In response to the uproar caused by prominent cryptocurrency exchange FTX's recent bankruptcy filing, cryptocurrency enthusiasts appear to be selling off their expensive cars, according to a report from the New York Post.
The shortened version is provided for those who aren't familiar.Sam Bankman-Fried, also known as SBF, established FTX.FTX is a Bahamas-based digital money trade that appeared to be capitalizing on the metaverse frenzy, obviously doing so well that it could stand to support the Mercedes-AMG F1 group, and in any event, while petitioning for financial protection, SBF said the organization was worth around $5.5 billion.According to Markets Insider, the sum of the company's crypto holdings was less than $660,000.
Although a lot of big and small investors have lost a lot of money, the impact of this shock on the industry has gone beyond FTX clients, and cryptocurrencies around the world are losing value.
Because of this, many people are unable to afford the luxuries that were made possible by digital tokens like Bitcoin.The Post's report has found that there has been "an increase in like-new models of sought-after extravagance vehicles [hitting] resale destinations like AutoTrader as of late, however they're not bringing the superior costs they once did."The Mercedes-Benz G-Class is the accepted superficial point of interest of the brand new, and interest for the G-Wagen has been colossal.This new report notes that the vehicle was once valued in the region of $300,000 on the used market but is now closer to $200,000. In fact, Mercedes in Europe had to freeze orders at the beginning of the year to cope.That's a drop in market value of about a third, but the decline of Bitcoin and its competitors hasn't just affected this car.
Resale values have decreased for a number of McLaren supercars as well as the Lamborghini Urus, another new-money boast vehicle.A 2020 Mercedes-AMG G63 with only 3,992 miles on the clock recently sold for $179,000, when the same vehicle would have sold for approximately $240,000 last year, according to the anonymous CEO of a luxury car dealer who writes an eponymous newsletter on market conditions and goes by the name "CarDealershipGuy."
CarDealershipGuy stated, "It's clear that in the last couple of months, the decline in prices for exotic vehicles has accelerated. That correlates very, very well with the meltdown in the crypto markets where we know that some of the biggest customers of exotic vehicles were crypto millionaires." He added that he has received a number of inquiries online from crypto enthusiasts seeking to sell off their pricey vehicles.
"Everything is correlated when you have a large evisceration of wealth," the CEO continued, "if we learned one thing."The entire economy is affected."Now may be the best time to purchase a G-Wagen, particularly a high-end AMG model.Do you not want a big SUV?Software engineer Brianna Wu recently tweeted about a surprising-low-priced McLaren 600LT Spider with only 9,000 miles on the clock that was selling for a little over $255,000. Businessman and auto scout Marshall Haas also noted earlier in November that there were more than 1,600 G-Class Mercs for sale on AutoTrader.
The number of used luxury vehicles priced over $100,000 has more than quadrupled in the last three years, according to a representative of the car listing site who spoke with The Post.
In an email to The Post, AutoTrader's Mark Schirmer stated, "We do know in the larger market, used-vehicle prices are under pressure - the wholesale values have been dropping most of this year." He also stated, "in 2021, there was a historic run-up in used-vehicle values."We are experiencing declines this year; "what goes up must come down."
Hopefully that this is the start of the decay of crazy markups and absurd pre-owned vehicle costs across the range.We won't miss that either, even if we never have to write another article about an automotive NFT.
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