Demand for Exotic and Vintage Automobiles Continues to Rise; Driven by Financing Arrangements That "Put Dreams in Driveways"
WOODBURY, Conn., Jan. 10, 2018 -- Premier Financial Services (PFS) – the nation's leading specialty finance company providing operating leases for exotic, vintage and highline motorcars – said today that the overall demand and average price for those vehicles have continued to increase since 2012. Over that 5-year period, Ferraris, Porsches, McLarens, Aston Martins and Lamborghinis have continued as the most popular marques in the PFS portfolio of leased vehicles that represent in excess of $100 million in annual financing.
While the individual price tags for many of PFS's leased vehicles are well over $1 million, the average vehicle sale price since 2013 was nearly $228,000, representing a more than 19% increase over the prior 5-year period's average sale price of $191,000. Over the 10-year period since 2008, owners financed approximately 80% of their leased vehicle's value. And according to PFS, it's the ability to lease expensive vehicles that has "put dreams in driveways" for many individuals who choose not to purchase their vehicles outright.
This sustained market trend is good news for automobile enthusiasts at the outset of the 2018 season of auctions, rallies and other motorsports gatherings for owners and collectors; which begins in January with a week of events in Scottsdale, Arizona, and with the Ferrari-focused Cavallino Classic in Palm Beach, Florida.
According to CEO Mitchell Katz, who founded PFS more than 20 years ago, "Increasingly, we're seeing automobile enthusiasts and collectors from all age categories – from Millenials and GenX-ers to Baby Boomers – who are unwilling to wait for retirement or to win the lottery before they can acquire the car of their dreams. Although the number of High Net Worth (HNW) and Ultra High Net Worth (UHNW) individuals is growing, the increased demand for exotic vehicles is due in large measure to flexible leasing arrangements that make them accessible immediately." PFS estimates that as many as 25% of all new and pre-owned contemporary vehicles are leased.
Katz also noted that the majority of exotic and vintage cars owners want to change vehicles every 2 or 3 years. In fact, nearly 70% of PFS's leases terminate within 36 months on a 60-month lease. He stated, "That's another reason why leasing continues to fuel the growth of the high-end car industry. Flexible leasing terms can accommodate their desire to try something new or different on a frequent basis. Automobile enthusiasts have an insatiable appetite for fine cars."
Some of the other exotic marques that have grown in popularity over the past 5 years include Bentley, Rolls Royce, Maserati, Bugatti and Tesla.
About Premier Financial Service, LLC
Since its founding in 1997, Premier Financial Services has been a recognized leader in providing leases for the purchase of exotic, vintage and highline motorcars. The company is dedicated exclusively to innovative, customized leasing arrangements for clients who seek the flexibility of financing with the tax advantages of leasing. PFS success is based on delivering the industry's highest levels of customer service.