cars leftover in long beach....
12-07-2008, 07:20 PM
#1
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12-07-2008, 09:42 PM
#3
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Not surprising, New York is overloaded as well. Thousands of cars nobody wants. I wonder how long can this go on? These cars are depreciating by the day, and no use.
12-07-2008, 11:01 PM
#4
Overwhelming problem, just overwhelming.
Even if the economy were to pick up, it would take many months, if not years, to unload all of these cars. I would hope that the ordering has stopped! One of those was a S63. I sure wish I could be a buyer right now.
Even if the economy were to pick up, it would take many months, if not years, to unload all of these cars. I would hope that the ordering has stopped! One of those was a S63. I sure wish I could be a buyer right now.
12-07-2008, 11:41 PM
#5
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Indeed, a global glut of all kinds of luxury goods, houses, etc...no real surprise in this massive, historic deleveraging underway
After all, no one needs any of this stuff
Interestingly, inventories of new 65s seem rather tight
Somewhat counterintuitively, in a deep recession, suspect cars that would sell (or, more precisely, be $0-down leased) more briskly than any other high-end cars would be new 65s....low-profile perf cars that can be enjoyed daily (esp in CA)...hell, new 65s now cost less than new 599s or Scuds in annual depreciation....quite the relative value
After all, no one needs any of this stuff
Interestingly, inventories of new 65s seem rather tight
Somewhat counterintuitively, in a deep recession, suspect cars that would sell (or, more precisely, be $0-down leased) more briskly than any other high-end cars would be new 65s....low-profile perf cars that can be enjoyed daily (esp in CA)...hell, new 65s now cost less than new 599s or Scuds in annual depreciation....quite the relative value
12-08-2008, 01:01 AM
#7
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Might be a good time to pick up <10k mi S600/65 for those in the market. I think prices will get even better in 2009.
This is very tempting, I have to resist... Ideally I'd like to get a low-mileage S600/65 of the facelift version (should be out by Fall 2009) in 2010. Even better.
This is very tempting, I have to resist... Ideally I'd like to get a low-mileage S600/65 of the facelift version (should be out by Fall 2009) in 2010. Even better.
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12-08-2008, 08:18 AM
#9
I didn't realize that many high end Mercedes were built without being ordered by an individual. I never see a 65 or 600 just arriving at my dealership without it being pre-sold by a customer. Of course my area isn't as affluent like CA, NY, FL and states/areas like that.
12-08-2008, 11:01 AM
#10
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There is an 09 S63 that has been sitting on the show room floor at the dealer where I got my car (Northern Cali) for almost 3 months now, and no one is interested. They may trade it with another dealer rather than drop the price is what I heard when I inquired about it..
12-08-2008, 03:34 PM
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There is an 09 S63 that has been sitting on the show room floor at the dealer where I got my car (Northern Cali) for almost 3 months now, and no one is interested. They may trade it with another dealer rather than drop the price is what I heard when I inquired about it..
IS interested and they do not want to budge on it. It's as if the outside world and outside news do not penetrate the windows of the dealership.
12-08-2008, 04:33 PM
#13
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12-08-2008, 09:40 PM
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'22 Alpina B7,'21 G63 Renntech obviously (wife), Wrangler(kids)
I am looking at 65s (S or CL) to replace my SL but new ones are still pretty high (about 15% off the MSRP is the best you can get in Chicago area and even that is not easy at most dealers).
Ferraris are soft also but not nearly as bad as Lambos or "ordinary" daily cars like CLs,etc(ZERO allocations of 599 and 430 for next year as of now).
New 599 are still at list in US ,07s and '08s with a couple K miles can be had for 10-15% off the sticker.
Scuds on the other hand are still over list,premiums though are no longer at $100k but down to $25-30k.
Last edited by absent; 12-08-2008 at 09:43 PM.
12-08-2008, 10:40 PM
#16
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pre-owned MB dept is doing 300% yr/yr sales...quite a contrast for the new dealer. if i were dealer owner, i'd shift my resources to pre-owned and the service dept. just servicing these CPOs/flipping lease returns for $1500 profit/car from MB credit for 1/2 of residual is a better business than paying interest on new MBs and watching them sit.
PL
PL
12-09-2008, 07:36 AM
#17
pre-owned MB dept is doing 300% yr/yr sales...quite a contrast for the new dealer. if i were dealer owner, i'd shift my resources to pre-owned and the service dept. just servicing these CPOs/flipping lease returns for $1500 profit/car from MB credit for 1/2 of residual is a better business than paying interest on new MBs and watching them sit.
PL
PL
Not a bad idea at all. Perhaps if they had been doing this for years, new cars would not have the depreciation rate they do currently because you know how dealers then would jack the prices up on the used cars! The used market prices as a whole would have stayed up quite a bit. That in turn would allow more new car seekers to be able to trade more often due to the fact that upside equity wouldn't be so harsh.
At least in a possible theory.
12-09-2008, 09:53 AM
#18
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trouble is, i only know 1 MB dealer that's doing this. in looking at ads by many MB dealers in the SF Bay area, they're trying to make $7k to $10k on the same model car. they might get that $7k profit, but they don't understand that $7k on 1 car means only 1 salesman made any money for that week. this is not a right time to maximize gross profit per car - they should try to keep the volume up so at least the employees can have some income while they make some money, esp in the service dept.
btw, we have a Toyota dealer that just cut their entire swing shift service dept AFTER 16 yrs because their service dept wasn't at full capacity - that sucks for all the employees!!!
p.s. this is time for smart dealers to really crank up the volume and gain market share. i remember when Longo Toyota used to be a local mom and pop shop - and after they expanded and went after voluime, became the largest Toyota dealer in the world...and all from the tiny city of El Monte(run by Penskey).
Patrick
btw, we have a Toyota dealer that just cut their entire swing shift service dept AFTER 16 yrs because their service dept wasn't at full capacity - that sucks for all the employees!!!
p.s. this is time for smart dealers to really crank up the volume and gain market share. i remember when Longo Toyota used to be a local mom and pop shop - and after they expanded and went after voluime, became the largest Toyota dealer in the world...and all from the tiny city of El Monte(run by Penskey).
Patrick
12-09-2008, 12:03 PM
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2005 Range Rover HSE, 2008 BMW M3 Cab d/c, 2010 GL550 (wifes), 1993 Porsche 928GTS 32kmi garage quee
I'm going out on a limb here and predicting that were are at the early stages of the end of this economic madness. At least here in CA. It all started here and we are seeing some early signs of the end of down cycle. First off as everyone knows the housing must bottom before any recovery. I know we are still seeing a lot of foreclosure activity and backlog of but at the current pricing the investors are now coming in and buying this "cheap" stuff,
as the rental income/mortgage costs ratio is attractive. For us here is S CA the sales volume is WAY up year over year, inventory has been falling for the last three months and is approaching a 5 month supply,sharply lower. The mean price continues to fall at a much slower pace as things are already down so dramatic. In addition the mean value is distorted because all this volume is taken place at lower end of market where all foreclosures are focused. The upper tier market there is very low quality inventory. Most of the upper crust is sitting on sidelines. No buyers but also few sellers at the upper end. Refi activity is going through the roof with the new low rates. I hear a lot of chatter of people expecting this upcoming summer to be the bottom. That with the new super low rates will lead to a lot of activity especially in the higher end with people tired of the sidelines. The markets always lead the perception so I say now is it. The equities market already reached its bottom of around 7700 at DOW. Now approaching 9000. Combine this with the current HOPE effect of Obama and promised huge government spending and there you go. BTW I have absolutely no experience in the real estate industry.
But my common sense says. BUY NOW. Buy your cars now, buy stocks now, and buy real estate now. 
as the rental income/mortgage costs ratio is attractive. For us here is S CA the sales volume is WAY up year over year, inventory has been falling for the last three months and is approaching a 5 month supply,sharply lower. The mean price continues to fall at a much slower pace as things are already down so dramatic. In addition the mean value is distorted because all this volume is taken place at lower end of market where all foreclosures are focused. The upper tier market there is very low quality inventory. Most of the upper crust is sitting on sidelines. No buyers but also few sellers at the upper end. Refi activity is going through the roof with the new low rates. I hear a lot of chatter of people expecting this upcoming summer to be the bottom. That with the new super low rates will lead to a lot of activity especially in the higher end with people tired of the sidelines. The markets always lead the perception so I say now is it. The equities market already reached its bottom of around 7700 at DOW. Now approaching 9000. Combine this with the current HOPE effect of Obama and promised huge government spending and there you go. BTW I have absolutely no experience in the real estate industry.
But my common sense says. BUY NOW. Buy your cars now, buy stocks now, and buy real estate now.
12-09-2008, 06:31 PM
#20
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12-09-2008, 08:26 PM
#21
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I'm going out on a limb here and predicting that were are at the early stages of the end of this economic madness. At least here in CA. It all started here and we are seeing some early signs of the end of down cycle. First off as everyone knows the housing must bottom before any recovery. I know we are still seeing a lot of foreclosure activity and backlog of but at the current pricing the investors are now coming in and buying this "cheap" stuff,
as the rental income/mortgage costs ratio is attractive. For us here is S CA the sales volume is WAY up year over year, inventory has been falling for the last three months and is approaching a 5 month supply,sharply lower. The mean price continues to fall at a much slower pace as things are already down so dramatic. In addition the mean value is distorted because all this volume is taken place at lower end of market where all foreclosures are focused. The upper tier market there is very low quality inventory. Most of the upper crust is sitting on sidelines. No buyers but also few sellers at the upper end. Refi activity is going through the roof with the new low rates. I hear a lot of chatter of people expecting this upcoming summer to be the bottom. That with the new super low rates will lead to a lot of activity especially in the higher end with people tired of the sidelines. The markets always lead the perception so I say now is it. The equities market already reached its bottom of around 7700 at DOW. Now approaching 9000. Combine this with the current HOPE effect of Obama and promised huge government spending and there you go. BTW I have absolutely no experience in the real estate industry. But my common sense says. BUY NOW. Buy your cars now, buy stocks now, and buy real estate now.
as the rental income/mortgage costs ratio is attractive. For us here is S CA the sales volume is WAY up year over year, inventory has been falling for the last three months and is approaching a 5 month supply,sharply lower. The mean price continues to fall at a much slower pace as things are already down so dramatic. In addition the mean value is distorted because all this volume is taken place at lower end of market where all foreclosures are focused. The upper tier market there is very low quality inventory. Most of the upper crust is sitting on sidelines. No buyers but also few sellers at the upper end. Refi activity is going through the roof with the new low rates. I hear a lot of chatter of people expecting this upcoming summer to be the bottom. That with the new super low rates will lead to a lot of activity especially in the higher end with people tired of the sidelines. The markets always lead the perception so I say now is it. The equities market already reached its bottom of around 7700 at DOW. Now approaching 9000. Combine this with the current HOPE effect of Obama and promised huge government spending and there you go. BTW I have absolutely no experience in the real estate industry.
But my common sense says. BUY NOW. Buy your cars now, buy stocks now, and buy real estate now. 
12-09-2008, 10:09 PM
#22
Wow! I just read every word of that and that is very sobering; educational, yet sobering!
12-09-2008, 10:22 PM
#23
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weiss is a promotional machine and is not honest about his track record. further, he's known as doctor doom and has lost people lots of money during the past 10 yrs who listen to his short market thesis, including missing the huge 2002 to 2007 boom and many good stocks that went up 10-20x.
bottomline, even a broken clock is right 2x a day. weiss has been right 2x in the past 10 yrs - not what would consider a good track record.
my $.02.
Patrick
bottomline, even a broken clock is right 2x a day. weiss has been right 2x in the past 10 yrs - not what would consider a good track record.
my $.02.
Patrick
12-10-2008, 01:01 AM
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'06 E 350 4matic wagon; '05 E 500 4matic sedan; '09 S550 4matic
You could well be right but this market has had many, many people already call false bottoms. Recent positive activity has been a combination of bailout rallies and trading (not long term investing). Corporate earnings have barely had the effect of the slowdowns reflected in latest quarter and the new layoffs have not rolled through either. Yes, financials and housing-related were torched early but retail, general consumer, manufacturing, service have a few quarters to go. I think cars will be attractively priced for quite some time. Bailouts may well be necessary but they are not good ways for businesses to long term succeed. Why would you buy a car from a bailed out Ford/GM if you wouldn't have bought one before?? Keep your seatbelts buckled a while longer.
