If you were extremely wealthy what would you spend your money on? Chances are if you’re reading this, then you don’t have to dream about being extremely wealthy; you already have plenty of money at your disposal. So what comes to mind? What are people like you spending their money on? Perhaps luxurious vacation homes in exotic locations are high on the list. Maybe a private airplane or a fleet of breathtaking yachts would be on the list. Expensive jewelry, art collections, or even rare wine collections could all be common items the wealthy are pouring their money into. However, it seems that one type of collection is a favorite with many of those who count themselves among the world’s super-rich: cars.
Luxury Vehicles Top the List
In fact, according to the consulting firm Bain & Company, luxury car sales are expected to grow 8 percent in 2016, which would put them at an all-time high. The growth of luxury car sales is also easily outpacing the growth in sales in several other luxury segments, including the aforementioned art and wine, as well as hotels and food. To give an even clearer picture of how hot the luxury car market is amongst the wealthy, according to a report from Bain, the overall luxury good market is expected to hit $1.2 trillion in 2016, with 40 percent of that spending going towards luxury and exotic vehicles.
Top of the Line Vehicles Seeing Most Growth
What’s more, it’s not just the common names, like BMW, Audi, Mercedes and others like them that are seeing the most growth. While these carmakers are responsible for a large majority of the growth, it’s actually the most expensive and rare names that are growing the fastest. Names like Lamborghini, Ferrari, and Rolls Royce and other top tier carmakers are seeing the highest growth rates with 20 percent or more each year. While these top-of-the-line companies represent the smallest segment of the luxury market they are outselling everyone else.
Plenty of Foreign Buyers
So who are the lucky owners fortunate enough to be snatching up these exotic vehicles? According to Bain, Russia, China, Indonesia and the Gulf states are responsible for the fastest growth. In fact, buyers from the Gulf are purchasing these vehicles in their home states, as well as in other locations when they are staying in their additional homes. Not even the ongoing recession is slowing down buyers of these vehicles in Russia, who are taking advantage of their U.S. dollars that are stashed away in foreign locations. Meantime, as for the previously mentioned private jets and yachts, they are headed in the opposite direction. Private jet sales are set to decrease by 5 percent in 2016 and yacht sales are expected to be stagnant. Overall, the luxury goods market is expected to grow this year, by 4 percent over last year.