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sdq7

Say whuuuuu?

AMG USA

Why is flipping cars different from flipping anything? If I buy a new construction home in an exclusive community and flip the contract for a profit, am I doing something bad? Or am I being a good investor?

If I am lucky enough to buy into an IPO for Uber at the opening price and sell it the next day for a big profit, is that wrong? How is buying a car at MSRP that the market values higher any different?

Personally, i love a free market economy. I don't make the market, I just live in it. If I can make a profit buying low and selling high, then good for me. If I speculate and the market drops, then I live with the consequences.

Archimedes

Nothing is wrong with it except for one fundamental difference between what we're discussing and your examples. In your examples, those assets aren't sitting around in some collectors inventory being unused for a long period of time, like they are in this case. The problem is not the flip IMO, it's the hoarding and lack of use of the asset and the damage to the brand by doing so.

hf1

Privileged access. This "free market" trope gets repeated here way too often. The car dealers racket (monopoly) in the USA is miles away from a free market. Only dealers are allowed to buy the cars from Porsche at invoice. Porsche is not allowed to offer these cars freely to every buyer willing to bid for them against everyone else.

Since for highly demanded cars, the market price is much higher than invoice (or MSRP) and since profits are guaranteed for these buyers with privileged access at privileged prices (dealers and the close circle of their friends and 'good' customers), they can afford to sit on the demanded cars until they are slowly unloaded to the buyers who actually want to use them as cars.

In an actual free market, everyone would be able to get the car they want at its proper market price for that moment, and flipping will disappear since there would be zero profit in buying then selling the car at the (same) market price.

CAlexio

^^^^^^ ESO ES EXACTAMENTE CORRECTO AMIGO

ExMB

What I've noticed throughout this thread is that people complain about those that play the system and win. That they themselves feel slighted because they didn't think of it first, or are late to the party and are looking for others in similar positions to console themselves with. While some of the issues are very regional some are of their own making. Coming late to the party and blaming others for not allowing them to step into the game late and get what they think is their *+/*++/** right. It doesn't matter how much money you have or how much you think the world needs to cater to your self worth, how important you think your presence is to everybody.

Don't like how you are being treated where you are in life; FIX IT. You're the only one with that power. Take the good with the bad. Be an adult instead of a child who throws a tantrum because you didn't get the favorite toy to show off, compete with others, put others down.

There will always be arguments pro and con. There will always be those that support you or look at you like you lost it. Be an adult about it.

$0.02

dark knight

A car is not a commodity if you love cars. A woman is a commodity if you are a pimp. I never bought or looked at a Ferrari because I wasnt going to play the games you had to play to get one. I don't buy Jordans, I paid MSRP for Tickle me Elmo, I got an extra I sold to coworker for what I paid, I never bought rare Star Wars figure from eBay instead of searching at the store. the bad taste from pimping cars hurts the marque, unless you watch Keeping up with the Kardashians you don't want nouveau riche reputation products. ADM is also associated with car products like the miata, evolution VIII, CRX Prelude, etc etc what do you think when a guy drives by in one of those way back when only people willing to pay mark up drove them? you didnt say "cool car" you say that guy was a "Butt rape" victim, not a good club to be in. I thought about a GT350R, but Im not willing to pay more and look like a fool. I am not a car dealer, Ive bought and traded back and have a good relationship. If a dealer treats you well sell it back to him. Ask yourself this, back in the crazy overpriced hyped shoot you for Jordans days, did you wear them? would you let your kids wear em?

ShakeNBake

For what it's worth, I'm being *** raped trying to buy a Minivan right now....there is too much "free" money out there.

dark knight

a minivan? like that dale guy in those insurance commercials, seriously tell em to stick it and buy something/somewhere else

sp330

Odyssey?

usctrojanGT3

You are kidding, right? Nothing remotely close to a market condition with these GT cars for several reasons. I'll leave it at that.

LnC993

Yeah, tell me about it. Some Honda dealer are asking $30k ADM on a $35k Civic Type R, who they think they are, some kind of Porsche dealer!?.

AMG USA

Really? How is it different. 1. Limited supply. 2. Privileged position. 3. The market values it higher than the initial price. Where's the difference?

The only way to buy a hot IPO at the opening is to have a privileged position, and the supply is limited. And it is virtually guaranteed to go up. And some people want to hold onto the stock and enjoy it in the long term, while others will flip it for a quick profit.

Insert "Porsche GT2RS" where I wrote "IPO" and read the paragraph again and tell me how its different.

hf1

It's not. Neither of them describes a free market.