Claims that Rolls-Royce's new Phantom will depreciate to the tune of €1,400 a week will not be music to the ears of dancer Michael Flatley who recently bought one.
With a €320,000 price tag, excluding all taxes, owning a Phantom was never going to be cheap, but according to estimates of the luxury car's second-hand value, its super-rich buyers could lose nearly €1,400 a week in depreciation.
Glass's Guide, the British valuation book used by dealers to estimate used prices, claims that the Phantom will lose more than half its purchase price after three years. If this proves accurate - so far no used Phantoms have been sold - it would be bad news for Rolls, BMW's luxury brand, reflecting weak demand for the cars.
However, Graham Biggs, Rolls' communications director, dismissed the estimates as guesswork. "It's absolutely impossible at this point to get any sort of sensible guide to the value of such an individual car as this," he said. He dismissed the assumed mileage of 36,000 as far more than the average usage, of about 2,500 miles a year.
The last model made by Rolls under Vickers' ownership depreciated much faster. A three-year old Silver Seraph, which cost £169,000 (€251,000) new in Britain, is worth £61,000 (€91,000) to a British trade buyer, say Glass's.
Richard Crosthwaite, prestige car editor at Glass's, says only a limited number of people are wealthy enough to pay more than £100,000 on a car. "Many of those willing and able to spend this kind of money want to make their own choices about specification and colour," he said.
According to John Stanley of Rolls-Royce, personalised touches vary from embroidered monograms on headrests to specific colours from the choice of over 42,000.
For some owners, the resale value is not of primary concern. One owner clearly unconcerned with the price he'll get when he goes to sell it has entered a Phantom in the famous Gumball Rally, which takes place in Europe this year.
While the company would not confirm Irish sales figures to date, it's thought that two Phantoms have been sold to Irish buyers, including Michael Flatley. However, neither is expected to be registered here.
- Additional reporting: Financial Times