Did the bottom just drop out of the market?

No, the value of used Ferrari cars seem to still be on the way up.
Not all buyers are depending on the stock market to live!

 

We'll just wait and see, eh?

 

Be careful with this! This time is different right?

When MOST see their retirement funds evaporate, they don't feel too fantastic about a new car. Given there is a lot of institutional investors in the market... in the US a cash account and bonds don't keep up with inflation IMHO.

I think the term IMHO at this point is Ferrari's WERE on the way up. *hehehe*

 

Just missed on the first 308 in North America at auction, something did not feel right, but now regrets. Sold 247. The first 308 in NA, the car that some say saved Ferrari..at least that's what I have heard said or read. But all this said, I wonder how some are thinking now that do depend on the market? I bet the top are not even concerned, you don't spend 8.5 to over 17 as some did unless you are out right wealthy-right? Middle income, could be a problem.

 

I think it is way to early to worry about that. Let's see how things play out in the coming weeks.

 

If you bought your Ferrari from your heart, you'll shrug off market turmoil because you were lucky enough to enjoy some very special days behind the wheel of a car that billions of people only dream about.

If you bought your Ferrari from your head, following the market and leveraging yourself in the hope of taking a nice profit, and unless you've a very desirable limited edition model........ooops.

 

I guess it could have been worse , I could have invested my Ferrari money in the market. Instead I have the car.

 

That's exactly what I did.

 

Watch the TR market climb as people take some profit and put it into hard assets

Recent auction results


Sent via itty bitty electrons

 

Timing is everything.

A chunk of the cash I used to buy my Ferrari came from profit realized on the sale of stock.

 

if the market continues like the past week eventually it will affect the Ferrari market along with many other markets without a doubt.

 

I'm currently putting together a potential deal on a sports car (non-vintage). The asking price was pretty far apart from the actual value. Salesman has been a nice guy to work with and reasonable so far. Without going into details, I will say that judging from the way the communication and negotiating has been going, that it feels like it has already shifted to a buyer's market. First time ever that I've had a salesman reach out to me making me offers and fast to the point, close to my offer. I think I'm going to wait it out another month or so. If the bottom does fall out, (which looks likely) then the deals will only get more smoking hot as time progresses. If we go into recession, this stuff is going to be very cheap. Patience

 

Minimum 3 different markets at the moment, the high end $10 million + cars that are purchased by billionaires, most of whom do not suffer major loss of wealth from the stock market nor any other form of investing. The middle with the $1 - 10 million cars that will be effected with a lot of speculative money flowing through it. The people investing in some of these cars are either, dealers, middle-men, borrowed money, non end users = all people that will be hurt by any change of the market. This sector will slow and some particular outliers will not recur any time soon but it wont crash and burn. Finally the lower end (less than $1 million cars) which is filled with people with less disposable income, long term owners, 501kers who really will be hurt by any change in the market. Demand in the other 2 markets has driven growth in this sector due to the increase in value flowing down the market. The current fad for $500k '90s Testa Rossa will not last.....

 

I agree with your statement about 500k modern day Testa Rossa's.

 

Please attempt to explain with a degree of fact, What investment/s that billionaires have in their financial portfolio that is NOT affected by as you claim..." billionaires, most of whom do not suffer major loss of wealth from the stock market nor any other form of investing".

Firstly, the term "major lose" is subjective as per individual.

Any billionaire's investment portfolio would be diversified as to include BOTH a certain percentage of stock market & real estate holdings.


Look up any billionaire's wealth and subsequent investments & your unfounded assertion becomes a ludicrous mute point.

Also the anomaly of a $500,000.00 Testarossa in the most liberal usage of the word, could NOT be considered as a "Fad".

 

ok, its all just one mans opinion and if yours is different so be it....

 

The more this happens the more investors look for alternatives.. houses and cars.
It the new commodities that suffer and if your total wealth is locked in stocks, didn't you learn something last time this happened..... and will happen... again..

 

Good luck with this investor logic.

That isn't how it works. Hard to diversify across asset classes (multiple bubbles, some are now truly unraveling) when those asset classes have shared drivers.

Stock market and RE wealth helped support the car market bubble so it isn't an effective hedge. The next logical step is that the auctions won't just look lackluster, they will start turning down as people are shell shocked by their equity losses. As they turn down, it becomes a vicious cycle with the psychology no longer focused on "the next car" to skyrocket in price, but rather how low cars will go.

I think it may take 6-12 months still to actually unwind that way, but will depend on how much the market bounces back.

 

An eye open time. Lemmings running hard today. By the day's end close should be ok. Off a little

 

The sentiment has shifted, dramatically.

China underpins the growth plans of vast majority of the large cap stocks out there. Income growth in developed world is anemic and you need growth from somewhere to keep profits going higher if you're not getting big productivity gains.

The actual drop today itself is not that meaningful. What is meaningful is what these moves represent. Chinese markets have massive direct and implied government support and they are still falling. That is meaningful. Would not surprise me if we see another 25%+ decline in Shanghai over the next couple weeks.

The effects of when China announces growth is more like 5 or 6% rather than 7% will effectively wipe out hundreds of billions of $ of market cap value globally. The market is starting to price in some of this but because of how opaque the Chinese markets / data are, right now it is all guesswork.

 

Bingo! "My 401k is up 100% this year so I feel rich.. I'm going to buy that Ferrari I always wanted". People are affect much more by what they "lost" then what they gain. Down is always more painful a motivator. When you need money, you cash in some stocks by hitting the sell button. You don't sell a wheel on your "investment car" to buy groceries for the week.

This correction has been LONG overdue IMHO... should have happened in 2010 if artificial support wasn't given.

 

Maybe, although I suspect easy stock market money has helped build the house of cards that is the modern used Ferrari market.

Hard assets are fine, but a complicated, modern technology-based car is more of a time bomb under your checkbook than an investment.

 

Trillions of dollars of wealth did not evaporate. Paper wealth means nothing.