Will market pricing change dealer behavior?

Yes I absolutely believe dealers will put their top customers above first time customers on the list. With the 430 Scuderia this most definately will be the case. Only theri best customers will be afforded the opportunity to buy one. Hope those customers do not mind paying $150k over?


Mike

 

I have been off the grid for a while.

Is it true that FNA has lifted the restriction on dealers selling new cars at MSRP?

Is this documented?

Thanks,

Greg

 

I would like to think that they would put customers first, but being in the business to make money, i'm thinking that it is basically going to be an auction for every new Farrari.

 

If dealers truly are at market they'll be walking a finer line with existing customers. Yes they'll still get first crack but at prices that aren't quite market. It depends on who you are and how good a customer you are and that'll dictate what you pay. For example, I know of a case where a long term customer paid MSRP on a new 599 to order and another guy who bought and sold several F-cars, who was told sorry all our cars are market priced now. Same dealer. Why? Because they could get away with it.

 

You also need to note that the 599 price has been increased and with the 430 Scud the MSRP will be healthy and the 430 replacement will go up market and that creates a space for a new entry level model. So some of the "market pricing" will now get built into the MSRP. I think the dealers will honor their best relationships as best as they can because in the end when the dark days come back, and sadly they will, it will be the good loyal customers who will be either standing there with them or laughing at them.

best regards,
Jerry

 

It is my understanding, having bought a 430 spider spring 2007 at MSRP, that the dealers can only sell a limited number of cars at market . Most of the cars will be sold to existing customers (or customers on the LIST) at MSRP. Does anybody else have any other info?
Al

 

It will probably take a while for the change to really have full effect. Many dealers already have contracts for new cars at MSRP extending many years. I also believe different dealers will have different policies in dealing with established customers. For the near term, I think most dealers will be offering some new cars at market while still supplying their best customers with cars at MSRP. I think the net result of the policy change will be beneficial to all. No more waiting and I believe premiums will actually disappear sooner than under the previous policy.

Dave

 

That is terrible.

 

Yep----all over the U.S. for sure. Best

 

Totally true and is happening everywhere now...

 

Altho "old "customers may get first crack at paying these ridiculous (IMO) market prices; for the time being dealers are selling new 430's and 599's to anyone in their geographic area who will pay the price.

Is this greed? =depends on one's point of view. Will this come back to bite them in the arse? I don't know.
I do know that FNA has given them permission to sell all new models at market.

It also is a matter of conjecture as to how many will move to the Lambo side!

As long as demand outweighs supply and there is so much money out there this practice will continue.

 

my answer : the dealers will become even more arrogant

 

Hell yeah it's greed! If anyone should be making that dough it's Ferrari, not these slime balls. These new ferraris are like drugs, they'll sell themselves. It's a cakewalk for the dealers. Anyway, so what about ordering from some country in europe where demand isn't so high, and then import it? Are people so desperate for a US model that they'll pay 150 over or am I missing something?

 

Some will, some are gentleman (i.e. James Del Pozzo at BH).

 

Consider the average dealer gets 2-3 cars a month. As a businessman, when I walk into an Fcar dealer, I see big overhead everywhere. It's a tough business. Besides, the cars may not always be easy to sell. In the early 90's, cars were heavily discounted and many dealers failed. Have to make money when you can. If potential buyers don't like it, there are plenty of other 6 figure cars to choose from anymore. If someone else is willing to pay more than you for a new Ferrari, that's just the free market at work. Right now the dollar is so weak, importing Ferraris from other markets is not economically feasible, otherwise, it would be done as it was from about 1997-2002.

Dave

 

If I was a dealer, I'd give loyal customers the first crack at buying at whatever point the market bears. If they decline it would simply be passed on to the next guy in line. Dealers stand to make alot of money and previous msrp customers plus whoever has plenty of surplus, will provide the windfall for them. Sucks for the msrp guys but gives the rest of us a fighting chance.

-Peter

 

Hmmm maybe its time to change (perhaps into an LP640) since Ferrari seems to change on us too????

-Peter

 

I've been an MSRP guy and yes, it's changed. No I don't blame the dealer, they just don't get that many new cars to support the cost. I do think the regular guys will get first dibs AT market price and yes, Ferrari will follow Lambo by taking more of the premium by increasing list prices. Look at the Gallardo Superlegg???, it starts in the $260's so you can walk in and get one today. At least higher list prices should help keep prices on existing cars stronger!
PS. Also a fan of James at F of BH!

 

I completely disagree with this statement, and many posters on this thread. This is not the case ALL over! If you have called every dealership in the US, please tell us how many. When you say all, please mention the number of dealerships that have told you this, and whether or not you have previously purchased a vehicle from EACH of all of those dealerships.

Fact: Of the only two dealerships I interact with, neither are taking up this policy. The owner himself told me that they choose not to, because he feels it would be unfair to his longtime customers. I will keep saying this until it becomes untrue, which won't be soon according to my dealers.

 

The issue that dealers face in pricing their inventory is complex when it comes to existing, long term customers, who have probably provided the dealer with a steady source of profits on the trade in (trade up) vehicle.

There is real money to be made in the relationship with a customer who is a source of inventory.

I do quite a bit of non Ferrari business with my Ferrari dealer, in that I give him first dibs on any of my cars that I am selling or trading, regardless of whether there is a new Ferrari being bought. Case in point - I had a car coming off lease that was worth more than the payoff. The trouble I would have had to go to get the car sold privately so that I could make the few thousand was simply brain damage, but to the dealer, with his infrastructure it was a piece of cake. Used cars are inventory and therefore money. Whether he sells them himself on his used car lot or uses them as chips in exchanges with other dealers, I provide him with a source of profitability (the difference between wholesale and retail) on my used cars. That goes a long way as a negotiating tool for coming to an acceptable price point on any new Ferrari I will buy from the dealer. It's really not as simple as getting $150K over for a new car.

 

We'll get right on that for you. Of course dealer practices vary depending on who you are and the local market demand. No question as demand increases thing are leaning more towards market pricing. We don't need to survey to figure that one out.

 

That's my point. I don't expect anyone to do that and I know no one has. Like myself, they only have their individual experiences with a handful of dealers. So it's irresponsible to make sweeping assumptions based on an individual experience and present the assumption to the whole community as fact.

 

Almost every business bases it's success or failure on the quality of the relationships with it's customers over a long period of time. Most know this a few do not. Any businesses best customers get preferential treatment. If you are not an AH it is a plus.