Masters in Business — “How to Buy a Supercar”

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

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.

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.

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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

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)