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+--- Thread: All Aboard for the Brexit Fire Sales! (/showthread.php?tid=11227)
All Aboard for the Brexit Fire Sales! - G.Irish - 06-27-2016
So with Brexit making a big hit on international markets a lot of people are spooked and may be pulling their money out just to be safe, as well as liquidating assets. This may mean that a bunch of people will be fire selling their sports cars and other expensive depreciating assets.
In my useless internet car shopping I've noticed a number of supercars popping up for sale for significantly below the prevailing price in the days since Brexit.
991 GT3 for about $35k-40k under
Cayman GT4 for $20k under
I also saw a 458 being advertised at a ridiculous price ($100k when the next cheapest was $167k) by a very motivated seller before it got taken down.
Depending on the impact on markets Brexit has, there may be a steady trickle of people trying to get rid of sports cars. What I don't know is if this will also happen for cheaper cars in the $40-70k range. I feel like the guy buying a Corvette or GT350 is not going to be as sensitive to stock market prices. If there is a prolonged downturn, then maybe the prices of those cars will drop too. There may also be a bunch of people trying to unload their leases on lease swap sites.
Back in 2009 after the economic collapse Evan got his Exige for a smoking price that to this day I have never seen an Exige being advertised for. Don't think we'll see a bunch of deals like that but there will probably be some tantalizing deals to be had if this keeps up.
Re: All Aboard for the Brexit Fire Sales! - Apoc - 06-27-2016
I seriously doubt the relationship is causal. There just hasn't been that much wealth eroded.
Also, I knew I should have shorted everything. I suck.
Re: All Aboard for the Brexit Fire Sales! - SlimKlim - 06-27-2016
G.Irish Wrote:Cayman GT4 for $20k under.
DJ IT'S TIME TO STRIKE!
Re: All Aboard for the Brexit Fire Sales! - G.Irish - 06-27-2016
Apoc Wrote:I seriously doubt the relationship is causal. There just hasn't been that much wealth eroded.Maybe, maybe not, but I know there are people out there who are heavily leveraged who would hit the eject button as soon as they sniff trouble. There are some cars that have a bunch of people speculating on them (GT3RS, Speciale, GT3, M4 GTS). There are actually dealerships out there buying cars at a premium from other dealerships to make a profit. People like that don't wanna get caught losing money on a bunch of cars because they mistimed the market. Then there are people who wanna liquidate so they can buy up more stocks when prices are low.
Also, I knew I should have shorted everything. I suck.
Re: All Aboard for the Brexit Fire Sales! - JPolen01 - 06-27-2016
G.Irish Wrote:I came here to agree with the first comment, but then also agreed with your comment G. I just don't see people (in the US) dumping cars this quickly. There simply hasn't been enough money lost in this short few days since the announcement. This isn't nearly as dire as the situation in 2008 when the entire global economy went down the shitter. If this does happen as you predict it is, I will be very interested to see what happens.Apoc Wrote:I seriously doubt the relationship is causal. There just hasn't been that much wealth eroded.Maybe, maybe not, but I know there are people out there who are heavily leveraged who would hit the eject button as soon as they sniff trouble.
Also, I knew I should have shorted everything. I suck.
Re: All Aboard for the Brexit Fire Sales! - G.Irish - 06-27-2016
The thing about dumping cars is that some people will do it when they're desperate after they've lost a ton. Others will do it before shit really hits the fan so they can minimize their losses, or because they need the cash and can't afford to wait. Toys are the first things to go, so supercars, boats, bikes, etc.
The cars that have a heavy infestation of speculators will probably have people bailing the fastest. Depending on how long and bad the downturn is then it will spread to other segments of cars.
Either way I don't think it'll be as bad as 2008, which means if there are deals to be had they won't be sitting on the market for many months.
Re: All Aboard for the Brexit Fire Sales! - D_Eclipse9916 - 06-27-2016
G.Irish Wrote:The thing about dumping cars is that some people will do it when they're desperate after they've lost a ton. Others will do it before shit really hits the fan so they can minimize their losses, or because they need the cash and can't afford to wait. Toys are the first things to go, so supercars, boats, bikes, etc.
The cars that have a heavy infestation of speculators will probably have people bailing the fastest. Depending on how long and bad the downturn is then it will spread to other segments of cars.
Either way I don't think it'll be as bad as 2008, which means if there are deals to be had they won't be sitting on the market for many months.
Please let porsches hit the "ferrari bust of the 80s". I have ZERO clue how a 993 with 75k miles is $60k after driving one. Fuck that shit, I was almost stupid enough to consider it till I drove one.
Re: All Aboard for the Brexit Fire Sales! - SlimKlim - 06-27-2016
D_Eclipse9916 Wrote:Please let porsches hit the "ferrari bust of the 80s". I have ZERO clue how a 993 with 75k miles is $60k after driving one. Fuck that shit, I was almost stupid enough to consider it till I drove one.
I'm really curious if anyone is actually buying 993s at that price, or if it's more like dealers and sellers who have them are trying to capitalize on the crazy values of the earlier aircooled models. We had a Burgundy over Gray '96 Turbo with 50k-ish miles on it at the shop that we COULD NOT sell for 55k back in 2010. Not even a nibble. Sat with us for at least two years, maybe long because I left to go to school. I sure hope the owner of it took it back, because now people are asking $150k for the same car.
I think it's a market bubble either way, It's hard to imagine your average 1970-89 N/A 911 maintaining the ridiculous prices they've been going for lately. If I happened to have one that I had bought 10 years ago I'd certainly have it on the market right now.