For those who still have cash, there are bargains galore at the prestige end of the car market.

Major consumer finance companies are the biggest contributors to the used luxury car market, with GE, Marac and others reselling formerly prized possessions.

Todd Hunter, general manager sales and marketing for Turners Auctions, says the prestige auctions started this year and he expects to increase the number.

“In the first auction we had some Blue Chip cars sold on behalf of the receivers, and there’s certainly a few other high-profile people that have cars coming up I think. We’re storing Rod Petricevic’s car at the moment on behalf of the High Court.”

“They’re certainly cheaper than buying them from a dealer. It depends on how much cheaper by how motivated the vendor is, and how much interest there is in the car, but broadly between 10% and 30%. On a big car that can be a serious amount of dough.”

Some finance company vendors are so desperate to sell that they auction with no reserve, including a Ferrari at Turner’s first luxury auction in June, and a Porsche at the last in September.

At the September auction a 2007 Porsche 911 with an estimated retail of $250,000 went for $217,000, a 1995 Lamborghini Diablo with an estimated retail of $250,000 went for $162,000, and a 2005 Bentley Continental with an estimated retail price of $200,000 went for $139,000.

Mr Turner says he’s not sure the type of people who are buying the cars can be categorised and there’s not a definitive finance company luxury car.

“It’s interesting actually; this last auction was probably the most diverse line-up we’ve had. One thing we are probably seeing a lot of is the luxury SUV type of vehicle coming back.”

“There’ll be one more auction before the end of the year, and the cars are still available for sale even though the auction’s finished, so anything that didn’t sell is still for sale through Turner’s Auctions.”

Meanwhile the Dog & Lemon Guide is predicting a bloodbath in the New Zealand car industry, with a third of New Zealand’s car dealers possibly out of business in the next 18 months, editor Clive Matthew-Wilson says.

“A perfect storm just got worse. In addition to the recent meltdown of many key local finance companies, we have a meltdown of the world’s financial markets. These recent upheavals have caused a severe shortage of hire purchase finance. If the dealers can’t offer hire purchase finance, they can’t sell cars. If they can’t sell cars, they go out of business.

“Dealers at the top and bottom of the market are the most vulnerable. Luxury cars and European cars tend to be purchased during boom times. In times of uncertainty, customers tend to go for affordable and reliable cars rather than exotic ones.

“Dealers who target the poor and gullible will also go to the wall because their customers generally can’t get finance anymore.

“The one piece of good news is that there will be bargains galore for those consumers with money. Everybody else is just going to have to tighten their belts.”

See also: Psst ... wanna buy Petricevic's Porsche?