Wednesday, February 18, 2009

To sell or not to sell.

Today I spent some time talking with folks about the exotic car market. Generally what I heard was things are not as bad as last month and way better than November but they are still slow and it is still a buyer’s market. I think saying we are in a buyer’s market, while true, understates the reality felt on the street. It appears to me that there are some tremendous bargains to be had at the $100,000 to $120,000 price point. Cars which once would have been $160,000 and upwards are now trading in that level. It also seems to me that good cars are rare and becoming more so in this market. Unless the owner has to sell now is not a financially wise time to be selling an exotic car and hoping for a quick sale. This presents me with a predicament. I don’t need to sell the Ferrari. I want to sell it so I can finish my book but a major thesis of the book is how to buy, drive, and sell one without spending a bunch of money. I have already spent a bunch on maintenance if I rush to sell I risk spending a bunch more on depreciation. I am going to conduct a poll.
What do you think I should do?


AC said...

you might be screwed as the market is tanking and 360's can be had for high 60's

David said...

It is possible, likely, that I will not get the price I am asking. I will happily buy a nice 360 for 70K. Having looked at a few of the cars which are trading for lower dollars they all have stories. My hope is that the cars appeal to different audiences. I am sure there is some cross over but the 355 is the last of a line prior to the 360 which marked a new styling direction for Ferrari. Time will tell.


Anonymous said...

I wholesale Ferraris and COnsign the best cars to the Dealer. Very low mile perfect F355's with all maintinence tools etc are selling for 60-65. I am buying these low mile cars now for mid to low 40's.

If you hold onto it, history shows it as an investment. If you sell now your not getting anywhere near what you would in an UP market. Its just how its going.
The F355 is a favorite for the Typical Home owner looking for a toy who would use home equity lines to purchase these as Original owners were dumping them for 360's and moving to 360's when those owners were dumping those for F430's etc.
But the Credit has dried up and equity shrinking. These cars are values are going way down.
Even the uber weathy are just not spending money on these types of luxuries. Of course there are exceptions but the rule is they are not moving.

David said...

While I dont like it I think your pricing and assessment of the market is accurate. Not such a bad thing to have to keep a Ferrari.