Supercar valuations. Stick or twist?
Discussion
Like most of us here, I have my cars because I love driving them (and like most of us here I do thank heavens every day for being fortunate enough to be able to do this).
I don't have them as investments. If they appreciate, great. If they go sideways, it is what it is. In truth that's because I've not experienced a serious market reboot. Yes, my 550 dropped to £ 25K trade at its lowest point back in 2002. But while in % terms it was bloody ugly, in absolute terms it wasn't " complete raving lunatic idiot tirade from wife" level.
But I've another damn itch for another motor, and this tipo has already seen its values climb sharply like many other types. It's up there in nose bleed territory (for me very high six figures). While I wouldn't buy as an investment, I wouldn't want to see a huge chunk of cash disappear either. Life will seriously not be worth living c/o Mrs Camlet.
In this week's Money Week there's an excellent but eyebrow raising article about the "Great Unwinding", how the world is entering a sustained period of deflation and why it's driven by significant changing economic strategies in China and from global supply outstripping global demand due to significant demography change in Western markets.
To me it reads to me that many bubbles are facing the same massive and fast correction that the oil market has just seen, but while the train is truly on its way (the article is very sadly very compelling) we lay people will not see its lights until it hits.
Head firmly says stick. Another part of the anatomy says possibly otherwise.
Thoughts, opinions and insights very gratefully received. Cheers.
I don't have them as investments. If they appreciate, great. If they go sideways, it is what it is. In truth that's because I've not experienced a serious market reboot. Yes, my 550 dropped to £ 25K trade at its lowest point back in 2002. But while in % terms it was bloody ugly, in absolute terms it wasn't " complete raving lunatic idiot tirade from wife" level.
But I've another damn itch for another motor, and this tipo has already seen its values climb sharply like many other types. It's up there in nose bleed territory (for me very high six figures). While I wouldn't buy as an investment, I wouldn't want to see a huge chunk of cash disappear either. Life will seriously not be worth living c/o Mrs Camlet.
In this week's Money Week there's an excellent but eyebrow raising article about the "Great Unwinding", how the world is entering a sustained period of deflation and why it's driven by significant changing economic strategies in China and from global supply outstripping global demand due to significant demography change in Western markets.
To me it reads to me that many bubbles are facing the same massive and fast correction that the oil market has just seen, but while the train is truly on its way (the article is very sadly very compelling) we lay people will not see its lights until it hits.
Head firmly says stick. Another part of the anatomy says possibly otherwise.
Thoughts, opinions and insights very gratefully received. Cheers.
TISPKJ - agree, non car people are distorting the market, presume they'll all rush for the exit at the first hint of a possible major correction bloody guaranteeing one? Ajr550 - agree, predicting the market for someone like myself is impossible, but having had my 599 GTO out this morning for a blast, damn that car is a fabulous brute (makes my 458S seem like Sugar Ray Leonard to the 599 GTO's Mike Tyson), the 599 must be slated for greatness! 70proof, as always much sense matey - I watched the TV show, thought it was surprisingly well made and both sales guys were impressive people and wonderful family guys. Rubystone, the finance deal is very attractive, I was shocked when my Ferrari dealer (a large one) told me 85% of all his new sales were financed ( he also explained that's probably why I wasn't offered a 458SA lol because I've never bought on finance!) - 1m for a Daytona? Scary stuff. Sone, I think you nailed it, you're probably right that mid term nothing much will happen and who knows the effect of Dragonomics, which is four years late.
So think about a finance deal and have several bottles of Trappist Belgian beer chilled and ready for a very rapid journey into oblivion should a rush for the exit happen. First, find the right car.
Thanks everyone for all your excellent feedback.
So think about a finance deal and have several bottles of Trappist Belgian beer chilled and ready for a very rapid journey into oblivion should a rush for the exit happen. First, find the right car.
Thanks everyone for all your excellent feedback.
456mgt said:
I do know what you mean Camlet, and likewise have no idea what's going to happen in the long run. Personally I can't bring myself to pay vastly more now for a car that I admired a few years ago, but didn't buy then. If I didn't pull the trigger at the time, what's changed that makes me like it 3x more now?
Like you, I regularly get offers for my cars and you do wonder what it would feel like if the values tank and you've left a great deal of cash on the table. But you'd turn something you enjoy immensely into numbers in a bank account, so unless you have something in mind to use most of that cash I'd say stick.
Points well made. Thanks.Like you, I regularly get offers for my cars and you do wonder what it would feel like if the values tank and you've left a great deal of cash on the table. But you'd turn something you enjoy immensely into numbers in a bank account, so unless you have something in mind to use most of that cash I'd say stick.
Gassing Station | Supercar General | Top of Page | What's New | My Stuff