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Big boys lose their toys

Finance companies and auction houses are reporting a massive increase in the number of seizures and sales.

A growing number of prestige and sports cars are being repossessed from owners who cannot meet their commitments during the economic downturn.

Finance companies and auction houses are reporting a massive increase in the number of seizures and sales, with some cars going for bargain prices.

Exotic Ferraris are the first to go as the economic screws tighten, according to Pickles Auctions chief auctioneer, Steve Allen.

Next week, Pickles will flog off more than $2 million worth of repossessed Ferraris, Aston Martins and Porsches at its quarterly luxury auction.

It's the biggest collection of expensive European cars the company has put under the hammer in recent years.

Allen has a late-model Ferrari 599 sportscar, worth more than $650,000 new, expected to fetch $450,000 next week while a $258,000 Aston Martin Vantage and Ferrari 360 F1 Spider is also up for grabs.

"We've definitely seen an increase in the repossession of $150,000-plus exotics," he said.

"It's not just the banks and repossession agencies, people are getting rid of these cars."

Allen said the harbour city tended to have a higher proportion of Italian exotic sportscars but Melbourne also had its fair share that were being repossessed.

He blames the economy and expects things to get worse.

"There's been a steady increase in repossessions in recent months," he said.

Pickles will offer about 80 vehicles at its quarterly auction.

Apart from the exotics, other luxury brands are on the block, with a big collection of Mercedes-Benz and BMW sedans.

"We have three high-performance AMG Mercedes cars on offer," he said.

"But there are also a lot of BMW 3 Series cars."

Almost 70 per cent of all Pickles cars are repossessions.

Grays Online auction house has also seen a doubling of exotic cars going through its business over the past six months.

Altona-based ManheimFowles auction group also has a steady stream of luxury cars going through its gates.

The company's chief executive officer, Scott Levy, said it was not just luxury cars.

"It's across the board," he said.

Levy said many people were also deciding against a new car because of the economy and jobs downturn.

"There is no such reluctance about buying a used car. And it is not just in one state," he said.

"Demand is strong at all our auctions across Australia."

Manheim Fowles' clearance rates are on the increase.

The company handles more than 300,000 vehicle a year.