Recession on Ferrari Values

I think reducing demand is part of the idea-- Ferrari can't build enough new cars for everyone that wants them at current prices, nor would it be all that smart for Ferrari to do so. So, they increase the price, reduce the demand, make more money, and make the cars more exclusive- thus heightening the mystique and keeping interest up.

As for Ferrari prices in a recession, I don't think they are immune. Clearly late-model high volume cars, like the 360 and to a lesser extent the 550/575, will see some softening and may go lower than they would in good times. But I can't see prices "crashing" or dropping a huge amount-- and the cars which are already stable or increasing, the 348/TR and prior, will probably stay stable.

 

Up down who cares... I would venture to guess most Ferrari owners cars are all paid for. And yes, most are business owners, but i fail to believe that "the sky is falling" cry will send all of us to part with our cars. Im sure some who are in dire straits will sell, but for most, i think weathering the storm is the more likely scenario. These are just cars!! not T-bills, the guy who thinks of his car as "money under his mattress" is over his head in owning one of these. The reasons for owning a Ferrari is no different when the stock market is at 14,000 or at 8,000. just my .02

 

I would agree with your "just cars" point, but I'm not so sure that most Fcars are paid for. I think a very significant percentage of late models are actually financed in one form or another. With credit being harder to get, home refinance basically over, and people concerned about the future of their income, I'll reiterate that if you remove 10-20% of potential buyers from the pool, prices will soften significantly. From there, it feeds on itself.........cash buyers hold off figuring they will be cheaper soon. This is why collectible markets and, to a lesser extent, financial markets always over react in both directions.

Dave

 

You're going to see another recession in the US probably in it now, no thanks to the democrats, this one was brought to you totally by those currently in power. The comments about the various class issues is funny, but also sad. We live in a country where those on top take quite a bit more than other industrialized countries. Examples are the pay for the CEOs of a large company here, and in comparison to Japan, Korea, etc., our executives receive quite a bit more. They are also eating us alive in their performance, so an argment could be made that our executives are a bit over paid. We aren't paying for the cost of our government. We can spend 10B a month in Iraq, but can't provide health care for children of the lower middle class. We finance that by selling paper to anyone who'll pay. As a direct result the value of our dollar has dropped substantially. Something is wrong with that picture. If you can't understand that, then you might need a seeing eye dog.

Art

 

Good...maybe I'll find someone trying to unload their black interiored 400i series-II 5-speed for a decent price within the next year!

 

New Forza magazine has a Sheehan buyers guide feature on the 400i and other V12 cruisers.

 

thank you...beautifully said.....

 

There are three types of people: The rich, they have all of the money and do none of the work. The middle-class, who have some of the money and do all of the work. And the poor, who are there just to scare the **** out of the middle class....keep em going to those jobs.

That little bit of wisdom is courtesy of George Carlin.