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With so many cars creeping out of the woodwork / storage, a tool to search cars for sale VIN filtered for your build option requirements would be handy. i.e. hi-res build options.
So if I thought of that idea then many have, and at least one has already made it! Probably.
Look, there is not problem with one hoping! one can only stay positive and hope to make $25K on a simple market arbitrage! I bought a car from Boston Motorsports a few months ago, from what I could tell they sold me the car at the price they bought it for on BAT, so even though they may not have made any money on the car I bought they made a solid $10K on my trade in and it sold in a week.
These dealers are everything but stupid, they know the pulse of the market and if they see a chance they will take it, what's the worse that can happen? They will make $5K instead of $25K, well hell, that's not a bad days work!
Look, there is not problem with one hoping! one can only stay positive and hope to make $25K on a simple market arbitrage! I bought a car from Boston Motorsports a few months ago, from what I could tell they sold me the car at the price they bought it for on BAT, so even though they may not have made any money on the car I bought they made a solid $10K on my trade in and it sold in a week.
These dealers are everything but stupid, they know the pulse of the market and if they see a chance they will take it, what's the worse that can happen? They will make $5K instead of $25K, well hell, that's not a bad days work!
Not all dealers might be stupid, but like with everyone who tries to arbitrage a market, there are certainly those who are and buy at the peak.
they’re going to get caught holding the bag….prices dropping fast.
This is the response I got back on the car. I said my offer is the original asking price from the Ferrari dealer it was at for 179,9.
"Thank you for you generous offer on the 2016 Porsche GT3. Over the past few months I have had clients continuously ask why everything is going up, even so the market is hotter than ever and cars keep flying out of here. Kind of like the real estate market right now. Although this Porsche was previously listed at 179k values are shooting up across the nation as the major manufactures are all experiencing supply delays of some kind all over the globe. It is imperative to get into a car now before prices continue to increase. I'm happy to help you with this GT3 and I'm always available. Contact me."
Not all dealers might be stupid, but like with everyone who tries to arbitrage a market, there are certainly those who are and buy at the peak.
I think you misunderstand the basic objective of a being a car dealership. One of the tenets of being a dealership is you make money not only from buying and selling cars but also from kickbacks from other vendors. None of the major dealers are stupid, they have a better understanding of the market than forum members. If they were stupid, they would not survive, they would be out of business. So yes, there are definitely more actual data points that play a role in their decision making than what a car sold on BAT. Also, they have the capacity of holding a car and there is technically no "peak" to car prices when it comes to exotics, every car has a specific buyer and its just a matter of time before the car finds that buyer. So yes, there is more than what meets the eye of people who review prices and options as hobby vs who do this for a living.
well at least you arent debating how a WP car should be less valuable than a non-WP car, which is what i was seeing on FB.
If the mileage and usage history is the same, then no. As we all know, mileage plays a big role in the value of these cars. I would not be surprised if a WP car with 10K miles sells for less than a non-WP car with 500 miles. The delta is $18K and I think every mile you drive your RS you are losing about a few bucks in value
I think you misunderstand the basic objective of a being a car dealership. One of the tenets of being a dealership is you make money not only from buying and selling cars but also from kickbacks from other vendors. None of the major dealers are stupid, they have a better understanding of the market than forum members. If they were stupid, they would not survive, they would be out of business. So yes, there are definitely more actual data points that play a role in their decision making than what a car sold on BAT. Also, they have the capacity of holding a car and there is technically no "peak" to car prices when it comes to exotics, every car has a specific buyer and its just a matter of time before the car finds that buyer. So yes, there is more than what meets the eye of people who review prices and options as hobby vs who do this for a living.
Agree to disagree - dealers have to keep tabs on multiple models / makes. There isn't the capacity to understand the market pulse of every sub-model at any given time. Plenty of dealers have been left holding the bag while speculating and plenty demonstrated that pre-COVID. Do you not recall what happened to speedster pricing? And dealers can hold a car for as long as they want but just like in commodities, that's known as carrying costs because the cost of holding a car for a period of time directly translate into opportunity costs. They have finite floor space and dollars and if they have to allocate 6 months to hold a car because they bought it too high and mistimed the market, that's at the cost of using that capital and space for another car that could've sold much quicker. There's a reason people look at inventory turns as a measure of efficiency.
Agree to disagree - dealers have to keep tabs on multiple models / makes. There isn't the capacity to understand the market pulse of every sub-model at any given time. Plenty of dealers have been left holding the bag while speculating and plenty demonstrated that pre-COVID. Do you not recall what happened to speedster pricing? And dealers can hold a car for as long as they want but just like in commodities, that's known as carrying costs because the cost of holding a car for a period of time directly translate into opportunity costs. They have finite floor space and dollars and if they have to allocate 6 months to hold a car because they bought it too high and mistimed the market, that's at the cost of using that capital and space for another car that could've sold much quicker. There's a reason people look at inventory turns as a measure of efficiency.
At any given time the pricing reflects the market and dealers know the market for their "money makers". I once worked on a consulting engagement for one of the countries biggest dealer of exotics and you will be surprised to know that they don't make a lot of money on new car sales, in comparison, they made a lot more money on used car sales and their service department was their golden goose.
Finally, speculation is the way the rich get richer, you cant invest in bonds and expect to make money as someone investing in risky securities - that is all these dealers are doing, they are speculating and definitely have more data points compared to us....
At any given time the pricing reflects the market and dealers know the market for their "money makers". I once worked on a consulting engagement for one of the countries biggest dealer of exotics and you will be surprised to know that they don't make a lot of money on new car sales, in comparison, they made a lot more money on used car sales and their service department was their golden goose.
Finally, speculation is the way the rich get richer, you cant invest in bonds and expect to make money as someone investing in risky securities - that is all these dealers are doing, they are speculating and definitely have more data points compared to us....
Oh, I agree that they have more data points and would do a better job of buying and selling cars than a random would. I was just saying that like with any group of people who deal with buying and selling, some are going to be smarter than others. You get all kinds of dealers out there, some very savvy and smart and some who are blinded by short-term risk taking- as you noted, this can go sideways pretty quick. Cheers.
Miami Blue manual .2 GT3 with 4400 miles on Pcarmarket. PCCB, buckets, FAL, LED’s, full leather, full PPF, and BBI center muffler bypass. $185k original MSRP.
That Miami Blue one was sold locally in Houston area about 1-2 months. Asking price was 200K. Not sure if previous the owner is on here. Solid chance this is a quick flip. Nice build.
09-12-2021, 09:04 AM
