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This is anecdotal, but I recently bought a new 2020 Ram truck. GSM of the dealership is a good personal friend and we had a few lengthy conversations about how COVID-19 has affected the market. In summary the first 30 days (march through first week of April) was brutal. No sales. The "cheap" money from banks however has literally allowed him to sell most of his good inventory. Another friend of mine that runs a used car dealership has also said the same. Strong sales are back. Obviously a $70K truck isnt the same market as a $350K supercar, but I do think that the general trend is that the Mainheim auction values were artificially low. The deals may be there for now, but it doesnt look to be a permanent fixture or an indelible mark on the value of our cars.

on a somewhat related note, I read an article sayting that McLaren was putting up MTC and their Mac collection as collateral for debt. If McLaren becomes insolvent, that could spell huge problems for our values.
I'm not sure I follow. How has the "cheap" money flowed through to car dealers? Auto loan rates haven't really gone down, lending has actually gotten tighter, and many manufacturers were already offering low-to-zero financing on many models.

I'd say at best it's just pent up demand and that once it's met, it will go back down again. There's just no logical reason for car sales to be good right now since almost the entire world is in a worse position financially and interest rates associated with those types of purchases haven't really changed much.

Brian Moynihan just did an interview and said this month's consumer spending is about 2-4% lower than last year, which is crazy good, all things considered. But he said the question is whether that pent up spending goes back down or not like it did in China. The reality is that a shit load of people are unemployed right now and those benefits won't last forever. If jobs don't come back very quickly and everyone doesn't get back to work asap, it's simply not possible for demand for cars to be good.
 

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I'm not sure I follow. How has the "cheap" money flowed through to car dealers? Auto loan rates haven't really gone down, lending has actually gotten tighter, and many manufacturers were already offering low-to-zero financing on many models.

I'd say at best it's just pent up demand and that once it's met, it will go back down again. There's just no logical reason for car sales to be good right now since almost the entire world is in a worse position financially and interest rates associated with those types of purchases haven't really changed much.

Brian Moynihan just did an interview and said this month's consumer spending is about 2-4% lower than last year, which is crazy good, all things considered. But he said the question is whether that pent up spending goes back down or not like it did in China. The reality is that a shit load of people are unemployed right now and those benefits won't last forever. If jobs don't come back very quickly and everyone doesn't get back to work asap, it's simply not possible for demand for cars to be good.
“Cheap money” is 0% for 72 or 84 months. Doesn’t get cheaper.
 

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This is anecdotal, but I recently bought a new 2020 Ram truck. GSM of the dealership is a good personal friend and we had a few lengthy conversations about how COVID-19 has affected the market. In summary the first 30 days (march through first week of April) was brutal. No sales. The "cheap" money from banks however has literally allowed him to sell most of his good inventory. Another friend of mine that runs a used car dealership has also said the same. Strong sales are back. Obviously a $70K truck isnt the same market as a $350K supercar, but I do think that the general trend is that the Mainheim auction values were artificially low. The deals may be there for now, but it doesnt look to be a permanent fixture or an indelible mark on the value of our cars.

on a somewhat related note, I read an article sayting that McLaren was putting up MTC and their Mac collection as collateral for debt. If McLaren becomes insolvent, that could spell huge problems for our values.
commented on this in the other Thread:

the mortgage thing is probably mainly a business decision for getting the lowest possible interest rate
 

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Spoke to 2 dealers in the Northeast who state that Mclaren is not building anymore 2020 720 Spiders so they are not discounting them significantly.
Anyone has a lead on a new or demo Spider for the 25% off Msrp as stated previously?
With those lease payments others got under $2,000/mo I would take one immediately...
 

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Spoke to 2 dealers in the Northeast who state that Mclaren is not building anymore 2020 720 Spiders so they are not discounting them significantly.
Anyone has a lead on a new or demo Spider for the 25% off Msrp as stated previously?
With those lease payments others got under $2,000/mo I would take one immediately...
Hi Mnogh.
Do you mean that there will be absolutely no more 720s Spider produced this year?
I've just pulled the trigger on a brand new one so if I'm a bit selfish, that would be good news for the value potential of my car on the medium term.

Hope you will find a nice car with a serious discount!
 

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Hi Mnogh.
Do you mean that there will be absolutely no more 720s Spider produced this year?
I've just pulled the trigger on a brand new one so if I'm a bit selfish, that would be good news for the value potential of my car on the medium term.

Hope you will find a nice car with a serious discount!

they will start the 2021 soon I guess only no more 2020 - maybe thats what they mean ...
 

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Hi Mnogh.
Do you mean that there will be absolutely no more 720s Spider produced this year?
I've just pulled the trigger on a brand new one so if I'm a bit selfish, that would be good news for the value potential of my car on the medium term.

Hope you will find a nice car with a serious discount!
Congrats on your new Spider!
Both managers told me the same story: Mclaren is not building anymore 2020 Spiders so what vehicles they have is all for now, thus no significant discounts as others have gotten recently on 2020 Spiders...
 

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Congrats on your new Spider!
Both managers told me the same story: Mclaren is not building anymore 2020 Spiders so what vehicles they have is all for now, thus no significant discounts as others have gotten recently on 2020 Spiders...
Its quiet logical bc for now they will do 765LTs ... and probably some 720s Coupes ... there is a lot of 720s Spider inventory at the dealers currently that needs to go first ... allocations for new spiders (which the dealers need to reserve) will probably only become available for the 2021 model year again (which starts in Q3 till Q2 2021)

In addition to that EU/US/UK/Rest of the world allocations might be produced at different times ... maybe it just means no US 720s Spider allocations are available anymore at the moment
 
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Mclaren Philly told me 71% residual is for 2500 miles so not sure if numbers have changed from last month. Has anyone gotten 20%+ off a spyder on the east coast?
 

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Mclaren Philly told me 71% residual is for 2500 miles so not sure if numbers have changed from last month. Has anyone gotten 20%+ off a spyder on the east coast?
I was told by multiple dealers that the residual for 24 months/2500 miles is 71% and 24 months/5000 miles is 69%. Not sure if the residual changed since April, but some forum members were quoting 71% residual for 24 months/5000 miles last month.
 

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I have yet to see any discounts that high. At the moment I am seeing a l range of 10.5% to 16.5% discounts on 2020 720S Spiders in the U.S. I think you ask for a price that works for you even if that means a 20%+ discount. I suspect no dealer will come out of the gate with a quote having that high a discount. Most will want to get a feel of how committed are you before throwing their best price out there. Worse that can happen is they say 'no' and make a counter offer. I'm ok with that - the deal has to work for both of us.
 

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Crazy.....720s are hitting sub 180k USD here in Canada....
every supercar is getting wacked. not crazy.... its the reality of the times. price action on 488 awful as well. Same with Huracan’s. F8 selling at slight discount to msrp.... lack of orders for SF90.... what’s crazy???

i just bought a G Wagon at MSRP... thats crazier lol

US market prices are very reflective of the entire supercar market.
 

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every supercar is getting wacked. not crazy.... its the reality of the times. price action on 488 awful as well. Same with Huracan’s. F8 selling at slight discount to msrp.... lack of orders for SF90.... what’s crazy???

i just bought a G Wagon at MSRP... thats crazier lol

US market prices are very reflective of the entire supercar market.
After the initial reluctance to adjust prices and sell the cars, dealers have finally capitulated and are doing just that.
 

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After the initial reluctance to adjust prices and sell the cars, dealers have finally capitulated and are doing just that.
everywhere... got 4 calls to get an F8 at discount... when has that ever happened? i am by no means a fcar loyalist. its happening everywhere, every brand... gwagon perfect example.... they were 35 to 46k above msrp at one point.

considering this, i am kind of ok with 720 price actions
 

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Guess the outlook is still too cloudy and risky. Even though the market is still pretty high, revenue for real businesses is hurting for most people. I don't imagine there are many people interested in buying exotics just because their paper gains on the SP500 are still somewhat in tact. There's a difference between the stock market being high and your income being high.
 

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Guess the outlook is still too cloudy and risky. Even though the market is still pretty high, revenue for real businesses is hurting for most people. I don't imagine there are many people interested in buying exotics just because their paper gains on the SP500 are still somewhat in tact. There's a difference between the stock market being high and your income being high.
Aggregate wealth just took a massive haircut. Yes many investor portfolios are clawing back to single digit losses for the year, but a huge amount of capital left the market entirely and isn’t coming back for a while.

Car market was already soft for two years pre Covid. We are nowhere close to the end of the correction for exotic cars. Unless a car is truly limited and/or otherwise especially collectible, prices are headed lower and lower for many months to come.


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