With the current global economic climate somewhat on its knees, due to increased uncertainty and extended lockdowns. But what does this mean for the performance car market? Well I’ve certainly been window shopping to stave off boredom while in isolation and I’ve noticed a bit of a trend. Most importantly being there’s more supercars and performance cars being listed for sale. Yes they’re not all listed at bargain prices but traders and private sellers are in somewhat of a vulnerable position. This is good news if before lockdown you were aspiring to own one of your dream cars but were maybe a few quid short.
Now i’m not going to profess to be an economic expert nor an experienced motor trader, but I’ve owned a lot of cars in a short space of time and i’m always watching the market. Before I bought my GT-R I wanted an R8 V10 and the cheapest cars then were around £43,000. I know it’s all mileage and spec-dependant but there are now 3 or 4 examples listed for under £40,000. Now a few thousand pounds may not sound like a huge hit, but for me that would be the difference between buying a car or not. Haggle a little bit and you could get another £1000 or so knocked off, which could mean you get a very good deal. Ferrari 360 prices have come down too, with several examples listed from £40,000 although many are the less-desirable F1 transmission.
I wrote a buyers guide to the B7 RS4 this week as their prices have plummeted lately, with the current situation I feel this will only compound the issue. But you could probably pick yourself up a good example with under 100k miles for £10-14k. I feel a bit stupid as I treated myself to a GT-R in January, although I paid next to nothing for it. I could maybe get out of it with a sale if i’m lucky but I think it risky and I would regret it. It’s very tempting though seeing so many prestige marques falling to a lower price point.
Now of course any bargain purchase you’re likely to make during this period would need to be long-term investments rather than the daily driver category. The world isn’t in a good financial predicament at the moment so I can’t see any cars “appreciating” further. I think we’ve seen the last of multi-million pound car sales to hide in garages. But if you’ve always lusted after an old 996 GT3, a Ferrari 360 or even a V10 R8 (yes this is my list) now could be the time to scratch the itch and get one!
I personally wouldn’t go diving into car finance, as we’ve just seen the world fall apart. So there are thousands if not millions of people massively in negative equity on their cars. what does this mean? Well if you financed that DB11 pictured above, for around market value with minimal interest, you’ve probably just lost £20k of value. All thanks to the Covid pandemic. So if you’ve a healthy credit score and can get a good personal loan rate (mine is around 3%),you could treat yourself over 2-3 years. Then sell the vehicle when the market has hopefully recovered. However you’d be no-way tied to the vehicle for an extended period so worst case you could take a small hit and sell the car when you needed too. It’s very very difficult to sell a car on finance as you need to settle the balance before the buyer can drive away. I did this years ago with my first fast car and I promised never to do it again.