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LA car market isn't meeting any huge deflation of pricing. Yet. Will be interesting to see if this big market I'm in takes a dive. Second wave of COVID doesn't seem to matter anymore to anyone, and since statistics are much clearer now of whom is most at risk, those least affected will be out in the marketplace and enjoying what they can. This could actually help business owners who cash in from home on their businesses preserve their garages and not force any sales. Tricky, but I'm highly convinced this is going to be a very localized correction in every market segment.
 

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Discussion Starter #662
I have not seen any substantial drops either. The weird thing is that our housing market seems to be increasing. We sell large lot semi rural acreage tracts. I think people are wanting to move out of the cities. I still fear the impact of 15 or 20% unemployment unless it starts drastically dropping. All the stimulus kept everyone liquid for the last three months and injected a huge amount of cash into the economy. Maybe that will be enough offset to keep the economy going till it recovers. I sure hope so. We are however in an election year and there will be really high motivation for the opposition to the President to bring the economy down a few notches. Historically presidents with a strong economy always get reelected. We have also seen a large scale abandonment of the masks and social distancing in Texas (Thank goodness) Restaurants and retailers are starting to return to some sense of normalcy. I think the large scale dissemination of the facts has made most people realize that their threat level is exceedingly low.
 

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unemployment is a serious concern. This resurgence of the virus certainly not going to help things. without tourism we are pretty much in limbo. Our governor said he’s going to allow tourists to start returning August 1, yes I’ll be interesting. Trumps ratings have been dropping almost daily and Biden hasn’t had to do a single thing except sit there and watch.
 

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I have not seen any substantial drops either. The weird thing is that our housing market seems to be increasing.
I think that's pretty standard outside of cities right now. Coronavirus had people interested in moving out of the city anyway and with the rioting it's just gotten worse. Listings are way down and low interest rates are causing asking prices to go up. I'm in the market myself and it looks like everything is going for over asking price here in the suburbs.
 

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At present, it seems like exactly the opposite of what we were all hoping for has occurred.

Feels to me like the majority more affordable & clean cars have all been bought up, and there is something of a nationwide shortage.

Lambo NB has almost nothing on their pre-owned lot, and everything I had causally looked at is gone, and shipped out to various other states.
I have a good friend that writes ins policies for high end cars and boats. Prior to this year he would do approximately 200 per month. He is now around 650 per month. People are investing in what they can do from home and not have to travel is what his customers are telling him why the change in their investments. He is predicting this will be in effect for the next 3 years. This is why you are not seeing pricing dropping, the dealers are selling their cars off the lot. This is not like the 2008 down turn.
 

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I have a good friend that writes ins policies for high end cars and boats. Prior to this year he would do approximately 200 per month. He is now around 650 per month. People are investing in what they can do from home and not have to travel is what his customers are telling him why the change in their investments. He is predicting this will be in effect for the next 3 years. This is why you are not seeing pricing dropping, the dealers are selling their cars off the lot. This is not like the 2008 down turn.
I would be willing to bet that this has something to do with layoffs as well. Less people = more work per person.
 

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Someone I spoke with last night made a plausible observation.

It’s possible that a number of SMB owners (and “sole proprietors”) who have NOT been negatively impacted by covid have taken advantage of the EIDL/PPP loans and used those funds to snap up exotics.

3.75% over 30 years with no payment due until 12 months after closing could be the perfect situation for some buyers.

Buy the car, drive for 12 months, sell shortly after to pay back the loan, resulting in a total spend of only 12 months of accrued interest.

If you do it like below, people are even planning to get the loan “forgiven” using the right paper trail.

From a forum post I found elsewhere:



 

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I'm in Canada but we have similar (yet smaller) bailout plans for businesses. And I'm quite sure a lot of it is squandered into the big company hands and not into the small mom and pop shops that need it most. Then taxpayers get stuck with the bill too.

There's tons of money to get, and quite easy to get it.

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Discussion Starter #669
That is an interesting analysis on people using the ppp funds for buying a lambo. It is entirely possible. Since I am the OP and someone thinks it is wrong to take the funds, I have to strongly disagree. I have been paying 6 figure income taxes for many years only to watch the government squander my tax money. There are so many undeserving people on disability, SSI and committing fraud to get government money ,it is ridiculous. Spending is so wasteful it is disgusting. There is no effort by the Govt to stop any fraud or cheating at the lower levels. They also grant huge amounts of money to other countries who don't like us and have leaders that steal most of the money. I keep perfect books so don't mind any audit. We used the PPP money for exactly what it was intended for. We kept the entire staff employed and did not cut hours or employees even though our sales are off by several million as of mid year. Had we not gotten PPP we would have probably laid off a 3rd of the staff. So please get off your soapbox. I have paid WAY WAY WAY more than my fair share of taxes and never taken 1 penny of government money before the PPP. I have no problem getting back a little of the money that they have taken from me over the years. I used it exactly as was designed and kept records of it all. Lee
 
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I not disagreeing with you. There is definitely a "take from the rich and give to the lazy scammers" mentality so I don't mind getting what I can. In the end they will take it all back in taxes anyways so I'm only trying to get ahead of the 8 ball just slightly haha.

Unfortunately, these people on disability are able to do what they do because people in my profession write the notes to make it happen instead of just saying no. It's easier to get someone off their back by writing the note than have them whine forever on end... I dunno. I haven't been around long enough and am still the asshole that would rather say... Get to work! There will always people who do deserve it, don't get me wrong, but it boggles my mind when people come see me, young healthy people, and they are on disability.

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All I was saying above is:

1. The SBA is rapidly approving loans for “businesses impacted by covid” so these businesses can meet their payroll and prevent an increase in unemployment despite a crippling drop in revenue for many businesses

2. There is a chance that many “business” owners who are NOT In trouble have taken those loans to buy up exotics, resulting in the exact opposite we were expecting with price & inventory.

It’s an observation, not judgment.
 

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2. There is a chance that many “business” owners who are NOT In trouble have taken those loans to buy up exotics, resulting in the exact opposite we were expecting with price & inventory.

It’s an observation, not judgment.
I think the thought of people using SBA loans to buy super cars on a significant enough level that it props up the entire market is a little silly. Sure there will be examples here and there. But the upper end market (not just lambos) has not really been hit. I doubt it is because a rush of people going out and buying them up with PPA loans.

FWIW, I know quite a few business owners and getting PPA loans were not as easy as one thought. Lots of people got them, but lots of people did not.

I dont think this had any impact on the high-end car market.
 

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As far as I can see listings are down about 10% on autotrader. Maybe they're suffering from the same fate as houses right now where supply is down and interest rates are low.
 

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As far as I can see listings are down about 10% on autotrader. Maybe they're suffering from the same fate as houses right now where supply is down and interest rates are low.

I have been following the Gallardo market for about 8 months now. I just ended up buying last month. I looked through auto-trader, FB, Car-gurus...etc. I cant see any movement in prices. Approx same amount available and prices have not changed as far as I can tell.
 

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I have been following the Gallardo market for about 8 months now. I just ended up buying last month. I looked through auto-trader, FB, Car-gurus...etc. I cant see any movement in prices. Approx same amount available and prices have not changed as far as I can tell.
To clarify I was specifically looking at AWD Huracan models, there are currently 125 on autotrader as compared to 135 or so before.
 

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I have been following the Gallardo market for about 8 months now. I just ended up buying last month. I looked through auto-trader, FB, Car-gurus...etc. I cant see any movement in prices. Approx same amount available and prices have not changed as far as I can tell.
It also seems like there's not much turnover in what's available. Many cars have been for sale for months. Obviously the prices on those cars are too high, but the sellers don't seem to care. It's weird.
 
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