Ferrari Mailing List: Re: Barrett-Jacson [Ferrari Digest, Vol 18, Issue 43}

[LarryT (l02turner]

All good points from the good Doctor.  Nothing like a little desperation to 
being out some of the toys and put them up at "No Reserve" ;-)


BTW, I just noticed "Comcast Free on Demand" has several catagories from 
BJ07 including European Specials and High Prices of 2007.

Larry T (67 MGB, 74 911, 78 240D, 91 300D)
www.youroil.net for Oil Analysis and Weber Parts
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.

----- Original Message ----- 
From: <BRIGANDBAR [at] aol.com>
To: "Larry Turner" <l02turner [at] comcast.net>
Cc: "The FerrariList" <ferrari [at] ferrarilist.com>
Sent: Tuesday, January 22, 2008 4:04 PM
Subject: Re: [Ferrari] Barrett-Jacson [Ferrari Digest, Vol 18, Issue 43}


> I think that Erik has a point here with car valuations. Most of us will
> remember that a value crash has occurred in the not too distant past, and 
> many
> folks, including some dealers (which is something I find difficult to 
> understand
> except in the context of the amount of money professional money managers 
> had
> placed in those "sub-prime" mortgages and the write-offs that they are
> currently  facing in our soon to be in recession economy) we elft "holding 
> the bag".
>
> Some of these cars are purchased with leveraged funds, either home equity
> loans or refinancing(s) but a lot of it comes from much of the money at
> Barrett-Jackson comes from bonus babies at the Wall Street firms, some, if 
> not  many,
> of whom may be job hunting and needing to unload their latest acquisitions
> to achieve some level of liquidity to survive, eat, etc. Some of the 
> funding
> comes from entrepreneurs who believe that their companies will sustain 
> their
> current, perhaps meteoric IRR/ROI's. They are the "new oilmen" in this 
> century,
> who were millionaires  (multi-millionaires or even billionaires) one day
> and eating at the mission the next. And, of course,there are the 
> successful
> people who have reached a stage in their life where they can afford what 
> they
> want, whatever the cost and are willing to pay for it. My guess is that 
> the
> latter is the smallest component of the B-J car auction market, and the 
> most
> critical in regards to value received for funds expended.
>
> I would suspect that a lot of discretionary spending will be coming to a
> screeching halt in the next 24 mos., most particularly high end items. Not 
> too
> many Ferraris, or Hemi-Cudas for that matter, that one can buy for the 
> $800.00
> rebate Congress will be sending in March. The really exclusive one-off or
> Enzo  cars will not change much, they are like the yachts that the 
> "super-rich"
> and  old money buy, in that rarified I want it and I'll just write a check 
> for
> it  drawn on the trust fund grouping. As for the rest of us, retired guys 
> like
> Willie and I will pretty well continue onward, heck he lives in AR and 
> even
> if  he decided he was sick of the world there wouldn't be a repo guy with 
> the
> balls  to screw with anyone who lives up there anyway, and I'm just living 
> off
> of what  is essentially the deferred compensation for the paltry sums that
> civil servants  are paid before they actually achieve the Nirvana, with 
> toys
> only available in  cases of capital murder or such, but not purchased with
> anything but toy money,  but in the real world where we have all lived, 
> and most of
> us will continue to  live it will soon be time to circle the wagons, hold 
> on
> to what we have and  enjoy it, but put off "upgrading" to a new 430 from 
> our
> 3x8 cars. In some cases,  through probably not with 430's some folks will 
> end up
> like the commodity  traders who wait too long and then actually have to 
> buy
> the rail car full of  corn, with few or no buyers for their positions on 
> the
> list and the sad fact  that they will either lose their down payment or 
> deposit
> or buy the car and  either have fun with it or try to sell it themselves. 
> I am
> going to guess that  it will be the Bentley folks that will probably be 
> hit
> the worst but that is  purely conjecture on my part.
>
> I feel fortunate in that the only cars that I would anticipate selling are
> my "commodity" cars,the daily drivers or later model Rolls that were never
> bought with anticipation of anything but depreciation because they are 
> pretty
> much standard cars (for a PMC) at least and if I drive them until the 
> market
> recovers, or the floor plan financing company at the Jaguar dealership is
> pressuring them to sell some of their new stock and I'm willing to trade 
> into  one
> of them accepting about auction value for my car in exchange for true
> action/wholesale price for their new one. I may position myself so that if 
> the
> "crash" in values brings about a jeopardy sale of something I really want 
> I can
[SNIP]