Tuesday, March 11, 2008

Ferrari's as a hedge against the weak dollar

I am reaping a benefit of the weak dollar by exporting unneeded parts of the Ferrari. The ashtray bin sold for $41 to Adam in the UK. I have sold pieces of an ashtray for a car for over $100. Sure I paid $270 for the module but have recouped about 37% of that outlay. I think I could make a compelling case that the Ferrari is a not very liquid hedge against the falling dollar. Why? Well, Ferraris are imported into the US so as the dollar gets weaker the price of a new Ferrari will go up. The price of a used Ferrari like the 355 is influenced by the value of the new car and by foreign buyers who are interested in acquiring one so its price should rise. Further, the weaker dollar should push marginal buyers of new Ferraris into the used market making that market more competitive.

Who knows? I am glad I bought the car when I did. Buy one quick before everyone else figures this out.

I was in Wilsonville today and stopped by Gran Prix. I had not been in since they completed their new Lamborghini show room. The look is simultaneously consistent with Lamborghini, angular and bold, while being inconsistent in its sparseness. While there I sat in a great 360 Spider with a 6 speed. I really like the more leg and head room in the 360. The blue Gallardo that I drove is still there. I am surprised. It is a really nice car in great shape. I don’t think that the Gallardo will hold its value as well as a Ferrari and it may be that few people are willing to take the plunge into a 140K dollar car that may rapidly deprecate below six figures. This red Lamborghini Diablo is over the top. The car was so wide. I looked it up the car is 6.7 feet wide but only 14.5 feet long. My Toyota Tundra is 6.6 feet wide but 19 feet long.

I signed up for the first of Gran Prix’s two track days on June 24th. They are limited attendance to 40 or 50 cars so it should make for a good time on the track.

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