Ferraris the first to go!

market has crashed here.
Ferrari/Maserati no one wants the late model cars.

 

Patience. Wall Steet, as we all know is driven byfear and greed. If you have enough cash (3-5 years) you can ride this out. If you do not have that 3-5 year cushion - do whatever you have to do to achieve that as soon as possible.

 

time to buy


BUY baby, BUY.....

get that 12 cylinder model you put off....

 

In principle I agree, but I think the potential is for prices to go down more before they settle out. I'd wait to see how things develop in the economy in the next 3-6 months.

 

Whats all the big fuss about?

Just because the stock market has sunken, doesn't mean people don't have disposable income.

A few friends of mine don't have any money invested in stocks or funds, they are still buying Ferrari's.

I understand that the volume of sales are down, but people with liquid assets are not worried.

 

+1

The news media acts like everyone should sit at home and play with their wang.
From what I've seen, it's business as usual in most places.
I just had a friend that is a lumber salesman call today about ordering some performance parts for his car, the housing market sucks but he's still spending. Along with alot of other people. Have another friend that's pulling the trigger on a Hennesy Viper this week.

 

All you're flushing out of the market now is guys who were over leveraged when they bought the car in the first place.

Unfortunately, that's a lot of owners.

It's gonna make the price for newer stuff, 360 430 550 575 599 612 a little softer than it's been. Well, ok, for some models a LOT softer. Add to that that these guys want to dump their cars and the dealers, who they always saw as their fallback position, have too many cars in inventory and aren't buying or consigning cars right now, and you have the potential for the same market crash for Ferraris that we saw on Wall Street last week.

Wait it out if you're buying. OR make an offer you think they can refuse, you might be surprised.

 

LOL

That's great to do after work, but during the week day we all need to be working and contributing to the economy...

Yes, the housing market stinks for people who purchased speculative developments. However, people who have purchased proprerties with real value are still able to make money.

 

Invest in socks, you'll clean up.

 

I was thinking about starting a company which manufactures "BANKRUPTCY - FOR SALE" signs.

 

+1

 

It's available www.bankruptcyforsale.com

 

Picking up my Scud tomorrow.
Can't wait to drive that thing.........

 

best advice on the web!

 

Let's consider............

How many late models were financed by home equity?

How many late models were puchased by people in the finacial trades and borrowed to do so? Remeber how people argued that you should borrow all you could on a Ferrari and use the money to buy condos, equities, etc.? Oops

So, let's say 10% of all late model owners now have to sell regardless of price or have them repo'd. I think that's a conservative number.

Now, let's look at the pool of buyers. Anyone going to use home equity? Not likely. Those stupid enough to do so already have. How about other borrowing? Besides the fact credit is harder to get, many people even in high paying jobs are worried about them. If you own a small business like me, your income is probably falling. Not a time to buy 6 figure toys. I don't know what percentage of late model Ferraris are financed, but it is very significant. This pool of buyers has shrunk---by a lot.

Those who have cash and are smart (these usually go together!) see falling prices and decide they can wait. If you think prices will be 20K less in 90 days, that's awfully easy money plus cash buyers tend have more patience to begin with.

So we have more sellers and fewer buyers not to mention Ferrari keeps sending another 100 cars a month here. Often buyers of those will want to trade or sell their current cars. Not to mention all the other 6 figure cars.

This is a classic recipe for dramatic price declines. Sorry gang. I have a 430 as well but when I bought it, it was with money I was comfortable I would never need. Certainly I don't like to see its value melting like an ice cube in my garage but I won't lose sleep. I doubt the same can be said for those who are now upside down in their cars.


Dave

 

For how much much are you selling yours?

 

I agree but up the ante' to 3-6 years.

This isn't a short fix. This is the beginning of a much worse condition, in my opinion. Notice how the entire global banking system is suddenly getting on board with Comrade Paulson and company.

 

Well, as far as business goes, I consistently sell 100 +/- cars a year......85-90 Porsches, 5 or so F-cars and the rest are a mixed bag of high end stuff......

In the last 90 days I have sold one Porsche......and the phone is not ringing......don't get me wrong, I also hustle for business, but it is dead out there, even with significant price reductions across the board. Thinking about shutting down the business as we are going into winter, which is the slow season (FWIW right now bizz is worse than in the winter) and changing careers after 20 years. Never seen it this bad. I think we are looking at a 10-20 year recovery period before things even start to turnover again....at 48 I thought I had seen it all. Thankfully I am debt free and do not own a house.

 

I definitely agree that the economy won't return to more "normal" for a couple years at least. I just meant use the next 3-6 months to see how bad things may get, and then perhaps re-evaluate a good time to buy.

 

I understand

 

Agree. Time to get that 599.

 

NOT ANYMORE!!!!!

http://www.bankruptcyforsale.com

RMX

 

I bought mine!