Project Title: The Economics of Supercars: Determinants of Price and Value
BASIS Advisor: Mr. Duwan
Internship Location: Manhattan Motorcars
Onsite Mentor: Paul Dumont
Supercars have pushed the bounds of imaginable reality and so have their price tags. Luxury car manufacturers go to extreme lengths to justify half-million dollar-priced automobiles and fuel the popular culture surrounding them worldwide. City streets are flooded with such cars and the reasons luxury cars have become a logical purchase in owners' minds need to be investigated. At Manhattan Motorcars, I will speak with the clientele and employees to formulate answers. Manhattan Motorcars sells a range of luxury vehicles from Porsche to Bugatti so the width in the variance in price and contributing factors will be able to be explored completely. Through the creation and completion of surveys on the consumer and producer side of the industry, patterns in the economics of supercars should become apparent. The luxury car industry has remained successful during a pandemic. It is evident that there is a strong driving force that can be divided into specific factors. Cultural atmosphere and symbolism combined with elite performance prove to be the driving factors in justifying such an expensive purchase. Companies have been establishing their brands in consumers' subconsciousness throughout their lives, convincing them to eventually make purchases of their products. The results of this research will outline the factors of perceived and established value in luxury automobiles and demystify the economics of the industry.
My Posts
Week 9: Interview with Koenigsegg Salesman
Jun 04, 2021
This week I interviewed a Koenigsegg salesman to compare to the interview of a Bentley salesman. I wanted to understand the different levels and Koenignsegg is the upper echelon of supercars in every aspect so I gained the perspective of that different type of buyer. I asked him the same question I’d asked the Bentley […]
Week 8: Analyzing Differences in Value
Jun 04, 2021
The biggest questions I had going into this project were, ‘What factors make up the value of luxury automobiles’ and ‘What factors could explain such a discrepancy?’ The discrepancies mentioned refer to the different scale of things at each level. Simply put, the average person buys a $30-50k car, the 1% buy $200-500k cars, and […]
Week 7: Exploring the Building
Jun 03, 2021
Manhattan Motorcars is located at 711 11th Avenue and is the flagship location for all other dealerships owned by Brian Miller. The building contains Porsche, Bentley, Bugatti, and Lamborghini dealerships on the ground level. With an office mezzanine on the way, the second floor had a continued Porsche showroom along with Porsche salesmen’s desks and […]
Week 6: New Location
Jun 01, 2021
This week I was able to spend a day at the another Manhattan Motorcars location in nyc. I was excited to go as I’d been told about the shipment of Koenigseggs that had arrived. Koenigseggs are some the the most expensive, powerful, and rare hypercars in the world with three current models: Gemera, Jesko, and […]
Week 5: Websites, again
May 18, 2021
The GM at Manhattan Motorcars had an assignment for me this week, the same one as in week 2. Originally, he’d asked me to check both the MM main website and the exclusively Porsche MM website to make sure they were both consistent and correct. I was able to check the entire inventory using a […]
Week 4: Supercar Photoshoot
May 03, 2021
This week I invited my photographer friend, Nick, to come into the dealership and take some shots on his camera as I showed him around. I was granted permission by the GM to take and be able to post pictures of most of the cars as sold ones were off limits. Honestly, I am really […]
Week 3: Options/Customization
Apr 19, 2021
The original price of a supercar is already so astronomical I originally didn’t realize that options could add a significant chunk to their price. I’ve learned though that just as prices rise for vehicles with additional features, the prices for their options increase. What this means is that the ‘same’ options would generally be correspondingly […]
Week 2: Inventory and Exploration
Apr 12, 2021
Hello everyone! Welcome back! Last week I began to explain my first task and I have even more to share about what I’ve done since. So last week I was given a spreadsheet of all the Porsches currently being sold on the Manhattan Motorcars main website and the exclusively Porsche MM website. Using the stock […]
Week 1: Starting at Manhattan Motorcars
Apr 05, 2021
Hello everyone! I’m glad that you’re continuing this journey with me! This week I began my on-site placement at Manhattan Motorcars and completed my first assignment. Upon arrival, I noticed the building was very sleek and modern with three story, floor to ceiling windows. As I walk in, I’m greeted with the run of […]
Week 0: Introduction to the Economics of Supercars
Mar 31, 2021
About Me: Hello everyone! My name is Matthew Shtaynberg and I’ve been attending Basis Independent Brooklyn since 8th grade. Ever since I was a child, I’ve been amazed by supercars and the economy! That’s why I decided combine these interests and pursue the economics of supercars and secured an onsite-placement at Manhattan Motorcars, a premier […]