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Brakes slammed on supercar sales as high interest rates begin to bite

  • Only 621 new supercars were sold in UK in past year
  • That’s down on the 1,906 cars sold in the same period in 2022
  • First slowdown for five years
  • High interest rates and Russian sanctions likely causes
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Time 11:44 am, October 30, 2023

Supercar sales fell by a whopping 67 per cent in the past year, with high interest rates and sanctions on Russia likely to blame.

Accountancy group UHY Hacker Young found that in the year to March, only 621 new supercars were sold in the UK by the largest luxury carmakers, compared to 1,906 in the same period in 2022 and 1,099 in 2021.

Collectively, Bugatti, Ferrari, Koenigsegg, Lamborghini and McLaren sold 19,577 cars in the period.


The figures represent the first substantial slowdown in the last five years, when sales had been increasing year-on-year.

Last year saw high-net-worth individuals ‘spend big’ on supercars, said the company, as they splurged extra cash accumulated during Covid lockdowns.

Higher interest rates put the brakes on sales, as over the past 10 years lower rates and strong resale values attracted specialist funders to the market.


David Kendrick, partner at UHY Hacker Young, said: ‘Interest rates are impacting every corner of the economy. The slowdown in supercar sales shows that not even the ultra-wealthy are immune.’

Meanwhile, sanctions on Russian ultra-high-net-worth (UHNWs)individuals ‘likely’ has had an effect, too.

‘We tend to think that sales of luxury goods like supercars as insulated from world events but that isn’t necessarily the case,’ said Kendrick.

‘A lot of Russian buyers left the UK market in 2022, hitting several categories of luxury purchases – supercars were one of them.’

Elsewhere in the world, high oil prices will maintain demand from Gulf UHNWs.

Kendrick added: ‘Fortunately for the luxury car sector, HNWs from the Gulf and further afield remain reliable “supercar” customers.

‘If oil prices stay high, supercar sales should remain solid.’

Last month, supercar dealers told Car Dealer the cost of living crisis has rippled through to them and affect sales.

Car Dealer has visited three leading supercar dealers for a YouTube series published on the platform this year. You can view them in this story


 

James Batchelor's avatar

James – or Batch as he’s known – started at Car Dealer in 2010, first as the work experience boy, eventually becoming editor in 2013. He worked for Auto Express as editor-at-large and was the face of Carbuyer’s YouTube reviews. In 2020, he went freelance and now writes for a number of national titles and contributes regularly to Car Dealer. In October 2021 he became Car Dealer's associate editor.

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