A Car That Costs as Much as a House Is the Latest ‘Dream’ of America’s Upper Middle Class

When Lamborghini announced its end-of-an-era Huracán Super Trofeo Jota last April, in an edition of just 10, it sold out immediately. No price was announced, though it was probably above US$400,000. That hardly deterred buyers eager to own one of the last Huracán supercars.

Ferrari’s limited-edition 812 Competizione and 812 Competizione A in 2021? The 999 hardtops (US$598,567) and 599 targas (US$694,549) were gone very quickly, though maybe not in 60 seconds.

Meanwhile, the Rolls-Royce Black Badge Cullinan “Blue Shadow Private Collection” cars that appeared in 2023, just 62 in number, disappeared within two weeks. Black Badge Series II Cullinans start at US$470,000 for 2025, but these special editions are pricier—more than US$600,000.

“The primary driver for Rolls-Royce Cullinan clients is not price, but a combination of lifestyle and personalised exclusivity,” says Martin Fritsches, president and CEO of Rolls-Royce Motor Cars North America.

The global supercar market was US$17.5 billion in 2023, reports MarketResearch.biz, but it could soar to US$24.9 billion by 2033. Supercars, Business Research Insights says, “are a symbol of luxury, performance and status, appealing to affluent buyers who seek exclusivity and the thrill of driving a high-powered machine. … With a growing global economy and increasing wealth, the demand for supercars continues to rise.”

In the U.S., the American International Automobile Dealers Association reported that luxury brand deliveries in 2023 were more than 2.6 million, accounting for 17% of U.S. light-vehicle sales. That was up from 2.2 million sales in 2021 (and a 14.7% share).

Supercar sales represent small totals, but big potential profits. It’s a niche with an increasing number of startups, including battery cars from companies such as Lucid and Rimac. Ferrari, for instance, reported a US$1.36 billion profit in 2023, a yearly record. That’s despite producing only 13,221 units in the year. Ferrari has typically produced between 8,000 and 11,000 cars annually, but it’s one of the world’s most written-about, admired, and sought-after brands.

And Lamborghini had its best year in 2023, with an operating profit of US$777 million. That’s on sales of 10,100 globally. But each sale was a big ticket: The Huracán buyer in 2023 paid between US$212,090 and US$340,690. Volume didn’t help Tesla all that much. The company sold 1.8 million vehicles globally in 2023 (and had the world’s best-selling car in the Model Y), but has been experiencing declining profits.

This year, the supercar and luxury carmakers are revelling in the power of special editions and the one-of-one “bespoke” commission. Without having to make major changes to their existing models, the companies are able to greatly increase the price—via distinctive colours, interior appointments, and personalisation. Perhaps Tesla would do better if it too delved deeper into accommodating its eager customers with vast personalisation possibilities. Who wouldn’t want a one-of-10 SpaceX Edition of the Model Y?

Meanwhile, established supercar makers are rapidly transitioning to electric and hybrid drive, motivated by international regulations that will ban internal-combustion engines by 2035. Maserati, for instance, is introducing electric “Folgore” versions of its GranCabrio convertible this year, and MC20 supercar in 2025. There will be a new electric SUV in 2027 and a four-door battery Quattroporte in 2028. Electrification is not likely to lead to either lower prices or lower demand, but there’s no certainty.

The Collector Market Is Cruising, Too

The market for collector vehicles above US$200,000 also remains quite healthy. The US$143 million paid for the 1955 Mercedes-Benz 300 SLR Uhlenhaut Coupe in 2022 surpassed the results of any other car sold at auction by more than US$90 million.

This 1955 Mercedes-Benz coupe broke records when it sold for $142m in 2022

Critics who said that high-dollar buyers would never buy US$200,000-plus cars online (without seeing them in person) have been proven dramatically wrong, and the increase in online buying on sites like Bring a Trailer (BaT) and Cars & Bids has stoked rising values.

“March 2024 was the largest-volume month in our Premium Listings category since we launched it in 2019,” says Randy Nonnenberg, president and co-founder of BaT. “April 2024 followed on with 64 vehicles selling at over US$200,000 in value, with the top sale a Bugatti Chiron at US$3.075 million.”

Offerings in that price range from a US$250,000 1932 Ford hot rod coupe and a Lexus LFA to modern Ferraris and Ford GTs, Nonnenberg says. “The low transaction fees of our online platform make it very attractive for buyers of these expensive items when compared to other venues.”

Pre-owned supercars (and adjacent American muscle) often appreciate in the marketplace, with the rare (and most powerful) ones commanding huge prices.

“The strong US$3.5 million paid at our Amelia Island auction in March 2024 for a Porsche 918 Spyder Weissach—as well as many other strong prices for contemporary supercars—demonstrates the strength in this segment,” says David Gooding , president of the Gooding and Company international auction house. Seven cars priced at more than US$10 million were offered at auction last year, reports Hagerty, with as many as 10 expected in 2024.

McKeel Hagerty , CEO and chairman at Hagerty, says the US$200,000 price point is an interesting one in the enthusiast car market.

“With a budget like that, you can buy some fantastic classics with a rich history, late-model supercars, or you can build a wide variety of the latest restomods [older cars restored with modern amenities],” Hagerty says. “These are the dream cars of the American upper-middle class.”

Hagerty says that US$200,000 would buy “a great, early Porsche 911 S or Jaguar Series 1 E-Type Roadster.” A supercar car lover might also find a Lamborghini Huracán or Ferrari 458 with “weapons-grade performance” in the price range, or a Plymouth Superbird and ‘66 Mustang GT350, he adds.

A rare 2015 Porsche 918 Spyder Weissach supercar

Despite the demand, Brian Rabold, vice president at Hagerty Automotive Intelligence, says that high-priced cars don’t necessarily appreciate as fast as some others when they age.

“In the past five years, the 87 vehicle generations in the Hagerty Price Guide with an average value between US$200,000 and US$500,000 have seen an average value growth of 9.24%. This lags behind the 35% average value growth seen in the remaining 1,351 vehicle generations,” Rabold says.

Nevertheless, he says the future “looks bright” for the US$200,000 to US$500,000 segment. “These vehicles are becoming more popular among collectors. Surprisingly, Baby Boomers (who hold most of the wealth in the country) are not driving this growth.” Hagerty is seeing more queries from Gen-X.

“Owning a desirable car or truck that you can drive, or show is much more fun than storing your stock certificates in a safe,” says Craig Jackson , chairman and CEO of the Barrett-Jackson auction house. “Plus, it can offer a long-term upside if you research before you buy.”

Charities, distant relatives and even pets are benefiting from surprise inheritances. They can thank people without children.

Not having children is becoming more common, both among millennials and older people. A July Pew Research Center analysis found that 20% of U.S. adults age 50 and older hadn’t had children.

And many of these people don’t have wills. An AARP survey found half of childless people age 50-plus who live alone have a will, compared with 57% of others that age. Those without wills have less control over what happens to their money, which often ends up in the hands of people who don’t expect it.

This phenomenon of a surprise inheritance is common enough that it has a name: the laughing heir .

“All they do is get the money and go, ‘Ah ha ha, look at that,’ ” said Michael Ettinger , an estate lawyer in New York.

Kelley Gilpin McKeig, a 64-year-old healthcare-industry consultant in Ridgefield, Wash., received a phone call several years ago saying her cousin Nick Caldwell left behind money in a savings account. They hadn’t been in touch for 20 years.

“I thought it was a scam,” she said. “Nobody else in our family had heard that he had passed.”

She hunted down his death certificate and a news article and learned he had died about a year and a half before in a workplace accident.

Caldwell, who was in his 50s, had died without a will. His estate was split among cousins and an uncle. It took about two years for the money to be distributed because of the paperwork and court approval involved. Gilpin McKeig’s share was $2,300.

Afterward, she updated her will to make sure what she has doesn’t go to “just anybody down the line, or cousins I don’t care about.”

Who inherits

There are trillions of dollars at stake as baby boomers age.

Most people leave their money to spouses and children when they die. A 2021 analysis of Federal Reserve survey data found that 82% of heirs’ inheritances came from parents.

People with no children say they want to leave a greater share of their estates to charity, friends and extended family , according to research by two Yale law professors that surveyed 9,000 U.S. adults.

Rebecca Fornwalt, a 33-year-old writer, created a trust after landing a book deal. While her heirs are her parents, her backup heirs include her sister and about a half-dozen close friends. She set aside $15,000 for the care of each of her two dogs.

Susan Lassiter-Lyons , a financial coach in Florence, Ariz., said one childless client is leaving equal interests in her home to her two nephews. Another is leaving her home to a man she has been friends with for a long time.

“She broke his heart years ago and she feels guilted into leaving him property,” Lassiter-Lyons said.

A client who is a former escort estranged from her family is leaving her estate to two friends and to charity.

Lassiter-Lyons, who doesn’t have children, set up a trust for her two dogs should she and her wife die. The pet guardian, her wife’s sister, would live in their house while taking care of the dogs. When the dogs die, she inherits the house.

In the Yale study, people without descendants—children or grandchildren—intended to give 10% of their estates to charity, on average, more than triple the intended amount of those with descendants.

The Jewish Community Foundation of Los Angeles, which manages $1.3 billion of assets, a few years ago added an “heirless donors” section to its website that profiles donors and talks about building a legacy.

“Fifteen years ago, we never talked about child-free donors at all,” said Lew Groner , the foundation’s vice president for marketing.

In the absence of a will, heirs are determined by state law . Assets can wind up in the state’s hands. In New York, for example, $240 million in unclaimed funds over the past 10 years has arrived from estates of the deceased, not including real estate, according to the state comptroller’s office. In California, it is $54.3 million.

Hard questions

Financial advisers say a far bigger concern than who gets what is making sure there is enough money and support for a comfortable old age, because clients without children can’t call on them for help.

“I hope there is something left to leave,” said Stephanie Maxfield, a 43-year-old therapist in southern Colorado. “But if there isn’t, I think that’s OK, too.”

She said she would like to leave something to her partner’s nieces and nephews, as well as animal shelters and domestic-violence shelters. Her best friend is a beneficiary.

Choosing an estate executor and who would handle money and health decisions on your behalf can be difficult when you don’t have children, financial advisers say. Using a promised inheritance as a reward for taking care of you when you are older isn’t a good solution, said Jay Zigmont , an investment adviser focused on childless people.

“Unfortunately, it is relatively common to see family members who are in the will decide to opt for cheaper medical care (or similar decisions) in order to protect what they will be inheriting,” he said in an email.

Kirsten Tompkins, who is from Birmingham, U.K., and works in consulting, along with her husband divided their estate among their dozen nieces and nephews.

Choosing heirs was the easy part. What is hard is figuring out whom to ask for help as she and her husband get older, she said.

“A lot of us are at an age where we are playing that role for our parents,” the 50-year-old said, referring to tasks such as providing tech support and taking parents to medical appointments. “Who is going to do that for us?”

A Car That Costs as Much as a House Is the Latest ‘Dream’ of America’s Upper Middle Class

The bequests benefit charities, distant relatives and even pets

Who inherits

Hard questions