Ferrari prices

Having just seen a 599 for 500,000 plus, I started wondering what will happen to Ferrari prices if our economy hits a recession. The last big downturn, circa 1990, prices plumetted, and a 500,000 Daytona could be had, eventually for 125,000. I also wonder whether there will be long waiting lists for F cars and whether one will have to kiss a delaer's hand to be put on one.

 

Luxury items - even the rarest of the rare, will crater in value during a recession. If you're looking to buy, that is great.

And it's not a matter of "if" there is a recession, but "when". Furthermore, the inverted yield curve of interest rates is a strong signal of a coming recession, which means a recession is likely to be sooner rather than later.

 

"Luxury items - even the rarest of the rare, will crater in value during a recession. If you're looking to buy, that is great."


Agree that prices would drop, not sure you'd see a flood of cars on the market, unless there's a sustained problem. Lots of folks with lots of cash, they may not need to sell ....

 

If your in it for the "investment", in 18 years since 1990, prices are even now not at the 1990 level, even without considering the decline in the dollar during that time.

If your in it because you like the cars, the only problem is explaining it to your wife.

 

Those $500K prices right now are the dealers soaking the 'greater fools' who have to have it now. 599s will plummet even if there is no recession.

Ditto 430 Spiders. The very rich are paying a premium to have these now. In a few years, even in a level economy, they will drop in value.

With regard to real collectible Ferraris, that's a very different market. I doubt many of the vintage guys are in it to turn a quick buck, and they seem to hang onto their cars for a long time - so I don't think prices on something like a 275 GTB are going to collapse under anything less than an extreme economic crash.

IMO, for the older cars that have depreciated and firmed up (Boxer, 308/328, and others), I think a recession would hinder their price advances. But realistically a $40K 308 QV is exactly the sort of car a guy would look to if a $100K 360 isn't attainable.