BON VIVANT
Second-hand Luxury
21 Mar 2008
Second-hand luxury is a bit of an oxymoron. There obviously is no status gained in using a pre-owned thing, howsoever expensive. Yet, there are factors in luxury consumption beyond shocking and awing others. What also matters is the rarity of desired items, or the buyer’s impatience or savviness.
Typically, the ego-driven tend to go for the fresh and the latest, whereas the finesse-oriented focus on the deliverables. This diversity suits both kinds: the latest-chasers are able to make space for the new super car or super yacht while the savvy can get a proven article at a discount. For example, in India, the 1-2-year-old Ferraris and Lamborghinis are available for 15-20 per cent less than their sticker price. Of course, the quantity of supply decides the discount, or even premium.
In the case of yachts, it is just not possible to buy your dream boat off the shelf. Every luxury yacht is custom built and takes months to be delivered. Also, it makes sense to acquire a perfected yacht ready with a crew. India’s super billionaires — Vijay Mallya and Laxmi Mittal — have acquired second-hand yachts paying several million dollars.
The rare items, in fact, cost a lot more than the freshly minted beauties because of their exclusivity. Vintage Ferraris go for millions while one can get a new one for a couple of hundred thousand dollars.
However, being savvy requires patience and diligence — explore, study and consult like a maniac. And, do brush up your bargaining skills.
(Businessworld issue 25 - 31 March 2008)
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