Crypto bros offloading G-Wagons, luxury cars amid FTX crash

  • 3 min read
  • Nov 29, 2022

Crypto bros offloading G-Wagons, luxury cars amid FTX crash

The crypto bros are running on empty – and it seems they are unloading their fancy machines amid the aftermath of the FTX explosion, which has rippled through the cryptocurrency market and driven down the value of digital coins.

In recent weeks, a surge of new luxury car models have arrived on resale sites like AutoTrader, but they’re not commanding the starting prices they used to. The Mercedes-Benz G-Wagon — the unofficial symbol of the cryptocurrency rich’s “new money” — was once worth about $300,000 on the resale market, but is now closer to $200,000, according to auto experts. Other luxury cars such as Lamborghini Urus and McLaren Spyder have also been affected.

Some luxury car owners believe the purge is linked to the FTX crash, which saw $2 billion of customer money evaporate.

“The exotic car market is dying right now,” writes CarDealershipGuy, the anonymous CEO of a luxury car dealership who writes a newsletter of the same name. He tweeted On Nov. 22, it noted that a 2021 Mercedes G-Wagon with only 3,378 miles sold at auction for $187,000. “That’s an almost $80,000 (or 30 percent) reduction in less than 12 months,” he wrote.

Most recently, on Nov. 25, a 2020 Mercedes G-Wagon — the G63 AMG model — with 3,992 miles sold at auction for $179,000, down from about $240,000 last year, he told The Post.

Mercedes Benz G Wagon
The Mercedes-Benz G-Wagon has become the unofficial symbol of the “new money” status of the cryptocurrency rich.
McLaren 570S Spider.
McLaren 570S Spider. Similar luxury models, such as the 2020 McLaren 600 LT, were recently listed on auto classifieds aggregator AutoTempest for $255,400.
Bloomberg via Getty Images

It is clear that the decline in exotic car prices has accelerated in the last few months and this is very, very well connected to the crisis in the crypto markets, where we know that some of the biggest customers of exotic vehicles were crypto millionaires. CarDealershipGuy said.

Priced at more than $140,000 for the 2023 model, the Mercedes G-Wagon has established itself as a status symbol among celebrities, CEOs and cryptocurrency investors, some of whom cashed in on the volatile market. They wanted to show themselves to the world. . In August, The Post profiled a former Amazon delivery driver who became a self-made cryptocurrency millionaire and bought a G-Wagon with his profits.

Lamborghini SpA Urus.
“The exotic car market is dying right now,” tweeted the anonymous CEO of a luxury car dealership who writes the CarDealershipGuy newsletter.
Bloomberg via Getty Images

But for the past few weeks, CarDealershipGuy told The Post that his DMs have been flooded with requests from crypto bros wanting to sell their hot wheels.

“If we’ve learned one thing, it’s that everything is relevant when you have a lot of wealth. “It affects the whole economy.”

Software engineer Brianna Wu has listed a 2020 McLaren 600 LT Spider with just 9,000 miles on AutoTempest for $255,400.

The crypto crash is real. Right now, AutoTempest is blasting away with McLarens – the flashy, highly unreliable Cryptobros car that couldn’t change a tire if its life depended on it.

Marshall Haas, another Eagle-Eyed Car Scout, noted on Twitter that more than 1,600 G-Wagons are for sale on AutoTrader.

“That’s more than I’ve ever seen. Crypto boys get hurt,” he tweeted.

The number of used luxury vehicles priced over $100,000 for sale on AutoTrader has more than quadrupled in the past three years — from 0.16% in fall 2019 to 0.69% in fall 2022, a representative for the website shared with The Post. .

Additionally, data from Manheim, an auction site where dealers can buy used cars, showed seasonal values ​​of luxury SUVs fell 12.1 percent in the first half of November.

The number of used luxury cars priced over $100,000 for sale on AutoTrader has more than quadrupled in the past three years.
The number of used luxury cars priced over $100,000 for sale on AutoTrader has more than quadrupled in the past three years.
Stock shutter
Bitcoin
Luxury car experts attribute the unfortunate crypto market to a large number of luxury vehicles priced over $100,000.
Reuters

“We know that in the larger market used car prices are under pressure — wholesale values ​​have been down for most of this year,” Mark Schirmer, an AutoTrader representative, told The Post via email.

“Remember, in 2021, there was a historic increase in used car values. This year, we’re seeing a decline – what goes up, must come down.

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