Why would car companies like Bugatti put prices on their cars for about over 1 million dollars? (rental, luxury)

[Blackandgold51]

I know these are hand made cars and take about 300 man hours to build these cars by hand. But, c'mon, 1 Million Dollars!! That's enough to buy 2 houses that comes with pool houses. Why, do these car companies put their cars in these price ranges which they know the car is not going to sell a lot despite that multi-millionares of some will buy their cars.

But this is one thing that i do not like about the car industry today.
Their all about money instead of TRUE quality. sastifaction, and enjoyment. Today car manufactures like Buggatti is just selling the name rather than the car itself so people can just say "I got and drive a Buggatti"! And that's it.

Also, there's a Veryone Convertible that is over 3 MILLION DOLLARS!

[sunsprit]

For the same reason that many exclusive limited production products can charge whatever the market will bear for their product ....

They've priced themselves to a market which can pay their price and they're happy to have the limited sales volume.

The same can be said for jewelry (gemstones as well as precious metals), mechanical movement Swiss watches, artisan crafted products (including works of art, or crystal stemware, or colored art glass objects or splotches of paint on a canvas or whatever else passes for "art" these days) ... or, for that matter, the exceptional incomes brought in by all kinds of performing artists (and I use the word "artists" very loosely) and sports players and other entertainers ....

If you've got the money and the desire, there's always somebody out there willing to cater to your whims and desires.

The choice is yours. You don't have to buy anything that you perceive to be "overpriced" for any reason .... If you're happy to drive a modestly priced car for your needs, you can make that decision ...

[SpeedyAZ]

Economics of supply and demand. Bugatti WANTS to assure that very few examples of their vehicles are built and they want to keep an aura about the vehicle that supersedes the actual vehicle itself. There is a miniscule number of individuals that can afford these type of cars and that's the way Bugatti wants it. There wouldn't be so much hype about the Veyron if the price was a more manageable (in perspective) $300K now would there?

[TheViking85]

...Well, you should read up a little. That's the first thing I'll say.

The Bugatti costs, I believe around 5 times the selling price to make. (That includes development cost, which were astronomical)

You say it's all about money and not about quality, if that were the case, they wouldn't make a car that they effectively lose $4mill on every car sold.

The Veyron is built to be two things: The revival of the extreme luxury that the Bugatti name has always represented (these were never made for anyone but the richest even among the rich, so there's nothing new there either), and to be an engineering masterpiece. Whether you like it or not, from a pure engineering standpoint there are so many details on this car worth admiration.

And lastly, why wouldn't they price it at $1mill? Honestly, they could probably even price it higher than that and sell out the production run, so from that perspective, it's relatively cheap.

If you look into the details of cars such as the Zonda Z (and Zinque) the CCXR and the new AM hypercar, you'll see that they're all priced north of a million, and frankly, if you actually educate yourself on the details, you'll be surprised they don't cost more.

[G.Costanza]

Originally Posted by Blackandgold51

But this is one thing that i do not like about the car industry today.
Their all about money instead of TRUE quality. sastifaction, and enjoyment.

Yes, there's cost cutting in auto manufacturing as in many other industries. However: You could not have picked a worse example to illustrate this. The Veyron is sold at a loss essentially, as has been pointed out. You may or may not like its looks, but it is an engineering masterpiece and a record breaking car. There is no other 'production' car that has invested so much R&D into the science of driving fast.

[whiteboyslo]

Originally Posted by TheViking85

...Well, you should read up a little. That's the first thing I'll say.

The Bugatti costs, I believe around 5 times the selling price to make. (That includes development cost, which were astronomical)

You say it's all about money and not about quality, if that were the case, they wouldn't make a car that they effectively lose $4mill on every car sold.

The Veyron is built to be two things: The revival of the extreme luxury that the Bugatti name has always represented (these were never made for anyone but the richest even among the rich, so there's nothing new there either), and to be an engineering masterpiece. Whether you like it or not, from a pure engineering standpoint there are so many details on this car worth admiration.

And lastly, why wouldn't they price it at $1mill? Honestly, they could probably even price it higher than that and sell out the production run, so from that perspective, it's relatively cheap.

If you look into the details of cars such as the Zonda Z (and Zinque) the CCXR and the new AM hypercar, you'll see that they're all priced north of a million, and frankly, if you actually educate yourself on the details, you'll be surprised they don't cost more.

Couldn't have put it better myself. Rep points to you, sir.

Mike

[iTsLiKeAnEgG]

Viking pretty much summed up everything that was wrong with the original post. It can't be all about the money if they're losing millions of dollars one each sold.

[Drover]

Originally Posted by Blackandgold51

I know these are hand made cars and take about 300 man hours to build these cars by hand. But, c'mon, 1 Million Dollars!! That's enough to buy 2 houses that comes with pool houses. Why, do these car companies put their cars in these price ranges which they know the car is not going to sell a lot despite that multi-millionares of some will buy their cars.

But this is one thing that i do not like about the car industry today.
Their all about money instead of TRUE quality. sastifaction, and enjoyment. Today car manufactures like Buggatti is just selling the name rather than the car itself so people can just say "I got and drive a Buggatti"! And that's it.

Also, there's a Veryone Convertible that is over 3 MILLION DOLLARS!

It's hard to make sense of your post because it's contradictory. You say they build cars that won't sell even though millionaires will buy them. If millionaires will buy them, then they'll sell. It's not a big mystery why certain car manufacturers build and sell million-dollar cars: prestige, marketing, and as engineering exercises. And no, people aren't buying just the name with Bugatti. If the Bugatti came with a 250HP V6 and a rental-car interior, nobody would be paying 7 figures for them.

[pinetreecity]

I think owning supercars like this is similar to playing golf at the Augusta golf club, raising and racing horses, racing yachts, owning sports teams, and so on.

Obviously you must have a passion for fine automobiles to buy something like this, but it's not just about the car itself. It's also about belonging to and being accepted by certain circles, and taking part in those extra-curricular activities that only the truly rich and connected are able to take part in.

People who own cars like this probably keep them stored away, taking them out every so often to race or to show in a car show. I'm sure many meet one another again and again at these events.

Some supercars are not available to just any rich person who might want to buy them. Many wealthy people have the money to purchase these exclusive cars, but that does not mean they can get them. It's almost as if the car maker chooses its customers, not the other way around.

[NJGOAT]

If you even need to ask why someone would want a Bugatti Veyron, you need to get out of the automotive forum.