Tuesday, September 7, 2010

Next To Normal

The last few months in the luxury car market have been very unusual. Why? Prices have more or less stayed completely flat. This is, of course, extremely good news if you were around during the fourth quarter of 2008.

Prices this month have not stayed flat. Overall average depreciation across all models is less than one percent (0.71%). While this does represent a real change from the last several months, it’s more or less normal depreciation.

Most models held close to prices from last month. The exceptions were Bentley (Brooklands, GT Speed), Porsche (GT2, GT3/GT3 RS), Ferrari (360, Scuderia), and Mercedes (SL65 Black Series, CL65, CL63). Together, these models dropped almost 5% over the last month.

The good news is that 80% of models that we track (out of the 103 currently tracked) didn’t change at all. This means two things: one, most prices haven’t changed in any statistically significant way, and two, nothing is in free fall.

Some of the models that dropped are understandable. For example, the drop in the GT2, GT3, and GT3 RS is typical for this time of year. We don’t interpret this as anything ominous. The drop on Scuderias is probably the most interesting (just under 5%), mainly due to the fact that this is the second straight month for that sort of drop for the Scuderia.

Remember, the Market Report prices, while intended ONLY as a guideline, do represent the real money on these vehicles today.

Like we said last month, it’s normal for prices to go down. Flat values are unusual. Which is, after all, why you’re reading this report.

Of course, iLUXCARS is much, much more than a way to value your trades – iLUXCARS is a complete solution; from the time your customer walks into your dealership, through getting paid and the car off your lot fast.

Complete.

Technology working for you.

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.

Helping you make more deals. One commitment at a time.

Faster. Safer. Better.

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