How to Buy a Supercar

Summary

Masters in Business — “How to Buy a Supercar”

Host: Barry Ritholtz (Bloomberg)
Guest: Hannah Elliott, Bloomberg’s Supercar Reviewer
Date: September 10, 2025

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Episode Overview

Barry Ritholtz speaks with Hannah Elliott, a seasoned supercar reviewer and auto industry expert, about the intricacies of buying, owning, and behaving as a supercar owner. The discussion unpacks what truly qualifies a vehicle as a supercar, the unique hurdles in purchasing both new and used models, the etiquette expected among owners, and the practical realities that come with these aspirational machines.

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Key Discussion Points & Insights

1. Defining a Supercar

• No Single Definition: Supercars exist in a “gray area,” defined by a blend of factors: extreme performance, top-tier price, arresting design, rarity, and a sense of exclusivity.
  • “It’s a combination of all those things… They need to feel elite and exceptional. That’s what makes them super.” (Hannah Elliott, 03:29)
• Speed Isn’t Everything: Not all fast or expensive cars qualify (e.g., Tesla's quick EVs or Rolls Royce's price tag); rarity and a sense of being special matter deeply.

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2. The Unique Experience of Buying New

• Dealer Relationships are Key:
  • Supercar dealerships get very limited allocations, so loyal relationships determine who gets a chance to buy.
  • “With Ferrari… you cannot walk into a Ferrari dealership and hope to buy a Monza… you need to earn the right… buy up the Ferrari food chain.” (Hannah Elliott, 05:20)
• Anti-Flipping Contracts: Buyers must agree not to quickly resell ("flip") cars; violating this returns the car to the original dealer. (05:18)

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3. Buying Used — The Premium of Instant Gratification

• Used Car Prices: Due to waiting lists and batch manufacturing, used supercars often sell at a premium.
  • “Instant gratification drives used supercar prices.” (Hannah Elliott, 06:37)
• Due Diligence:
  • Insist on pre-purchase inspections and full maintenance records.
  • Private sales require even more scrutiny due to the fragility and specialized nature of these vehicles. (07:10)

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4. Aftermarket Modifications: A Red Flag

• Aftermarket = Wild West:
  • Non-factory modifications can compromise the car’s integrity and reduce value.
  • “When you change anything in these highly refined vehicles, that changes everything… Physics do matter.” (Hannah Elliott, 09:03)
  • “There is no guarantee… it just seems like a minefield.” (09:03)

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5. Ownership Costs – More Than the Sticker Price

• Maintenance & Repairs:
  • Parts are specialized, often made from carbon fiber, and thus expensive and fragile. (09:45)
• Insurance:
  • Not all insurers cover exotic brands; seek specialty providers like Hagerty or Chubb.
  • Policies often acknowledge low annual mileage; tailor for non-daily drivers. (10:50)

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6. Choosing the Right Supercar for You

• Follow Your Passion:
  • Engage with current owners; don’t be shy about asking questions at local events or dealerships.
  • “No dumb question, really… talk to people who own the car.” (Hannah Elliott, 11:26)

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7. Test Drives & Rentals

• Rare Access:
  • Walk-in test drives are rare, especially for elite models like Bugatti. Dealerships may offer a ride-along instead.
  • Exotic car rentals can provide a taste, though mechanical standards may vary. (13:31)

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8. Tax Loopholes: The Montana Registration Gambit

• Controversial Practice:
  • Registering cars in Montana to avoid taxes is looked down upon in the car community.
  • “It’s not really looked at kindly among the car community because everybody knows that’s what’s happening.” (Hannah Elliott, 14:16)

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9. Supercar Etiquette & Public Interactions

• Be a Brand Ambassador:
  • Owners are expected to project respect, not flashiness.
  • “Don’t be an 18 year old boy. Act like you’ve been here before… read the room.” (Hannah Elliott, 14:56)
• Expect Attention:
  • Friendly engagement is encouraged – cars are conversation starters. (15:47)

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10. Cautionary Tales: Avoiding Embarrassing Fails

• Self-awareness is Key:
  • Know your car’s dimensions and performance limits.
  • “No sudden movements. Smooth is fast. Stay calm.” (Hannah Elliott, 16:45)
  • Barry Ritholtz: “Slow is smooth. Smooth is fast.” (17:53)

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11. Modern Technology & Neighborhood Courtesy

• Hybrid Stealth Mode:
  • Lamborghini’s “stealth mode” enables silent electric driving around neighborhoods out of consideration for others.
  • “It makes the car fully electric, which [is] out of respect for the neighbors… I love it.” (Hannah Elliott, 18:18)

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12. Spec Choices & Resale Value

• Restraint Matters:
  • Limit outlandish customizations; wild specs hurt resale value.
  • “Try to have some restraint… The cars that do not have really weird one-off custom jobs will probably be a higher value.” (Hannah Elliott, 18:45)

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Notable Quotes & Memorable Moments

• On Rarity:
  • “Supercars need to be rare. They need to be built in small quantities. They need to feel elite and exceptional.” (Hannah Elliott, 04:13)
• On Modding:
  • “The aftermarket is the Wild West. There is no guarantee.” (Hannah Elliott, 08:29)
• On Driving Etiquette:
  • “Don’t be an 18-year-old boy. Act like you’ve been here before.” (Hannah Elliott, 14:56)
• On Showing Off:
  • “You don’t need to show off. The car is already showing off.” (Hannah Elliott, 16:45)
• On Neighborhood Respect:
  • “I love cars, but I don’t want to hear your Lamborghini at 5am.” (Hannah Elliott, 18:18)

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Timestamps for Key Segments

• [03:29] What Makes a Supercar?
• [04:54] The Unique Experience of Buying New
• [06:37] Why Used Supercars Are Pricier Than You’d Expect
• [09:03] The Dangers of Aftermarket Modifications
• [09:45] The Real Costs of Ownership
• [10:50] Insuring the Irreplaceable
• [11:26] How to Choose the Right Supercar
• [13:31] Should You Rent Before You Buy?
• [14:16] Registering Out-of-State: Ethics & Community
• [14:56] On Supercar Etiquette
• [16:45] Cautionary Tales for the Overzealous
• [18:18] Stealth Mode & Respecting Your Neighbors
• [18:45] Spec Choices and Resale

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Tone & Takeaways

Barry Ritholtz and Hannah Elliott keep the conversation lively, straightforward, and accessible, lacing expert knowledge with humor (and even the occasional mispronunciation of “Pagani”). The episode is both a buyer’s guide and a cultural manual for would-be owners, emphasizing personal connections, patience, humility, and self-awareness over mere checkbook flexing.

Summary Quote:
“If you’re fortunate enough to buy a supercar, bring some self-awareness and rationality to the process… Just be aware that you’ve already managed to get one of the most sought after vehicles in the world. Behave well. Don’t do anything too stupid. Own the car, display it, speak to people and try not to end up on YouTube’s Supercar Fails.” (Barry Ritholtz, 19:41)

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Transcript

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[Singer]

Oh Lord, won't you buy me a Mercedes Benz? My friends all drive Porsches I must make a man worked hard all my lifetime no help from my friends so oh Lord, won't you buy me a Mercedes Benz? Oh Lord.

[Barry Ritholtz]

Buying any car is an exciting milestone, but buying a supercar, well, that's next level. It's fraught with a set of unique challenges. It's big money and comes with big responsibilities. If you're thinking about buying a Ferrari, Lamborghini, McLaren, Pagani or any supercar, there are some very expensive mistakes you want to avoid making. I have the perfect expert Discuss this topic Hannah Elliott is the supercar reviewer for Bloomberg. She's covered the auto industry and car culture for over 15 years and has pretty much driven every million dollar car out there. Let's ask her what we need to know before dropping a lot of money on an exotic. So Hannah, let's start with the basics. What makes something a supercar? Is it price, performance, exclusivity, some combination?

[Hannah Elliott]

This is a great question and it is a bit of a gray area because there's no one definition. But I would put back to you, it's a combination of all those things. A supercar is a superlative vehicle that is at the top of the line of an automaker. Yes, it's expensive. Yes, it has top performance for that line. Yes, it has arresting design and yes it has mind bending performance. Those are all sort of qualitative values that when you put them together, you'll get a supercar out of it. Now I have a debate a lot with my colleague Matt Miller about is a Corvette a supercar?

[Barry Ritholtz]

It's a mass market car.

[Hannah Elliott]

So I say no because supercars also need to be rare. They need to be built in small quantities. This is part of their. They need to feel elite and exceptional. That's what makes them super. So it's a combination of all of these things. A car can't just be fast and be a supercar. It can't be just expensive. A Rolls Royce is not a supercar. Even though that's an expensive car. It's a combination of all of those factors.

[Barry Ritholtz]

If it's just a matter of speed, well then a lot of the EVs.

[Hannah Elliott]

That are out Tesla's crazy are fast. But they're not super supercars to sit.

[Barry Ritholtz]

To say the very least. So, so let's talk about the experiencing of purchasing a supercar. How is that different than say a run of the mill Mercedes or Range Rover or some other expensive vehicle?

[Hannah Elliott]

Okay, to purchase a supercar new it's going it requires more of a relationship with the dealership selling it to you. Now most dealerships are allocated small, small amounts of supercars. They might only have two or three for their whole area. So they weigh who will be afforded the opportunity to buy the supercar.

[Barry Ritholtz]

Clearly no flippers, right? That's right out.

[Hannah Elliott]

That is written in the contract. You cannot flip this vehicle and if you do need to get rid of it, it goes back to the dealer. You can't flip it. That is in the contract. So it is about establishing a relationship with your local dealer. With Ferrari is notorious for rather requiring their customers to buy up the Ferrari food chain to the top level of Their cars. You cannot walk into a Ferrari, Ferrari dealership and hope to buy a Monza that just even if you have the money, it doesn't work that way. You need to earn the right and the opportunity to buy those higher end cars. So it's about maybe you have to buy aroma first and then maybe you buy, you know, 929296. You work your way up to the opportunity to buy the top stuff.

[Barry Ritholtz]

So that's if you're buying new. Let's talk about buying used. A lot of these cars used to trade at a discount when they were, I guess the term is pre owned but in a lot of cases that's gone away. You're paying a premium even for a pre owned car. What's the story with that? Is this just a function of the waiting lists or for new cars? What's driving used supercar prices?

[Hannah Elliott]

Instant gratification drives used supercar prices. Because the thing about supercars is they're again they're made in small batches. So usually you're going to have to, if you want one new, you're going to have to order it, you're going to want some of your own touch custom touches on it. That takes time, you might have to wait a year. So if you don't want to wait that long, you want one quick, you want instant gratification, you buy a used supercar.

[Barry Ritholtz]

So what's the process like for purchasing a used car? Is it the same sort of pre purchase inspection maintenance records? What's the due diligence like with this?

[Hannah Elliott]

I would say it's the same as any other car really. I mean it's a, it's potentially a lot of money. I would certainly have a pre purchase inspection. It depends on who you're buying it from. Are you buying it from an individual or are you buying it from a dealership? Like a certified pre owned thing? If you're buying from the dealership and it's been certified as okay, whatever that means for the automaker, I think, you know, that's pretty straightforward. If you're buying it from a private individual, I think you would want to do some real due diligence. Supercars are tricky and stressful to drive. If you're not on a track, you know, they're, they are low, they are finely calibrated and highly tuned. So when you're driving around the city and there are potholes and there are inclines, there's just a lot more that can be slightly off on, on a supercar rather than an suv, an SUV is a lot more durable. So these are. These are, I don't want to say fragile, but they are not made to go all over everywhere. So I would go a little bit slower.

[Barry Ritholtz]

Makes a lot of sense. One of the things I notice when I'm trolling bring a trailer or cars and bids or any of the other auction sites is the frequent mention no aftermarket modifications. Why is this such a concern?

[Hannah Elliott]

It's a concern because aftermarket, the aftermarket is the Wild West. You are not under dealership guarantees at all. You are in the Wild West. There is no guarantee. I mean, we all have seen those terrible cars with exhaust things and sound systems and cars that have been chopped up and things have been welded on.

[Barry Ritholtz]

To say nothing of all the wraps and things along those lines.

[Hannah Elliott]

Completely wraps, you know, that's one thing. But when you change anything in these highly refined vehicles, that changes everything. Physics do matter. So when you're adding weight or you're. You're cutting something, you're cutting fenders or you're welding on fenders, that changes the. The structural integrity of the car potentially. And it just seems like a minefield unless you really know who and what you're dealing with.

[Barry Ritholtz]

Not. Not everybody. A singer, to say the very least, Right. What about cost? Beyond the purchase price? How different is it maintaining a supercar, storing it and insuring it?

[Hannah Elliott]

Well, it's going to be a lot more expensive in general to repair and replace things, components of supercars, like wheels, like carbon supercars have a lot of carbon fiber splitters, air ducts, venting spoilers. All of these things typically are made out of carbon fiber, which is rather fragile and rather expensive to replace. So it just. Everything is compounded, price wise, I would.

[Barry Ritholtz]

Say in general, makes a lot of sense. What about insurance? I know certain insurers don't necessarily cover. The Bugatti is in. Pananis of the world. I was going to say Panini. I guess I got lunch on my head. What about insurance coverage? Not everybody covers the Bugattis and Panin Pananis of the world.

[Hannah Elliott]

Paganis.

[Barry Ritholtz]

Paganis, yeah.

[Hannah Elliott]

Paninis.

[Barry Ritholtz]

Panini. Not everybody covers the Bugattis and Paganis of the world or even the Ferraris and Lamborghinis of the world. What sort of coverage should a supercar owner be seeking?

[Hannah Elliott]

Again, I would go to a specialty provider like Hagerty or Chubb or any of these other ones. Go to a specialist, do your research. And again, you can probably stipulate that this is not a daily driver. It's going to have less miles per year and you can get a specialty.

[Barry Ritholtz]

So I tend to fall in love with a different car every week. When you see all the variety of things, Bugatti, Pagani, Ferrari, Aston Martin, McLaren, Lamborghini, Bentley, Porsche, it seems like the choices can be endless. How does someone figure out which car is right for them?

[Hannah Elliott]

Well, that's a good question. Again, it sounds so cliche, but follow your own interests. If you've got somebody in your town who has a car that you like the look of, go up and talk to them and ask them how their experience has been at the dealership. Ask them where they keep the car. You know, there's no dumb question, really. I think if you identify someone who has a car that you like the look of, go talk to them and ask them, how is it working with, you know, maybe even the factory. If. If it's a highly customized car, they work directly with the factory to customize the car. Find out how that relationship is, because, again, if you're buying a new supercar, it's going to take some time to get it, and you're going to be in contact, getting updates about the car, about how the production is coming along. I think you want to try to find someone that feels a good fit for your personality, what you're looking for. I think you just got to talk to people who you think own the car.

[Barry Ritholtz]

What about test drives? I can't imagine that you could walk into a Bugatti dealership and say, hey, I'd like to take that Viron out for a spin.

[Hannah Elliott]

No, I don't think you can. Maybe they'll take you for a ride. That's tricky. I think that's tricky. I don't really know the answer to that other than, again, make friends with people who have that car. And I know that sounds maybe trite, but. But these cars are out there, and I think if you see someone out driving that car, generally people are pretty friendly, they're proud of their car. And I would just start asking questions about, hey, you know, who can I talk to? Where did you get this? I really love it. I don't think it's wrong to hang out at the dealership and try to get a ride.

[Barry Ritholtz]

It's the relationship I have noticed in places like Paris and Amsterdam, and then in the United States, in Vegas and Miami, you can rent a Ferrari or Lamborghini for a shockingly little amount of money for 20 minutes. Is that.

[Hannah Elliott]

That's a good idea?

[Barry Ritholtz]

Will that give you the same experience?

[Hannah Elliott]

You know, I don't know about the mechanical standard of those cars that are being rented, but it's something. I don't think it's wrong. I mean, we have that in la. It's a good idea. You can drive through Hollywood in a rented Ferrari. At least it's something to get you in the driver's seat and get a taste of what it might be like.

[Barry Ritholtz]

So let me ask you about a pet peeve I have with supercars. I believe that if you aren't paying your taxes on your car, then our roads are much worse wherever you happen to live. What are your thoughts on people who buy supercars and then register them in Montana to avoid state sales tax?

[Hannah Elliott]

You know, I did a whole story on this, Barry.

[Barry Ritholtz]

Yes, I do.

[Hannah Elliott]

It's not really looked at kindly among the car community because everybody knows that's what's happening.

[Barry Ritholtz]

So I used to be a member of an online car community that wasn't any specific marquee. It just was everything. And I vividly recall the BMW and Ferrari guys talking about representing the brand. And when you're tanking up with gas or you're at any sort of social function, cars and coffee, be a good brand ambassador. Don't be that sort of jerk. What's your experience with that?

[Hannah Elliott]

There's etiquette involved here with cars, especially with supercars. And in my experience, the people who are revving the engines, making a ton of noise, pop, pop, pop, pop in the parking lot are 18 year old boys. Yeah, don't be an 18 year old boy. Act like you've been here before. Act like you have a sense of respect and appreciation and situational awareness. What I like to call read the room. You're already in a really expensive car. That's awesome. It's important to be open and friendly. You're driving something that yells look at me. So people are going to look at you, which is awesome. And I would just say just have a sense of decorum. Act like you've been around for a long time and you know what you're doing.

[Barry Ritholtz]

What's the best advice for interacting with the public when someone comes up to you while you're either getting gas or.

[Hannah Elliott]

Whatever, I would just say be friendly and anticipate and expect that people are going to comment on your car. If you want to be incognito, drive a black Honda or don't go out. I think when you go out in a flashy car that is that that is an indicator that you're going to be approached. And that's awesome. That's what cars are about. It's about sharing cars, sharing the experience. So just expect it and just be friendly. You know, they don't have to sit in the driver's seat if you don't want them to do that. But I would say welcome it.

[Barry Ritholtz]

That that's fair enough. Let's quickly discuss cautionary tales. You could go to YouTube and there is a series of videos called Supercar Fails. Some really embarrassing, just dumb self inflicted accidents. What's the warning for people who are driving really expensive cars as to what they should not do?

[Hannah Elliott]

Don't show off. No sudden movements. Be aware of the size of your car, the size and dimensions of your car. You know, I see a lot of people who have rims that are scraped on the side because they've curbed it or splitters under the chin because they' not aware of how low the car is. So I think the number one thing is be aware of the size and dimensions of your vehicle. It's less prominent than you might think. Number two, you don't need to show off. The car is already showing off. And that goes back to our other thing about etiquette. You don't need to show off and do a burnout or, you know, pass five guys down the Sunset Strip. We already see you in the car. We already know it's a cool car. No sun movements. The other thing about supercars is they're, they're, they're high performance machines, which is awesome. Which also means there's less room for error. So any mistake that you make in that vehicle is going to be exaggerated and amplified. Expensive and a lot quicker. Yeah, quicker and a lot more expensive. So no sudden movements. Smooth is fast. Stay calm. You don't need to get all worked up. Just be relaxed.

[Barry Ritholtz]

Slow is smooth. Smooth is fast.

[Hannah Elliott]

Exactly, exactly. And there's one more thing I wanted to say kind of on our, the etiquette thing. I just got back from Portugal from driving the Lamborghini Temerario and there's an interesting thing that Lamborghini is doing on some of their supercars. The Revuelto is another one. These are hybrid supercars. They've got something called stealth Mode, which is 6 miles of electric only driving.

[Barry Ritholtz]

Now you sneak out of the right.

[Hannah Elliott]

You might think that's not actually enough, but it has a very important purpose, which is it makes the car fully electric, which while you leave the neighborhood or while you come into the neighborhood. And I actually love it because again, it's out of respect for the neighbors and I love cars, but I don't want to hear your Lamborghini at 5am so I kind of like that.

[Barry Ritholtz]

Any other aspects of supercar purchasing or ownership that's worth mentioning?

[Hannah Elliott]

You know, the one thing I would also say too is if you're buying a new one, be really careful about how you spec it. Please try to have some restraint. And I say this for two reasons. One, because again, these cars are wild. They're attractive, they're stunning. They're made to grab attention. You don't need to then add on a bunch of colors and textures and textiles and details to just make it look like vomit. So just try to have a little restraint and I promise you the car will look really cool because it's already designed to look really arresting. The second thing I would say is for resale values. The cars that do not have really weird one off custom jobs inside will probably be a higher value than a car that looks terrible that someone specked. You know, in the 90s, that is just terrible.

[Barry Ritholtz]

So to wrap up, hey, if you're fortunate enough to be able to buy a supercar, bring some self awareness and some rationality to the process. Make sure what you're buying is something that you're really interested in. Prepare yourself to have conversations with people every time you tank up the car or take it somewhere. Just be aware that you've already managed to get one of the most sought after vehicles in the world. Behave well. Don't do anything too stupid. Own the car, display it, speak to people and try not to end up on YouTube's Supercar Fails. I'm Barry Ritholtz. You're listening to Bloomberg's at the Money everybody.

[Singer]

Oh Lord, won't you buy me a Mercedes Benz? My friends all drive Porsches I must make amends Worked hard all my lifetime no help from my friend.

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