2020 was a rough year for most of us, and the car industry was no exception.
New carsales dipped as millions of Americans were told to stay home, and assembly lines were shut down following disruptions to supply chains.
luxury carsales exploded towards the end of the year, and based on the latest numbers, this trend looks set to continue.
Luxury car sales in the U.S.
As reported by
CNN, passenger car sales sank 10% in 2020, compared to the year before. But luxury car sales (defined as a car costing more than $80,000), doubled year over year.
Just about every luxury automaker finished the year strong enough to make up for a flimsy previous six months.
Bentley, the British manufacturer of luxury cars, reported its best sales in over 100 years. Lamborghini, too, declared 2020 to be its most profitable year to date. This was due to a record-breaking final quarter, which based on the pre-orders, looks set to continue well into 2021.
Even Rolls Royce, who announced their sales were down 26% last year, has just declared Q1 2021 to be the best in its history. According to
NBC, the company is crediting its recent success to high demand for its full-sized SUV, the Cullinan, which typically sells for over $400,000.
Why are the super wealthy buying so many cars?
Record-breaking sales of luxury cars is a sign that the world’s wealthy have cash to burn!
It has been widely reported that the ultra-rich have added trillions of dollars to their portfolios since COVID-19 began. Largely thanks to rising stock markets, the world got 412 new billionaires in 2020, per
Due to the pandemic, the things that wealthy people usually spend their money on, including trips, expensive restaurants and so on, have been unavailable. As a result, they are turning to expensive goods like luxury cars to fill the void.
Surprisingly, these luxury car buyers may not be from the demographic you are imagining. In speaking to CNN about the sales boom, data analyst Tyson Jominy said, "the rich Millennial tech employee in Austin is now the archetype."
Can I get insurance for a luxury car?
If you are the new owner of a luxury car, either brand new or second-hand, congratulations! The last thing you’ll want to be doing right now is looking for car insurance.
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