High net worth individuals are looking to flex this summer.
In normal circumstances, we abide by the philosophy that “money talks, wealth whispers.” But after a global pandemic, we can’t blame executives and the jetsetter class for wanting to gun the new Lamborghini Aventador’s accelerator from South Point to Palm Beach. As the economy reopens, the luxury car market is surprisingly well-positioned for a comeback—high income earners, who now have remote work as an option, are turning the Hamptons, Miami and St. Barts into their own personal playgrounds.
Having become South Florida’s most esteemed luxury car service, trusted by celebrities and billionaires alike, we’ve put together this guide to help our high net worth friends navigate their first foray into high performance automobiles.
Have a Warranty
The biggest mistake we see high income earners make with buying luxury vehicles is failing to get a warranty. Although it sounds like common sense, you’d be surprised how many wealthy people skimp here, thinking they’ll just shoulder the costs of any incidental damage.
With high performance vehicles, however, parts often break. Since luxury cars have more features than conventional automobiles, owners can find themselves regularly needing to take their cars in for repair. These can get costly, even for those unconcerned with price tags, and it’s best to have a warranty in place from the onset.
Buying on site is for the nouveau riche and those who still feel like they have something to prove. But no greater confidence comes from making informed financial decisions and being 100 percent sure you actually like the car you’re buying.
We recommend prospective buyers drive their dream car for a month to ensure it’s actually their dream car and they like the way it handles.
Luxury Car Memberships Are in Style
There is an overemphasis from Silicon Valley on the notion of “the sharing economy,” which encourages renting services at the expense of ownership. We think it’s more empowering for individuals to own real estate than to rent from a third party and to regularly take stock of their assets creating passive income.
Cars, however, are more often than not depreciating assets, losing value as soon as you drive them off the parking lot. Purchasing a luxury car membership, which gives you access to a fleet of different vehicles for a set number of days, can be a smarter decision than owning a vehicle outright; nobody even drives a car like a Lamborghini more than 100 days per year.
Through memberships, you can literally switch to a different exotic car every day and have all troubleshooting issues handled by an internal team who takes the hits on deprecations of value.
We anticipate the luxury car membership trend will continue into this year. After a year cooped up in their homes during the pandemic, the ultra-wealthy are looking to usher in the roaring ‘20s in style.
Liram Sustiel is CEO and cofounder of the mph club.