Crypto Millionaires are feeling the dip, and appear to be trying to cash out of their luxury cars amid the recent crypto bust. This crypto bust follows the FTX implosion.
More luxury cars have hit resale sites such as AutoTrader in recent weeks, but they’re not fetching the premium prices they once did. The Mercedes Benz G-Wagon — the unofficial “new money” badge of the crypto rich — was once valued around $300,000 in the resale market but is now closer to $200,000, car experts say. Other luxury vehicles such as Lamborghini and McLaren Spiders have also taken a hit.
Some luxury car insiders believe the purge is linked to the FTX collapse, which caused as much as $2 billion in client money to evaporate. People want to sell luxury items and get their hard cash back.
“Exotic car market is getting decimated right now,” CarDealershipGuy, the anonymous CEO of a luxury car dealership who pens an eponymous newsletter, tweeted on Nov. 22, noting that a 2021 Mercedes G-Wagon with just 3,378 miles sold for $187,000 at auction. “That’s nearly an $80,000 (or 30%) drop in under 12 months,” he wrote.
More recently, on Nov. 25, a 2020 Mercedes G-Wagon — the G63 AMG model — with 3,992 miles sold for $179,000 at auction, down from around $240,000 last year.
“It’s clear that in the last couple of months the decline in prices for exotic vehicles has accelerated and 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,” CarDealershipGuy said.
“If we learned one thing, everything is correlated when you have a large evisceration of wealth. It impacts the entire economy,” he said.
AutoTempest is also exploding with McLarens and there are currently 1,606 G Wagon’s for sale on AutoTrader right now.
What’s more, data from Manheim, an auction site where dealers can acquire used vehicles, found for the first half of November, seasonally adjusted values of luxury SUVs were down 12.1% year-over-year.