Sydney residents who cannot afford to buy their ideal home may be investing in luxury cars as a status symbol.
Sales of high-end prestige vehicles are accelerating, with the number of Porsches on NSW roads near-doubling in the past five years.
Dr David Waller, senior marketing lecturer at University of Technology Sydney, said luxury brands of all types were becoming "incredibly popular".
Waller said younger people put off by the price of housing in Sydney may be putting more emphasis on the sort of car they drive.
"Units and housing have all gone up," he said.
"Your house reflects who you are - if they can't afford that then the car would reflect who they are.
"A car is so much a status symbol, it's not just metal, tyres and glass – it's what it means to people. Having a luxury brand, particularly something like a Porsche is reward for yourself."
As is the case with real estate, Mr Waller said some high-end cars on Sydney roads may be owned by foreign investors who choose to spend money away from home.
"If they can't show wealth in China they are willing to show it in Australia," he said.
"Some may even see that it shows who they are in being prosperous."
Statistics obtained by Drive show the number of Porsches that call NSW home accelerated from 6781 to 11,933 vehicles between 2012 and 2017 as motorists increasingly turn toward luxury cars.
Mossman accountant Simon Allsop bought a $411,800 Porsche 911 Turbo Cabriolet in 2016.
"I've always been into cars and really enjoy it," Mr Allsop says.
"I can do the school pick-up with the kids and also take it to the race track and be one of the fastest cars there. It's a fantastic combination of practicality and performance."
Mr Allsop, 35, said Sydney's prestige car clique is growing on the back of public events such as Cars and Coffee and the Bullrush Rally, where "people appreciate the cars rather than loathing the cars, which I guess is an Australian characteristic".
"The tall poppy thing has hindered growth historically here," he said.
"[But] I've found the car scene a fantastic place to network and meet other small business owners."
Porsche has moved from selling an average of 115 cars per month in 2007 to 458 cars in Australia this year, helped by the popularity of its Macan and Cayenne SUVs.
The German brand isn't alone in its growth. Ferrari marked a local record by selling more than 100 cars in the first six months of 2017 and McLaren is set to rack up best-ever figures in Australia this year.
Mercedes-Benz grew from 61,000 cars and SUVs on NSW roads in 2007 to around 112,000 vehicles today, doubling its presence in a decade.
Setting SUVs and dual-cab utes aside, Mercedes-Benz sells more passenger cars in Australia than Ford, Honda, Subaru, Nissan or Mitsubishi.
4 Comments
The truth | 2017-07-14 15:25:49
Porsche for the most part are simply rebadged VW's. Mercedes would be the only German marque that has actually increased Luxury sales. BMW is a straight out SUV spread, based on the underpinnings of existing models and stripped down poverty pack models.
Sidney Mincing | 2017-07-15 08:52:47
..... investing in luxury cars..... Purchasing a luxury car is hardly an investment, unless one wishes to keep the vehicle in a locked garage in the hope that it will appreciate in value over a prolonged time. However, this is not the case. Driving out of a showroom in a $200k vehicle immediately drops it's value by at least $30,000, so personally I'd prefer to drive a ten year old banger and invest my money at a decent interest rate. Some people are born stupid, others learn stupidity as they go
Mr Majestyk | 2017-07-16 21:28:16
And the rise is accompanied by massive new debt leading to a GFC style credit bubble with loans many can't service but still handed out by shonkies like BMW already massively fined for their practices.
DJCJ | 2017-07-16 23:52:44
Agreed Sidney - it's hardly 'investing' when all new cars depreciate by 40-50% over the first 3-4 years regardless of make and model. I'd love to be chock full of cash too and be brainless and lay a lazy $400k down on a new car, but even when I'm in a position to shout my self a nice vehicle in a few years (which indeed may be one of the above mentioned brands) it will be at that 'sweet spot' (3-4 years old), when the majority of the depreciation has already been taken, the make and specifications is still current (or close to), the vehicle is still in very good condition with modest mileage, and the option of an extended manufacturers warranty is available for a few grand. And 'the truth' is also spot on too - what we are defining as 'luxury vehicles' here? Is it price point - or make? Does the Audi A1 shopping trolley count for example? Or any of the pedestrian SUVs out there, which really are no better than what Mazda have put out with their recent CX-9 apart from the badge on the grille, which then command a $30k premium.