Its so much harder right now to find good lease deals for high end cars. I’ve been spoiled by being able to get 25% off all this time and I doubt I’ll see deals like that for a while. With this current environment I’m wondering if its better to buy some sort of exotic and flip it in a year or two. A few problems with that:
Finance rates seem too high. Bentley is at 7.99%. I wouldn’t get a Bentley anyway, but still…
Buying it all in cash ties up $200k+
I could end up miscalculating the depreciation and end up losing gobs of money.
Am I seriously going to take a Ferrari to the supermarket?!
Has anyone done anything like this before? I’d like to know your thoughts and experiences.
(Most) kidding aside, with this being leasehackr, you’re probably not going to find too many people here that are putting up hundreds of thousands of dollars for car flips. Most of us don’t want to even risk hundreds :-).
There will be people here who will talk about it, but not too many that have actually done it. That said, every once in a while there will be a fairly high end post related to a potential flip, but they are very rare here.
Production is severely limited so there is no reason for a dealer to discount 25%. With that being said, is the target market can buy these cars outright so you are competition with people who view money as a play thing and can’t get their custom orders from the factory in a timely manner. Also if you’re at the point financially where you are thinking of leasing something this expensive you should know that vehicles are depreciating assets.
Those 4 points tell me all I need to know, just like anything in life where there is money to be made you need to know what you’re doing, so I’ll say in the nicest way possible, unless you truly love cars and want to spend hours and hours of research on them just find something you like and buy/lease it, if you are in this bracket then losing thousands whether it be lease or finance isn’t going to even remotely phase you, it it does phase you then stick to something that doesn’t.
As someone that does this full time, it is damn near impossible to do it without connections in the exotic world and tons of knowledge about the market. Market is too strong and even the biggest names in the exotic space are struggling to find inventory and are overpaying as a result. IMO $20-$40k profit is not worth the risk if you have no idea what you’re doing.
Could not be said any better. I have been doing this for years as well and its a nightmare now. To be fair, I am ultra conservative on my purchases so at this point, I am sitting on the sidelines unless I find vehicles that are not overly advertised which then allows me to purchase them at pre-pandemic pricing as a result. I have had some moderate success but this is not a full time job for me, rather purchase to flip and enjoy during the time being. This market is going to have many loose their shirts once this mess is over. SVJs were $50K - $75K off sticker, now sticker+, Gen 4 Vipers were in the $50s and now $70K+, Gen 5 Viper ACRs were $125-$140, now up to $225K; hell even 911s, NSXs, and S2000s are on fire! A correction is coming and its going to hit HARD. I am making sure I am well insulated to ensure minimal losses.
I’m the same way. I demand a zero-drive off and 25% off for a deal to happen. I’ll do a onepay, put up MSDs or both. It just doesn’t look like its going to happen this time around.
With this environment I feel like I’m sitting on funny money. Whats the point when a G-wagon is going for $50k over sticker these days? I never though I’d be in this situation but I have to seriously consider whether I want to do a buy out of my lease. To make things even worse, I need to get not 1 but 3 cars – 1 every 3 months.
Maybe its better to take an Uber until things settle down? lol
There will be a substantial correction, it will be a collapse and it won’t just be in exotics or used cars it will be throughout every asset class. Anyone who actually believes this can last on the trajectory it has gone is an absolute fool. The collapse in all asset classes will have everyone dumbfounded when it takes place. Only a few see what’s coming. Most will ignore it it the very end and until the collapse has finally ended because that’s when everyone notices it, well after it has ended and not anytime during the euphoria.
But in all seriousness, the G-Wagon and all luxury SUVs is being driven by tax rule 179; well hopefully it is if they are smart. What better way to write down debt by getting a “free” G-Wagon, drive it for a year and then resell. Even at the 35% tax bracket, you come out with a significant profit. Gotta love government loopholes.
Everyone feels flush, which is why everyone is overpaying for everything. Smart money would not being trying to transact right now unless they had to, or the opportunity is too good to pass up.
Why is it so certain? There’s so much money out there globally. I heard overall money supply is up a staggering 30% just from what happened last year alone. The housing bubble took years to peak out and pales in comparison to what just happened. I think we’re looking at multiple-years of asset inflation at low interest rates followed by higher interest rates as long as prices can absorb them.
Hey, don’t shoot the messenger. I am familiar with the exception but what people do with their taxes is none of my business. Let’s get started on the PPP money. All I know is I have seen it happen many a times, whether legal or not. I don’t have first hand knowledge on the matter because I have never driven anything over 6,000lbs .
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