Quote:
Originally Posted by transam
Ive noticed that the charity cars arent bringing much money it,is this a change in how tax deductions work or maybe the recovery isnt as good as we thought? Or people just dont feel like giving
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I think it's the choice of cars that have been given away -- AND -- if you notice -- there are several large bidders that aren't stepping up. Ron Pratte was buying everything across the block - he spent MILLIONS at one auction... he doesn't buy diddly anymore.... Last years buyer that spent a few million is missing entirely --- as is the oil field guy from the year before that...
Remember that it takes a bidder against you - to make an auction. You need 3 or 4 of these guys going at it to drive the prices up.
So to me it's a combination of things -- people with the ability seem to be out of action for whatever reason.... the offerings have been kind of lame... because the car still must appeal to a car guy (he just needs to be willing to spend too much for it)... and your assessment of "the economy". Rich people are still quite rich - but are unable to generate the kind of returns they've been used to in this super low interest rate environment. If a guy has 200 million dollars making 8% --- vs 4% --- that's a HUGE difference in pocket money to just blow. This low interest rate has been going on now for like 5 plus years -- and it starts to settle in. Don't forget that people with large net worth also have large expenses... They ain't hurting by any means - but the lack of super sized free cash flow does have an affect - even if it's just mentally.