The news cycle has been dominated by the plummeting value of crypto currencies in recent months, and the sad saga came to a head in November when well-known crypto exchange FTX filed for bankruptcy, citing a multi-billion dollar shortfall.
But the fallout is just beginning, it seems, as ripple effects hit other crypto currencies and adjacent consumer markets that benefited from the fat wallets of heavy crypto investors who are now in the unfortunate position of unloading their pricey assets.
One of these sectors is the luxury vehicle market. According to a recent report in the New York Post, crypto investors are unloading their luxury autos and the combined effect is causing the resale prices of these premium rides to tank.
According to the report, “An uptick in like-new models of sought-after luxury cars have hit resale sites such as AutoTrader in recent weeks, but they’re not fetching the premium prices they once did.”
The Post cites once-in-demand models like the Mercedes Benz G-Wagon, which were selling for around $300,000 now dipping to $200,000 at auction. Others, like McLaren Spiders, Lamborghini Urus are also dropping heavily in value, a scenario some industry insiders blame on the $2 billion in client cash that’s evaporated since the onset of the crypto crash.
One luxury car dealership CEO, the man known anonymously on Twitter as “CarDealershipGuy” recently Tweeted that the “Exotic car market is getting decimated right now,” He later told to the Post this decline “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.
“If we learned one thing,” he adds, “everything is correlated when you have a large evisceration of wealth. It impacts the entire economy.”