Inflated Prices? Canada Market

During election time in BC, if you guys write some complains, or best sign a petition to the government, then they are going to impose some 15% super-car tax on foreign buyers. This way more people can afford super cars. LOL

 

This was the exact same arguments made against the Dino 206/246 price increases 5 years ago... too many made, so-so history, not a real 12 cyl Ferrari, barely collectible, could buy for $40K five years earlier, hard to find parts, not worth the cost of labour and repairs.

Now, Dinos have held their high prices, increased a bit more, over the most recent 5 years. Still a bubble, still not worth it? I think in fact the comparison stands and the 308 GTB/GTS is the next Dino.

 

On the other hand how many 308s were made.? Great drivers worth money but not collector cars.

 

Let me say this for the second time...

As long as our dollar remains weak and interest rates remain low, the cost to purchase will remain high.

This market will not drop anytime fast with this exchange or near free money economy.

 

You are in a drop now. Hard to be a dealer with inventory bought with inflated prices. Look at the 550s for sale on ebay-are any moving at $150,000?

 

Problem is $150K USD trans to Canadian plus import taxes and duties,Lets even call it $125K USD and do the above math, that is the issue in Canada
Dealers will hold the inventory, what is 2-2.5% on this inventory annually, peanuts

The combination of a Global market adjustment will need to happen and our dollar needs to recover vs global currencies, in order for costs to adjust downward in Canada - This is the Canadian market issue
Will a dealer in Canada sell the 550 for much less than any car on the open market globally, imported into Canada, most likely not.

 

its a weird market right now, ive been fully engaged for the past year, ready to pull the trigger on the right car at the right price. from what ive seen, in the used market, buyers aren't chasing sellers so cars can sit for quite a long time, and similarly, sellers don't seem highly motivated either...rarely return emails, don't return calls etc. I don't remember ever having to pursue someone to sell something to me before. being a high end car salesman must be the easiest sales job ever lol
IMO, its a worse situation than a drop, its a period of uncertainty. the stock market feels the same way as well.

 

Thanks for the insight Canuck,

 

+100 That's how I would put it also.

The mid- 70's to mid 80's is a collectors "black hole" for Euro and American Muscle cars...

There was political, economic and social conflict across the Americas, and Europe during this time. Most things during this era still posses a certain 'malaise' that cannot be removed or forgotten.

Of course there are a small handful of excellent models built, but they were the minority. (aka 512 BB, Dino 246, Countach etc) For every 1 successful supercar of the 70's there are probably 25 stinkers from the same decade.

 

Thank you for your priceless advice. Let me guess, with all your wisdom you must not own a Ferrari !!

 

It looks like the cars aren't selling very well at Monterey based on the reports from today's Mecum auction. A sign of things to come.

 

I see it a little differently. I think it has less to do with the cars themselves as it does the production numbers...here the thing, no one NEEDS an exotic car. in a period of uncertainty, we have a tendency to wait. Its a lot easier to wait for a car with a high production number vs low production, because you can be pretty confident that another will come your way down the road when your confidence is higher. if something is extremely scarce, you may be more likely to take a risk on it vs the risk of not finding one again.
just my own theory.

 

Modern cars with "high production" numbers don't take into account the fact that the amount of millionaires today is significantly higher than 20 years ago when the 550/355 came out.

My theory is the growing global middle class creates a larger market for these cars. The question is whether or not the new generation of wealth cares about classics. We seem to be moving towards electric and self driving cars as well which will likely thin the herd of buyers.

 

And with all your wisdom, you must own a GT4 !

Listen, myself and most members are in agreement that most of the current prices are out of whack. Is a GT4 worth $150,000 USD ? Is a Mondial worth $200,000 USD ? Is a 1991 512TR with 65,000 km worth $475,000 USD ?? Maybe in the owners eyes..the answer is yes. Or maybe a select car for a select buyer can get that type of money.

I've been following these prices for a while, most of the well priced modern cars (355, 458, 360 etc..) are selling well. (key word = 'well priced'). A lot of the 80's and 90's so-called collectibles which are listed high are sitting for months.. then reduced 10-20-30% percent.

Am I buying a gently used 599 F1 for $180,000 ? Or instead the musty, tired Testarossa for $200,000?

Or how about a sexy Maserati Gran Turismo for $125,000, or instead the vintage 308 GT4 for $150,000 ? Hmmm... tough choice. (of course it depends on the buyers taste vintage vs. new)

Of course everyone these days wants to shoot for the moon.. but the clouds are pretty much the reality.

 

Not a Ferrari, but in case anyone needs a laugh:

Used 2015 McLaren 650S | Used 2015 McLaren 650S, Sarthe Grey, RA650SLE | Vancouver , BC

(And it's priced in $USD according to the auto trader ad)

 

You don't know how rare this car is read the whole add.

 

I did read the ad, I know how rare it is. But it's still a 650S, and when a regular one goes for $300k CDN, then $1MM seems like a hefty premium for a roof scoop, different wheels, and 'rarity'. Especially seeing as the 675LT exists, which is a superior and far cheaper vehicle.

 

Look for other ones to compare to? Seems to be the only one for sale at the moment.
I know it's high for a 650 but MSO went hard on specs and only 50 were built.

335k msrp, 700 seems steep but who knows what they go for now.

 

Middle class doesn't buy Ferrari.

 

Rare, but not special aside from the wheels and the little metal plaque. All the options from the 650S LM were/are available from MSO, including the roof scoop. The only think unique to this car are the wheels.

I wouldn't pay $800K for some wheels.

 

Ummm yes they do, and a lot of them. There are many Ferrari owners who are not millionaires. They just saved up and bought their dream car. Hell I bought my first Ferrari when I was 23, far from a millionaire, and still am to this day.

 

This guy is thinking, "all I need is one idiot, only one".
IMO, rare cars are the stand alone exotics, like LaF, Enzo, P1, 918, etc. These models don't have cousins. For this one, 100 out of 100 people will think that it's just another 650S, which is a lame car. You need to put on some stickers stating that this is a rare Mclaren, so people will start to guess, maybe Justin Trudeau owned it for a while.

 

A brand new one from a dealer?

Of course many 'middle class' people own used Ferraris(especially models who have depreciated substantially from new) but I am certain almost all of the new ones being bought for $300k+ are not average Joes who saved up.

 

Rare cars are cars where there is like 20 examples max or where every single example is unique like the 50's and 60's era where no 2 cars were the same.

LaF has so many produced they don't even want to tell owners which of the 499 they have. Yes LaF and P1 and 918 don't have cousins but they have tons of sisters born at the same time!