Crypto

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

The Crypto brothers are running on empty – and appear to be unloading their fancy cars amid the fallout of the FTX implosionwhich rippled through the cryptocurrency market and caused the value of digital coins is falling.

An uptick in like-new models of sought-after luxury cars has hit resale sites such as AutoTrader in recent weeks, but they’re not getting the high prices they once had. The Mercedes Benz G-Wagon — the unofficial “new money” badge crypto-rich – was once valued at around $300,000 on the resale market, but is now closer to $200,000, according to auto experts. Other luxury vehicles such as Lamborghini Urus and McLaren Spiders also took a hit.

Some luxury car insiders think the purge is related to the FTX Collapsethat caused up to $2 billion in customer money to evaporate.

“The exotic car market is being decimated right now,” CarDealershipGuy, the anonymous CEO of a luxury car dealership who writes 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 a drop of almost $80,000 (or 30%) 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 for $179,000 at auction, up from around $240,000 last year, he told the Post.

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

“Clearly over the past couple of months, the price decline for exotic vehicles has accelerated and that aligns very, very well with the collapse of the crypto markets where we know some of the biggest customers of exotic vehicles were crypto millionaires,” CarDealershipGuy said.

The Mercedes G-Wagon, which costs over $140,000 for the 2023 model, has established itself as a status symbol among celebrities, CEOs and crypto investors, some of whom have made quick money on the volatile market and wanted to show themselves to the world. . In August, The Post profiled a former Amazon delivery driver who became a self-made crypto millionaire and picked up a G-Wagon with his profits.

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

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

“If you learned one thing, it all correlates when you have a big gutting of wealth. It has an impact on the whole economy,” he said.

Software engineer Brianna Wu tweeted a listing for a 2020 McLaren 600 LT Spider with just 9,000 miles for $255,400 on auto ad aggregator AutoTempest.

“The crypto crash is real. Right now AutoTempest is exploding with McLarens – Cryptobros’ flashy and wildly unreliable car that couldn’t change a tire if their life depended on it,” she wrote.

Another eagle-eyed automotive scout, Marshall Haas, noted on Twitter that over 1,600 G-Wagons are for sale on AutoTrader.

“It’s more than I’ve ever seen. The crypto boys are hurting,” he tweeted.

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

Additionally, according to data from Manheim, an auction site where dealers can acquire used vehicles, for the first half of November, seasonally adjusted values ​​of luxury SUVs were down 12.1% from a year earlier. on the other.

The number of used luxury vehicles over $100,000 for sale on AutoTrader has more than quadrupled over the past three years.
The number of used luxury vehicles over $100,000 for sale on AutoTrader has more than quadrupled over the past three years.
Shutterstock
Bitcoin
Luxury car experts associate the dreary crypto market with a slew of luxury vehicles priced in excess of $100,000 hitting the market.
Reuters

“We know that in the broader market, used vehicle prices are under pressure — wholesale values ​​have fallen for most of this year,” Mark Schirmer, a representative for AutoTrader told The Post via email. mail, noting that retail prices are beginning to follow.

“Remember, in 2021 there was a historic increase in the value of used vehicles. This year we are seeing declines – what goes up, must go down.

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