I am very excited to say we are nearly done with the edits of Car Trek 5. We will have some previews over the next couple weeks and the series will release on Freddy's channel around the beginning of September.
One good example would be the E30 BMW. With the exception of the M3, 95% of them are going to be a 318/325i, is, es, or e designation. Then there's that 5% of the owners that have just a plain old 325 with no letters behind it who get rid of their car because they have a hard time sourcing parts for it. Every parts book calls for every variation of a 325 except the 325 without a letter designation behind it.
@@alexandrecouture2462 in my side of the pond the Sovereign XJ6 it's not that rare. Found a couple of 1991 for sale in my city right away just googling it.
Ed explains state of the economy better then the FED market notes. Plus throws in physiology of a segment of society. YOLO effect is interesting. Now comes the hangover.
YOLO effect makes a lot of sense. Sooner or later the bubble will burst, probably not anytime soon. And yes people are bored and restless and spending irrational amounts on cars. But let's face it the buyers of exotic and rare cars aren't getting in over their heads. It's f*** you money in a nutshell. I said this over and over but outrageous prices people are paying is part of the appeal who buy them, probably more so the ones that aren't car fanatics but have the means to pay whatever they want on them.
@@danm3359 uhh I wouldn't say that people get in over there head on exotic cars all the time. You see it all the time with music artists and that trickles down to more "regular people" as well. You get someone who thinks they are about to get that promotion or who all of a sudden gets hit to there income they weren't expecting or a particular investment just didn't go the way they were expecting and boom they can't pay any longer.
The “boredom” comment nailed me - and I didn’t even recognize it while it happened. We’ve been stuck at home for a long while and I decided to upgrade my car during all of this, and was able to realize some unexpected appreciation on my old vehicle. It made the new purchase quite easy to rationalize.
This is exactly what happened to the scale plastic model industry. People bored at home now in their 30 and 40 with nothing to do have gone back to a simple inexpensive hobby they enjoyed as a kid but had not had the time to enjoy as busy adults.
@@Killsnapz haha I never really thought about that. I'm exactly in that demographic and was a blink of an eye from buying a few hundred dollar RC airplane kit last year. I'm just an incredible tight wad, and that no fun part of my brain kicked in at the last second saying, "You don't need that".
Its a time as a UA-cam creator i have to think twice about what cars I am emotionally attached to and which cars I would rather have a pile of money out of
@@king0kingz529 you might love something you've owned for a while, but want something new. Doesnt mean you didnt love it while you had it! I sold a car I loved due to circumstance. Plenty of things can happen
@@austinwrighteous I have a 95 rusty chevy burb but I'll never get rid of it until the thing is rusted to far. I dont think I will ever buy a new car or truck fuck that
I can completely agree with everything Ed is saying on the EXOTIC market. The average used car market, however? Yeah, that's a bubble popping in the coming years.
I think certain collector cars that aren't exactly exotics are still undervalued. 90s cars mostly, pre-emmisions, when an engine was an engine and not a rats nest.
Maybe but its driven by inflation caused by the govt adding $5 Trillion to the money pool and soon they'll add another $4-5 trillion. This is causing inflation. It isn't a bubble its a repricing of the dollar
This is specifically why I subscribed to vinwiki as to any other car channel. They go into the financial aspect of owning cars and sees it as what it really is instead of some other channels which are blinded by their passion or at least pretend to be. And ed Bolian with his incredible storytelling and summarizing skills!
Great explanation Ed! I have curtailed my Wheeler Dealer activities because I don't want to buy a fixer for ridiculous $$$ only to have it crash to 2/3 what it was worth when I bought it. So I have been helping my friends sell their cars. Make no mistake, the crash will come and when it does it will be hard. The YOLO crowd will bail quickly.
Ed, exactly this time last year. I commented on one of your videos thanking you for recommending Woodside credit and Auto-tempest to find a smoking deal on a 2007 Lotus Exige. I sold that car two weeks ago to a guy in Atlanta for a 50% profit including tax and fees. Its yellow with Carbon lotus factory seats. Im sure you will see it around town. Thanks again!
I think it’s disappointing how disconnected Ed is from the reality of people not benefiting from inequality and wealth redistribution. Specifically? The stock market is not the economy. People not paying rent aren’t likely in a position to impact the exotic or enthusiast car market. Small business owners spending PPP loans on anything other than their employees need to be prosecuted. I love what you do Ed and agree with most of your analysis here but your bias and privilege is showing badly.
All corvettes have sky rocketed , it’s ridiculous, I currently own a c7 z51 , purchased before the spike , paid 41k for it and now I can sell it for easily 50-53k which is crazy to me
Always appreciate an Ed segment that helps explain where others make it more confusing. Most of all, I feel he's credible. Thanks for the wisdom and can't wait for CarTrek 5 😁
Ed, I would be interested in hearing this same discussion about 'normal" cars. I am a mechanic and we are seeing people happily paying exorbitant repair bills, because the prices for regular cars has gone through the roof. Cases where we try to "sell out" a job and encourage a customer to get rid of a car, they pay the bill instead and do everything...
But the fact is it helped a lot more than just the 1% helped the top 10-15%. They created more 401k millionaires in the last year than existed before. We all know 1%ers. They obviously love this. But we also know upper middle class. They probably went from a net worth of around or under a million to probably $2 million
"When people get bored, they spend money" This is very apparent in the retro games market. Games that would give for 5 or 10 dollars before covid are going fir 70 or 80 now. Its insane.
It wasn't just high dollar items. All collectibles from 80s action figures, hot wheels cars, magic cards, every hard asset went up starting around May 2020.
"The bubble will not burst" ...??? I remember very well when I turned 18 yrs and got my driver license (in 1986). Round about at that time the market for Ferraris went crazy. It has started with the 1984 Ferrari 288 GTO (price when new: 275k D-Mark) for 600k D-Mark in 1985/86. And then from 1986 to 1989 the values even for a Testarossa (still in production at that time) got higher and higher. In 1989/1990 a brand new Testarossa has cost 225k D-Mark (here in Germany), and only 1 day after the delivery you was able to sell that Testarossa for up to 550k D-Mark! It went totally nuts when Enzo died. Every Ferrari - even the 2nd hand cars in very poor condition and also the very unpopular models - easily doubled their values literally "over night". In 1990 a Ferrari F40 was public auctioned and with over 1 mio D-Mark it broke the record. That was round about 150% over sticker; for a car was has been built in a number more than 1.000 units! The 3 (!) main reasons for that "car value bubble" in the late 1980s were (1.) the japanese Yen. In the early 1980s the Yen - in relation to the US-Dollar - was very attractive. In just a few years the Yen went so powerful, that in the mid 1980s you could buy exotic cars for just "half the price" when paying with your Yen. And therefore near to 80% of the exotic cars in the world wide market were sold for big money and went to Japan. The "demand and supply" for a Ferrari 288 GTO and (very short later) for the F40 were (2. reason) out of balance, and "investors" have paid every price to get involved into that game. And (3.) at the end of the 1980s Enzo died. That's why the values for Ferraris (and it has even affected the values of other exotic car brands) were on the peak in 1990/91. But then in late 1991 / early 1992 the game was over. The true and serious collectors had already stuffed their collections and kept these cars for decades, and the investors have stuffed their warehouses and showrooms and couldn't sell without losing serious money. In the mid 1990s you could buy exactly the same cars for only 25% of their ex-values just 5 year later! In the mid 1990s the investors switched from cars to the new economy in the stock market. The beginning of the "dot com" bubble. At that time many of "fresh restored" Ferraris entered the market for just a fraction of the costs. Of course on one hand nowadays we have more rich millionaires in this world than in the 1980s/90s. But on the other hand we have more Ferraris and Lamborghinis and Paganis and McLarens on the market than ever before. Even the very rare - and damn expensive - exotics like a 275 GTB, 250 SWB, Miura, Countach, are "available" relatively quick and easy. That's a fact! Only 5 years ago you could have told your costumer that the value for his Dino 246 GT or Daytona has increased 100k, and he just smiled. Today you can tell him that the value decreased 100k, and he won't believe you and keep his car till the cows come home, or till he can sell it totally overpriced on Bring a Trailer - the world's biggest community of car flippers and keyboard experts - to a stupid but wealthy "enthusiast". Just my personal opinion.
As far as the chip shortage goes, I managed to get out of my 2020 F150 hardly losing $1500 for a year of ownership. I shrewdly negotiated a replacement vehicle for $5000 and I’m spending the savings on a long time goal of mine to build a Factory Five Cobra (YOLO)! I’m not treating it as an investment, just found a path to the vehicle I always wanted
Another factor worth noting- in many countries you don't have to pay capital gains tax on profit from the sale of a car. Classic/exotic cars are increasingly an international market (has been for ages at the highest end), so everyone faces higher costs because of the people able to use cars as tax shelters.
Glad there are so many responsible people out there in the world buying vehicles instead of paying their mortgage or rent.... way to be responsible world...
You hit every single point. I recently bought a R35 and became apart of that community and seen people trying to buy it and people always say to wait for the "bubble" to pop. It won't NA cars are on the way out and high-performance cars from volume brands (NSX,GTR,LFA) aren't exactly going to be rushed back into production. So your advice is perfect. If you want one, get one, and stop talking about what the prices were a year ago.
They will do back down, you’d have to be delusional to think they won’t. In 2-3 years not only will prices be “normal”, they will have depreciated more.
Damn. That was the most interesting Ed Bolian video I've ever seen. (OK, except anything that has to do with Cannonball). I would enjoy more market analysis and discussion. Especially from the perspective of: Buying driver cars with the hope of retaining value while enjoying. Thx for the insights Ed.
You hit the nail on the head. Tons of people buying doge because it is cheap. But it has no use case. Look at the market cap. Vet is cheap. But the masses don't buy despite it having a use case being utilized today (enterprise supply chain logistics).
Awesome video, Ed!! I have a particular dream car I’ve been lusting after for years, and I just know that waiting until the time is right, and I’m not going to push it before that. And everyone should be able to appreciate that, as a car lover, waiting until the time is makes sense!
I feel one of the worst offenders is the new G63, my mom was looking to get one and most of them were over msrp by $70-100k, some with over 5k miles and less than a year old. The G63 is cool but not worth $225k+. The highest increase I found was a G63 Magno Red Edition, msrp around $200k, the dealer was asking $330k...
Yolo affects is 100% the reason why my age group ( millennials) are spending a fortune on our dream cars. See, we’ve seen countless times all these old guys with bad backs yell at us to “ work hard, so that when you get my age, you can retire and buy all the stuff you ever wanted “ Yeah, No. We aren’t going to wait until we are 68, fat and bones aching to buy our dream cars and not be able to fully enjoy them. I’m 36 years old and I just bought my dream car which is an R34 Nissan Skyline GTR. I’m going to enjoy my car NOW at the strong age of 36 rather than being old and tired. Times are changing, friends!
it's definitely not just exotics. One of my racing league buddies sold his '15 Grand Caravan to that 'vana online dealer for $3k over book ($18k on a $15k KBB value) His Grand Caravan showed up on the 'vana site for Hannibal, MO about a week later, and 'vana made about $5000 ($23k) on the sale to a new owner a week after that...
Hey Ed, turns out youtuber and hedge fund manager Patrick Boyle is a fan of yours. Maybe he will have some insights into what is behind the current economic climate
I think you're on the right track. Only it's more like they invented a minor virus and used it as a tool to brainwash the world population into supporting the largest ponzi scheme ever perpetrated in the history of the world.
Finally the early Viper is getting due...multiple Lemans Class winner, World Sportscar Championship sweep etc. And such a badass piece of analog Americana
I had been trying to buy a Ram Trx for a few months and found some dealers asking 25k above sticker. I finally found a good dealer after calling several states and just had to order one. Now i wait but i wasn't paying a ridiculous markup.
The RV market went up, so much that in 1 month time I traded key for key a 1986 RV for a 2016 RV worth over 50k I use to be homeless and I started to buy and sell old vans while living in them, havent had a real job in 8 years
Definitely agree on that last part, if you buy something you know you will enjoy and put miles on, you can never lose out, I opted to get a higher mileage MK4 Supra for that exact reason, never plan to sell it and just wanted the car not the investment, that's why I when people see that I have almost a quarter million miles on mine and I drove it 40k miles and the last 5 months, I'm glad I didn't buy a low mileage example for That exact reason
I’ve studied the R8 market for years while saving to put down on one. Wanted a gen 1 but prices skyrocketed to gen 2 prices. I saw gen 2’s going up as well so I jumped on a low mileage example 25k below book value. Not regretting it one bit!
Bought my Infiniti G37 coupe (6mt) with 82K miles in February of 2020! Car now sits at 95K & the value has increased by 30-40% in its condition. COVID definitely affected the used/lower car market too!
I played the selling used vehicles. Made lots of money. Paid off debts. Then bought a Harley road glide special. Not a Lamborghini but it’s my dream motorcycle. Never thought I’d ever be able to buy one.
Not an exotic, but I bought a bucket list car 2.5 years ago. In the past 12 months the value has more than doubled. I've put close to 35000 miles on it in that time. Definitely winning.
I bought a 1995 z28 camaro! A dream car of mine with t tops for about 3500 under the current market normal in my area. But it’s my dream car so I’m gonna hang on to it for as long as I can
I have been referring to the phenomenon as "Covid Crazy". As a buyer i saw motorcycles, Dirt bikes, ATVs, Snowmobiles and Jet skis became unavailable both new and used. Facebook marketplace was crazy. Prices went up quickly.
Cruising the coast car show coming up in a few months here in Mississippi, I always hope to see a few exotics, I remember the first year I went there were two young guys driving a new GTR and completely tore the front bumper off of it on it on a parking divider
3 weeks late to the party. Wanted to leave my two cents. I bought a Focus RS with 10,500 miles on it October 10th, 2019 for $31,500. Fast forward to today and it now has 36,600 miles on it and valued in a private sale at around $38,500. Triple the mileage and up $7,000 ish. I'd say this is a unique example, however, it really applies to cars that are a trim level that aren't normally purchased and made for only a few years/made few amounts of them.
There are always two economic games at play that determine pricing. One, are indirect market forces like futures speculation. Bets are placed on commodities like food, lumber, steel, oil, etc., and when those bets come due, the prices that we pay rise or fall based on the winners and losers. The price we pay at the gas pump is an obvious example. The second, is direct market forces. If people en-masse are suddenly willing to pay more for a product (for any reason) the price will be adjusted upward until it meets a certain level of resistance. The futures scenario leads to quick and noticeable price swings. The second scenario leads to slower less frequent and less extreme swings but generally, overall prices never return to previous levels. Exotic cars aside if you’re holding off on buying (insert normal car here) because you think the post-pandemic price hikes are temporary, you’ll be waiting a very long time for something that in all probability isn’t going to happen.
Always buy a car that you hope you will enjoy for 10 years. If nothing else happens, you will always have something that you love and hopefully enjoy owning. It's a car, not supposed to be anything else.
@@alexanderjiang2941 yeah I know about those, im talking about brand new release from the dealer not cars that are a few years or more old. Still crazy though
Prices are sky rocking, I'm into classic cars and the market is just ridiculous for anything 1972 or older, even the cars nobody wanted are becoming expensive
Funny thing is this has creeped into all cars. From shit boxes, to daily drivers, to classic muscle cars, everything is up. I was looking for a cheep car to do track day events. Figured a Cobalt SS. Those were just about free a couple years ago. Now they are way more than I'd be willing to pay for way rougher cars than I'd like. Plus for me is if I decided to sell my LeMans, I would actually get everything I have into it back and maybe make a couple bucks to boot.
It's happened even with lower end sports cars my wife's corvette we bought right after the pandemic started has gone up 10k in value. I think it's also influenced by the delayed release of the c8.
Well that explains it. Dealers are buying literally EVERYTHING. 2008 lexus RX350 with 300,000 miles i saw yesterday as ive been looking for one. Asking price: $12,000.
I am very excited to say we are nearly done with the edits of Car Trek 5. We will have some previews over the next couple weeks and the series will release on Freddy's channel around the beginning of September.
I really thought it was spam account
@@megacharzard10gameing79 same
Holy hell am I excited to see the F1 that you bought.
Yo Ed, can you get post on this channel as well?
Can you link Freddy’s channel pls?
"Some cars are rare because nobody wants them".... I felt that one 🤣
I bought an old Jag for a really great price! 1991 Sovereign XJ6. Nobody wants it, so it is better, it will not be stolen, and it is a joy to drive!
One good example would be the E30 BMW. With the exception of the M3, 95% of them are going to be a 318/325i, is, es, or e designation. Then there's that 5% of the owners that have just a plain old 325 with no letters behind it who get rid of their car because they have a hard time sourcing parts for it. Every parts book calls for every variation of a 325 except the 325 without a letter designation behind it.
@@alexandrecouture2462 in my side of the pond the Sovereign XJ6 it's not that rare. Found a couple of 1991 for sale in my city right away just googling it.
@A Z read his comment again, he's talking about the 325 with no letter
Unfortunately, my father's 1977 Matador station wagon fell into that category
"Buy the car you love" - 100% accurate and excellent advice.
and drive it
Ed explains state of the economy better then the FED market notes. Plus throws in physiology of a segment of society. YOLO effect is interesting. Now comes the hangover.
YOLO effect makes a lot of sense. Sooner or later the bubble will burst, probably not anytime soon. And yes people are bored and restless and spending irrational amounts on cars. But let's face it the buyers of exotic and rare cars aren't getting in over their heads. It's f*** you money in a nutshell. I said this over and over but outrageous prices people are paying is part of the appeal who buy them, probably more so the ones that aren't car fanatics but have the means to pay whatever they want on them.
@@danm3359 uhh I wouldn't say that people get in over there head on exotic cars all the time. You see it all the time with music artists and that trickles down to more "regular people" as well. You get someone who thinks they are about to get that promotion or who all of a sudden gets hit to there income they weren't expecting or a particular investment just didn't go the way they were expecting and boom they can't pay any longer.
@@danm3359 It is called the crack up boom. Check out Mises
The “boredom” comment nailed me - and I didn’t even recognize it while it happened. We’ve been stuck at home for a long while and I decided to upgrade my car during all of this, and was able to realize some unexpected appreciation on my old vehicle. It made the new purchase quite easy to rationalize.
This is exactly what happened to the scale plastic model industry. People bored at home now in their 30 and 40 with nothing to do have gone back to a simple inexpensive hobby they enjoyed as a kid but had not had the time to enjoy as busy adults.
@@Killsnapz haha I never really thought about that. I'm exactly in that demographic and was a blink of an eye from buying a few hundred dollar RC airplane kit last year. I'm just an incredible tight wad, and that no fun part of my brain kicked in at the last second saying, "You don't need that".
what did you upgrade to and sell off?
@@mikeo8524 Sold an i3. Will miss my carbon fiber go-cart, but quite happy with the Model Y that replaced it. Already put 5,000 miles on it.
I now have FOUR new cars. I'm there.
Its a time as a UA-cam creator i have to think twice about what cars I am emotionally attached to and which cars I would rather have a pile of money out of
TFW you can put an actual numeric dollar amount to your emotions.
Bro the fuck lol money wont make you happy but having that car that your emotionally attached to can very well increase your happiness
@@king0kingz529 you might love something you've owned for a while, but want something new. Doesnt mean you didnt love it while you had it! I sold a car I loved due to circumstance. Plenty of things can happen
@@austinwrighteous I have a 95 rusty chevy burb but I'll never get rid of it until the thing is rusted to far. I dont think I will ever buy a new car or truck fuck that
On the plus side, you're mostly selling BMWs so it just takes one taxi company and you can sell them all.
It's wonderful to enjoy Prof. Bolian explaining why I can never afford anything interesting , Cest la Vie!
I can completely agree with everything Ed is saying on the EXOTIC market.
The average used car market, however? Yeah, that's a bubble popping in the coming years.
I think certain collector cars that aren't exactly exotics are still undervalued. 90s cars mostly, pre-emmisions, when an engine was an engine and not a rats nest.
Maybe but its driven by inflation caused by the govt adding $5 Trillion to the money pool and soon they'll add another $4-5 trillion. This is causing inflation. It isn't a bubble its a repricing of the dollar
This is specifically why I subscribed to vinwiki as to any other car channel.
They go into the financial aspect of owning cars and sees it as what it really is instead of some other channels which are blinded by their passion or at least pretend to be.
And ed Bolian with his incredible storytelling and summarizing skills!
Crazy what happens when you won't let rich ppl spend on travel
Seriously love this channel and what Ed bolian does with this channel and with cars in general
Great explanation Ed! I have curtailed my Wheeler Dealer activities because I don't want to buy a fixer for ridiculous $$$ only to have it crash to 2/3 what it was worth when I bought it. So I have been helping my friends sell their cars. Make no mistake, the crash will come and when it does it will be hard. The YOLO crowd will bail quickly.
Is a Tacoma an exotic car? Because the way their owners price them you would think they were.
I don’t get why. They are shitty trucks.
Here in Australia I sold a second hand equivalent (4-door 4x4 Toyota Hilux) for 20% more this year than I paid in 2020.
There is a high demand for them and it’s like Jeep’s and corvettes. Everyone believes theirs is worth more than it actually is
If they didn't sell, they would have lower prices
@@FishFind3000 Toyota makes one of the best if not the best pickup trucks out there, don't know what you're on man
Ed, exactly this time last year. I commented on one of your videos thanking you for recommending Woodside credit and Auto-tempest to find a smoking deal on a 2007 Lotus Exige. I sold that car two weeks ago to a guy in Atlanta for a 50% profit including tax and fees. Its yellow with Carbon lotus factory seats. Im sure you will see it around town. Thanks again!
What do you think? Is it a bubble ready to burst?
I hope it is.
Yee
I think it’s disappointing how disconnected Ed is from the reality of people not benefiting from inequality and wealth redistribution. Specifically? The stock market is not the economy. People not paying rent aren’t likely in a position to impact the exotic or enthusiast car market. Small business owners spending PPP loans on anything other than their employees need to be prosecuted. I love what you do Ed and agree with most of your analysis here but your bias and privilege is showing badly.
Absolutely
Problem at that point will be securing financing, even if you have the income.
I bought a C5 Corvette few months into Covid. I was surprised to see on average the value rise up by $3k on most examples
All corvettes have sky rocketed , it’s ridiculous, I currently own a c7 z51 , purchased before the spike , paid 41k for it and now I can sell it for easily 50-53k which is crazy to me
@@zhale_f82 Ditto on my C6 Z51 before Covid. Low miles for $23k. HArd to touch them below $30k now.
My dad also bought one last spring. Sold it this week for the exact same money with 15k additional mileage
Always appreciate an Ed segment that helps explain where others make it more confusing. Most of all, I feel he's credible. Thanks for the wisdom and can't wait for CarTrek 5 😁
Ed, I would be interested in hearing this same discussion about 'normal" cars. I am a mechanic and we are seeing people happily paying exorbitant repair bills, because the prices for regular cars has gone through the roof. Cases where we try to "sell out" a job and encourage a customer to get rid of a car, they pay the bill instead and do everything...
Maybe cuase the car I'd paid off or they dont have the resources to obtain another car.
I'd rather keep my 2003 CRV well maintained than put myself in crippling debt for the next 10 years 😥
Fed pumping about $7t into markets kinda boosted the top 1%
Exactly.
Yes, BUT the 1% is only a small piece of all the car buying insanity
Because money always trickles up. Not down.
But the fact is it helped a lot more than just the 1% helped the top 10-15%. They created more 401k millionaires in the last year than existed before. We all know 1%ers. They obviously love this. But we also know upper middle class. They probably went from a net worth of around or under a million to probably $2 million
Leave it to John Temerian to identify the current market situation as the "YOLO Trend". Perfect.
The moment the fed announce stimulus my heart sank as I knew some of the cars that were getting close to my budget skyrocketed in price.
"When people get bored, they spend money"
This is very apparent in the retro games market. Games that would give for 5 or 10 dollars before covid are going fir 70 or 80 now. Its insane.
Appreciate the reminder. I should move some of my NES, SNES, N64 games I collected years ago.
@@touringteg ya, I've been putting up my backlog of yardsale finds this summer and let's just say I'm getting into the 4 digits as far as profit goes.
@@Zekana0 Where have you been selling games? FB marketplace?
@@touringteg ebay mostly.
@@Zekana0 Thanks! I see hot wheels are crazy on there too.
Well put!
I really like Ed's occasional break from car videos to explain his thoughts on the market or the economy, from a car industry point of view
High S&P does not absolutely mean a strong economy
It wasn't just high dollar items. All collectibles from 80s action figures, hot wheels cars, magic cards, every hard asset went up starting around May 2020.
I can't speak for the other stuff, but the magic economy has always been wild
"The bubble will not burst" ...???
I remember very well when I turned 18 yrs and got my driver license (in 1986). Round about at that time the market for Ferraris went crazy.
It has started with the 1984 Ferrari 288 GTO (price when new: 275k D-Mark) for 600k D-Mark in 1985/86. And then from 1986 to 1989 the values even for a Testarossa (still in production at that time) got higher and higher. In 1989/1990 a brand new Testarossa has cost 225k D-Mark (here in Germany), and only 1 day after the delivery you was able to sell that Testarossa for up to 550k D-Mark!
It went totally nuts when Enzo died. Every Ferrari - even the 2nd hand cars in very poor condition and also the very unpopular models - easily doubled their values literally "over night".
In 1990 a Ferrari F40 was public auctioned and with over 1 mio D-Mark it broke the record. That was round about 150% over sticker; for a car was has been built in a number more than 1.000 units!
The 3 (!) main reasons for that "car value bubble" in the late 1980s were (1.) the japanese Yen. In the early 1980s the Yen - in relation to the US-Dollar - was very attractive. In just a few years the Yen went so powerful, that in the mid 1980s you could buy exotic cars for just "half the price" when paying with your Yen. And therefore near to 80% of the exotic cars in the world wide market were sold for big money and went to Japan.
The "demand and supply" for a Ferrari 288 GTO and (very short later) for the F40 were (2. reason) out of balance, and "investors" have paid every price to get involved into that game.
And (3.) at the end of the 1980s Enzo died. That's why the values for Ferraris (and it has even affected the values of other exotic car brands) were on the peak in 1990/91.
But then in late 1991 / early 1992 the game was over. The true and serious collectors had already stuffed their collections and kept these cars for decades, and the investors have stuffed their warehouses and showrooms and couldn't sell without losing serious money.
In the mid 1990s you could buy exactly the same cars for only 25% of their ex-values just 5 year later!
In the mid 1990s the investors switched from cars to the new economy in the stock market. The beginning of the "dot com" bubble.
At that time many of "fresh restored" Ferraris entered the market for just a fraction of the costs.
Of course on one hand nowadays we have more rich millionaires in this world than in the 1980s/90s. But on the other hand we have more Ferraris and Lamborghinis and Paganis and McLarens on the market than ever before. Even the very rare - and damn expensive - exotics like a 275 GTB, 250 SWB, Miura, Countach, are "available" relatively quick and easy. That's a fact!
Only 5 years ago you could have told your costumer that the value for his Dino 246 GT or Daytona has increased 100k, and he just smiled. Today you can tell him that the value decreased 100k, and he won't believe you and keep his car till the cows come home, or till he can sell it totally overpriced on Bring a Trailer - the world's biggest community of car flippers and keyboard experts - to a stupid but wealthy "enthusiast".
Just my personal opinion.
Remembering when the P.T. Cruiser came out, people were paying over msrp for the car. Now it's a car very few people want.
There was even a waitlist, for a pos Chrysler. Crazy to imagine now.
As far as the chip shortage goes, I managed to get out of my 2020 F150 hardly losing $1500 for a year of ownership. I shrewdly negotiated a replacement vehicle for $5000 and I’m spending the savings on a long time goal of mine to build a Factory Five Cobra (YOLO)! I’m not treating it as an investment, just found a path to the vehicle I always wanted
"Buy what you want" - well said!
Another factor worth noting- in many countries you don't have to pay capital gains tax on profit from the sale of a car. Classic/exotic cars are increasingly an international market (has been for ages at the highest end), so everyone faces higher costs because of the people able to use cars as tax shelters.
Glad there are so many responsible people out there in the world buying vehicles instead of paying their mortgage or rent.... way to be responsible world...
Your knowledge, understanding and explanations of the topics you choose to speak about is unmatched. I always enjoy your videos.
Simply the best content on the net.. And Mr. Bolian is a fine raconteur!
I'm really impressed at Ed's analysis. I'm finding myself watching more of VinWiki. Keep going, it's great👍
You hit every single point. I recently bought a R35 and became apart of that community and seen people trying to buy it and people always say to wait for the "bubble" to pop. It won't NA cars are on the way out and high-performance cars from volume brands (NSX,GTR,LFA) aren't exactly going to be rushed back into production. So your advice is perfect. If you want one, get one, and stop talking about what the prices were a year ago.
They will do back down, you’d have to be delusional to think they won’t. In 2-3 years not only will prices be “normal”, they will have depreciated more.
Because of 13 % inflation. .. highest levels in 13 years. Simple as that.
You gotta love ed with the car buying/selling knowledge
Damn. That was the most interesting Ed Bolian video I've ever seen. (OK, except anything that has to do with Cannonball). I would enjoy more market analysis and discussion. Especially from the perspective of: Buying driver cars with the hope of retaining value while enjoying.
Thx for the insights Ed.
Because Ed made it cool to buy derelict versions of these cars so now even totaled card have value..
All writeoffs have gone up in value like crazy, because used parts have gone up in value like crazy.
You hit the nail on the head.
Tons of people buying doge because it is cheap. But it has no use case. Look at the market cap.
Vet is cheap. But the masses don't buy despite it having a use case being utilized today (enterprise supply chain logistics).
Ed, what a great way to explain what’s going on. Truly inspiring by your knowledge.
I appreciate that!
The bubble will burst, I think in 3-4 years values on average muscle and super cars will loose thier gains. Probably 30-35%
Awesome video, Ed!! I have a particular dream car I’ve been lusting after for years, and I just know that waiting until the time is right, and I’m not going to push it before that. And everyone should be able to appreciate that, as a car lover, waiting until the time is makes sense!
Actually really enjoyed this, thanks Ed!
amazing vid as always one small note i wish the editor would put up pics of the car the storyteller is discussing instead of a different random car
Always refreshing to get a professional opinion on the market with no BS
Ed's fireside chats are always the best
Fantastic video Ed!! Thank you for spreading out your amazing content.
I feel one of the worst offenders is the new G63, my mom was looking to get one and most of them were over msrp by $70-100k, some with over 5k miles and less than a year old. The G63 is cool but not worth $225k+. The highest increase I found was a G63 Magno Red Edition, msrp around $200k, the dealer was asking $330k...
Holy shit are you serious? That's insane. I thought the truck market was bad
Such a good video!! Thanks dude!!
Yolo affects is 100% the reason why my age group ( millennials) are spending a fortune on our dream cars. See, we’ve seen countless times all these old guys with bad backs yell at us to “ work hard, so that when you get my age, you can retire and buy all the stuff you ever wanted “
Yeah, No.
We aren’t going to wait until we are 68, fat and bones aching to buy our dream cars and not be able to fully enjoy them.
I’m 36 years old and I just bought my dream car which is an R34 Nissan Skyline GTR. I’m going to enjoy my car NOW at the strong age of 36 rather than being old and tired.
Times are changing, friends!
it's definitely not just exotics.
One of my racing league buddies sold his '15 Grand Caravan to that 'vana online dealer for $3k over book ($18k on a $15k KBB value)
His Grand Caravan showed up on the 'vana site for Hannibal, MO about a week later, and 'vana made about $5000 ($23k) on the sale to a new owner a week after that...
Hey Ed, turns out youtuber and hedge fund manager Patrick Boyle is a fan of yours. Maybe he will have some insights into what is behind the current economic climate
Cause since 1960 the upper 5 percent had been gaining exponentially more wealth and are competing with each other for these cars and investments.
Your shocked that rich people are buying cars instead of paying their employees?
I think you're on the right track. Only it's more like they invented a minor virus and used it as a tool to brainwash the world population into supporting the largest ponzi scheme ever perpetrated in the history of the world.
excellent dialogue. i love car market discussions
Cool commentary ed...appreciate the video....looking forward to car trek season 5
Hit the nail on the head, I've seen this going on for about 1.5 year now...those stimis really helped the economy in all sectors
Finally the early Viper is getting due...multiple Lemans Class winner, World Sportscar Championship sweep etc. And such a badass piece of analog Americana
I had been trying to buy a Ram Trx for a few months and found some dealers asking 25k above sticker. I finally found a good dealer after calling several states and just had to order one. Now i wait but i wasn't paying a ridiculous markup.
The rich getting richer pretty much explains this easily lol
The RV market went up, so much that in 1 month time I traded key for key a 1986 RV for a 2016 RV worth over 50k I use to be homeless and I started to buy and sell old vans while living in them, havent had a real job in 8 years
Definitely agree on that last part, if you buy something you know you will enjoy and put miles on, you can never lose out, I opted to get a higher mileage MK4 Supra for that exact reason, never plan to sell it and just wanted the car not the investment, that's why I when people see that I have almost a quarter million miles on mine and I drove it 40k miles and the last 5 months, I'm glad I didn't buy a low mileage example for That exact reason
I’ve studied the R8 market for years while saving to put down on one. Wanted a gen 1 but prices skyrocketed to gen 2 prices. I saw gen 2’s going up as well so I jumped on a low mileage example 25k below book value. Not regretting it one bit!
Ed Bolian explains these things in a complex way, that the noncomplex persons like myself completely understand!!…..Professor Bolian!!!
Damn Ed, for a guy who can’t even change his own oil, you nailed that quite complex explanation.
Bought my Infiniti G37 coupe (6mt) with 82K miles in February of 2020! Car now sits at 95K & the value has increased by 30-40% in its condition. COVID definitely affected the used/lower car market too!
I played the selling used vehicles. Made lots of money. Paid off debts. Then bought a Harley road glide special. Not a Lamborghini but it’s my dream motorcycle. Never thought I’d ever be able to buy one.
Not an exotic, but I bought a bucket list car 2.5 years ago. In the past 12 months the value has more than doubled. I've put close to 35000 miles on it in that time. Definitely winning.
Been eyeing a B7 Audi RS4 for a few years and eventually bought one last year, now those cars have went up at least 30% in value!
I bought a 1995 z28 camaro! A dream car of mine with t tops for about 3500 under the current market normal in my area. But it’s my dream car so I’m gonna hang on to it for as long as I can
I have been referring to the phenomenon as "Covid Crazy". As a buyer i saw motorcycles, Dirt bikes, ATVs, Snowmobiles and Jet skis became unavailable both new and used. Facebook marketplace was crazy. Prices went up quickly.
Good time for Hoovie to cash in on his Lamborghinis? 🤑
Funny thing about Bubbles only a very few people see them before popping. The Business Cycle never fails.
I was at the Gooding auction when the F1 & Bugatti Type 35-B sold… crazy numbers
The rappers made the urus value go up
This was so perfectly informative! Vinwiki: class 210 - car buying in a pandemic
Cruising the coast car show coming up in a few months here in Mississippi, I always hope to see a few exotics, I remember the first year I went there were two young guys driving a new GTR and completely tore the front bumper off of it on it on a parking divider
3 weeks late to the party. Wanted to leave my two cents. I bought a Focus RS with 10,500 miles on it October 10th, 2019 for $31,500. Fast forward to today and it now has 36,600 miles on it and valued in a private sale at around $38,500. Triple the mileage and up $7,000 ish. I'd say this is a unique example, however, it really applies to cars that are a trim level that aren't normally purchased and made for only a few years/made few amounts of them.
I could listen to Ed talk all day. Haha
Great Video!! Awesome information to consider
There are always two economic games at play that determine pricing. One, are indirect market forces like futures speculation. Bets are placed on commodities like food, lumber, steel, oil, etc., and when those bets come due, the prices that we pay rise or fall based on the winners and losers. The price we pay at the gas pump is an obvious example. The second, is direct market forces. If people en-masse are suddenly willing to pay more for a product (for any reason) the price will be adjusted upward until it meets a certain level of resistance. The futures scenario leads to quick and noticeable price swings. The second scenario leads to slower less frequent and less extreme swings but generally, overall prices never return to previous levels. Exotic cars aside if you’re holding off on buying (insert normal car here) because you think the post-pandemic price hikes are temporary, you’ll be waiting a very long time for something that in all probability isn’t going to happen.
Great video Ed. Well spoken. I agree yolo effect. Sure would love a cheap loan on a collector mk4 Supra haha
Been a crazy year. Sold 11 motorcycles, bought 4. Some deals to be had.
I was hoping this video would be done by you Ed, we love the guests but we love “Shrewd negotiation” much more!
Always buy a car that you hope you will enjoy for 10 years. If nothing else happens, you will always have something that you love and hopefully enjoy owning. It's a car, not supposed to be anything else.
Ed, that was smooth wordplay there 😎
Lol they delete anything with thatn dang word. ☠️
100 percent accurate I’m in car business now current and you’re accurate on this .
Man being 16 in the current market must suck, prices are absolutely tragic for people trying to get a fun first/second car
911R is the only car that I can think of being sold for double retail. Also the only new car I've ever flipped actually, made 150k at 24!
@@alexanderjiang2941 awesome! I didn't know the msrp was that low!
@@alexanderjiang2941 yeah I know about those, im talking about brand new release from the dealer not cars that are a few years or more old. Still crazy though
Defenders over the in UK have gone wild to the point where the cheapest ones are about 7k with a bag of issues and the sorted ones are nearer 20k
The private/small airplane market has also had a very good run during Covid. Probably similar reasons for different people.
Spot on Ed about the C8 market. People that got them early have already flipped them. Also summer is coming to a end. Time to sell
Prices are sky rocking, I'm into classic cars and the market is just ridiculous for anything 1972 or older, even the cars nobody wanted are becoming expensive
Funny thing is this has creeped into all cars. From shit boxes, to daily drivers, to classic muscle cars, everything is up. I was looking for a cheep car to do track day events. Figured a Cobalt SS. Those were just about free a couple years ago. Now they are way more than I'd be willing to pay for way rougher cars than I'd like.
Plus for me is if I decided to sell my LeMans, I would actually get everything I have into it back and maybe make a couple bucks to boot.
Ed: with grow that's been...hard to explain...
The FED: Attaboy ;)
It's happened even with lower end sports cars my wife's corvette we bought right after the pandemic started has gone up 10k in value. I think it's also influenced by the delayed release of the c8.
Well that explains it. Dealers are buying literally EVERYTHING. 2008 lexus RX350 with 300,000 miles i saw yesterday as ive been looking for one. Asking price: $12,000.
Does anyone know what kind of Porsche that is at 3:18?
"Cars are rare because nobody wants them." Hey now. That's getting personal lol.