Why do Ferrari's have waiting lists, whereas Lambo doesn't?

More buyers than sellers. More sellers than buyers.

 

Supply vs. Demand

Lambos are still kind of the underdog in the supercar world I guess. Even in the world of exotics some people consider Lamborghini a little too "out there" as far as design goes. There is the racing image Ferrari has. Snob appeal left over from the old man. German ownership. These are just some of the many reasons that I've heard people cite their preference for one make over another. I however love them all.

quick edit for bad spelling

 

Supply and demand. It's very simple. Ferrari has done a wonderful job of creating a legend, and that demand.

 

As a current Lambo owner I agree with the above comments. I too was able to get my new one at discount. Have zero regrets and never thought I was getting lesser car. They do approach things a little differently though, technology levels are different, one values racing more, but performance wise you end up arguing about tenths of a second in comparison which in the end means nothing. I love both cars and owned both. If you're looking to purchase this level of car don't assume Lambo is a compromise, its a serious player in this game and you won't regret your purchase.

 

supply/demand doesn't quite explain what's going on here since the classic curve would result in an equilibrium of price and quantity. i could be wrong, but it seems like ferrari is intentionally holding down its supply due to the peculiarities of luxury branding.

for example, a 599 can be bought from the factory for 300 some odd thousand (i think) but one can turn around and sell it for 500k, begging the question as to why doesn't ferrrari sell the damn thing for 500k to begin with and pocket the difference. the answer is that long waiting list and skyrocketing prices create a mystique for the brand, which in the long run benefits the company more that the 150k per vehicle they're giving up.

i recall during the internet boom frank quattrone used to price internet ipos below what the market demanded just to see the damn stock skyrocket on the first day of trading, thus increasing demand for the next ipo. however, ferrari seems to have found a way to do this without turning their vehicles into dutch tulips.

 

I agree, Ferrari doesn't meet the classic Supply/Demand where the number of sellers and buyers will meet at a equilibrium, it that were true a new F430 would probably cost 400k but there would be no waiting list
Ferrari seems to keep their supply low to maintain that exclusivity that they have. Certainly, Ferrari has a very unique business strategy.

 

I kind of like the way Ferrari has their waiting lists, it keeps those who love the cars as those on this board do have first dibs on the cars and keep those who just want the car to show it off from doing just that. Then again if you have the money you can get your hands on pretty much anything.

 

Supply/demand explains it.

Ferrari produces ~6000 cars annually now, which is all they can do until additional capacity comes on line. I think that's more than Lamborghini. Demand for new Ferraris is near hysterical - remember how the "limited edition" F40 ended up being produced to the tune of 1,311 cars (making it commoner than some varieties of its 308 ancestor)? Chalk it up to the motoring press, TV/celebrity fame/image, or tradition, but the brand is likely the most revered in the sports car world.

If you're an economist, you'll argue that Ferrari's prices are too low. I'm sure the F430 Scuderia will be selling above MSRP for a couple of years, and all that profit potential in 'flipping' cars only increases demand. If you're on The List, you get to drive the latest V8 Ferrari for a few months and then sell it for a five-figure profit.

However it is true that Ferrari manages production so that they have a wait list (although if you believe Luca diMontezemolo the two-year wait is more than they wanted...)