Economics has taught us about the law of supply and demand which states that “the quantity of a good supplied rises as the market price rises, and falls as the price falls; and conversely, the quantity of good demanded falls as the price rises, and vice versa”. This actually gets us thinking for cases of rare items where demand is high but supply is low. Now as demand increases and the quantity of supplies decreases, the “equilibrium price” in turn increases.
Thus rare items become more expensive compared to regularly supplied items because there is more demand but lesser supply in the market. Take limited edition car models, for example. These cars are sold for outrageous prices because chances are that the manufacturers are trying to cover up for manufacturing expenses as well as for profit. However, this doesn’t quite affect collectors in general since glory is more important than price.
The market for rare Porsche models is booming. Take the 911 GT3 RS for example: it was released with a base price of $175,000 but used models are now sold for at least $300,000 (double its base price). New 918 Spyder models were sold for $845,000 but are now worth over a million dollars each. Limited edition Porsche models are very much in demand and prices for these babies have never been this high.
Because of the demand of limited edition Porsche’s, Netherlands-based dealership Hoefnagels is selling a 50th Anniversary edition Porsche 911 for €209,500 or about $236,357. It has doubled its 2013 price of $124,100. The 50th Anniversary edition 911 is a rear-wheel drive 3.8-liter flat-six rear engine coupe which features a wide body that is usually used by all-wheel drive Carrera 4 models.
The car has 20-inch Fuchs-style throwback wheels and a unique checkered interior which is a tribute to the original 911. There are only 1,963 units of this special edition model which is a representation of the year the 911 was introduced. The special edition 911’s increased engine performance is capable of producing at most 430 horsepower and is capable of accelerating the car from zero to 60 mph in just 4.2 seconds.
It can also reach a top speed of 186 mph. The capability of this rare edition model makes it even more promising and enticing for collectors and enthusiasts alike. In one of Jody Hedlund’s books, An Uncertain Choice, it says that “tis often the rarity that makes something so precious”.
The rarity of an item, regardless of its capability, efficiency and usability, makes it a magnet for rare item collectors as it holds a representation of certain people, places, things and events. Limited edition cars and rare models, being one of the most collectable items especially for the rich and bored, turn out to be an asset rather than a liability. “Regular” cars depreciate through time but the limited edition ones will surely give you a run for your money. It’s quite a good investment, actually.