One of the most reliable historical indicators of economic prosperity is sports car horsepower. It seems we may have crested and are on the way down, with the F-Type leading a reversal of trend.

Brand new 650hp Z06 prices have sunk to fire sale status, with many 2019s discounted to around $68K asking price on autotrader.

With the Ford Escape mid-size SUV outselling all sports cars, combined, are we seeing the start of a race to the bottom?

 

You should never compare SUV sales to sports car sales. SUVs are practical, far more popular and are typically a buyer's primary transportation. Sports cars fill a niche for those who don't require practicality and are normally a buyer's 2nd or even 3rd car. They serve as more of a fashion accessory or toy than anything else. Some of us may be the exception here, myself included as I daily drive my F.

With that said, there's no doubt the time will come when manufacturers won't be able to continue increasing the horsepower rating on their cars, after all there must be a ceiling somewhere. But, instead of simply reversing course, manufacturers will implement more battery power tech which will likely have lower output by comparison initially, only to increase over time as tech continues to improve.

 

Do you mean, "One of the most reliable historical indicators of economic prosperity is the sales of [high performance] sports cars". Sports cars are normally a discretionary expense, especially high performance ones and will plummet during economic downturns along with most luxury items. The higher the horse power over practical levels the more discretionary and exclusive (niche market). I agree.

However, the market for sports cars over 600 horse power is extremely limited. One must ask themselves at what point is the marginal fun or usefulness of increased horse power unwarranted. There is definitely a diminishing return for street use of sports cars over 600 horse power. Yes, people are a bit nervous these days and the markets reflect this.

 

I'm reffering to a chart I saw years ago, plotting Corvette horsepower against the Dow with an amazing correlation. In fact, at the pit of the 82-83 recession, the economic lowpoint of the Corvette's lifetime, the Corvette wasn't even sold.

So whenever I see sports car horsepower in decline, ala the appearance of a 4-banger F-Type, I brace myself for the worst, economically. The preciptious crash in new Z06 prices seems confirmatory that a storm is brewing.

IMO these trends are enormous and take tidal forces to create and/or reverse. Well, maybe not impossible to reverse, as SUVs were the devil and unsalable just a few years ago when gas prices rose a dollar or two.

 

 

Past tense.. . could have all got rich. 😉

Er, maybe the 2020 mid-engine will debut with a halo version that will represent peak hp before the rug is pulled out. You can feel the V8-12s dying. I hope Jag doesn't succumb to the mindless trend, but one can cut the stupidity with a knife.

 

A good indicator of how things are traveling is luxury boat sales. In Australia, the purchase of a boat over $100K (from memory) triggers a data match enquiry with our Taxation Office who then check to make sure that the owner is disclosing the income which would justify the purchase. If they arent, then they should lube up and enjoy the probe. Luxury boat purchases are the most discretionary of spending, usually after a windfall or a good run in shares - or as our taxation office might think - to hide "black" money or the fruits of undesirable pharmaceutical activities.

Not sure about HP, I'd have thought that was more coincidence in Australia at least. Over here the obsession in sports cars is 0 - 100kph times, like when a colleague of mine bought an M4. "Nice car!" "Yeah, it goes from 0 - 100 in 4.2 seconds, what does yours' do?" "Dunno, maybe in the 8's - like my dick. Wanna see it?" Well the last bit didnt happen except when I was revisiting the conversation later in my head, but you get the gist. I'm sure most of the people I know with sports cars wouldnt know the HP of them and less would know the torque, but they'd all know the stated 0 - 100 times.

 

Sometimes its hard to censor your outside voice.

A correlation between offered hp and economic prosperity wouldn't be much different than 0-60 times. It feels like we're peaking, even your remark demonstrate an attitude of regression to more sensible times.

Not good for the old job/stock market, soon we'll be covering up women's legs above the knees and frowning in photos.

 

Rumors the mid engine C8 Vette has a lighter weight, lower hp, V6 twin turbo, Ford GT style.

 

You don't need high hp if you can produce light weight. The main reason you have large V8 blocks with huge displacement is because it is cheaper than designing lightweight and sufficiently rigid chassis. This is why power-to-weight ratio is a thing. Approximately 1lb-ft = 10 pounds. So 500 HP car at 4500lb would be on par with 400HP car at 3500lb or 300HP car at 2500lb.

 

I would think that the environment and related government regulations as well as consumer awareness on the issue is far more likely to affect sportscar HP ratings than the economy.......though that will affect the sales of said discretionary sportscars (regardless of power).

2 cents, carry on.

Dave

 

There is a good chance that a lot of us will be forced to live through a horrific coming economic collapse. Way worse than 1929. That isn't doom and gloom, just fact. Anyone that believes 21+ trillion in debt, money printing out of thin air, and reckless kicking the can down the road won't implode at some point are deluded.

The last thing to worry about when that hits is the stock market or what car we drive. It will be which rat to club for dinner.

My selfish hope is it will be in the next generation's lap, but I'd give it 50/50 odds at this point. I say live your life and have as much fun as possible but know it could all end overnight, literally. Normalcy Bias makes that future event absurd for most and I get that, but it is true.

Until then, keep smiling and driving and appreciate everything...

 

Any candidates in the White House?

 

Any in Parliament? :-)

 

Quite a few, but the main one shares his initials with the Messiah!

 

I wasn't aware that Jeremy Clarkson is in Parliament - but that would explain a lot.

 

When the mid-engine Corvettes finally hit the dealers, there will be some bargains on clean,1 or 2 year old Corvettes.

I may be tempted at the right car for the right price.

 

Horsepower is much cheaper than weight reduction.

 

He'd be a great improvement on the one that's actually there ....

 

It won't be that bad. If you can survive the loss of the first 50% of the current population, your chances of living will go up.

Unless you're are a Christian living in Europe, then there's no hope for you.