HyperCar Price Inflation

[Joehand1]

Default HyperCar Cost Inflation

I've been astounded by the prices of the new hypercars, the 918 Porsche, the McLaren P1, the recently unveiled Ferrari Laferrari and the Lamborghini Veneno, so I did this little exercise:

1988 List Price 2013 List Price
Ford Taurus $12,000 Ford Taurus $21,700 (1.8x)
Mercedes SL $61,000 Mercedes SL $120,000 (1,96x)
Ferrari 328 $71,000 Ferrari 458 $260,000 (3.66x)
Porsche 911 $51,000 Porsche 911 $90,000 (1.76x)
Porsche 959 $300,000 Porsche 918 $950,000 (3.8x)
Ferrari F40 $400,000 Ferrari Laferrari $2,000,000 (5x)
Lambo Countach $120,000 Lambo Aventador ($376,000) (3.13x)

So base 911s and Tauruses have not quite doubled in price, but the hyper Ferrari is up 5 times, with everyone else in between.
While I think it is very pretty, a two million dollar price for a Ferrari is just crazy..

http://www.topgear.com/uk/photos/fer...eva-2013-03-06

[nineball]

Originally Posted by Joehand1

While I think it is very pretty, a two million dollar price for a Ferrari is just crazy..

only if you can't afford it

[Joehand1]

Originally Posted by nineball

only if you can't afford it

Hahaha...yes I am not a Russian Billionaire

[lateapex911]

While I can not actually justify the entire price increase, I will say that a 1988 Ferrari, even though it was state of the art for the time, is simple in comparison.
The aero development and unique and difficult to make parts represent some of the extra cost.
Also, government regulations have added to all cars, Ferrari included, but Ferrari doesn't enjoy the same economy of scale.
The there are the leading edge componentry.
I'd also say the typical Ferrari is FAR better made than an 88 Testarossa. (I had to work on a Testa, and jeez the thing scared me to death, as there were so many parts that looked and acted like they'd snap in a second. (Like the engine release pull handle, which did.))

But, Ferrari has been able to carve an exclusive niche out for itself, and demand outstrips supply.
Enviable.

[hbueno]

Another way to look at it is that as wealth has concentrated to a smaller percentage of the population, the car companies have adjusted prices accordingly for their target customers.

Hugo

[Jerome74911S]

Read my blog post on this general subject.

Pondering Porsche(s)

[baq911]

Originally Posted by hbueno

Another way to look at it is that as wealth has concentrated to a smaller percentage of the population, the car companies have adjusted prices accordingly for their target customers.

Hugo

I agree... This kinda explains things further Wealth Inequality in America - YouTube

Hypercars are reaching 2, 3, 4Million dollars and it's absolutely absurd. The only reason they can demand those prices is because there is a market for it. There are more billionaires now than in the past.

[RWebb]

get a McLaren - they're cheap

[wayner]

Originally Posted by lateapex911

While I can not actually justify the entire price increase, I will say that a 1988 Ferrari, even though it was state of the art for the time, is simple in comparison.
The aero development and unique and difficult to make parts represent some of the extra cost.
Also, government regulations have added to all cars, Ferrari included, but Ferrari doesn't enjoy the same economy of scale.
....

These points seem to assume that price is somehow related to cost to the manufacturer, rather than value to the buyer. ;-)

[Jerome74911S]

Hispano-Suiza Dubonnet Xenia, 1938

[onewhippedpuppy]

They keep selling, can you blame them?

[intakexhaust]

Going back in the years, dealers taking orders were substantially marking up some of those cars. Then contract sales orders were sold between private buyers, really jacking them up. Toss in a few lawsuits for doing so. Disputes between dealer and manufacturer became an issue as well. Some F40 were sold for over a mil back then and as for the 959, there were some unique trading going on there too. On the lower end of the 'supercar' pricing back then, 930 factory slant nose typically were dealer marked up $5,000. Call it gouging or whatever but why leave money on the table? Ferrari later tried to maintain some sort of measures by having a lease only for the F50 and selected its customers. How dare they? Only wish I had those problems... lol.

[Aragorn]

Didn't a 911 SC cost around $25,000.00 in 1978? That would mean it more than doubled in price between 1978 and 1988.

[pwd72s]

Of course, inflation isn't a factor...

[strupgolf]

When I saw the MSRP for my Porsche 944S2 in 1989 at $44,285.00, I could not believe somebody would pay that, for, that. A 911 came in at $51.200. Wow. Yep, these car makers know who buys what and what they'll pay, so the sky's the limit. I think the McLaren is the best buy for the money today.

[Mark Henry]

How about the new lambo? $4mil!!??? Frickin' thing looks like a bad 70's kit car

Batman want's his car back.