It’s well known that it’s quite difficult to buy limited edition car models, especially when it comes to supercars or rare racers. Most vehicles are sold at the build slots stage, prior to delivery. You must be on the manufacture VIP list, and the process of getting on this list is not 100% clear. Even those who already own two or three limited edition cars may be told ‘no’ if they wanted to purchase a fourth car. We asked an industry insider what a private collector who wants to see Aston Martin Valkyrie, McLaren Senna or Ferrari LaFerrari in their garage can do to avoid the pitfalls and sharks in the process.
First of all, briefly, let’s talk about buying from a manufacturer.
It’s not the same for all manufacturers but with Ferrari who chooses the VIP customers for their limited edition cars, often don’t provide the buyer with the name, or image or even the cost of the car. It’s bizarre but 100% true, so strong is the Ferrari brand that the VIP buyers know the car will be worth a lot more than they will pay for it. Ferrari do offer all their VIP clients finance through Ferrari financial services, not that many would need it. Other manufacturers like Aston Martin who are in partnership with Red Bull technologies with the Aston Martin Valkyrie have sold all the Valkyries to their VIPs as an ongoing development project, meaning the design is still in development and the list price is not fixed. The same with the McLaren Speedtail. This car has been in development for more than three years and they recently increased the list price from £1.75m to £1.85m.
Even before the completion of all these cars,
the VIP buyer has to agree to a contract with deposit and stage payments before the production of the car begins.
Most manufacturers of hypercars do have a No Resale Restriction prior to the delivery and Ferrari extends this to two years after it’s been delivered on some of its limited edition cars, but it doesn’t stop the owners of the build slot selling, as buyers who are not on the manufacturer’s VIP list will often pay double the price for the car and sometimes higher.
Knight International has been selling build slots for over ten years and put together a specialist team to provide a secure method of buying and selling build slots without breaching the terms of the manufacturers’ agreement.
When we sell on a build slot,
the buyer agrees to the manufacturer’s terms and reimburses the owner of the build slot allocation payments that he/she has made to the manufacture and agrees to pay part or all of the premium upon signing over the build slot allocation.McLaren Speedtail has been in development for more than three years. The list price was recently increased from £1.75m to £1.85mAston Martin Valkyrie build slot: the design is still in development and the list price is not fixed.
This arrangement is done privately without the manufacturer’s knowledge or consent as most manufacturers disapprove of selling on a car prior to delivery and in some cases beyond the delivery period.
It may be worth mentioning there are risks and a lot of fraud that surround the buying of build slots.
It’s important that a buyer chooses a specialist company
who strictly sells on Lawyer to Lawyer basis and never asks for any funds prior to the buyer’s lawyer being totally satisfied the build slot offered is genuine, and a copy of the manufacturer’s binding contract from the seller and all payments to the manufacturer have been verified along with the VIN number and allocation date. It’s equally important that a potential buyer receives an outline proposal of the agreement to buy the build slot including the payment structure prior to asking for any funds.
If a buyer can avoid the pitfalls and sharks, it can be very lucrative.
In recent years limited edition cars converted into an investment option. If we look back to 2016 the LaFerrari Aperta, the Ferrari List Price was €1.85m, 202 of these cars are built and only produced in five colors: Red, Yellow, Black, White, and Grey. Premiums of these cars reached an impressive €4m above the list price. I sold three of these Apertas including one to a Saudi Royal who wanted another for his cousin.We can predict today which build slots have a chance of increasing in price two or three times in the next two years. They are McLaren Speedtail, Senna GTR, Bugatti Divo and Ferrari Monza SP1/SP2.