Readers have been well-informed about the slide in wholesale used-vehicle prices. A combination of increasing new car and truck supply, soaring interest rates, and economic uncertainty have been drivers of slowing consumer demand. But let’s concentrate on the luxury side of the used car market, where storm clouds quickly gather.
Twitter user CarDealershipGuy pointed out that a 2021 G-Wagon with only 3,330 miles just sold at auction for around $187,000. He said the latest auction figures were a 30% plunge from the nearly $300,000 price the luxury SUV commanded earlier this year.
Exotic car market is getting decimated right now.
2021 Mercedes G-Wagon with 3,378 miles just sold for $187K at auction.
that’s nearly an $80K (or 30%) drop in under 12 months.
— CarDealershipGuy (@GuyDealership) November 22, 2022
CarDealershipGuy explained, “exotic car market is getting decimated right,” even though the overall decline in the average wholesale used car prices is only “-13.7% y/y (according to Manheim).” He attributed the turmoil in the luxury space to “crypto bros” panic dumping high-end vehicles.
Reminder that wholesale used cars are only down 13.7% y/y (according to Manheim)
so yes, crypto bros are hurting.
oh and incase you wanted more proof: pic.twitter.com/moYa9h1AZ4
— CarDealershipGuy (@GuyDealership) November 22, 2022
NYPost said, “an uptick in like-new models of sought-after luxury cars has hit resale sites such as AutoTrader in recent weeks.”
CarDealershipGuy told The Post the crypto winter has forced “crypto bros” to dump luxury vehicles at auctions or list them on online marketplaces.
“It’s clear that in the last couple of months the decline in prices for exotic vehicles has accelerated and that correlates very, very well with the meltdown in the crypto markets where we know that some of the biggest customers of exotic vehicles were crypto millionaires,” he said.
Here’s the crash in bitcoin.
Software engineer Brianna Wu also noticed an uptick, though she said McLaren listings on AutoTempest were “exploding.”
The crypto crash is real.
Right now, @AutoTempest is EXPLODING with McLarens – the flashy and extremely unreliable car of Cryptobros who couldn’t change a tire if their lives depended on it. pic.twitter.com/L8Swam8Qmm
— Brianna Wu (@BriannaWu) November 16, 2022
If “crypto bros” are offloading vehicles, perhaps it’s only a matter of time before they unload other assets, such as Rolex, yachts, and mansions, as the winter in the digital asset space could worsen in the months ahead.
Tyler Durden
Wed, 11/30/2022 – 20:05
