People who trade in cryptocurrencies love cars. You will see a lot of evidence of this when you hang out in the parking lot of a conference or on social media. It stands to reason that the used car lots would be filled with six-figure Italian cars because of the crash of FTX.
There is some evidence that the exotic car market is seeing a slight increase in appraisals and used models for sale, but it may be too early to make a connection between it and the collapse incryptocurrencies.
I am aware. It's called buzzkill. There is a lot of interesting data out there.
I reached out to three sources to get their take on this, and they all said that there are too many factors at play to make a conclusive conclusion about the matter.
The used vehicles that retail over $100,000 have a slight increase in market share this year as compared to the last three years. They found what they were looking for.
The data team really dug into this one according to the senior public relations manager at Autotrader. There is a lot of variables and the data team is having a hard time connecting the increase to any one thing.
She said, "The trend is moving upwards, but this could be for a lot of reasons."
The firm that sells autos told me the same thing. Figuring that it would be too early to detect any movement in used car sales and inventory, they pulled some data from the appraisal tool that people use to price out their current car. They put together a list of over 70 brands.
It was surprising. There was a slight increase in appraisals a few weeks before the big announcements of trouble in the market. The experts at the firm were left scratching their heads about what other possible reasons there might be for the increase in appraisals.
The trend is intriguing.
The trend is interesting as our appraisals went up a few weeks before the major announcements of trouble within the market. The data makes you wonder, but I wouldn't want to draw too many conclusions about why.
It would be better to see these vehicles appear for sale in the used market before jumping to conclusions, but it did raise some eyebrows.
There are many eyebrows that are raising. I reached out to the CarDealershipGuy account on social media, who runs a high volume independent dealer group and aspires to be a trusted source for car buyers online.
The exotic market is going in a different direction.
He says he has seen a significant increase in exotic inventory levels. G-Wagons that were selling for $300,000 a few months ago are now in the $200,000-$220,000 range.
CDG said in an email that the exotic market has corrected in a big way.
It can be difficult to determine if the joy in the sale of luxury items is real or just wish-casting. It would appear that there is some truth to the phenomenon but that more analysis is needed.
According to a report from this summer, the collapse ofcryptocurrencies has flooded the secondhand market with other luxury goods. The publication recently checked in on the exotic car market and found thatLamborghinis are doing well.
It might be time to check again.
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