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"International students" SO true. I lived nearby Syracuse University and I'd see Asian foreign students literally driving Bentley's, Ferrari's and Lamborghini's through the harsh, cold, salty winters at school. Money is no object to people like that. All while wearing Canada Goose jackets, Prada/Gucci sunglasses, and the latest $5000 purses. They live in a whole different world than the rest of us.
If that makes you mad, don't forget that they come from a ruthless dictatorship and they can't predict what the Party will arbitrarily decide to do to they networth and/or livelyhood. The CCP giveth and the CCP taketh away.
I think you have confused a maker having only premium cars in thier selection. A-class is the entry model for the maker but a premium for that small compact. Where the s-class is straight premium
That ad read was a buzzword bingo. Good for Modern MBA getting that coin, but it’s seldom a good look if a company that no one has ever heard of is now sponsoring UA-cam video creators.
They are, because fuel technology cannot be improved much more meanwhile electric vehicles are improving at fast pace. In less than 5 years they will have more performance and cost less. And in 50 years, electric vehicles will produce so much power that they could even fly(if that becomes legal in the future). I love fuel vehicles but the technology for them is already fully developed, its not like we can make a 500hp car that sips fuel, meanwhile a 500hp electric vehicles that are cheap to run, already exist, like tesla model 3 performance
The VW group now has five tiers of premium. Skoda at the bottom, followed by Seat, Volkswagen, Audi, and Porsche. They also own Bentley, Lamborghini, Bugatti, and some amount of Rimac. Additionally, your sponsor needs a fact check. Harley Davison has made the electric Livewire model.
It's quite possible that a lot buyers don't really want a Purosangue. They want to be on the customer list so they can buy the next supercar so they can be on the loyal customer list so they can buy the next limited edition supercar.
Interestingly, the owners of luxury cars probably don't drive thrm that much. I once worked for a major auto insurance company and everytime I pulled up a customer record were they owned a luxury car they always had at least one non luxury car like a Toyota. Often they had several regular cars and only one luxury car.
Loved buying my insurance for my Porsche from a new insurance company that charged a low base plus each additional mile driven since didn’t drive it much.
yeah, electric motorcycles are looking really bad right now. anyone remotely interested in motorcycles knows that. Also he is wrong about harley not having built an ev. A really bad look
He's wrong too. Motorcycle brands HAVE innovated.. but consumers don't WANT innovation. They want classic motorcycles. If they cared about utility or fuel economy, they'd buy a scooter.
@@harrystyles7466same for cars, most ev start up’s fail miserably, the infrastructure isn’t even there for it to be mass adopted anyway, I don’t think the future of cars is electric but will be incredibly fuel efficient cars
@@poochyenarulez Ironic that in a video about luxury brands they don't recognize the fact that motorcycles are also a luxury. Nobody needs a motorcycle.
There are far more wealthy people who can afford basic Ferrari, Lamborghini and McLaren models even at 500k. The real game changers in the exotic space are the bespoke builders at ultra low volume: Pagani and Koenigsegg among few others. The luxury market is watered down with too many poorly built 500k cars that fall apart in a few years or less. This nuance of poor quality vs high performance was tolerated in the 70s, 80s and 90s when the wealth needed to afford even a Porsche was less present. Now your mom is driving a Porsche SUV and you can buy a used Maserati for 18k$. In the pursuit for market share and volume the companies are treading a really fine line of profit vs exclusivity. At the end of the day most of them need to fail and rebuild as a new name multiple times to create the rarity needed. The second biggest issue is driving feel. Electric engines, highly electric suspension and transmissions that shift perfectly sort of ruin the experience of owning and driving these cars. The companies that will exist in the future will ultimately reject most modern utilities and instead blend them delicately over the years. 0-60 in 2 seconds isn't special when a Tesla can do that. A manual transmission car that demands driver attention and restraint is truly exclusive.
Unlike jewelry, which has almost no practicality whatsoever, luxury vehicles happen to have "some" practicality due to their nature as a vehicle that could be used to travel from place to place. The introduction for this video gives me the impression that the topic isn't approached from the perspective of the would-be buyers, who are more likely to use the vehicles as a symbol of prestige, that they can not only afford the sticker price, but also the costs of maintaining the vehicle that it looks pristine in spite of the use. From a mercantile perspective on luxury goods, the value of what you're selling is only as high as the value people are willing to pay for it, and the reputation of a manufacturer and its product are more important than the actual utility it provides. If you wish to see why people buy these products in spite of their practical drawbacks, you may want to do a deeper analysis of who buys these products, their demographic, and then ask them what each brand is associated with, and why- Some reasons to note are buying one to become closer to a fellow of the same demographic, the policies and past/recent history of the company, the appearance, and so on. Whether or not it's all practical is unlikely to be part of the consideration.
This 100%. Trying to analyze luxury cars through an automotive lens is a futile exercise. The best comparator is to put it up against luxury goods brands like LVMH, Rolex etc. and talk about what drives demand and price for these items.
@@zunaidparker They are not comparable to luxury goods like watches and handbags because all luxury cars depreciate whereas Hermes bags and Patek watches appreciate and are investments that deliver market exceeding returns in most cases. Luxury cars are simply very expensive consumption goods and status symbols.
@@sonnykoh3049 thats also not true because it really depends on which car you buy. Rare cars like high end 911s, limited Ferraris, Paganis etc have only risen in value many are now worth double of what they cost new, there is even a whole market of speculation around new releases, some even buy these cars soley as an investment. Cars like Panameras, Cayennes, Maserati were you have a big supply depreciate like shit.
damon is gonna fail with a mission statement like that. The broad majority of motorcyclists like the no nonsense nature of older designs and the technology being put into them by tech companies like damon and zero is just shooting them in the foot.
no one wanting to ride an ev bike is also contrary but its an ad read so its not like theres much to read into. Im a vintage bike guy anyway my newest is a 99 if i was gonna go get one today...probably not gonna be a duroc i mean damon. But old crotchy habits do constrain development of sales product...kinda . Motogp is still driving plenty of innovation at most companies.
If you took any intro to accounting class, you learned the Seven Year Rule. For things like vehicles and furniture, it takes approximately seven years for depreciation to cut the value of the "asset" by 50%. Looking at something with a high price tag, like a luxury car, the absolute number is enough to be alarmed. But the maintenance costs will surely add to that enormous number. This is obviously a vast simplification, but it gives you a good enough idea. God, just imagining myself as an accountant for those influencers who buy luxury vehicles makes me shudder.
I doubt the rule of 7 years applies to cars. New cars lose value a lot faster, with 50% being reached in 2-4 years. And 10+ year old cars typically are ripe for export to the third world after another 7 years because they are too expensive to keep running in the western world. For real luxury (and by that I do not mean Porsche Cayennes selling in the thousands each month), depreciation is a bit different anyway. For one, if production is intentionally limited, prices on the secondary market are often higher. And for two, people do not buy a Ferrari because it is cheap to run and comfortable to drive or buy a hand-made mechanical watch because it keeps time so well. People buy these things as status symbols, and high purchasing and/or running costs just make them even better suited to display status
@@foobar9220 of course. Hence why I said that I was oversimplifying. The 7 year rule applies to idle items. It does not account for wear and tear, maintenance costs, and of course any kind of brand risk factors, such as the brand image of the luxury car. I would estimate the 50% mark to be reached at 3-4 years today, and with rising fuel costs, this period will likely shrink as the costs of ownership increase. This feels like it could be a fun monte carlo simulation.
I would say in general the influencer culture has ruined the "luxury" industry across the board. When you see these low class unaccomplished people having the expensive stuff you really don't want to be associated with people like this. More importantly these bottom feeders have increased demand making luxury stuff more expensive for the people it was originally intended for. I see that watches and collector car prices are starting to go down which is the correct direction. Porsche is not a luxury brand. It is a premium brand like mercedes and bmw. They do have very expensive cars in the 200K range but those are outliers. I think it is insane how a G wagen goes down $10K a year in value like clockwork Aston and Maserati are garbage cars. I would be more inclined to call them luxury because you have to truly be rich to eat that depreciation. Ferrari is not independent. They are owned by Fiat. I am wondering what happens when all cars have to be electric. Enzo Ferrari said you are buying the engine not the car. Now there is not going to be an engine who knows how ferrari will do. Of course there are always going to be poseurs who want anything expensive but how about the purists and actual enthusiasts?
if by garbage you mean in terms of reliability then you must also add ferrari in that list, and also, the type of people who can afford an aston/ferrari really dont give a crap about that since they also have a secondary car used as a daily driver, and besides, in terms of looks, luxury and performance in terms of price range, nothing beats aston/ferrari/mclaren
Why use the word luxury when you already know the proper term is exotic? Lamborghini, Ferrari, or Porsche are NOT luxury car brands. These guys make performance sports cars, the best in the world. Sure they each have a luxury model but the entire lineage, history and the aggregate of their vehicles are performance sports cars! That is a massive difference when it comes to their clientele and and their use cases. Luxury car brands would be Audi/Mercedes/Lexus/Infiniti/AstonMartin/Bently/Rolls Royce/ etc. Porsche for example is one of the only car brands whose cars appreciate. There is a reason for that and it sure as heck isn't luxury!
Porsche also has the Macan EV. Also, even though the Audi Q5 and Macan were to share a platform, Porsche needed to heavily modify the platform for the Macan-- they're pretty different.
the electric motorcycle company's copy is hilarious. walk into any motorcycle showroom and you can find find a high-spec bike with nearly every modern computerized and advanced materials feature you'll find on new cars. It seems like they're actually trying to appeal to potential new riders, which is a small segment with a lot of churn. I'm sure there is *a* market for electric sport bikes but it'll always be very small.
At the moment, Ferrari is even the most valuable car company in Europe. It is just in another league compared to all the other low volume, ultra luxury car companies
Ferrari is the one true king of the luxury auto world! Independent, well funded and developed, pristine history, ultimate brand prestige anywhere in the world most importantly they made and STILL make the best supercars!
The main difference between exotic cars and other luxury items is that the cost can be justified by the low volume not making up the R&D costs. I guess you can make the argument for a lot of the SUVs exotic brands are putting out since most are rebadges, but I strongly disagree that they lack innovation. High R&D costs and lack of economies of scale are what kill most of the other brands. Ferrari and Porsche are the exceptions. Ferrari has such a strong brand that they can essentially price any way they want. Porsche has the mainstream SUVs that offset a lot of R&D costs for their sports cars (part sharing between the 911 and 718 lineup does help a lot though). Both charge a ridiculous amount for options since they have the brand recognition and demand for customers to be willing to pay as mentioned. Even for large automakers, they're reluctant to make sports cars, because they lack economies of scale to justify their development costs. Also, car enthusiasts are a very picky bunch, so it's mostly the ones that are well engineered with a cult following or those that share parts with conventional cars that tend to survive.
12:00 The platform is shared, but the audi R8 came out later. they did not have a shared launch and they at first were more different from eachother, slowly merging near the end of both their 1st generations.
It was spun into an independent company called RACE with exor having the control and voting rights the rest is owned by the investing public, Piero Ferrari and Blackrock.
The price depreciating curve only ends if the vehicle becomes a classic, noteworthy or even determined by people to be cool. Such as early vehicles like any Old Ford Model T or the derivatives since the historical nature of it, classic mustang or lets say even the First few Hummers. There will be a market of people willing to buy them depending on the quality Forgot to add the DeLorean as from what I have seen some car collectors do want it as a visual piece.
Luxury cars do make money. It's just a point of the business cycle where there is a period every car company bleeds let it be minor or major. Have a look at the Ferrari balance sheet and Porsche annual report then you'll know the reality
The future is not battery clown cars no matter the performance! Saying that is like saying the future of alcohol is moonshine because it has higher alcohol content and not fine wine! You have no idea what you are saying when you say the future of these high performance cars are battery powered! True enthusiasts do not buy battery clown cars ! ! !
I remember when the Cayenne came out a lot of purists mock it including Ferrari and Lamborghini fans. But after seeing the success of the Cayenne and Macan. They have now their own SUV/Crossover. I am waiting for Mclaren to soon follow.
Doing a DTC motorcycle company is an interesting move. I really don't think people are going to be willing to pay Goldwing money for a 150 mile range ebike though.
A quick note, the Cayman didn't come out until 2006. While the Cayman and the Boxter are based on the same platform, one is a coupe and the other is a convertible, the two cars were released a decade apart.
I’m not sure what he meant by the title but most luxury cars literally have massive profit margins, and as an example Ferrari and Porsche make the most profit per car of any other manufacturer
As someone who has finally reached a place in life that I can purchase a vehicle around 350k cash. I refuse to even though I thought I have wanted one my whole life. I’d rather spend that money buying my freedom from the daily grind that has gotten me here in the first place.
Car dependency is annoying. All I want is to walk, bike, and take fast frequent transit to my destination and I'm not alone. In most US cities you need a car since we rebuilt our cities around personally owned vehicles tearing up streetcar lines and underfunding mass transit. I just bought an E-Bike, and I can't wait to zip around cars in traffic and not be dependent on gas, expensive maintenance, and insurance.
Its perplexing to me how valuable ferrari is on the market, by far the most valuable italian company. Despite barely making any money compared to every other car company. 18:50 "ferraru" at the bottom right instead of ferrari.
This video is clearly made by somebody who’s not into cars at all. I know many people who owns these cars. They easily are able to use these performance on the streets.
bullshit. if you think accelerating in a straight line on a highway is "using the performance" ur an idiot. actually, youre already an idiot for that comment
@@poochyenarulez no, but most car enthusiasts do it, find back roads to drive spirited on, or doing donuts at some abandoned warehouse, even just doing a pull on to a highway
A common mistake in the writing of these videos is mistaking singular and plural. It’s not “the number continue to grow” it’s “the number continues to grow”. It doesn’t matter if you put a plural word in between. It’s still “the number of cars continues to grow” as “continues” is connected to “the number” not “cars”.
@rsac43 I already have a Jaguar F-type R convertible (incredibly awesome car) and a new Porsche macan turbo. Paid cash for both. Next year getting an Aventador and gonna pay cash for that as well.
for an unexpected surprise, buy a bentley and see how people just go along with whatever you say in society and business, many will actually bring themselves to you out of the blue.... then tell me that it's a liability
I always thought that as most of them are either owned by a major car company or are an engineering exercise (see pagani, czinger, koiniggsegg etc) they exist either to be a test platform, and engineering exercise or an advertisement for a companies capabilities
Although you make a good amount of valid points, you’re still a lot that you have either missed interpreted or just don’t understand. A lot of brands are just woefully mismanaged like McLaren in Aston Martin they do need backing, but they also need the proper management to know how to market service and govern into the future effectively. As you’ve demonstrated in your own grass, Bentley is doing well, but again it is at a price point similar to Rolls-Royce. It’s not meant to be growth. Also, you’re biased due to your sponsorship needs to be noted because like the best majority of EV start ups, they have a huge mountain to climb. The future is an all electric. It’s an option, but it’s no longer the only viable way forward because it cost so much more to make an EV and the residual holding values think harder than a lot of exotic cars as well.
I know it is a scripted commercial but still very disappointed about electric vehicle propaganda. It is like you are not a MBA at all. Respectfully, Modern MSSc.
Thanks for the analysis! A bit off-topic, but I wanted to ask: My OKX wallet holds some USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). How should I go about transferring them to Binance?
Funny how a Hyundai ioniq that costs $45k new has a battery that's equal to it's purchase price and you're paying that out of warranty 😅😅 Porsche is alive simply because of the Cayenne and boxster nowadays.the cayenne was built on the vw tourag
Um,no the future is not electric 😅😅 While BEVs have a place in the market. any real appeal is blunted by governments sticking their thumbs on the scale with various mandates. Evs has had the same century long issues in terms of weight and range as they always have had
I love hearing that oil tycoons and petro sultans are buying up luxury car brands because they're so out of touch with the rest of the world and are losing money over it 😂
@@Fhnsgkdfkvsgmvdg-y6u civic type r anyday its people like these MBAs and there stupid charts that have killed performance cars if anything its mba students only who aspire to buy one
This video really breaks down the surprising truth behind the luxury car industry. If you're into learning about the business side of cars, you might enjoy the deep dives on my channel too. Let's uncover more hidden stories together!
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actual good sponsor
"International students" SO true.
I lived nearby Syracuse University and I'd see Asian foreign students literally driving Bentley's, Ferrari's and Lamborghini's through the harsh, cold, salty winters at school. Money is no object to people like that. All while wearing Canada Goose jackets, Prada/Gucci sunglasses, and the latest $5000 purses. They live in a whole different world than the rest of us.
You mean the Chinese students who are the children of CCP politicians.
Well for many of their fellow much much poorer countrymen it’s in a different universe that they live in
If that makes you mad, don't forget that they come from a ruthless dictatorship and they can't predict what the Party will arbitrarily decide to do to they networth and/or livelyhood.
The CCP giveth and the CCP taketh away.
Because too many "luxury" cars aren't luxury. Can we truly compare an A-Class to the S-Class or the 1 Series to the 7 Series?
I think you have confused a maker having only premium cars in thier selection.
A-class is the entry model for the maker but a premium for that small compact. Where the s-class is straight premium
That ad read was a buzzword bingo. Good for Modern MBA getting that coin, but it’s seldom a good look if a company that no one has ever heard of is now sponsoring UA-cam video creators.
That add for electric motorcycles crossed the line into lying. Harley has electric motorcycles. Electric vehicles aren't guaranteed to be the future.
They are, because fuel technology cannot be improved much more meanwhile electric vehicles are improving at fast pace. In less than 5 years they will have more performance and cost less. And in 50 years, electric vehicles will produce so much power that they could even fly(if that becomes legal in the future).
I love fuel vehicles but the technology for them is already fully developed, its not like we can make a 500hp car that sips fuel, meanwhile a 500hp electric vehicles that are cheap to run, already exist, like tesla model 3 performance
😭😭😭 “The type of car you drive really doesn’t matter when everyone is stuck in bumper-to-bumper traffic” 😭😭😭
Unless it’s a Tesla with autopilot so you can chill
Well it is a MASSIVE difference if you are automatic vs standard
Or self driving vs not self driving
Bigger flex is not having to drive to work
@@anthologyofinterest1being able to walk 5 minutes to work
That’s why I moved to NYC. Driving sucks and there’s no way around it other than avoiding it
The VW group now has five tiers of premium. Skoda at the bottom, followed by Seat, Volkswagen, Audi, and Porsche. They also own Bentley, Lamborghini, Bugatti, and some amount of Rimac.
Additionally, your sponsor needs a fact check. Harley Davison has made the electric Livewire model.
Seat is no more, cupra took that spot
@@Flashv28Seat is a weird name in English speaking countries.
It's quite possible that a lot buyers don't really want a Purosangue. They want to be on the customer list so they can buy the next supercar so they can be on the loyal customer list so they can buy the next limited edition supercar.
quite the contrary, isnt very easy to get a purosange as a first time ferrari owner, just check the secondary markets..
Similar to Porsche asking customers to buy taycan, cayenne and other models, before being considered for a 911 GT3 RS order
Interestingly, the owners of luxury cars probably don't drive thrm that much.
I once worked for a major auto insurance company and everytime I pulled up a customer record were they owned a luxury car they always had at least one non luxury car like a Toyota. Often they had several regular cars and only one luxury car.
They’re just not good daily drivers
agreed I'd take my lexus any day over the Mercedes
Loved buying my insurance for my Porsche from a new insurance company that charged a low base plus each additional mile driven since didn’t drive it much.
I cant believe Modern MBA is telling me to put my money into some vaporware ev motorcycle company
yeah, electric motorcycles are looking really bad right now. anyone remotely interested in motorcycles knows that.
Also he is wrong about harley not having built an ev. A really bad look
@@harrystyles7466 Harley forgot about its core boomer customers with their EV bike. Was a flop on their part.
He's wrong too. Motorcycle brands HAVE innovated.. but consumers don't WANT innovation. They want classic motorcycles. If they cared about utility or fuel economy, they'd buy a scooter.
@@harrystyles7466same for cars, most ev start up’s fail miserably, the infrastructure isn’t even there for it to be mass adopted anyway, I don’t think the future of cars is electric but will be incredibly fuel efficient cars
@@poochyenarulez Ironic that in a video about luxury brands they don't recognize the fact that motorcycles are also a luxury. Nobody needs a motorcycle.
That motor cycle company is screwed.
There are far more wealthy people who can afford basic Ferrari, Lamborghini and McLaren models even at 500k. The real game changers in the exotic space are the bespoke builders at ultra low volume: Pagani and Koenigsegg among few others. The luxury market is watered down with too many poorly built 500k cars that fall apart in a few years or less. This nuance of poor quality vs high performance was tolerated in the 70s, 80s and 90s when the wealth needed to afford even a Porsche was less present. Now your mom is driving a Porsche SUV and you can buy a used Maserati for 18k$.
In the pursuit for market share and volume the companies are treading a really fine line of profit vs exclusivity. At the end of the day most of them need to fail and rebuild as a new name multiple times to create the rarity needed.
The second biggest issue is driving feel. Electric engines, highly electric suspension and transmissions that shift perfectly sort of ruin the experience of owning and driving these cars. The companies that will exist in the future will ultimately reject most modern utilities and instead blend them delicately over the years. 0-60 in 2 seconds isn't special when a Tesla can do that. A manual transmission car that demands driver attention and restraint is truly exclusive.
Oh you mean Aston Martin charging $2million for a manual coupe v12.l.
Excellent breakdown 10/10
Unlike jewelry, which has almost no practicality whatsoever, luxury vehicles happen to have "some" practicality due to their nature as a vehicle that could be used to travel from place to place. The introduction for this video gives me the impression that the topic isn't approached from the perspective of the would-be buyers, who are more likely to use the vehicles as a symbol of prestige, that they can not only afford the sticker price, but also the costs of maintaining the vehicle that it looks pristine in spite of the use.
From a mercantile perspective on luxury goods, the value of what you're selling is only as high as the value people are willing to pay for it, and the reputation of a manufacturer and its product are more important than the actual utility it provides. If you wish to see why people buy these products in spite of their practical drawbacks, you may want to do a deeper analysis of who buys these products, their demographic, and then ask them what each brand is associated with, and why- Some reasons to note are buying one to become closer to a fellow of the same demographic, the policies and past/recent history of the company, the appearance, and so on. Whether or not it's all practical is unlikely to be part of the consideration.
This 100%. Trying to analyze luxury cars through an automotive lens is a futile exercise. The best comparator is to put it up against luxury goods brands like LVMH, Rolex etc. and talk about what drives demand and price for these items.
@@zunaidparker They are not comparable to luxury goods like watches and handbags because all luxury cars depreciate whereas Hermes bags and Patek watches appreciate and are investments that deliver market exceeding returns in most cases. Luxury cars are simply very expensive consumption goods and status symbols.
@@sonnykoh3049 thats also not true because it really depends on which car you buy. Rare cars like high end 911s, limited Ferraris, Paganis etc have only risen in value many are now worth double of what they cost new, there is even a whole market of speculation around new releases, some even buy these cars soley as an investment. Cars like Panameras, Cayennes, Maserati were you have a big supply depreciate like shit.
While i like the interview type videos, having these older Modern MBA styled videos once in a while is a good change of pace and keeps things fresh.
Kind of ironic to talk down luxury cars as impractical and pushing some random stock “Damon” that largely looks like a pump and dump.
It's an ad for motorcycles, not the stock.
@@a.k8069He mentioned they are publicly traded at the end of the ad
damon is gonna fail with a mission statement like that. The broad majority of motorcyclists like the no nonsense nature of older designs and the technology being put into them by tech companies like damon and zero is just shooting them in the foot.
Though even legacy companies can fail, just look at what's happening in Austria with KTM.
Also electric Harleys are a thing contrary to Modern MBAs statement
no one wanting to ride an ev bike is also contrary but its an ad read so its not like theres much to read into.
Im a vintage bike guy anyway my newest is a 99
if i was gonna go get one today...probably not gonna be a duroc i mean damon.
But old crotchy habits do constrain development of sales product...kinda . Motogp is still driving plenty of innovation at most companies.
Right. People who want innovation will get an ebike or a scooter. People buying motorcycles want something that looks and sounds vintage.
I own a HD Livewire one. It's a great commuter vehicle that costs me next to nothing to insure and operate. It's lightning quick.
it's really crazy how nobody is talking about the book the elite society's money manifestation
Maserati is notoriously unreliable garbage 😂😂😂
If you took any intro to accounting class, you learned the Seven Year Rule. For things like vehicles and furniture, it takes approximately seven years for depreciation to cut the value of the "asset" by 50%. Looking at something with a high price tag, like a luxury car, the absolute number is enough to be alarmed. But the maintenance costs will surely add to that enormous number. This is obviously a vast simplification, but it gives you a good enough idea.
God, just imagining myself as an accountant for those influencers who buy luxury vehicles makes me shudder.
the key is getting it to be used for business to get that sweet sweet bonus depreciation.
@@ceno10101 granted, I didn't take any classes on tax law when I did my business minor, but that sounds like a tax fraud case waiting to happen.
I doubt the rule of 7 years applies to cars. New cars lose value a lot faster, with 50% being reached in 2-4 years. And 10+ year old cars typically are ripe for export to the third world after another 7 years because they are too expensive to keep running in the western world.
For real luxury (and by that I do not mean Porsche Cayennes selling in the thousands each month), depreciation is a bit different anyway. For one, if production is intentionally limited, prices on the secondary market are often higher. And for two, people do not buy a Ferrari because it is cheap to run and comfortable to drive or buy a hand-made mechanical watch because it keeps time so well. People buy these things as status symbols, and high purchasing and/or running costs just make them even better suited to display status
@@foobar9220 of course. Hence why I said that I was oversimplifying. The 7 year rule applies to idle items. It does not account for wear and tear, maintenance costs, and of course any kind of brand risk factors, such as the brand image of the luxury car.
I would estimate the 50% mark to be reached at 3-4 years today, and with rising fuel costs, this period will likely shrink as the costs of ownership increase.
This feels like it could be a fun monte carlo simulation.
nothing wrong with them spending their money on a cool car if that's what they want to do.
Why luxury cars don't make money
Proceeds to put the single most profitable car brand in the front and center of the thumbnail
My big quibble is that the cars you're describing are labeled as "prestige" brands. Mercedes, BMW, Acura, so on are what's called luxury.
Yes. It irks me everytime he calls ferrari or lambo a luxury car
I would say in general the influencer culture has ruined the "luxury" industry across the board. When you see these low class unaccomplished people having the expensive stuff you really don't want to be associated with people like this. More importantly these bottom feeders have increased demand making luxury stuff more expensive for the people it was originally intended for. I see that watches and collector car prices are starting to go down which is the correct direction.
Porsche is not a luxury brand. It is a premium brand like mercedes and bmw. They do have very expensive cars in the 200K range but those are outliers. I think it is insane how a G wagen goes down $10K a year in value like clockwork
Aston and Maserati are garbage cars. I would be more inclined to call them luxury because you have to truly be rich to eat that depreciation.
Ferrari is not independent. They are owned by Fiat. I am wondering what happens when all cars have to be electric. Enzo Ferrari said you are buying the engine not the car. Now there is not going to be an engine who knows how ferrari will do. Of course there are always going to be poseurs who want anything expensive but how about the purists and actual enthusiasts?
if by garbage you mean in terms of reliability then you must also add ferrari in that list, and also, the type of people who can afford an aston/ferrari really dont give a crap about that since they also have a secondary car used as a daily driver, and besides, in terms of looks, luxury and performance in terms of price range, nothing beats aston/ferrari/mclaren
Why use the word luxury when you already know the proper term is exotic? Lamborghini, Ferrari, or Porsche are NOT luxury car brands. These guys make performance sports cars, the best in the world. Sure they each have a luxury model but the entire lineage, history and the aggregate of their vehicles are performance sports cars! That is a massive difference when it comes to their clientele and and their use cases. Luxury car brands would be Audi/Mercedes/Lexus/Infiniti/AstonMartin/Bently/Rolls Royce/ etc. Porsche for example is one of the only car brands whose cars appreciate. There is a reason for that and it sure as heck isn't luxury!
Only a very very small percentage of Porches sold appreciate...
the porsche LBO attempt in 2006-08 was fucking crazy
Porsche also has the Macan EV.
Also, even though the Audi Q5 and Macan were to share a platform, Porsche needed to heavily modify the platform for the Macan-- they're pretty different.
At least that's what Porsche wants you to believe..
I have a macan turbo.... Nice vehicle with very few problems
the electric motorcycle company's copy is hilarious. walk into any motorcycle showroom and you can find find a high-spec bike with nearly every modern computerized and advanced materials feature you'll find on new cars. It seems like they're actually trying to appeal to potential new riders, which is a small segment with a lot of churn. I'm sure there is *a* market for electric sport bikes but it'll always be very small.
do a video about TCGs
At the moment, Ferrari is even the most valuable car company in Europe. It is just in another league compared to all the other low volume, ultra luxury car companies
Yeah, Ferrari meantained the brand purity, meanwhile Lambo mass produced Uruses and Huracans which diluted the luxury perception.
Ferrari is the one true king of the luxury auto world! Independent, well funded and developed, pristine history, ultimate brand prestige anywhere in the world most importantly they made and STILL make the best supercars!
Most recently, Aston Martin has been bought by Laurence Stroll in order to keep his son in F1.
The main difference between exotic cars and other luxury items is that the cost can be justified by the low volume not making up the R&D costs. I guess you can make the argument for a lot of the SUVs exotic brands are putting out since most are rebadges, but I strongly disagree that they lack innovation. High R&D costs and lack of economies of scale are what kill most of the other brands. Ferrari and Porsche are the exceptions. Ferrari has such a strong brand that they can essentially price any way they want. Porsche has the mainstream SUVs that offset a lot of R&D costs for their sports cars (part sharing between the 911 and 718 lineup does help a lot though). Both charge a ridiculous amount for options since they have the brand recognition and demand for customers to be willing to pay as mentioned.
Even for large automakers, they're reluctant to make sports cars, because they lack economies of scale to justify their development costs. Also, car enthusiasts are a very picky bunch, so it's mostly the ones that are well engineered with a cult following or those that share parts with conventional cars that tend to survive.
You keep pushing out great content man, keep it up
the worst ad intrgration and reads but great facts driven content! So hey, someone has to pay for it.
12:00 The platform is shared, but the audi R8 came out later. they did not have a shared launch and they at first were more different from eachother, slowly merging near the end of both their 1st generations.
17:36 Ferrari is owned by Exor which owns Stellantis, it’s not independent.
It was spun into an independent company called RACE with exor having the control and voting rights the rest is owned by the investing public, Piero Ferrari and Blackrock.
The price depreciating curve only ends if the vehicle becomes a classic, noteworthy or even determined by people to be cool. Such as early vehicles like any Old Ford Model T or the derivatives since the historical nature of it, classic mustang or lets say even the First few Hummers. There will be a market of people willing to buy them depending on the quality
Forgot to add the DeLorean as from what I have seen some car collectors do want it as a visual piece.
Luxury cars do make money. It's just a point of the business cycle where there is a period every car company bleeds let it be minor or major.
Have a look at the Ferrari balance sheet and Porsche annual report then you'll know the reality
The performance is laughable for the price. The C8 Corvette or a Tesla Model S can put many to shame.
Lmaooo what did international students do to you?
The future is not battery clown cars no matter the performance!
Saying that is like saying the future of alcohol is moonshine because it has higher alcohol content and not fine wine!
You have no idea what you are saying when you say the future of these high performance cars are battery powered! True enthusiasts do not buy battery clown cars ! ! !
I remember when the Cayenne came out a lot of purists mock it including Ferrari and Lamborghini fans. But after seeing the success of the Cayenne and Macan. They have now their own SUV/Crossover. I am waiting for Mclaren to soon follow.
Doing a DTC motorcycle company is an interesting move.
I really don't think people are going to be willing to pay Goldwing money for a 150 mile range ebike though.
A quick note, the Cayman didn't come out until 2006. While the Cayman and the Boxter are based on the same platform, one is a coupe and the other is a convertible, the two cars were released a decade apart.
I love how there's no deep analysis for Ferrari, they have mid 20% margins because they're Ferrari and that's what the people want 😅
I’m not sure what he meant by the title but most luxury cars literally have massive profit margins, and as an example Ferrari and Porsche make the most profit per car of any other manufacturer
I like how you quoted the two car brands that he literally called the "exceptions" to the rule.
@ well if you want more examples I could give you about 10 different manufacturers
@ikhoonyejelem2967 give. give me 10 examples of ultra massively profitable luxury car manufacturers. let's see what you got
As someone who has finally reached a place in life that I can purchase a vehicle around 350k cash. I refuse to even though I thought I have wanted one my whole life. I’d rather spend that money buying my freedom from the daily grind that has gotten me here in the first place.
Car dependency is annoying. All I want is to walk, bike, and take fast frequent transit to my destination and I'm not alone.
In most US cities you need a car since we rebuilt our cities around personally owned vehicles tearing up streetcar lines and underfunding mass transit.
I just bought an E-Bike, and I can't wait to zip around cars in traffic and not be dependent on gas, expensive maintenance, and insurance.
if you want the loudest and most impractical Porsche, it's the boxster spyder RS.
Its perplexing to me how valuable ferrari is on the market, by far the most valuable italian company.
Despite barely making any money compared to every other car company.
18:50 "ferraru" at the bottom right instead of ferrari.
This is completely wrong. So far 1:25
Great episode. Thank you.
You forgot to mention the F1 angle on public perception. Is that intentional?
This video is clearly made by somebody who’s not into cars at all. I know many people who owns these cars. They easily are able to use these performance on the streets.
100% Was just going to comment the same thing
bullshit. if you think accelerating in a straight line on a highway is "using the performance" ur an idiot. actually, youre already an idiot for that comment
legally?
@@poochyenarulez no, but most car enthusiasts do it, find back roads to drive spirited on, or doing donuts at some abandoned warehouse, even just doing a pull on to a highway
No electric for me .. ever!
Lotus is always in financial trouble also and they use Toyota engines.
Is it just me or is the audio a bit off? It sounds like he's really soft but when his voice rises and it happens sharply and hurts.
A common mistake in the writing of these videos is mistaking singular and plural. It’s not “the number continue to grow” it’s “the number continues to grow”. It doesn’t matter if you put a plural word in between. It’s still “the number of cars continues to grow” as “continues” is connected to “the number” not “cars”.
Yeah but they look cool
Very good video, great job.
I need to buy a Lamborghini
Step one, get a job
@rsac43 I already have a Jaguar F-type R convertible (incredibly awesome car) and a new Porsche macan turbo. Paid cash for both. Next year getting an Aventador and gonna pay cash for that as well.
"and international students"😂 accurate.
another excellent analysis, but I would be more careful with choosing sponsor, don't want to tarnish your hard earned reputations
Is that why we never got the Tesla Roadster 2nd Gen?
for an unexpected surprise, buy a bentley and see how people just go along with whatever you say in society and business, many will actually bring themselves to you out of the blue.... then tell me that it's a liability
Cars are a major consumer item.
I always thought that as most of them are either owned by a major car company or are an engineering exercise (see pagani, czinger, koiniggsegg etc) they exist either to be a test platform, and engineering exercise or an advertisement for a companies capabilities
What do you mean by engineering exercise
Although you make a good amount of valid points, you’re still a lot that you have either missed interpreted or just don’t understand. A lot of brands are just woefully mismanaged like McLaren in Aston Martin they do need backing, but they also need the proper management to know how to market service and govern into the future effectively. As you’ve demonstrated in your own grass, Bentley is doing well, but again it is at a price point similar to Rolls-Royce. It’s not meant to be growth. Also, you’re biased due to your sponsorship needs to be noted because like the best majority of EV start ups, they have a huge mountain to climb. The future is an all electric. It’s an option, but it’s no longer the only viable way forward because it cost so much more to make an EV and the residual holding values think harder than a lot of exotic cars as well.
This is an ad for damon
“Luxury SUVs” is the most obnoxious oxymoron ever coined. Either choose to drive a luxury car or an SUV.
You only live once, if you can afford your dream car.... get one.
jag didnt even get mentioned
New mic??
Love the videos 💯
There is no market for Maserati or jaguar. To much competition and quality control issues.
Am I the only one who saw about 5 Google ads during this video? 😮
WTF?
I know it is a scripted commercial but still very disappointed about electric vehicle propaganda. It is like you are not a MBA at all.
Respectfully, Modern MSSc.
Thanks for the analysis! A bit off-topic, but I wanted to ask: My OKX wallet holds some USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). How should I go about transferring them to Binance?
Ok you never actually explained why they dont make money, clickbait title
Funny how a Hyundai ioniq that costs $45k new has a battery that's equal to it's purchase price and you're paying that out of warranty 😅😅
Porsche is alive simply because of the Cayenne and boxster nowadays.the cayenne was built on the vw tourag
Great video
10:30 HD makes electric motorcycles too. The Livewire one and Del Mar.
This is probably the least researched episode on modern mba
Harley Davidson literally has an electric bike
It's almost like.. Porsche wants you to never forget 9/11
Complete waste of money even if you are rich
If you buy pre owned it makes sense.
Porsche is pronunced as Por-SHA and not Poorsh! ! !
How is aston Martin surviving? Simple answer: they are not lol
Tell that to Porsche. They’re doing alright. 🤷🏻♂️
you didn't watch the video lol
Get your bag bro.
But people are gonna seriously stop taking you seriously if you keep promoting pump and dump bullshit
Um,no the future is not electric 😅😅
While BEVs have a place in the market. any real appeal is blunted by governments sticking their thumbs on the scale with various mandates.
Evs has had the same century long issues in terms of weight and range as they always have had
Either you know nothing about motorcycles or you dont care about lying. Maybe both.
I love hearing that oil tycoons and petro sultans are buying up luxury car brands because they're so out of touch with the rest of the world and are losing money over it 😂
/me looking at Porsche 996 prices go up 50% thinks otherwise....
Lol....
What about Rolls Royce?
Wow, this video is hot garbage. The generalizations and incorrect statements are happening too quickly to keep track.
As someone who knows nothing… what’s incorrect?
If you know so much why not say what the incorrect statements were and what the correct statement is
Haha Harley has an electric model
This has to be AI. This lacks a story or a point like his other videos.
The necessary things make life bearable, while the unnecessary ones make it beautiful.
as a car enthusiast i simply dont care what MBAs have to say about cars they are aspirantal i will own many of them in the future
K
foolish move
Which ones are aspirational? A Civic type R is more aspirational than any non-amg Mercedes if you care about driving feel.
@@Fhnsgkdfkvsgmvdg-y6uold Mercedes are awesome, eh the new Honda stuff is ok I like the old integra
@@Fhnsgkdfkvsgmvdg-y6u civic type r anyday
its people like these MBAs and there stupid charts that have killed performance cars
if anything its mba students only who aspire to buy one
You pronounce the L's in Gallardo because it's Italian, not Spanish. Hard L like in "*L*egal".
Lamborghini models are named after Spanish bulls. Gallardo is a Spanish word, not an Italian one.
It's named after a famous Spanish fighting bull. It is not an Italian name
This video really breaks down the surprising truth behind the luxury car industry. If you're into learning about the business side of cars, you might enjoy the deep dives on my channel too. Let's uncover more hidden stories together!