The one thing that I think you’re missing is that you won’t be able to walk into any dealership and buy the most desirable / profitable exotics. Let’s say you walk to your local Porsche dealership, with zero prior purchases, and ask to buy a GT3. You’re gonna get put on the waitlist, but you’re not going to be near the top unless you are trading in an older GT3 or purchased numerous Porsches beforehand. Those super limited production runs of exotics require an extensive purchase history before you’re even offered to purchase one. It’s kinda like those Hermes Birkin bags; they won’t let you waltz in and buy one just off the street. You have to be such a favorable and repeat customer that you get offered the chance to buy one.
I’m not referring to the US economy, my statement was specific to the exotic automotive market. I’ve been in the exotic market since 2016, and I’ve never seen this much rapid appreciation and to be honest it really shouldn’t be happening to this extent. I understand there’s a lack of new car supply which will cause small amounts of appreciation in the used market but it has been insane. At some point the bubble is going to pop.
Example, my GT3RS was a $205-$210k retail car less than a year ago, now comps in the market are pushing $275k
My Aventador SV was a $370k retail car less than a year ago, now comps in the market are $460-$470k.
Neither of these two are special cars, not historically significant in any manner, and really shouldn’t be appreciating at all (especially the RS). This is happening with every single car exotic car in the market and cars are transacting faster than ever. My point is, it can only go so far before it stops. At some point the market will take a step back and realize that market prices for all exotics have gone far beyond what the car itself is worth.
Finding inventory worth flipping will be damn near impossible for someone with 0 connections or experience. Let alone knowing where the market is on every vehicle, if the spec you’re purchasing is desirable or a boat anchor, what you should be paying for the car, what your planned exit is, carrying expenses, marketing and selling the car itself, etc. The only reason I was able to do it is because of my extensive experience as a Used Car Manager for a sizable Jaguar Land Rover dealership and the connections within the exotic world I made while in that position.
Purchasing a new vehicle that you can flip and make money is on is especially difficult right now as well, I struggled to get a 992 GT3 allocation from my Porsche store that I bought my GT3RS from. Anything worth buying new and flipping is going to be impossible to get without knowing someone or having an extensive purchase history with that dealer.
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20-40k profit? These fools are flipping 150-200k cars and making 1% on them. Major risk.
I wouldn’t touch this market unless you get an insider deal or get lucky from an old timer that doesn’t use the internet. These days the market is so connected worldwide that everyone gets top dollar if they market the car properly. I gave up on my r8/huracan search for now. Maybe the market will loosen up next year but doesn’t look promising minus a financial “event”. There’s just too many doll hairs in circulation right now, and bored people with nothing to spend it on.
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You are going to wake up one day really soon and see the entire used car market completely obliviated. Only idiots would be playing in this fairytale market.
What would be the better alternative if I can’t find what I consider to be my unicorn deal? Is it better just to get something and take a Sec 179 writeoff? Just order a Tesla?
The other thing is, I’m highly incentivized to get a Porsche since they’ll pay for 6 months of my payments. Thats nearly a 17% discount right there.
Can you elaborate?
I think he means the Porsche pull-ahead.
I assume he means WTP, which is equivalent to 3 of your current lease payments, no?
- Take a deep breath and reclaim your agency, no Internet stranger is making the second biggest financial decision for you
- @Allen_K WHAT are you trying to accomplish? A specific car? Cache with a brand? Owning or leasing? New or CPO? Just parking cash? Looking for a flip?
- Section 179 lets a business accelerate depreciation when purchasing (not leasing) certain vehicles (over 6000 gvw). Has your CPA confirmed you are eligible? Usually they also steer you into a particular price range, not Lambos.
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By no means an exotic but, 2008 Cayenne GTS 59k miles.
Now if you find a manual Cayenne GTS, we are talking $$$.
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Doesn’t 179 have a $25k cap? Or did they remove that?
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Lease something cheap and play the waiting game to be honest. Swap out once the market comes back to reality.
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You should be flipping exotic mini vans, lots of unfortunate souls out there who think they need a 3rd row because they have their first baby on the way, LOTS of pregnant little snow bunnies out there.
Ironically this turned into a, “leases suck right now what should I get?” Thread 
.
Dump it into cryptocurrency’s, less risk 
waits for the firing squad from other LH’ers.
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Model X? 
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I thought he was referring to WTP as well and assuming they pay 6/36 months or approx 17% of the lease terms which is not accurate unless I am mistaken.
WTP has always been a rebate of your current payment * X
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Flipping exotic cars? That is so last year. I just sold a pallet of pressure treated 2x6’s for 40k.
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They have programs that will cover up to 12 months of payments.
Do you currently lease a Porsche that you’re trying to get out of?
Thinking of a pull ahead program as an additional “discount” is terribly misguided. Porsche may waive 6 or 12 months of your current lease but that’s also 6 or 12 months use of the car that you’re not getting.
And of course in order to take advantage of any pull ahead you need to lease/buy a new Porsche, duh, which means paying sticker+ for anything flip-able along with Porsche’s always favorable .00200 to .00240 MF depending on the dealer, etc.
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Specifically a
- MY17 Cayenne or Panamera
- MY19 718 or 911
For the 12 month pull-ahead