Will Financial Markets Fall Impact Demand?

[2021 Mach 1]

Broad question for the community; Do you think the recent decline in share prices and cryptocurrencies will decrease the demand for GT's and Mach 1's?

[On the supply side, I know the chip shortage will continue to keep supply tight on the car market]

However, we are starting to see cracks in peoples' discretionary spending. For example, luxury watch prices are down 10-20% so far this year. UK used car prices are flattening out (down in the U.S.). I know that some people just have money and will buy whatever they love regardless of what's going on in the world. Yet, prices and demand are set by the marginal buyer. Will we get to a point this year where buyers are not begging salesmen for build slots?

Thoughts?

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[WD Pro]

My gut feeling is yes ...

These types of cars can be classed as a luxury and it's those kind of items that (most) people will prioritise behind other items of higher necessity.

You only have to look at the bums on seats in restaurants or the foot traffic in shopping centres (for people actually spending money rather than just passing time) and I get the feeling everything is a little down and people have already started being a little more careful ...

Although I haven't checked statistics for any of this, I also get the impression that crime (particularly burglary) is also on the increase as the lower tiers start to look for addiotnal income to subsidise the rising cost of living

WD

 

[2021 Mach 1]

My gut feeling is yes ...

These types of cars can be classed as a luxury and it's those kind of items that (most) people will prioritise behind other items of higher necessity.

You only have to look at the bums on seats in restaurants or the foot traffic in shopping centres (for people actually spending money rather than just passing time) and I get the feeling everything is a little down and people have already started being a little more careful ...

Although I haven't checked statistics for any of this, I also get the impression that crime (particularly burglary) is also on the increase as the lower tiers start to look for addiotnal income to subsidise the rising cost of living

WD

Tonight, I'm having dinner with a friend who's an art dealer. I'll pass along his feedback on what he's seeing in that market as well.

I agree with you, spending £50-60k for a large poorly built American car in the UK is certainly a luxury. My daily is a Focus Estate, great car. This Mach 1 on order is a toy.

 

[E=MC2]

Broad question for the community; Do you think the recent decline in share prices and cryptocurrencies will decrease the demand for GT's and Mach 1's?

Share prices, Cryptocurrencies ? what about inflation, interest rates, CPI, price indices, income vs outgoings vs saving, GDP, wars & conflicts, sanctions, economy of scale, oil & gas, commodities, house prices etc alot more factors than just share prices and crypto.

Cypto isn't a currency, it has no vaule but the blockchain that underline is it the most valuable part. The ones that survive this crash, will be kings just like the .com bubble.

BOE interest rates will most likely be over 10% by end of this year, inflation isn't slowing down its increasing, we have lost control a couple of years ago. Gas & oil prices will go up even more, incomes are declining. U.K. contacted in March, imagine what April is going to be like... We're in a super bubble, S&P 500 just had a bigger fall then the 1970's.

It's going to get alot worse.

prices and demand are set by the marginal buyer

It's far more complex than that.

[On the supply side, I know the chip shortage will continue to keep supply tight on the car market]

The vaule of any item is only worth what someone is willing to pay for it.

* You can ask 100,000.00 GBP for a pen doesn't mean anyone is going to buy it.

Mass produced cars are not investments, they are deprecating assets, looking at the bigger environment - these cars do not hold their vaule because no one want's them - it does between 7 and 19 MPG. A cheap economical car like VW, Ford, Citron etc the masses want does 60-100+ MPG.

Long term they will appreciate it will take at least until 2030, before that starts to happen or possibly longer. Then gas will slowly become a commodity alienating more buyers long term.

In the meantime they will just deprecate until that ICE ban happens, if it does actually happen.

The average joe can't afford it, that's always going to be your biggest market. Once the car market adjusts all modern mass production cars will be back to being a deprecating assets.

One of the main reasons car prices are going up is due to the car rental market not being able to buy for their fleets. They are buying used cars since the OEM's cannot supply them. It's heading towards summer right now.

However, we are starting to see cracks in peoples' discretionary spending. For example, luxury watch prices are down 10-20% so far this year. UK used car prices are flattening out (down in the U.S.). I know that some people just have money and will buy whatever they love regardless of what's going on in the world. Yet, prices and demand are set by the marginal buyer. Will we get to a point this year where buyers are not begging salesmen for build slots?

Thoughts?

No cracks have been growing for the past decade, these issues didn't just arise because of covid & Ukraine. Covid & Ukraine have helped expedite this by a few years.

people, governments & monetary organisations, throughout the world have ignored the signs, failed to comprehend & prepare for the fallout.

It's been a seller market since covid, it will change - Do not forget we have been in stagnation, the only way markets will correct themselves, is when we enter a recession. The norm we have known before covid will not be the same, we will have a new norm - will it be like this no but what who knows.

We're in a super-bubble, it's cracking.

Will we get to a point this year where buyers are not begging salesmen for build slots?

Thoughts?

The UK economy has already contracted, people aren't buying things it takes time for this to show up. It will switch to a buyer market soon.

 

[2021 Mach 1]

Share prices, Cryptocurrencies ? what about inflation, interest rates, CPI, price indices, income vs outgoings vs saving, GDP, wars & conflicts, sanctions, economy of scale, oil & gas, commodities, house prices etc alot more factors than just share prices and crypto.

Cypto isn't a currency, it has no vaule but the blockchain that underline is it the most valuable part. The ones that survive this crash, will be kings just like the .com bubble.

BOE interest rates will most likely be over 10% by end of this year, inflation isn't slowing down its increasing, we have lost control a couple of years ago. Gas & oil prices will go up even more, incomes are declining. U.K. contacted in March, imagine what April is going to be like... We're in a super bubble, S&P 500 just had a bigger fall then the 1970's.

It's going to get alot worse.




It's far more complex than that.




The vaule of any item is only worth what someone is willing to pay for it.

* You can ask 100,000.00 GBP for a pen doesn't mean anyone is going to buy it.

Mass produced cars are not investments, they are deprecating assets, looking at the bigger environment - these cars do not hold their vaule because no one want's them - it does between 7 and 19 MPG. A cheap economical car like VW, Ford, Citron etc the masses want does 60-100+ MPG.

Long term they will appreciate it will take at least until 2030, before that starts to happen or possibly longer. Then gas will slowly become a commodity alienating more buyers long term.

In the meantime they will just deprecate until that ICE ban happens, if it does actually happen.

The average joe can't afford it, that's always going to be your biggest market. Once the car market adjusts all modern mass production cars will be back to being a deprecating assets.

One of the main reasons car prices are going up is due to the car rental market not being able to buy for their fleets. They are buying used cars since the OEM's cannot supply them. It's heading towards summer right now.



No cracks have been growing for the past decade, these issues didn't just arise because of covid & Ukraine. Covid & Ukraine have helped expedite this by a few years.

people, governments & monetary organisations, throughout the world have ignored the signs, failed to comprehend & prepare for the fallout.

It's been a seller market since covid, it will change - Do not forget we have been in stagnation, the only way markets will correct themselves, is when we enter a recession. The norm we have known before covid will not be the same, we will have a new norm - will it be like this no but what who knows.

We're in a super-bubble, it's cracking.





The UK economy has already contracted, people aren't buying things it takes time for this to show up. It will switch to a buyer market soon.

Mate, I've been in financial markets for 30 years. Very well said.

 

[Eclipsar]

Maybe in the long term but not in the short term, as it’s nearly impossible to get a new Mustang let alone a Mach 1 with Ford struggling to produce them. I see used prices are starting to creep back up on Mustangs again as the summer approaches

 

[Eclipsar]

I can get 60 new mustangs tomorrow incl M1 at steep discount to MSRP in the case of 2021 GTs and MSRP M1.

The supply will tighen up a lot with extreme shortages of neaon gas for chips, palladium for cats, and minerals and ignots for advances Alloys.

I expect the demand for mustangs <40K to collapse while the most expensive ones will get even more demand.

Ecoboost will probably be the highest demand with superior dynamics, low op costs, and Honda level pricing.

Obviously your not in the UK as the ecoboost was discontinued years ago

 

[Eclipsar]

I didn't realize the question was UK Demand only

It will be the first market to get cut from Mustang production or demand to crash with mass food and energy poverty and flight of black and gray money to safe haven Emerates occuring now.

In Germany however, demand for the most expensive cars far outstrips supply and order books, and should continue if the economy doesn't totally collapse due to oil and gas rsgortages not to mention minerals etc. Most people's money invested in gold, art old Porsches and cash so that segment immune to markets collapse. My Feb 911 vert order not due until May 2023.

I have no idea what the original poster wanted
But here’s a idea maybe you should of said what market you were talking about on a UK sub section in the 1st place

 

[2021 Mach 1]

Hi guys, I posted in the UK section because that's where I live. I obviously understand the UK is a small Mustang market and most everything will be driven off the U.S. market landscape. That said, UK and US financial dynamics are often similar. Clearly in the UK, the Mustang is a much more unique car than it is in the U.S. I appreciate everyone's comments. Cheers.

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