Press Sighting: Cox News
January 13, 2006
"Winter is usually the slow season at Gotham Dream Cars, the time when luxurious Bentleys and 400-horsepower Ferraris sit idle. But not this year. Rentals of its "ultra-high end" exotic cars are roaring, thanks to mild weather and Wall Street's record 2005 bonuses..."
As the year-end bounty rolls in, a $1,350 car rental is an option
NEW YORK - Winter is usually the slow season at Gotham Dream Cars, the time when luxurious Bentleys and 400-horsepower Ferraris sit idle.But not this year. Rentals of its "ultra-high end" exotic cars are roaring, thanks to mild weather and Wall Street's record 2005 bonuses, said Noah Lehmann-Haupt, the Manhattan company's president.
Those bonuses are expected to fill the pockets of financial workers with $21.5 billion and set off a wave of spending on everything from real estate to jewelry.
The most popular Gotham car rental is the $195,000 Lamborghini Gallardo at a discounted winter rate of $1,350 for a day or $4,450 for week.
"It's the perfect way for people to celebrate without going overboard," Lehmann-Haupt said, noting that not everyone gets a $20 million bonus and is in the market to buy.
The average 2005 bonus is expected to be a record $125,500, according to Alan Hevesi, the state comptroller of New York. That is $25,000 more than in 2000 at the peak of the last bull market. That year also set the previous record for total bonuses: $19.5 billion.
"The securities industry had a very good year during 2005," Hevesi said, noting it paid record bonuses based on exceptional revenue growth and solid profits.
New York City and state are expected to get their own bonus: $2 billion in taxes.
Much of the bonus money ends up in the New York real estate market, with bankers, brokers and traders placing large down payments on apartments or paying for them in cash.
"We love Wall Street bonuses," said Pamela Liebman, chief executive of the Corcoran Group, a leading New York real estate firm.
She said the bonuses are part of the city's annual real estate cycle, but this year is likely to be "one of the biggest years ever in terms of how we expect the money to affect the market."
Liebman said buyers expecting large bonuses began calling in early December to begin looking for properties. The buyers range from younger workers getting their first condos to executives shopping for "super-luxury" apartments costing $10 million or more, she said.
Copyright 2006 Cox News Service
