Purchased New Ferrari "Out of Market"

All this talk of people taking deliveries of their new Italias and Spiders is awesome. I'm so happy that people are able to fulfill what must be, to many, a lifelong dream.

I've already read (and written) the threads detailing the trials and tribulations of those still waiting in the wings for their spot in the queue.

And it got me to wondering how many people actually purchased their cars (new) from an "out of market" dealer? i.e. You live, work, and register your cars in Michigan, but you purchased your car in Washington, DC. Or vice-versa. You live around Washington, DC but you purchased your car from a dealer in Florida, for example.

I met a nice owner at an event that has done exactly that, and now I'm curious how common that practice is. I have heard that this is a touchy subject so no name calling or finger pointing, please.

 

I wonder how many ways around the "100 mile" rule? One way is for you to "buy" a build slot, i.e. someone orders a car, the buyer "sells" you the slot and when delivered, transfers title. I did that once. A variation might be to have a friend who lives where an allocation is most likely, buy the car with your money, and transfer title. I suspect those with money will find a way around any rule. Best

 

+1.

You don't even need to have money to stock a supply of banned 100 watt light bulbs; put the mercury from your broken compact fluorescent in the household trash; back your car up a one-way street for a parking space; borrow grandma’s handicap sticker for the afternoon; use your supply of high-phosphorous dish washing detergent; smoke Cuban cigars; get a PhD from a mail order degree mill; pay no social security for your children’s nanny; run test pipes on your 458; tell the Unemployment Office you’re still actively looking for a job; keep an unregistered .357 Magnum .....

These happen because at the end of the day, much of what government tells us to do and not do is viewed as illegitimate.

 

Maybe true, (people with $ will find a way to end run rules) but I look at it another way-- my experience is those with a lot of money often don't have time to do elaborate side deals. Or more correctly, they have the resources (and maybe even the free time), but things like that would not be a high enough priority to waste their time on. Life can be complicated enough without having to develop schemes to end run a FCar waiting list.

When your in college you read the manuals to your new stereo and know every feature. Your first $25K boat you might sea trial several boats. By the time you are ready to buy a $300K boat or car, you might not even take one for a test drive first. That's just the way it is.

 

I think you'll find its a waste of time.

Dealers are obligated not to sell out of their territory and cheating will be a cut to their future quota. So, it's unlikely they would risk one sale and lose others in the future.

Second, waiting lists aren't that much different across the US. And, dealers are all selling new cars at MSRP. The difference is not price but waiting times.

Third, you sign an agreement to resell a car back to the dealer first over some period of time. Sure, you can break this but you'll never get another new one again. So, if you want to find someone to go through all the hassle of buying an expensive car they don't want, taking possession, paying the local sales taxes and registration (which are not recoverable), putting it under their insurance (something you have to do before picking it up), and then turn around and resell it to you in another state -- just so you can pay the sales taxes again (in states like California), registration, etc so that he will never be able to buy another new car again has to be pretty rare.

Does it happen? I suppose. But I don't think its common at all. For the time saved, you're probably better off just getting one from your local dealer or buying a used car.

 

Do you know if the "rules" were the same in 1999-2000?

In 1999 I paid the same amount over MSRP to an intermediary, I later paid a dealer to give me an allocation for a 430. The intermediary arranged for me to purchase a new 360. I signed some leasing papers at a Ford Dealership (of all places), paid cash immediately afterward, voided the lease, got title and never heard another word. I have no idea who did what. I do believe a "manager" at the Ferrari Dealership was involved and I know he still works there to this day. This all took place within California. Best

 

No, I don't know about the past. But, with the advent of the F430 waiting lists were even crazier than they are now with the 458. And, dealers were selling cars routinely over MSRP.

I think the contract idea popped up with the F430 to help keep people from flipping cars. Flipping cars is bad for dealers because it brings in speculators who have no interest in the car other than making a quick buck which leads to an eventual crash in resale values and hurts used car resales for dealers and makes waiting lists longer. If they take a car in trade and the market is rapidly falling, they can't make a profit on it.

Resale values are key to keeping the process going. When prices crashed in 09 and 10 on F430's and Scuds, they cracked down on dealer quotas for 458's to try to keep it from happening again.

I really find it strange this conversation keeps coming up. The easiest way to get a car is to walk into your dealer, sit down with a sales person, and work out how to get a car. That's what I found. Yes, I waited 3 years for my first new F car but I got one at MSRP and it was worth the wait. Waiting lists aren't even close to what they were in 2005 so I don't see all the hub bub now.

 

I am getting my first Ferrari exactly this way.

I have a home in Minnesota and Texas. There are no Minnesota Ferrari dealers so I started contacting dealers across the US.

Got the #2 spot for an F458 at Cauley Ferrari in Detroit back in March. Car was ordered and April and due for July/August production. My dealer says it is likely being built now based on the car before mine and Ferrari's apparent "update when they want" status codes.

I plan to take delivery in Detroit and arrange for a car transporter to move it one of my homes same day. I can't wait!

 

I found the waiting list to be VERY different across the U.S. ranging from 1-2 months to 18 months based on metro area. About 50% of the 20 dealers I called would take an order from me since I was in a state WITHOUT a Ferrari dealer. The rest said "no way you need to be in our territory". A couple of dealers tried the "buy a used F458 and we will get in line BS...."

I got lucky secured #2 spot at a dealer in March. Car order was placed April and is due for production any day now as a 2013 model.

 

Makes perfect sense. And if such contracts were in force on selling real estate, we may not have burst the housing bubble into the total bust it became, sub prime loans not withstanding.

 

Apples and oranges. If you have no dealer in your area, it's a completely different situation that what we are discussing here. But, most people aren't in your situation. If you reside in a territory, you're obligated to buy from that dealer or dealers.

Talk to the people in LA on long waiting lists and see if your situation worked for them.

18 months is the high end. I haven't heard of 2 but 6 is not uncommon for a coupe with 12 to 18 for a spider.

I too have a home in LA and also in Vegas. But, I am a resident of Vegas, not California. Because of this, I can buy from the Vegas dealer, which has an advantage over the 5000 guys in LA who want a car. But, I cannot go to Detroit and order a car.

But, it is true that if you have multiple legitimate addresses, you can choose who you want to work with.

 

It is true that the waiting time has improved quite a bit relative to 5-10 years ago. I don't know if that is because of softer demand or higher production/allocations or some of both. I suspect that the dealers didn't like that either for it produced frustration and bad will. Given the allocation across dealers, the waiting time can't vary very much. What can vary is your ability to get in on an order.

I can verify that 5-6 months is now the norm for a coupe, but I have bought a couple of cars out of inventory.

 

"apples and oranges??" Sorry I thought OP was asking others who leverage different cities available to the buyer as a result of multiple residencies.

 

I think this conversation gets "nuanced", and we may fall victim to "cross communicating".

No one challenges if someone lives in a state without a dealer, their ability to buy from any state.

I can personally attest, having two homes in different states, I can buy a car from either state.

What is less clear for me is if there is a dealer in the your state, and further than the (100?) mile criteria, if you can shop out of state.

After the above, I don't have a clue what people (smarter than I am) have figured out.

Best

 

No, not at all. He's asking if you live in one district if can you buy a car from a dealer in another without living there.

If he was asking what you're talking about, then it's really a moot question. You can buy from wherever you have a legal residence. No one has said any differently.

You are on the other hand are somewhat lucky as you can claim residence in a place without a dealer. That makes you unique from most who live near dealerships.

It's a disadvantage though when you need factory service.

 

I know first hand that the rules were the same if not more restrictive. I played the used routine and purchased slightly over sticker a 300 mile 360 Modena just to get on the 'LIST' for a 430. I had a condo where if the dealer used that address, it was in his sales area. Then when the 430 was so oversold with orders, that dealer decided that year long residents got the order spots. I assume that that would provide service and other income posibilities.

 

What's to stop someone renting a cheap apt near a dealer with shorter wait times...

 

It's 205 miles to the dealer in Denver by car. But much less as the crow flies. So I do not know whether I am technically in the FoD market range or not.

Regardless I have to have service. I have purchased 2 cars there and we have a good relationship. That is worth something to me. Wouldn't want to torque them off.

 

I have two residences...one in Fla and the other in the Northeast. The Fla address has no dealer within my immediate area (Naples), but 3 dealers (West Palm, Fort Lauderdale and Tampa) within roughly 2 hours drive...I contacted one and found them to be very careful about their territory lines WITHIN Florida...I got the sense that the dealers had towns that were "theirs", and others that weren't, across the state. I ended up ordering from my previous dealer in the Northeast who took care of me with a quick allocation so I didn't get any more specifics on the Florida protocols.

 

A map of dealer locations in the US shows that locations are far from uniformly distributed. There are concentrations in FL, CA, and the Northeast. Broad areas in the middle of the country have none. So where a potential customer "fits in" is a strong function of where he lives. In my case we have a home literally one block from a dealer so there is no issue. I walk there for an occasional espresso.

 

This is great point. I only count 18 states (may of missed one) with Ferrari Dealers:
Florida
Georgia
North Carolina
Virginia
New Jersey
New York
Connecticut
Massachusetts
Michigan
Ohio
Illinois
Colorado
Arizona
Utah
Nevada
California
Oregon
Washington

Seems to me it would be pretty common that someone living in one of the other 32 states could work a deal in the surrounding states to get shortest wait time.

My experience was certainly that many dealers were interested in taking my Minnesota-based order.

 

I believe there are dealers in Houston and Dallas/Ft Worth (Boardwalk in Plano): Texas.

 

Algar in Philly.

 

I know people who won't buy a Mercedes because the nearest dealer is 10 miles from their homes. It's too far.

One of the reasons I'm not interested in a Mac is the nearest dealer is 400 miles away from Vegas. What am I supposed to do if something goes wrong? Truck it there every time a check engine light comes on?

My point is that if you live in one of these places, you might be able to shop around and get a car. But, you still need to get it serviced. That's why places like CA and FL are so popular. The weather is good but also there's several places to get service not far away from where you are.

Used is different. You can do it yourself or go to an independent. But, if you want a car with a factory warranty and want that warranty maintained, you have to bring it back every time to a factory authorized service department. That keeps a lot of these far flung buyers away.

But, if you have multiple addresses, it might be worth a try. For sure, any authorized service center must fix any car regardless of where it was purchased.

What I don't know is if you live say in Idaho, if you can call every dealer in the US and ask to buy a car. Something tells me, you can't. They should recommend you to the nearest dealer in your area, which would be Ron Tomkin.

But, I've never tried. It's an interesting idea.

 

Thanks guys! Added TX and PA: