Would you decline delivery of your Ferrari if there is a tariff (US buyers)?

Factories in China are already doing this.

For example, lets say your product costs $10 to make, but theres $20k in steel tooling/engineering. The tariffs only count against the unit price of $10. So factory will decrease unit price to $6 and then add the difference to the steel tooling/engineering.

 

This kind of workaround is similar to what a watch brand like AP could attempt. Say they retail a watch in the U.S. for $60K. The Swiss entity might invoice AP Americas ~$30–35K, and the tariff would apply to that transfer price — not the retail price — so the duty would be ~$7.5–8.75K. In theory, AP could lower that invoice to $25K and make up the rest via a separate “IP licensing” or “services” fee, but U.S. Customs closely watches related-party transfers and could recharacterize it if it looks like duty avoidance.

Interestingly, when you consider this watch example, Ferrari’s tariff response starts to feel less gracious. E.g., if Ferrari invoices FNA ~$200K for a $450K sticker car, a 25% tariff on that transfer price adds $50K in costs. Ferrari’s announced 10% price increase equals $45K, nearly offsetting the tariff in full. In essence, Ferrari may have passed almost all of the additional tariff burden onto us as buyers


The bigger question I now have is whether Ferrari would reverse these increases if the tariffs disappear. My gut says no, but curious what others think.

 

One way to spread the pain is to offer generous financing. We'll see.

 

Saw somewhere that if inflation remains sticky or up then Powell should be independent and raise.

 

That would be conventional wisdom but conventional wisdom has been tossed out the window so who the hell knows.

 

For the first time in history owners might actually have Ferrari at a disadvantage.

 

I talked to some peeps this weekend that cancelled big ticket items like Jesko

 

Ferrari has ne

Ferrari has never if my memory serves me, decreased prices for their cars. The reverse is true especially in the last decade where they maxed prices well beyond inflation to eliminate flippers making a profit in the secondary market. The wait time for cars has been 1-3 years and tariffs may decrease the wait time but Ferrari would rather cut production to max demand and keep the per car margins as high as possible.

 

If Ferrari were still private it wouldn't even be that bad for them. The issue are them pesky shareholders....

If I were the Elkanns I'd be seriously considering the opportunity to bring it back to private ownership.

 

Too expensive now most likely.

 

Too expensive now but if RACE were allowed to drop on just one quarter report of poorer sales that could change and allow it to go private again

 

Just received this email from my local McLaren dealer!

LOCK IN
TARIFF‑FREE
PRICES
ACT FAST

UPGRADE TODAY & SAVE!

Right now, you can buy any in‑stock new McLaren at today's low, tariff‑free prices. But, once they're gone, so are the savings!

 

Lots of luck, McC.

 

Well I wasn't going to get a McLaren before, but now I gotta. /s

 

Aston have enough stock on US shores to weather probably the next 2 quarters, too. After that they better hope something for something more generous on the horizon.

 

That's the "opportunity" I was referring to.

Unlikely, in either case.

 

Let’s see…the last time I went to a McLaren dealership I had the opportunity to speak to one of the mechanics…I asked him how reliable are the cars. His response “well, they’re British cars.” Uh huh. Even if they are reliable, he also said, “ if you need a part, expect a wait of 5-6 weeks or longer before it arrives, so your car may be out of commission for some time” hmmm.
I’m not sure if AM is much better and has also been the reason I’ve stayed away from other British cars like Jags and Range Rovers.
My experience with German cars and even Ferrari and Ducati have been pretty good.
So pre or post tariffs I’m not in the market for British cars although the AM Vanquish Volante is pulling at my heart strings a bit

 

So, with the announcement that the tariffs are on hiatus for the next 90 days, pending final negotiations, they whole thing may be moot.

As far as British reliability, they are far better now then they used to be. My F type has been drama free for the three years I have owned it. I lust after the AM cars, the last DBS and the new DB12 are gorgeous cars, but they take BRUTAL depreciation, so they are something you want to buy a few years down the line.

 

The auto tariffs are not on hold, those are still going into effect.

 

So the 10% universal tariffs are still in effect. Amazing how Ferrari increased their price to match it

 

Auto tariffs are still 25%