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An expert guide to investing in luxury vehicles

An expert guide to investing in luxury vehicles- why you should invest

The Luxury Car Industry is one of the most Booming industries in the World. Who wouldn’t want to own their very own fleet of luxury cars? Many individuals and businesses make a fortune leasing ,selling and renting luxury cars. The cars that are mainly recommended to start this type of business are usually cars that come from luxury brands like Range Rover and BMW. Making the choice to invest in the best luxury cars on the market is one of the best decisions anyone could ever make. Antique and luxury vehicles rise in value every year depending on what year they were made. The modifications that were done to them and their original value. This is an expert guide to investing in luxury vehicles.

An expert guide to investing in luxury vehicles

Acquiring Luxury Cars

Not everyone has the money to invest in luxury cars but there are also a variety of ways in which capital can be raised. One of these ways is to get investors to invest in your business. Another way is to lease a few cars and rent them to individuals until you have acquired enough to buy your own cars. Invest In The Luxury Car Industry and earn!

Investing in luxury antique vehicles

Investing in antique cars is one of the best ways to make money. The premise here is that antique car buyers buy these types of vehicles and flip them for profit as they increase in value. Antique cars usually increase in value depending on how old the are and what year the model was released.

Investing in a car fit for a movie star is certainly more fun than investing in stocks and bonds – if you have the means, of course. A great example of a used car expected to return dollars to the owner, this 1955 Mercedes-Benz 300SL – also known as a Gullwing – was purchased locally in 2011 for $850,000. Now valued around $1.4 million, we think it’s safe to say this highly profitable mid-century investment won’t depreciate any time soon. After all, avid classic collectors aren’t going anywhere, so the longer a lucky owner can keep and properly care for his or her stunning showpiece, the better!

An entry level investment

It makes so much sense that this is a beauty on the road since the Reagan administration s an investment so focused on returning dollars and stimulating the economy (for its lucky owner, anyways!). Just like to a piece of real estate whose property is projected to increase over time due to an appreciation in neighborhood value, some auto investors buy “up-and-coming” retro models they anticipate will become true classics in years to come.

Take a totally tubular 1988 Mercedes-Benz 560SL as an example. This perfect example of a vintage catch was valued in the mid-twenties range (as of winter 2016), proving it’s worth has already increased by roughly 25% over the last two years. With that kind of growth and no signs of slowing an affordable investment like this gives hope to intelligent owners banking on future profits not to mention aging ‘80s babies everywhere!

invest in stocks sold by reputable car manufacturers and companies (Ferrari)

Companies like Ferrari and Tesla have some of the best stocks on the market to invest in. Ferrari has a tremendous brand image, and its pricing power is second to none. It’s an image that has been built over decades since the company branched out from Alfa Romeo back in 1947. Since then, its cars have won countless races in the prestigious Formula 1 World Championship and the Le Mans 24 Hours.

During those years, it has manufactured expensive but iconic sports cars. Over the decades, the company has gone through many tough times and was acquired by FIAT in the late 1980s. In October 2015, Fiat Chrysler Automobiles (FCA) separated Ferrari S.p.A. from the rest of the group to make it an independent entity. FCA sold the ownership stake it had, and Ferrari N.V. then started trading in the New York Stock Exchange.

The image the company has built over the years of manufacturing the finest supercars (high-end sports cars) is something other automobile manufacturers cannot look to attain. Morningstar reports that the company’s average revenue growth in the past 15 years was 8.1% while average sales volume growth was 5%. That shows Ferrari has really strong pricing power.

Ferrari has also shown itself to resist economic downturns more than other auto manufacturers have. That’s because the company’s target consumers are extremely wealthy and can resist downturns and changes in purchasing patterns of the conventional or mainstream automobile consumers. Unlike most other car companies, Ferrari isn’t bothered as much about increasing its market share or sales because it isn’t a mass automobile manufacturer.

Regarding the future plans of Ferrari, the company plans to enter the SUV race, albeit later than most other luxury auto manufacturers. In 2022, Ferrari will have its first SUV, the Purosangue. This will give the company an entry into a new segment, the ultra-luxury SUV sector. It is estimated that the Purosangue will start at $350,000. That makes the segment more lucrative for the company and could positively influence its bottom line.

Ferrari is also having a successful spell in the Chinese market. We have seen the luxury vehicle market in China thriving. Ferrari can expand its production volume in accordance with the rising demand. This can happen even without the company diluting the character of its brand. The automotive industry has been among those severely affected by the pandemic. The competition in the industry and the significant capital involved have also kept investors away from automotive stocks.

More than one car market and stocks analyst believes there are some great stocks with promise out there. While Tesla has already been discussed in the stocks community quiet a ton, luxury supercar manufacturer Ferrari is what analysts have in mind. The unique nature of these car companies makes a analyst call Tesla a technology company and a luxury producer. Focusing on the latter, Ferrari has been classified as “overvalued” by Morningstar, and trades at a premium of 59% to its target price. So how does the analyst reckon this to be a good investment?   Read the above paragraphs for the answers.

An expert guide to investing in luxury vehicles

Finding The right Customer base for your car business

Many people would have guessed that the type of people who rent or lease luxury cars the most would be “The High Roller Types”. People like artists and bachelors loves renting luxury cars because it helps to buff their status. There are many customer types that can be targeted in this industry. Thanks for reading my short blog and all the best as you strive towards achieving your goals.

Using car dealerships as an example

When you’re a car dealer, one of your goals is always to get potential buyers into your showroom. But before your sales team can work their magic on the floor, you need to give shoppers a reason to head your direction. So how do car dealerships attract customers in the first place. More than ever, auto dealerships need to invest in great lead generation tactics. Thanks to the internet, shoppers have access to more dealers and greater control over the car-buying process than in the past. This means fewer potential customers are visiting your dealership as a first step. Instead, they’re putting in the research to find the best car dealer and vehicle for their needs.

Your automotive marketing strategy must enable your brand to show up and stand out from the start of their research. You can use the tactics we outline below to drive more quality leads to you.

Bringing car buyers to your dealership starts with effective lead generation techniques. Once you’ve identified your target audience, your job is to reach these potential customers where they’re already seeking out brands like yours both online and offline. Let’s dive into five dealership marketing ideas that you can use to attract more car buyers and drive up your sales.

  1. A strong social media presence

Social media usage isn’t just becoming a more prominent part of our personal lives. It’s also directly influencing the car-buying process. When shopping for a new car, 90% of consumers who use social media for research say it influenced their final decision especially Facebook. This makes social media a great marketing channel for car dealerships to engage new customers (and re-engage existing ones).

It is possible to capture leads from social media organically. For example, you can:

  • Share posts that link to relevant landing pages if you have a website to sell your cars on
  • Add your contact information to your profile
  • Encourage users to subscribe directly to your Facebook Messenger bot

However, if you want the best results, you can use Instagram and Facebook Lead Ads, LinkedIn Dynamic Ads, and similar paid ads. Not only do these paid ads allow you to target a highly specific target audience ensuring you’ll reach the most relevant audience but they also allow you to ask for and collect phone numbers directly on the platform.

The cost of these lead generation ads will depend on the audience you set, but you can expect them to cost a bit more than the standard Facebook ad (which is about 28 cents per click in the U.S.). However, you do get far more than clicks, which don’t guarantee any further action. Instead, you’ll gain a potential customer who actively entered your sales funnel.

2. Partnerships with other businesses in your area

You don’t have to use digital marketing techniques to attract customers to your car dealership. Building partnerships with other local businesses can be one of the best ways to gain high-quality leads without spending a dime (unless other payment terms are agreed upon).

When you partner with other members of the auto industry those who aren’t direct competitors and may complement your service you start a mutually beneficial relationship that expands both your networks. For example, if you were to partner with a rideshare company, your dealership could suggest their app whenever a customer has their car in your shop. In return, their company can refer current or prospective drivers to your dealership.

Other types of companies you may partner with granted that you don’t offer the same products or services may include local car washes, auto parts stores, car detailing shops, and even auto insurance companies. One of the reasons this tactic works so well is because you’re drawing from a customer base that may already be loyal to the brand you’re partnering with. When that brand backs yours, you gain the instant trust of those loyal customers.

If you want to further entice leads, you can also agree to offer discounts to each other’s customers. If you want to take your partnership online, you can each make a landing page that shows the perks of shopping with both brands.

An expert guide to investing in luxury vehicles

3.Rewarding customers for the referrals they make

The majority of marketers agree that referral programs offer a lower cost per lead than any other channel. It makes sense—people trust other people. Just like getting backed by a local business can help you gain the trust of their customers, getting the support of a current customer can help you gain the trust of their friends and family members. This can help you make a faster car sale.

Your program does need to give your customers a good incentive to refer you to people in their network. For every lead you’re able to convert, you may give the referrer:

  • A free car service (up to a given value)
  • A gift card
  • A cash reward

You can even create a referral program for employees, giving them bonuses when they successfully refer car buyers. No matter who your referral program is built for, the exact value of the reward you offer is up to you. However, keep in mind that you shouldn’t be stingy, since you’re selling a high-value product. If you don’t have the budget for bigger rewards, you can also offer smaller rewards for customers who bring in a friend who takes a test drive.

Thank you for reading our blog and as always if you found this to be an informative and educational read then please give us a follow and while you are at it why not follow our socials for all our latest blog posts. Have a good one!

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