Supercar sales plummet as 'Russian buyers' and 'ultra-wealthy' drivers leave UK market
The number of supercars being sold has dropped in the last 12 months
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The number of new supercars has fallen by 67 per cent in the last year, with concerns over whether figures would pick up again.
New data has found that only 600 new supercars were added to Britain’s roads in the past year, with sales increasing by just three per cent.
This is a dramatic increase from the 11 per cent added in the year before when more than 1,900 new cars were seen, compared to just 621 this year.
The number of licenced supercars on UK roads had been growing year-on-year for the past five years.
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However, the new research demonstrates a “substantial slowdown” in the growth of high-end models.
Last year, people who have a high net worth (HNW) were more likely to spend money on expensive luxury goods, stemming from savings made during the lockdown.
David Kendrick, Partner at UHY Hacker Young, took aim at high interest rate rises as a key reason for the falling number of supercars on the road.
Over the last 10 years, drivers have been making use of vehicle financing options to buy supercars, with rates increasing substantially.
Low interest rates and strong resale values have remained strong, allowing “specialist funders” to keep the market afloat.
David Kendrick added: “Interest rates are impacting every corner of the economy. The slowdown in supercar sales shows that not even the ultra-wealthy are immune.
“We tend to think that sales of luxury goods like supercars as insulated from world events but that isn’t necessarily the case.
“A lot of Russian buyers left the UK market in 2022, hitting several categories of luxury purchases – supercars were one of them.”
Sanctions have been slapped on a number of Russian individuals who have a high net worth, which has also led to the slowdown in sales of supercars.
These groups of people have been integral to the sales in recent years, having contributed to a “significant number of purchases”.
Despite the high level of oil prices around the world, there is optimism that demand for supercars would continue from people with an “ultra-high net worth” from the Gulf states.
Global oil prices briefly surpassed the $90 (£74) marker late last week, with prices now down by around £1 since then.
David Kendrick forecasts that if oil prices stay at similar levels, luxury vehicles should “remain sold”.
He continued, saying: “Fortunately for the luxury car sector, HNWs from the Gulf and further afield remain reliable supercar customers.”
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Interested pedestrians admire a Ferrari 458 Spider in London
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Brands like Bugatti, Ferrari, Koenigsegg, Lamborghini and McLaren made up around 19,500 cars on the road in March.