The majority of cars see their value depreciate. The more you use them, the more value they lose. The same is true for supercars. However, many people mistakenly overlook this factor when buying a supercar, and wonder if supercars do actually depreciate.
Supercars do depreciate. Supercars normally depreciate quickly in their first five years and up until they have driven 100,000 miles. However, if a supercar is kept in pristine condition with low mileage, you can slow down the rate of depreciation.
There are some supercars to avoid in terms of their depreciation rate. There are also some ways that you can slow down the depreciation rate of your own supercar. Below, we will analyze all of these factors to find out why and by how much supercars depreciate.
Why Do Supercars Depreciate?
Supercars depreciate just like any other cars you see on public roads. In some cases, supercars can hold their value or even appreciate, but that is extremely rare. Supercars tend to lose their value quickly, and there are a couple of reasons for that.
While many new and current supercar owners don’t really care about depreciation, or they simply don’t think about it, it is in fact a very important factor to consider. Depreciation means that your car loses value over time. Therefore, when you sell it, you could end up receiving much less than you expect or want for a car that you paid a lot of money for.
Firstly, the mileage of the car has a huge impact on the car’s value. Supercars tend to depreciate slowly until they reach 50,000 miles. From there they begin to depreciate faster. So, if you want to limit the depreciation rate of your supercar, try to sell it before it hits 50,000 miles.
It is for this reason that you can often find a lot of secondhand supercars with low mileage. It’s not that the previous owner necessarily didn’t like the car or enjoy driving it, but it could be that they just didn’t want to lose too much money on it.
Age is a factor that is often very important in the depreciation rate of supercars. Due to how quickly cars are updated and released, your ‘brand new’ supercar can be considered old and outdated in just a few years.
Supercars tend to depreciate the most in their first five years of use. Supercars can lose up to 50% of their value in just these first five years. However, a supercar’s depreciation rate begins to slow down after they are 10 years old. So, if you want to buy a secondhand supercar without having to worry about the depreciation rate, aim for one that is at least 10 years old.
It’s not always possible to see who the previous owners of a supercar were, but it’s a crucial factor to keep in mind. Some people do not look after their cars and because of the fact that it is a high-performance car, you never know how it was driven.
Even if the car has low mileage, if it was driven poorly and not taken care of, the car may be in bad condition. It might not always show on the exterior and the interior, but there could be significant damage done to the integral parts inside the car, like the engine or the transmission.
Many supercars are known for being unreliable. The high-performance nature of these cars means that the parts go into building them are extremely sensitive. From the engine to the gearbox, and from the suspension to the brakes, poor reliability can cause the vehicle’s value to drop quickly.
This is especially true if there is a known fault with the model. For example, if a specific Ferrari is known for having faulty suspension, that model will lose a significant amount of value because of that fault, even if your particular model is not affected.
It’s not uncommon for this to happen with supercars. Some are known to break down often or even set fire to themselves! It’s best to wait a couple of months after its release and do a lot of research before you buy the car.
Type Of Car
The type of supercar that you own certainly has an effect on its depreciation rate. Some cars simply depreciate more than others. Some supercars on the other hand hold their value very well. It’s a strange concept, but it is definitely one to consider before you buy your supercar.
It’s best to research the depreciation rate of the vehicle you intend to buy before you buy it. Try to visit secondhand dealerships and see how much they offer for that specific model based on its age, mileage and condition. This is useful if you’re planning to resell it in the future.
The car’s overall condition is just as important as the previously mentioned factors, and it’s something that secondhand dealerships will be looking at before they buy your supercar. There are plenty of factors here that can knock significant amounts off the total value of the car.
When it comes to supercars, potential buyers are looking for cars that are in good condition, sometimes even in perfect condition. This means that deteriorating interiors, scratches, sun damage, and peeling paint can all have a massive effect on the value of the car.
Do Supercars Depreciate Faster Than Daily Road Cars?
The big question is whether supercars depreciate faster than your average road cars. The answer, unfortunately, isn’t straight forward. Some average daily cars hold their value extremely well. Reputable brands such as Toyota and Chevrolet hold the value of their vehicles very well, despite not building anything particularly special or rare.
Some supercars do depreciate faster than cars from those brands. In some very rare cases, supercars will hold their value or even appreciate over time. However, these cars are often very rare, and have an extremely high starting price to begin with anyway.
The inherent value of supercars also does not help with this. If a car is more valuable when new, it is more likely to lose value with age and usage, just because its original value was so high. Wear and tear on parts, specifically high-performance parts, can lead to expensive maintenance and repair costs.
Which Supercars Depreciate The Fastest?
It’s important to know which supercars lose their value the fastest, and the most over time. Knowing this will help you to avoid buying the wrong supercar for your garage. Or, if you are buying secondhand, it can help you to know which cars to look out for in terms of buying a supercar that’s already lost a lot of value, so that you can get a better deal.
The following values are from the 12 months between January 2020 and January 2021, with the number representing the approximated loss on these models within that timeframe.
Fastest Depreciating Supercars
- Ferrari 812 Superfast – $68,000
- Mercedes AMG GT C – $66,000
- McLaren 720S – $63,000
- McLaren GT – $57,000
- Aston Martin DB11 V8 – $55,000
- Lamborghini Huracan – $28,000
These are some of the biggest depreciation losses amongst modern supercars. There are various reasons for each car losing value, but there’s a trend of Lamborghinis, Ferraris and McLarens losing a lot of value in their first years of service.
Do Your Research
It’s always difficult to tell which cars will depreciate faster than others, especially when they are still relatively new. It’s best to give it time and do thorough research on your supercar of choice.
On the other hand, if you’re looking to buy a secondhand supercar, you can also use these numbers to find ones that have lost the most value and will provide you with a ‘bargain’ purchase. Just be aware that they may continue to lose their value with age and usage.
How Can You Slow Down Supercar Depreciation?
If you’re spending a lot of money on a supercar, you’ll obviously want to keep its value as high as possible for when you plan on selling it. Luckily there are a number of steps you can take that will protect the value of your supercar.
Store Your Supercar Safely
Keeping your supercar stored away properly is key not only to the exterior condition of the car, but the mechanical side as well. You should always keep your supercar stored in a secure, warm, and well-ventilated garage.
This protects the car from the elements that can easily damage the exterior. Rain and sunshine can both take their toll over time. Rain can cause rust while excessive exposure to direct sunlight can cause sun damage to the paint.
The garage also needs to be warm. Engines don’t handle cold conditions well. Storing the car in a warm garage helps protect the integral engine parts as well as keep the oil and lubricants warm and flowing through the engine and gearbox. This can go a long way to enhancing the reliability and increasing the lifespan of the car.
Wash Your Supercar Regularly
Regular washing is key to keeping your supercar looking great. However, it also has some long-term benefits. Regular washing can help prevent rust buildup and paint damage. Keeping the interior clean will prevent a buildup of dirt and potential permanent damage to the upholstery.
Follow The Maintenance Plan
Following the factory maintenance plan is important as it helps keep your supercar running smoothly and reliably. In addition, when you sell the car, many buyers like to see a full-service history to ensure that the car’s maintenance is up to date.
Take Care Of The Interior
For many owners, the interior is the most important part of the car. It’s where you find expensive leather, cutting edge tech, and beautiful carbon fiber trimmings. However, over time, an interior can become a huge mess if it’s not taken care of properly.
Always ensure that you try to keep the interior of the car as clean as possible and minimize the amount of dirt and dust on the inside of the car. It’s always a good idea to treat the leather seats with proper care products in order to prolong their life.
Drive As Little As Possible
This tip may be a little counterintuitive. You did buy a supercar to drive it after all! The truth is though, the more you drive it, the more value it loses. Try to have a second daily drive car for your average grocery shopping trips. Keeping the supercar for special occasions will help to significantly reduce its mileage over time.
Supercars do depreciate. In most cases, supercars also depreciate faster than your average road car. It’s an important factor to consider when buying a supercar, and it’s often overlooked by many supercar buyers. Luckily there are some ways that you can slow down the depreciation rate of your supercar, but it mostly comes down to taking great care of it and driving it as little as possible.