CHANGING NEEDS
Like the cars they crave, the industry's clients come in a variety of molds. There are newlyweds and other one-off customers, like Victoria Kennedy, who once surprised her husband, Sen. Edward Kennedy, on his birthday by renting an Aston Martin Vanquish from Gotham -- the car James Bond drove in "Die Another Day."
Others are would-be buyers who are hesitant about buying an exotic car that could fall steeply in value during a time when the economy is shaky.
"People are becoming commitment-phobic," said Noah Lehmann-Haupt, the founder of Gotham. "They don't want to sign a lease for five or six years. A lot of people don't know what the world will bring them."
Then there are the "ultra-affluent" consumers, generally people with inherited wealth for whom several thousand dollars is "chump change," said Scott Rothbort, a professor of finance at Seton Hall University's Stillman School of Business. "These are people who will drink champagne out of glass slippers," he said.
Perhaps the biggest chunk of business, however, belongs to the class of "aspirational" consumers, who come and go as industries rise and fall. They pass through the exotic car business like it's a revolving door -- entering when they're flush with cash, exiting when their finances dwindle.
"One year it's Wall Street mortgage brokers, the next year it's oil and gas tycoons," Rothbort said.
These days, those customers at Gotham include entrepreneurs, a bill collector, an anti-piracy software developer and a building contractor who got a boost from the economic stimulus, Lehmann-Haupt said. "The reality is, even in a recession, there's always someone doing well," he said.
A NEW KIND OF CLIENT
Meanwhile, at Xotic Dream Cars in Toms River, owner Deric Tikotsky said business has soared 250 percent year-over-year, in part because the recession has ushered in a new kind of client: Former exotic-car owners who were forced to sell the vehicles after losing their money in the stock market.
"They're selling off their cars, they're selling off their boats and they've started renting because they don't want to lose that lifestyle," he said.
In these tough economic times, however, clients are trying to enjoy that kind of lifestyle with more discretion, so as not to appear insensitive. In recent months, Douglas, the wire and cable manufacturer, has avoided driving the glitzy rentals to work because "it wouldn't appear proper to my employees." Instead, he opts for his Porsche 911 Turbo or Mercedes minivan.
And yet, for those who can afford it, resisting an exotic simply because there is a recession takes backseat to the adrenaline rush that comes from having all that horsepower, speed and luxury at their fingertips, Lehmann-Haupt said.
"People still feel the need for an escape," he said. "It's exhausting not to spend money."
Leslie Kwoh may be reached at lkwoh@starledger.com or (973) 392-4147.
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