Lag Time for Supercar Prices to adjust to Market Conditions

Lag Time for Supercar Prices to adjust to Market Conditions

Author
Discussion

Rari

51 posts

148 months

Sunday 29th March
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It’s a left hand drive 458 but below £100k with low mileage and well spec on paint etc.....

https://www.pistonheads.com/classifieds/used-cars/...

cgt2

1,553 posts

141 months

Sunday 29th March
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Rari said:
It’s a left hand drive 458 but below £100k with low mileage and well spec on paint etc.....

https://www.pistonheads.com/classifieds/used-cars/...
Maranello have a RHD one for £120k. I suspect if you haggled you could buy it for £110-112k. They would be unlikely to have notched any deals in the past three weeks I suspect based on my conversation with the Ferrari dealer I normally use.

ghost83

3,742 posts

143 months

Sunday 29th March
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monthefish said:
Gallardo prices have dropped around 33% over the last 18-24 months, whereas they were fairly stable over the prior 3/4 year period.
Have they though? They seem to be the same as what they were it’s just a few ppl have been chancing their arms with high prices

There’s still a manual balboni for 230k the black one I’ve got my eye on for over a year seems to have fluctuated between 84 and 94k and has settled at 89k since summer, think it’s abit optimistic though pre lp manual 2007 with 16k on it,

Ferruccio

1,116 posts

72 months

Sunday 29th March
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ghost83 said:
monthefish said:
Gallardo prices have dropped around 33% over the last 18-24 months, whereas they were fairly stable over the prior 3/4 year period.
Have they though? They seem to be the same as what they were it’s just a few ppl have been chancing their arms with high prices

There’s still a manual balboni for 230k the black one I’ve got my eye on for over a year seems to have fluctuated between 84 and 94k and has settled at 89k since summer, think it’s abit optimistic though pre lp manual 2007 with 16k on it,
Advertised prices are totally irrelevant until things get back to “normal”, whenever that is.

If you have the cash, and someone needs to sell, there may be a deal to be done.

Some auctions still seem to be struggling on in different places.

Durzel

8,672 posts

121 months

Sunday 29th March
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It’s probably going to be rather injudicous to drive a supercar around for the foreseeable future, even assuming you’re allowed to recreationally. And there would be no one around to see it, which is a big reason new money buys them in the first place.

Interesting times ahead for sure. It’s far too soon in my opinion to read anything into price predictions simply because we’re not out of the woods yet, and the people making predictions aren’t likely to be unbiased.

SVJBalboni

125 posts

7 months

Sunday 29th March
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As always, fortunes will be made, fortunes will be lost. Plenty of people are making money from this pandemic, be it a business taking advantage or playing the stock market. The supercar market might not see a massive drop as some are predicting.

Cheib

18,468 posts

128 months

Monday 30th March
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Here’s a data point....ex Chris Harris F12 sold for £142k plus comm on Collecting Cars

https://collectingcars.com/for-sale/2014-ferrari-f...

I don’t know enough about the specs of these but that seems like a great result for the seller to me ? I wouldn’t have thought trade bids for that would have been much higher than that a month ago,

DeejRC

1,227 posts

35 months

Tuesday 31st March
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The market hasn’t changed yet in that respect. It’s only been a week.

You will have to give it a month or two.

GroundZero

382 posts

7 months

Tuesday 31st March
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I think it may even be a little longer than that.
Likely people are currently stuck in limbo, with people not even looking/able to sell, due to people not even looking/able to buy.
So I'd expect the market to more or less be totally static.
Its only once the lock down starts to lift and once people are hit with the reality of if they still have their job to go back to, that the market will face its pressures.

I agree with some who have said that there is nothing in the immediate future that would likely give a pressure for prices to increase, it surely can only be downhill over the next few years. People and businesses are going to be totally focussed on recovery rather than luxury.

davek_964

6,622 posts

128 months

Tuesday 31st March
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GroundZero said:
Likely people are currently stuck in limbo, with people not even looking/able to sell, due to people not even looking/able to buy.
Exactly the position I'm in. Was intending to put my 360 up for sale as soon as it was serviced a couple of weeks ago. But now, there isn't any point - nobody is likely to make a serious offer - and I really don't need the hassle of tts trying to convince me it's now worth 50p.
I think it's unlikely I'll put it up for sale in the next 12 months at least.

ghost83

3,742 posts

143 months

Tuesday 31st March
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GroundZero said:
I think it may even be a little longer than that.
Likely people are currently stuck in limbo, with people not even looking/able to sell, due to people not even looking/able to buy.
So I'd expect the market to more or less be totally static.
Its only once the lock down starts to lift and once people are hit with the reality of if they still have their job to go back to, that the market will face its pressures.

I agree with some who have said that there is nothing in the immediate future that would likely give a pressure for prices to increase, it surely can only be downhill over the next few years. People and businesses are going to be totally focussed on recovery rather than luxury.
I agree and I think the majority will start come autumn onwards,

Ferruccio

1,116 posts

72 months

Tuesday 31st March
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Some interesting price points at the RM auction.

Pvapour

8,706 posts

206 months

Tuesday 31st March
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ears

carspath

Original Poster:

610 posts

130 months

Friday 3rd April
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Looking purely at the Time Lag issue , a few points appear to be coming through ;

1) The supercar market appears to be slower in reacting cf shares ( to be expected as that is a minute-by-minute correction ) , but also possibly the prime London property market

2) Cheaper cars appear to be correcting first .

3) Modern cars appear to be correcting more quickly cf classic cars



Pvapour

8,706 posts

206 months

Saturday 4th April
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IBAC
(as long as its an R8 V10 cabrio or Bentley gtc 2nd gen biggrin)

may as well use this thread for any desperate to sell whistle

carspath

Original Poster:

610 posts

130 months

Thursday 9th April
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The prices being paid for cars on-line auction site (s) ( Collecting Cars ) appear to be reacting fairly quickly to the market conditions .



So why do you think that dealers who are sitting at home with time to spare , are not quickly adjusting the prices of their stock , so that they can steal a march on their fellow dealers ?

Surely if they can off-load their own stock before they market gets saturated , it can only be to their benefit .

Or do you think that a large proportion of their stock is on SOR , so it is no skin off their backs to hang in there at their pre-Covid prices ?



Also , I wonder if this virus epidemic might alert some punters to their own mortality , and push them towards achieving their dreams while there is still time !!
This would increase demand , and so help maintain a floor for supercar prices .

mike01606

523 posts

102 months

Thursday 9th April
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carspath said:
....Also , I wonder if this virus epidemic might alert some punters to their own mortality , and push them towards achieving their dreams while there is still time !!
This would increase demand , and so help maintain a floor for supercar prices .
Probably some truth in this......

ghost83

3,742 posts

143 months

Thursday 9th April
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If someone wants to live the dream they would be sensible to wait if the market is already reacting after 16 days imagine after 90 days

Drl22

318 posts

18 months

Friday 10th April
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Obviously this is not completely representative but I had a pub quiz on zoom last night with around 12 friends, only one of them is not working and he was actually made redundant before COVID all kicked off. They are all good earners as well so perhaps this impact everyone is talking about isn’t going to be quite as wide and deep as everyone is led to believe by the media. I also had a call with my financial advisor who is still very much expecting (some would say hoping but I believe he is better than that) a V shaped recovery. It’s just tax planning he is worried about as we go about repaying all of this free money.

This isn’t to say supercars wont take a hit, they will do for a short while as people put their finances back in order and feel secure again but the hit to jobs, and this sounds terrible, is going to be at the lower end of the pay scales.

Ferruccio

1,116 posts

72 months

Friday 10th April
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carspath said:
Surely if they can off-load their own stock before they market gets saturated , it can only be to their benefit .
Assuming that you are not a forced seller, depends if you think the shape of this is going to be V shaped, U shaped or L shaped?