Tips/Advice for future Ferrari owner?

I think you get more car and more quality in a 550 or 575. I highly recomend you consider this as well.
Good Luck,
Woody Byrd

 

Pay cash.

 

with the type questions you are asking about cars in that price bracket, one would wonder if you were really serious about wanting to buy one or simply wanting to test drive one.....?

 

Not sure where to start.

First off, I worry when people figure out the maximum they can afford and try to buy as close to that as they can. Also, having been personally soaked on the depreciation of my SLK bought new, I wonder if you're a glutton for financial spankings.

But that's up to you.

Why do you want a Ferrari? Daily driver? Weekend fun car? Investment? Garage queen/trophy? Track? The older cars (Daytona, 275 GTB, etc.) are probably some of the best ever made. Most of the real older ones are well beyond your price range. Most of the brand new ones are spoken for already, so it's common for guys on the list for an F430 Spider to either buy a lightly used one at a markup or else buy something else while they wait a year or more for their car to be built.

The 'modern classics' (308 through 355, 512TR) are great drivers without the depreciation. The 360 is still new-ish, so it's depreciating but offers great modern performance and would be very competitive in track events. An early Modena would be well within your range, as they're dropping close to $100K now.

Finally, MSRP and Ferrari aren't usually said in the same breath. There's a waiting list for these cars, so you'll see cars like the 599 going from its $350K sticker to sell for $500K to guys who need it when it's the new thing.

Do you want a manual or F1? Coupe or spider?

I wouldn't get all jazzed about "moving upmarket" unless your primary purpose is a status symbol. I looked at the 308, 328, 348 and 355 when I was shopping, and the 328 really delivered what I wanted in a Ferrari. Not saying you'll want one, but I think it's important to get beyond "I have a $200K limit and I want a Ferrari" and figure out what you want and why.

With regard to test drives, I haven't bought a new one, but you have to show you're a serious buyer before you'll get to take a used one out for a spin. I'm sure dealers get lots of bored guys who just want to joyride or show they're hot stuff by hanging out at the Ferrari dealership.

 

The reason a lot of us say 'pay cash' is because the maintenance on these cars is expensive (major services start at $4K+ on the V8s, and can run up to $8K on the V12s). A lot of guys get into the trap of thinking that a $90K 355 is very doable, and then they find out it needs $15K worth of servicing and/or repair. These cars have their own weird sort of economy...

 

1) No, you have to agree for them to pull your credit report. They should only want to pull a credit report after you make an offer. That doesn't mean they aren't doing their own mental credit review (demeanor, dress, knowledge, etc) and deciding if you are serious or just trying to bum a free drive.

2) You should always be given a chance for an acceptance drive before buying a car, you might or might not be given a test drive before making an offer. That depends on the model, condition, mileage, ownership (consigned or dealer-owned), dealer policy and mental credit review. Deposits should be refundable and whether one is required goes back to #1 and the specific car.

3) If they take the car out for a drive at all, then they should be willing to give you a test drive. Whether they do that goes back to #2.

4) Not sure what a "supercar" club is or how that factors into buying a Ferrari. You either want to own one or just want to drive one and are trying to figure out a cheaper way to get some time at the wheel.

P.S. You seem all over the map on the models you're considering. That will tend to put you pretty low on the scale of being considered a serious buyer.

 

At 200k+ you just might be able to squeeze into a 430.
Which should hold its value well in the short term.
The 360's are going to depreciate.
You want to get on the dealers good side and let him know you are going to be a Ferrari customer for the long haul ; not a quick turn artist.
That will set you up for the big boys down the road if you continue to do well financially.

 

As a recent first-time Ferrari buyer myself, I certainly understand where you’re coming from. I concur with most of what’s been said above with special emphasis on the following:

1. If you’re not sure which Ferrari with what features you want, you won’t be taken seriously by dealers or anyone else. Sounds like you need a lot of homework before you come fully to grips with this most basic of all questions.
2. Pay cash. If you can’t pay cash – including a healthy reserve for upkeep – you aren’t ready for a Ferrari IMHO. It’s not about being “rich” but about making informed choices you can live with.

My used 360 coupe has been an incredible joy, every bit as good as I hoped. I believe the key to my success was lots of shopping (approximately a year) so I knew exactly what I wanted and what I was getting into before I spent a penny. Good luck and please keep us informed of your progress.

 

1) Actually...I don't think anyone will ask about your credit. The 2 dealerships I have been to don't do financing - you would have to arrange this on your own through a leasing company. Does any ferrari dealer do financing in house? I bought my car at LFSC, and was told that pretty much everyone paid cash.

3) I would hazard a guess that most ferrari dealers won't allow a test drive, unless they know you. When I was looking, I didn't even ask for one, until the actual day I was there to purchase the car. By then they had already met me a couple of times, and figured I was serious.

I concur with the "pay cash" philosophy, though others will argue arduously that financing makes more sense. Personally, I can't see financing a toy. I don't care if its a car, boat, big screen tv, etc. But, to each his own.

Give the 328 more consideration - they are very cool cars.

 

You are probably aware of the Dupont Registry website. It has mostly dealer inventory cars but it is a good national indicator of the asking prices for a certain model. Take a look at these cars:
http://www.dupontregistry.com/autos/Search/DRauSearchResults.aspx?makeid=31&makename=Ferrari&modelname=F430&modelid=37&catid=1

It appears a near-new F430 F1 Spider is $300k - $399k in price these days. The new car MSRP for these would have been in the $210k - $225k range, depending on options.

A nice 360 Spider seems to be in the $185k - $220k price range.

IMHO, "asking prices" are often $10k or so over selling prices. And, be aware, that later trade-in prices are often $25k - $30k below those "selling prices". So, it is fairly easy to be $30k "under water" on your new-to-you previously-owned Ferrari as soon as you make your deal. Keep this in mind and make sure it is "the right car" you want when you make the deal (that is, the right model, color, features, condition, service history, miles, etc.).

Be advised that maintenance items can be expensive when buying a used Ferrari. There is a 550 at the FOW dealership with $50k worth of estimated maintenance work to be done to it to make it right. There are many $3k to $5k repair items that are possible on these cars. It is worth it for you to pay for a pre-purchase inspection (PPI) on any car you are thinking of buying.

You might want to arrange your own financing in advance. Talk to leasing companies, credit unions, or various banks that do this kind of car financing. The best form of financing is probably a home equity loan, if that fits your situation. Another thing to pre-price before buying the Ferrari is car insurance. Find out what level is required if you are financing or leasing the car. Also verify that you can even get insurance for such a car through your current company. Hopefully you'll be able to keep the car in a locked garage.

Another place to look for used Ferraris is the FCA classified ads at:
http://www.ferrariclubofamerica.org/classifieds.cfm
(I didn't see any 360 Spiders or F430 Spiders in there this month).

Good luck.

 

Credit iquiries pulled in a 2 week period will not adversely affect your score. More than two weeks flags you as a habitual borrower/shopper and your score drops.

You should know your score before you go shopping for the best credit deal.

With a heloc (home equity line of credit) you can deduct the interest.

Good luck.

I personally don't believe in borrowing on a depreciating asset aka a Ferrari.

 

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Because you do not want to be paying $1,500 per month on something you use every other weekend, plus repairs and maintenance.

Because it is a toy.........it does not make you money, you are losing more money by financing it. You need a house, you dont need a Ferrari. Its dif.

Take the money you have and make some smart investments, in a few years you will have plenty!

My 3 cents........

 

The prices from your dealer seem high. This is what happened when I went Ferrari shopping recently:

I went to look specifically for a red 360 Modena F1 at an exotic car dealer (not authorized Ferrari dealer).

The salesman offered to let me drive a 360 and Gallardo. No deposit, no credit check, although I did drive up in a new Mercedes CLS550. The 2000 360 he had was $139,000 but it was not in the condition I wanted, and he didn't have the year and color Gallardo I wanted.

I flew to another exotic dealer for a Gallardo, but after driving it and a 360, decided to get the 360. He found a 2003 in excellent condition at another dealer and I paid $159,000 including a $3000 commission for him but excluding tax.

 

Well said Bullfighter!

 

This is an incorrect statement if you plan to hold the car more than say 2 years. The millisecond that the 430 replacement hits the showroom, there will be massive depreciation of 430s........kind of what happened when the 430 showed up.

The 360s rate of depreciation from this point forward will be greatly reduced.

 

My personal opinion, never get something you had to 'settle for'. Get what you want the first time. If that means waiting, then by all means, wait. In today's world of instant gratification I know this is a foreign concept, but saving for something and then getting it is quite rewarding.

 

No one mentioned a CS? ?

 

Hey! My yellow 1978 308 GTS is not depeciating!

There seems to be a low point, after which prices stay flat or appreciate. I doubt anything older than the 308s are still depreciating today.

Hmm....that suggests that it's "okay" to borrow money to buy an old one, but not to buy a new one. That seems a little weird...

 

I disagree with people who adamently say to only pay cash, and that they wouldn't finance a depreciating asset.

The real question is what is your alternative if you don't pay cash? If you can achieve a better rate of return with the money than it costs to borrow, then you should borrow and not pull it out of the alternative.

As to the depreciating asset portion, the car is going to be worth what it's worth regardless of whether you pay cash or finance it. Therefore, if you decide to buy it, you need to determine the most appropriate way to pay for it--i.e. cash or borrow.

The bigger question is whether you can afford to purchase and service a car that's going to depreciate.