296 Values and Used Market

I blame Apple, Google and Amazon for all these things we now license and never own. Books, movies, music, etc... we never have a physical copy and our use is merely at their will. They can remove it and it is gone. I see retailers basically now pushing these same theories of IP licensing into their contracts to purchase physical goods.

Remember Porsche's rental/lease offer where you could just 'lease' a bunch of different undesirable, uncollectible Porsches for a monthly rate - and trade them back and forth for different models as you needed? I think Volvo/Polestar was trying the same at some point. I'm sure if Ferrari could have a membership that they just dinged our accounts for $X,000 a month without having to sell us something new it would be done.

Oh wait... Classiche and warranty renewals!

 

yeah it’s pretty crazy. But this isn’t food or shelter, no one is putting a gun to our heads and forcing us to play these games.

 

Let me see if I'm understanding this correctly. So they take your $1MM along with maybe 1000 other individuals. Use all that money to build cars and deliver them to folks who've been waiting for three years before you to get their cars. Then after three years you get your car but meanwhile they collect another Billion to build cars including yours? To top it off you can't sell the car that you bought for another two years so that gives them time to collect more money to build cars. Hmmm, they have a name for this scheme but I can't remember now....

 

What an odd incentive system. So if you (a) resell it at MSRP, no foul. If you (b) resell it under MSRP, no foul, you just eat the depreciation. But (c) for every dollar you sell it over MSRP, you owe them $3? Am I following that correctly?

Wouldn't they be better off taking, say, 80 cents on the dollar? You'd still be pretty motivated to hang on to the car until the lockup expired. But if you can't wait, for whatever reason, you'd still be motivated to get top dollar vs dumping it at MSRP (in which case they get zilch from you and an unattractive data point on the secondary market).

I must be misunderstanding this, or there must be some logic that I'm missing. Can anyone explain this to me?

 

Only a matter of when the Tech/AI bubble bursts ...a lot of people will be drowning in 'kool aid'

 

correct except you can’t sell at msrp as they have a right of first refusal!

 

haha indeed … I believe the fellow was called Charles Ponzi

 

You are 100% correct, all you can do is vote with your feet and walk away. At the moment there is a line around the block of people waiting to do that deal, so good luck to them.

 

I see. So a de facto prohibition on selling the car during the lockup period unless (a) secondary market prices fall below MSRP or (b) you sell back to Pagani at MSRP.

Quite draconian, but I get the logic now.

 

Welcome to the ultra high end. All of this is and has been normal for ages. Now, its formalized. Exclusivity is costly. Ultra high end only stays exclusive if the inventory is controlled. What is that Pagani worth when its done in 3 years vs what you would pay...I am guessing 2x? Seems like a good overall arrangement.

 

the car is $3.5m plus tax and if you add in the lost return on the money at say 5%, that’s $1m for 3 years and $3.75m for 2 years, so on the day you can sell the car it owes you $4.25m to break even (and that is assuming no sales commission). I think the chance of making money on top of that is very slim. More likely it is worth $1m less.

 

this is simply supply and demand. As you put it, there are probably a hundred people or more waiting in line if you walk away.

 

If a luxury goods company has created a strong enough brand to be able to choose their clients in such a way, good for them. As has been said, no one needs these cars. You choose if you want to play the game.

 

Well my hopes and dreams of one day purchasing a Pagani have just been dashed. That is a more than a straw to break this camel’s back. That’s all the metaphors I can think of on short notice.




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lol looks like the EAG model.

 

It appears as of now the 296GTBs are in a downward spiral. The AF pack way below msrp and the ones without at msrp or below. This is US market.


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Seems most at MSRP from what I see. But why wouldn’t they be? I’d expect the the trend down will continue and used cars will be 50-100k off depending on spec. Great specs will get closer to MSRP.

 

Too many flippers. Dealers knowingly are selling to people they know will consign quickly so they can take 2 bites. Problem in this case they are all doing it so they've flooded the market. Additionally, they also have new cars in the back they can't advertise. This shouldn't take away from the car though, it's actually a pretty good drive.

 

The 296 is my second favorite car I've owned behind my 812SF or 991.2 GT3RS (tie for me). The car is awesome, if they fall like a brick that doesn't make me love it less.

 

Speaking to no on in particular here.

But I feel like the reason that many owners, or prospective owners, worry so much about resale of the 296 is they are buying a car beyond their means.

If the price to play with a 296 is well within your budget, a person is not going to think twice about resale. And certainly not dwell on it as if it's like it's one those controversial options like the AF -- should or should I not ...

 

I don't disagree but I find it funny when many here would unload on McLaren because of resale. Different set of rules I guess.

 

While I tend to agree some of us purchase things like this for a myriad of reasons. Like other things that I purchase, I do look at the long term viability of owning things from a financial angle. I also buy some of my exotics through my business because of the nature of the work that I do in the automotive space.

Many of us have been quite fortunate in the last few years with cars that have appreciated significantly from our purchase price. When that cycle changes or ends it's going to cause some heartburn for some. Especially so if they never experienced cars that lose a significant chunk of their value on a steep curve.

 

For me it’s Easier to go into every purchase planning to lose a ton. If I break even that’s a win. I try not to think about all the money I’ve lost on cars. It’s the price to play!!

 

Most money I’ve ever made on a car was a Mclaren!! Also the most money I’ve lost was on a mclaren. I guess it’s a wash?? lol.

 

Guys, this is just part of the economic cycle. Go back 30 years and you will see little down swings followed by long term upward trends. Inflation is not going away, rates can't really increase, election year. Once folks start feeling 'richer' (inflation on assets) and rates decrease you will see a huge swing upward. I have been lucky to buy cars (cash, didnt care about rates or opportunity cost) when others were on the side lines (07-09, covid most recently) and done well. If you can't pay cash then don't buy. I didn't say don't finance. What I said was if you have $500k in cash and COULD pay cash then you can afford the car even if you finance. That approach holds true when taking out any sort of debt.