Inflation and Lambo Prices
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With prices skyrocketing on everything way above what they are saying is the inflation rate, I would expect Lambo prices to continue upward. If true inflation is 10% then lambos should go up at least 10% a year. With the chip shortage forecast to continue into the near future and the push for elimination of gasoline engines, Lambos should be great future investments. (Especially those that already bottomed out on depreciation.) I heard an interesting person in the automotive industry state that there is really no chip shortage but that the US government is stockpiling chips under military purchase order priority status. There are piles of chips sitting at different military bases. It is driving gasoline car prices up enough to make electric cars more competitive. That combined with rising fuel prices is sure to render all our older cars more collectible in the future as the ability to buy a gas powered car becomes more and more difficult. What are your thoughts?
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I'm in the aerospace/defense industry and I can say the "chip shortage" is real and not some conspiracy to make electric cars more competitive. I say "chip shortage" in quotations because it's really just long lead times on some integrated circuit components due to factories being closed for periods of time or open with reduced workforces. The material suppliers to those semiconductor manufacturers have had similar delays in getting product out the door for the same reasons, and the delays just stack up for the end user/consumer.
No doubt in my mind though with the direction the automotive industry is moving, raw, mechanical, and emotional automotive experiences are becoming more rare and coveted. I do expect older Lamborghini prices to continue to climb, because they are more authentic and special. The production numbers of exotic cars across the board have gone way up. They have steadily climbed, and using Lamborghini as an example, they're shattering previous production/sales records in a matter of a couple years. They're building ~5,000 Uruses per year, ~2,500 Huracans per year. They built ~1,400 Gallardos per year, ~400 Murcielagos per year. If that much demand is there for new Lamborghinis, I think there will be huge desire for older Lamborghinis that deliver the old school visceral experience which is getting engineered out of new cars, supercars included.
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I have some serious concerns about hyper inflation across the board right now. There are some scary things going on out there with the money being printed by the Fed in the last year. I won't get into it here, but would highly recommend googling how much much US currency has been printed in the last year compared to our history. They are glazing over a lot of important things going on. The economy is not on a great path right now, in my opinion, and can go one of two ways.
I do feel that short of an entire market collapse, our cars will continue to grow with inflation. Particularly, the older generation Lamborghinis. I don't think they will beat potential alternatives, but I think they are a relatively safe hedge if bought for the right price.
I too share concerns about the chip shortage though.
I do feel that short of an entire market collapse, our cars will continue to grow with inflation. Particularly, the older generation Lamborghinis. I don't think they will beat potential alternatives, but I think they are a relatively safe hedge if bought for the right price.
I too share concerns about the chip shortage though.
As far as timing to buy a car and waiting for the right price in the market or worrying about inflation. It's like buying a computer or even property (price/interest rates) for that matter. If you wait for the lowest price. You'll always be waiting. Once you've made the conscious decision to buy. Then go buy at the lowest price you can negotiate of course.
I wholeheartedly agree.
A little off topic, but I have a friend that pulled out of the stock market in 2009 after taking a huge hit. He lost half of his savings, and told me at least I won’t lose it all. I rode it out as painful as it was, and now I’m glad I did. He has been waiting for the right time to get back in since 2009. For me the right time to buy is always now.
Ouch!!!
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The chip foundries are the weak spot. TSMC, AMAT, godly, etc. can’t fabricate the chips because of supply chain issues with covid, supply demand imbalances.
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I been pushing the chips in on older and newer " raw " cars. The Lambo is the cherry on top. Riding in these new hyper cars, they are so quick but also so dull at the same time. Almost like riding a rollercoaster. You enjoy the ride but ready to move on after its over without looking back. There's just no connecting with hybrid or electric cars.
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That's way I look at the future supercars as well. Performance will be insane but it'll be like driving a go kart. Dull and boring but at some point in the future we'll all be driving self driving electric cars. What a time to be alive 
And I reckon the last 15 years produced some of the best sports cars which is why I believe investing in the right supercar or buying a bunch of sports cars from this time period will probably be a better long term investment than stocks and crypto plus you can enjoy your investments.
And I reckon the last 15 years produced some of the best sports cars which is why I believe investing in the right supercar or buying a bunch of sports cars from this time period will probably be a better long term investment than stocks and crypto plus you can enjoy your investments.
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