down to your last $5-million is a bitch.
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Torrent 7:48PM (10/02/2008)
Right now- If I was uber rich. I'd still probably own an econobox.
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larry raines 8:02PM (10/02/2008)
whenever I see someone in something like this I laugh - and think:
Why is it worth the gas $, the insurance $, the extreme depreciation $, upkeep$ - all just to sit in some really nice leather and wood some times. - and have people wonder these things about you and stare. I guess the bottom line is that people are probably envious that the person in there has money to burn and they don't - but, really, what are your values if you want to make other people feel bad about themselves. I could not imagine someone looking at another person in one of those and thinking "gee, what an interesting person that must be in that nice car, I wish I could meet them, I wish they were my friend".
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Kurticusgt 10:47PM (10/02/2008)
I guess I'm neutral on the subject above, yet look at the person in "that" car differently. I doubt their intent is to lower the self-esteem of others sharing the road with them, and more so to enjoy the machines they have worked for and possibly dreamt about since childhood. To me, there may be a slight hint of envy and curiosity just for the new experience to ride around in some of these cars, but more of a feeling of the buyer to enjoy "that" car in good health. And the world keeps on turning...
Pat 3:09AM (10/03/2008)
The thing is, in a relative sense, it's not a lot of money. For example, years ago I heard that Bill Gate's built his house for $40 Million dollars. Sounds like a lot right? But that would make his house worth 1/1000th of his net worth at the time of $40 billion. So let's say your house is worth $250,000 - your equivalent net worth would have to be $250 million. You think people worth 250 mil are buying $250K homes? You think people in $250K homes are worth 250 mil? The point is, there are a ton of people out there where $300K isn't a lot of money - in a relative sense. Where you might not care about spending the extra $1 to biggie size your meal, there are people out there that don't mind spending thousands to get a Bentley instead of a Benz.
MajorGeek 8:05PM (10/02/2008)
Not happeneing, all that has happened is the dollar amount that means super rich has changed. People worth 5 million or less typically don't stand out in a crowd, though people think they do or should. 5 miliion is not "fu money". Many drive average cars. Of course many of these people work long hours, so driving a Bentley to work 16 hours a day is pretty dumb.
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tankd0g 8:21PM (10/02/2008)
They'll all be able to buy Volts soon enough. In the mean time, a different color Prius for each day of the week is still in style.
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Rich 8:19PM (10/02/2008)
I'm from the UK, and I've been told many times by many people that we're full of envy; but in the US, people who've "made it" are respected for their hard work.
Can I call them all liars now?
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apearlman 8:29PM (10/02/2008)
Wait, let me try to understand this news item. The US economy is in recession. A panic has spread across American and European financial markets to an extent not seen since the great depression. And high-end luxury car sales are down? Shocking.
Oh, apparently I'm wrong. Bentley and Maybach sales are down because ultra-rich people are just now starting to worry about their image. It has nothing to do with rich people losing money and getting nervous.
Got it.
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garland823 9:01PM (10/02/2008)
It has nothing to do with rich people losing money. The people that buy a Bentley or a Rolls don't need to worry about the economic situation. This summer, with gas prices higher than they've ever been, I saw more people in Cigarette boats nearly every day than any other summer I can remember. If you think premium gas for a Rolls is expensive, just imagine the kind of money it takes to fill up one of those boats, on top paying for the boat itself and insurance. People with that kind of money are doing just fine.
hydrogenvodka 9:19PM (10/02/2008)
@garland:
not even slightly true, please present references, as I won't.
Icon149 10:23AM (10/06/2008)
@garland.
actually the super rich are super rich because they do care about their money and they are more than likely very actively involved in the stock market and investments. losing 30% of your net worth still hurts no matter if you are worth $250,000 or $25,000,000
Cardude 8:31PM (10/02/2008)
This is just plain silliness. As long as you worked hard and earned your fortune, I have no quarrel with you. Drive what you want and enjoy it.
A lot of fine craftsmanship goes into making these cars, they also have rich histories. That is part of the reason they command premium prices.
No car buyer of any money level should let these useless lords of all that is trendy determine their automotive purchases. 5 years ago, they were saying you were a loser if you did not drive a Hummer or an Escalade. Where was their "concern" for the environment then?
I will be damned if I am going to let morons like that tell me what kinds of cars I should like, let alone buy!
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Rafael Illan 8:37PM (10/02/2008)
You sir have spoken the truth
John 10:02PM (10/02/2008)
Beautiful post. I own a $25kish sports car right now, and as I grow further into my career I plan to own even more expensive cars. Just because I choose to further my career, increase my responsibility at work, and work harder should not mean I'm forced to drive an Accord, Civic, or even worse...a Camry.
k.w.a 8:35PM (10/02/2008)
This isn't news. Very wealthy people, or the ones with class anyways, usually tend to NOT drive very expensive cars. They might have like one porsche in their stable,but they usually don't blow all their money on outlandish maybach landaulets and rolls royces. They realize that cars are not investments, and rich people who know how to not blow their money in less than ten years are ALL about investments. From what I remember I was reading this article about a year ago stating that the most common car that millionares drive is the Jeep Grand Cherokee.
The most expensive cars that I see true wealthy people drive are Porsche, Mercedes, BMW, Cadillac, Land Rover, Jaguar, and Aston Martin. Occasionally I see Jeep, Lexus, Audi and Volvo.
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B 9:28PM (10/02/2008)
When vintage ferraris stop selling for $25 million, then you can say cars are not an investment.