Thursday, January 7, 2010

A Recovery Year

It was, to say the least, a very interesting year. The iLUXCARS System saw over $600 million worth of luxury vehicles. We can safely say that this year was a better year than 2008.

With a few exceptions, average depreciation was manageable. In many cases, values actually improved. These were not things we could say about 2008. We’ve breathed a collective sigh of relief.

Like we said last month, we’re starting to see activity levels on the system rise. The number of new dealers signing up is very high, almost matching our peaks in 2007 and early 2008.

December prices dropped a bit more than average for the year – about 2% overall for the month. The bulk of this is across the following models: Ferrari, Lamborghini, Aston, Mercedes, and Rolls. Lamborghini dropped by almost 4% on average, Ferrari 3.3%, Mercedes 3%, Aston Martin 2.2%, and Rolls Royce 1.75%.

Remember that from June through November prices were more or less flat. We’re nearly, dare we say, optimistic.

Also remember that in June, for the first time in the history of this report (18 months now), prices actually went UP.

We want to point out that in our opinion, December’s price drops are in line with our expectations and we don’t expect for the bottom to drop out again. Basically we’re saying don’t worry. If you take the last 3 months together, the average depreciation was a comfortable 1%.

Of course, if the car you own today happens to be a 612 or a GT2, you may be borderline underwater. Which is another (great) reason to continue to use iLUXCARS.

Remember, iLUXCARS gathers the data and publishes this report directly from the iLUXCARS System. In other words, this is not our opinion. The Market Report prices, while intended ONLY as a guideline, do represent the real money on these vehicles today.

Our goal is simple and consistent – help you make more deals. Something we’ve been doing consistently well, according to our users, for over 5 years, even through our first year of recovery.

By the way, happy new year. Faster. Safer. Better.

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