Margin Call

[e72phil]

I just checked Drive.com.au under "Ferrari".

Are there normally 170 used Ferraris on the market at once or are people bailing out fast ?


It will be very interesting to see how many cars and boats come on the market in the next week or 2.


I had dinner with a bank manager on the weekend who commented there were 550 houses on the market; - in Byron Bay. Earlier this year he said there were about 100.


Whats everyone hearing around the traps ?

[CamBiscuit]

Prices up here are going up not down.....

I suspect we are going to be a bit insulated from the storm.

The biggest complaint I hear is businesses not being able to get enough staff.

[OBRUT]

according to this story from last week's SMH there is more than normal numbers of exotics hitting the dealers.

http://www.smh.com.au/news/national/quick-sell-the-ferrari/2008/10/04/1223013854667.html

[griffiths_r]

funding costs going up.
What all the banks (that have survived) have seen so far is only their short term funding costs go up, along with a small proportion of their long term funding costs... as more of the long term funding rolls off the relatively cheap deals done in the past, there will be a substantial shift upwards...

defaults are also returning to more normal levels (last few years have been amazingly low). not sure if 'more normal levels' will involve a bit of time at high levels whilst all the low hanging fruit go bankrupt...

[SIR70t]

read the Financial Review.... (hourly)

If you are talking about "Margin Calls" on luxury items then I believe this is a different deal / issue compared with the forced selling of an asset due to the holders inability to service the required debt. Or the holders decision to sell the luxury item.

I see stock margin calls everyday some above the 10million mark, however in most discussion with the victims they understand that they were leveraged... so what!

The selling of a luxury item like a Vintage Car / Exotic I think in most cases is because the holder has made a rational decision based on their next purchase... (generally not a financial one in turbulent times)

I think the more interesting thing will be the repossessions on the luxury items from the people who probably couldn't afford them in the first place. The Eighties was a good example of this (post Oct 87).

Shane

[SIR70t]

Further to my point and Ryans post.

Whilst employment is at historical high levels, people generally pay their debts, the increasing loss of Jobs will see the increase of distrssed assets for sale.

- THis week at my work I lost 4 collegues to retrenchment in an office of 100 odd. The rationalisation of workforces have started and will not stop for the next 3 years in my view.

[MrUpwey]

"Off Topic" - not Porsche related!

[griffiths_r]

bringing this back on topic... does that mean:

1. that our cars are now going down in value?
2. for those who are lucky enough to have some cash sitting around, that it is time to buy?

[hmd]

bringing this back on topic... does that mean:

1. that our cars are now going down in value?

Yep most toys would.

2. for those who are lucky enough to have some cash sitting around, that it is time to buy?


trying to pick the bottom of any market is fraught with dangers. Historically the bear or bull market cycle usually take longer than what most people think.

---

[OBRUT]

> 1. that our cars are now going down in value?

gone, not going

(or more correctly: gone down AND still going down)

> 2. for those who are lucky enough to have some cash sitting around, that it is time to buy?

yes (unless you believe things are going to get worse)

[e72phil]

I can move this thread to Off Topic if needed. I initially saw it as related to exotic car prices incl classics such as ours.

[reedminor]

Thank heavens this is off topic now.

I tend to agree with Ryan as to values on most of the early 911's (including S's), but then I was never really preoccupied with what my car "might potentially" be worth.

I remember a quote from Pink Floyd drummer Nick Mason about buying his Ferrari GTO in the late 70's because he loved it.

1970's - paid 100 K GBP and drove the car everywhere he could. Was labelled a rock star with too much money and a soft spot for old Ferrari's.

1989 - car potentially worth $US6 million. Mason labelled a visionary.

1991 - car worth around $3 million. Mason labelled an aging, eccentric rock star with a soft spot for old Ferrari's

Now - reports of a GTO being sold for $US30 million in the last 6-12 weeks.

The moral of the story - buy the car to love and drive. If you are lucky enough to come out ahead - good luck to you.

[griffiths_r]

good work justin - puts things nicely into perspective from the p-car perspective.

[e72phil]

Just cruising car ads again and saw 3 Maybachs for sale. One at $399,900. This was a million $ car 4 years ago.

Others at $625,000 and $785,000.