G’day, giz your car back mate
The collapse of global sharemarkets and record levels of mortgage stress are expected to signal boom times for used-car auctioneers, as far more luxury vehicles hit the market.
Reports from Australia include the one year old Ferrari F1 Spyder that dropped $170,000 from its new price.
The economic downturn could also have a silver lining for “repo men” or mercantile agents, who are tipping a surge in the number of repossessed prestige vehicles over the next year.
In Australia, Steve Anstas, a director of mercantile agency NCR Group, seizes about 20 luxury cars a week from people who default on finance companies and banks. He expects that number to soar by January.
He said prestige cars were usually the first thing to be jettisoned in tougher times.
More than 50 Mercedes, Porsches, Maseratis and BMWs went under the hammer in one sale recently; most repossessed by finance companies or offloaded by their owners.
Australian repo companies expect an increase in business over the next year, as corporate bonuses dry up and more luxury car owners come under financial duress. Many prestige vehicles tend to depreciate sharply over their first year on the road, which leads to substantial losses when owners default on finance companies.
Maybe the best way to drive a prestige car is car leasing – no fear of repo there
November 2, 2008 at 1:09 pm | Car Leasing News | No comment
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