Out of work, out of clients or just plain out of luck; former high-rollers who can no longer make the monthly repayment are finding that their Ferrari and Porsche symbols of success are being called in by their real owners, the finance companies.
Last night, hundreds of car enthusiasts filled the Royal Hall of Industries at Sydney?s Moore Park, as 90 ?luxury, exotic and 4WD vehicles? were put under the hammer. With the smell of blood in their nostrils, it was a grand opportunity for the cashed-up to nab a cheap(er) supercar.
Run by the Pickles Auction House, around 70 percent of the cars sold were repossession sales, with luxury brands such as Audi, Saab, Ferrari, Porsche and Aston Martin going under the hammer. And there was some good buying to be had.
?They're facing a big loss on this one," Chief auctioneer Steve Allen said of one financial institution after being forced to drop the hammer on a repossessed 2008 Porsche after bidding peaked at $272,000. "It's worth a lot more than that."
A 2005 Porsche that fetched $206,000, was also expected to sell for a lot more.
At the top of the tree was a 2007 Ferrari 599 Fiorano, which was being sold on behalf of the administrator of a major NSW company as part of its liquidation. The winning bid on the 599 was $420,000, placed by an online bidder. The same car new is a $650,000 proposition.
The next year or two should prove to be bountiful pickings for the cashed-up car enthusiast. Prices for second hand cars, (luxury and otherwise) should continue to move south as the Australian economy?s dyke continues to spring more leaks than Mr Rudd and his team can stuff borrowed money into.