• 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.