Why Luxury Cars Don’t Make Money

Learn more about Damon Inc. at https://damon.com/

Owning an exotic car like a Lamborghini, Ferrari, or Porsche is impractical and has been for generations. The aggressive design and tight interiors translate to tiny storage with trunks that are even smaller than that of a Toyota Prius. Ironically, the engines are wasted on public roads where speed limits and traffic prevent these cars from ever achieving the performance that make them so special in the first place.

Yet these vehicles have become the ultimate status symbol for artists, athletes, international students, and clout-chasers – and that exclusivity is as much a liability as it is the foundation to their appeal. Luxury cars must be babied and cannot be daily drivers. There’s only so many people who have the pockets and the lifestyle to afford and work around this impracticality – and they’re not buying a new car every year.

It’s a departure from the traditional auto industry where manufacturers compete to deliver the most cars. When we look at volume between bestsellers like the Ford F-150 and Tesla Model Y and exotics, the difference is orders of magnitude. How can these exotic manufacturers sustain such tiny volumes? How can they all survive fighting over the same pool of high-net-worth individuals? In this episode, we’re diving into the economics of luxury cars through the lens of Ferrari, Lamborghini, McLaren, Porsche, Aston Martin, Bentley, and Maserati.

☕️ Support Modern MBA on Patreon: https://patreon.com/modernmba

💬 Join the Modern MBA community: https://www.reddit.com/r/modernmba/

This YouTube video was conducted on behalf of Damon Inc. (NASDAQ: DMN) and was funded by Outside The Box Capital Inc. and/or affiliates after Modern MBA was engaged by Outside The Box Capital Inc. to advertise for Damon Inc. (NASDAQ: DMN).

For our full disclaimer, please visit:
https://bit.ly/49EMBWM

You May Also Like