The Mystery: Why Make A Million-Dollar Car?

Have you ever wondered why a carmaker would venture to create a million-dollar car? Volkswagen loses an estimated $3-$6 million on the sale of every Bugatti Veyron, so it cannot be an easy task and does not seem to exactly lead to a profit. So why has almost every exotic carmaker out there created at least one 7-figure machine?

million-dollar carThe Koenigsegg One boasts the perfect power-to-weight ratio of 1.

The answer is not completely cut and dry, but it is because people will by the million-dollar-plus vehicles. While it does not seem like anyone in their right mind would willingly ‘lose’ money to cater to the buyers–it is important to understand why. There are over 3-dozen billionaires (yes, millionaires with a ‘B’) in the world. Manufactures must cater to their unique desires in terms of their automobile collections. While it is quite common for them all to have numerous Ferrari, Maserati, Rolls-Royce, Lamborghini cars and more– they require that bespoke centerpiece vehicle that no one else can have. That is where the million-dollar car offering comes into play. Creating these exquisite dream machines for billionaires leads to a solid and long-term relationship between the carmaker and the buyers, wherein they will buy more vehicles, evening out the loss impact over time. It also maintains quite a brand following, which is never a bad thing.

million-dollar carThe one-off Bugatti L’or Blanc is but one of the many special edition Veyrons.

Maintaining relationships with buyers is not the sole benefit of creating 7-figure cars, however. The machines also serve a much greater purpose: Proving to the masses that they have the fastest, most powerful and best looking creations in creation, a competition that will certainly never end. Company impressions are literally priceless, making all of the special edition cars, one-offs and custom ordered machines from Ferrari’s exclusive club very important endeavors, indeed! Overall, what better way to please a billionaire than to offer them a vehicle that absolutely no one else on earth will have passing them on the street?

LaFerrariPost by Imagine Lifestyles Luxury Rentals