Ferrari and other exotic price increase

The market is super hot! No Doubt about it, I have access to national car databases, it's not just exotics...

 

Yes, very interesting.

 

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We sold my late father's simple 16' Boston Whaler recently.....within 3 hours of putting it out by the street, for >2X what he was going to sell it for in 2019; no advertising whatsoever.

 

Careful with this guy and his programs.

He isn't a con artist or anything. I don't want to slander him at all.

But... This video he posted us actually accurate. There is more to it but he did a nice over view and it sounds like he goes into it more in his program.

Which... The program is what I have an issue with but hey this video he made. Fairly accurate can't say he is really wrong. There's more to it but he's not wrong.

 

The market is artificially inflated, feel free to buy-in and over pay for whatever you want but dont think for a minute this bubble wont burst soon. Dealers charging over for high volume models is an obvious sign. With this said if you want something buy it but dont expect it to hold its value going forward.

 

The velocity of cars moving through the system is astounding. In looking for a 458, the prices just keep increasing and when I would call for cars just on the market a few were from dealers that had no options list/build sheet and no service history, not even service noted on the carfax yet they are sold in days. That's the part that really seems irrational to me and I'm generally in the camp of not being afraid to buy from a distance without seeing the car in person if I have supporting documents.

 

The market (car and stock) is inflated due to the huge handouts and printing of money with no one to turn off the faucet so I won’t be surprised if these prices stick around for awhile.

Data point - When I was shopping for a Ford GT right before the pandemic. A guy I worked with was on the verge of buying a Macca 650S in the $120k area. I bought my car (I’m not much of an investor) he decided to roll the dice on some pharma stocks hoping to get a 720S instead. Well, he lost money.....

So I heard from him for the first time in awhile today, and the same level of 650S he was going to buy is now up $50k. Crazy....

 

How would you guys feel about spending close to 7 figure for a car in this market? Im looking into either cgt or 599 gto but I wonder if I should wait and time the market vs. just buy now with finance.

 

I think it has a lot to do with the liquidity in the markets, if you took a PPP loan but were only at reduced capacity still doing business you basically got a massive hand out from the government. Many people also got EIDL loans that are amortized over 20 or 30 years can't remember. The majority of people who buy used exotics are small business owners with high employee overhead (covered through PPP not their pocket) or some form of 1099 contractor. I think the exotic car market is a leading indicator because the first things most people do when they have too much money is buy a car they've always wanted. Might not be the best decision, but it is what happens haha. The market will follow inflation, be it temporary or sustained. Just my two cents

 

I do not think it will last. Mortgage deferrals are coming due in a couple of months. We will see if the government gives those people more time, eventually every one of them will have to pay or get repossessed. I see it starting there and falling into chaos. If the market is flooded with repossessed homes combined with all of the businesses already failed from the pandemic, I don’t think the government can print enough greenbacks to fix it. I see what is going on with the economy as being completely unsustainable. My suggestion is to sell now. Cars, extra homes, boats, airplanes, luxury items, you name it. I personally believe values are just about as high as they will get.

my opinion is probably worth just as much as you just paid for it.