The recent drop in the price of cryptocurrencies has caused second-hand marketplaces to be overwhelmed with other luxury products, including watches made by Patek Philippe and Rolex, amongst others; yet, Lamborghini dealers continue to do rather well, Bloomberg reported on August 5.
The robust demand for supercars provides evidence that the majority of its owners belong to an exclusive group of individuals known as trophy seekers. These individuals are so affluent that they are practically unaffected by shifts in the market.
‘Lambo’ is an abbreviation for Lamborghini notably, supercars have been a familiar sight at Bitcoin conferences and on the Instagram feeds of cryptocurrency influencers for some years now; they have joined other traditional displays of wealth such as expensive watches and mansions.
Crypto market volatility is par for the course
After purchasing a Lamborghini in 2017 for 45 Bitcoin, equal to more than $200,000 at the time of the transaction, Peter Saddington rose to fame in the crypto automobile community.
Saddington bought the flagship crypto for just $115 in 2011, back when Bitcoin was worth less than $3. The move contributed to the rise in popularity of buying luxury automobiles using cryptocurrency.
According to Saddington, many of his friends in the sector are still looking to purchase luxury cars. Now an investor in cryptocurrency ventures, Saddington said significant price movements are par for the course with digital currencies and should not be a deterrent to the purchase of luxury automobiles.
Saddington proudly displayed the sleek black Mercedes he purchased in April with Bitcoin mining profits via video chat. He said he has no intention of selling his first Bitcoin Lamborghini and said, “it’s in the other garage.”
Crypto luxury car sales double in the last year
According to Chief Operating Officer Luke Willmott of AutoCoinCars, the platform allowing buyers to purchase luxury cars using crypto has doubled sales to $12 million in the past year while the growth rate has remained stable.
Willmott said that during periods of market instability, the firm often sees an increase in the number of sales of luxury vehicles. He thinks that this is due, in part, to the fact that the value of a Lamborghini is more stable than the value of a digital currency.
“People are spending because they want to exit out of their crypto and get into physical assets. That will allow them to then have this asset that doesn’t depreciate like how their crypto asset will depreciate.”
Lambo holding value better than crypto
Recently, Lamborghinis have held their value better than cryptocurrencies, since November 2021, the values of Bitcoin and Ether have dropped by more than 50%, and other cryptocurrency-related platforms and lenders, like Celsius Network and Voyager Digital, have just declared bankruptcy.
CarGurus.com reports that the price of a pre-owned Lamborghini has remained relatively unchanged throughout the last year.
According to financial filings made by the parent firm Volkswagen AG last week, Lamborghini sales last year were greater than ever, and they are now on track to beat that record this year.