From pre-owned to new...

As someone who cut my teeth on their first pre-owned Ferrari last year, I am curious as to how many of you started with vehicle a few years old and eventually went towards ordering a new one? I know many models aren't as easy to just walk in and place an order but after playing with the configurators online, I can see myself ordering a new one some time in the not too distant future. I love ordering custom cars to spec, and have done so for many new BMWs and Porsches. I love the idea that the particular options etc make the one I ordered somewhat unique (even if in the case of a BMW they probably are not).

For those that are now new Ferrari buyers, did you start that way or evolve? What was the evolution like?

PS - I did find out that I have the first allocation of the Alfa Quadrifoglio at my dealer. Looking forward to that one for sure, and hoping that some sort of European delivery can happen if possible. If anyone knows if Alfa has or is considering a program I am interested!

 

I bought a few used Ferraris from private parties (one of which I still have), then a used 456 from the dealer-- traded one of my older cars in on it. Then I ordered my 612. I used the local dealer for service on my used cars, however, so they definitely knew me.

That said, I think I could have walked in and ordered the 612 without having bought a car from them in the past-- I think it made no difference at all.

I imagine that's still true today for an FF (or GTC/4Lusso or whatever it's called). F12 or 488 might be a different story, though. 2+2s have never been as popular in the US as the two seat cars.

If you're already a service customer, or they know you from events or FCA or something, I would think that would be helpful from a sales qualification perspective, although not really necessary.

 

I have never ever ordered a new car. No matter what my income is, I will never disregard the value of money/my earning so much that I "enjoy" absorbing the initial depreciation of a "normal" supersports car.

The first owner of my 599 lost by way of depreciation more than $10 per each single driven mile (!). This means that I would pay about $400 on one single day driving to office and back home, just depreciation. No .

OK, there must be people not looking at money at all, who buy new luxury cars. Otherwise there would be no used ones for me . Now call me a tightwad ... .

 

I'm always terribly upset with myself when I foolishly buy new. Last new car I bought for myself was a 2013 Maserati GT Sport. Took a bath of course. Before that, a 2012 Corvette GranSport which went from the dealer to Lingenfelter, took a bath on that one, too. I think buying new makes sense when you're buying a practical car for someone who will keep it and drive it responsibly. My wife's GL450 was purchased new, four years later she still loves it, and I love keeping it looking new for her. That purchase made sense. But for someone like me with the car problem, someone who can't be trusted to get value out of a new car purchase, it's a mistake every single time.

 

Bob I agree however some of the newer "in demand cars" can offer a hell of a value if timed right. In 2008 I got one the first Audi R8s and put 17k miles on it and traded it for a few thousand less than I paid for it. Timing is definitely everything. For those that get in the Ferrari loop I would think that there is a window to buy and enjoy a car before the depreciation is steep (on the more available cars) and on the cars like the speciales, perhaps not even lose much if anything as those tend to hold value. Having not fared great in the market and some other investments, having a car like that, that doesn't fall off a cliff is a nice hedge to park some money there and still be able to enjoy it. I'm not buying with appreciation in mind but holding steady would be fine too

 

The initial/original owner from whom I bought my 599 dropped the equivalent of $300/mile for each of the 500 miles he put on the car.

But then again, he had about 14 FCars in his garage and may not have noticed/cared.

 

Absolutely, but not something I'm good at. I do okay not taking too much of a bath on used cars, but I suck at buying new. Everything I'm attracted to goes south like a duck in winter. It's easy to spot a good flip opportunity with ferrari models, but you have to rate with the dealer to get that early example of a new model. I'm afraid even with six transactions at FoW to date, I don't come close. They have customers who do more than that in a single year.

 

Eric, I haven't bought new but I have considered it. Everyone trots out the 'initial depreciation' argument but that is really a myth. Cars depreciate at 10% per year on a declining balance. That means you pay 500K for a car and it will lose 50K in the first year (assuming normal miles etc.); the second year it would drop another 45K and the third another 41K. That means at 3 years it is worth about 364K (down from 500K). If someone buys there they see a drop of 37K the first year and think 'MAN I dodged all of that up front depreciation because the original owner lost 136K. BUT, it is still losing at exactly the same 10% per year. Simple math but people obviously ignore the math so that it fits their perception.

As you noted, there are a few exceptions in the 'hot new release' category.

Good luck with the new car however you decide to go.

 

My simple math:

599 (2009) bought 2014, 18k miles, perfect condition, no accident, no scratches, mayor just done, price exactly €90k. Stood at my Mercedes main dealer, where I saw it by accident when fetching the dd from a service. Deal was struck instantly after a clutch readout (less than 10% wear).

This car had cost new €264k.

For me slow math guy, your hypothesis:

264-10%=237,6 (2010)
237,6-10%=213,8 (2011)
213,8-10%=192,4 (2012)
192,4-10%=173,2 (2013)
173,2-10%=155,9 (2014, my year of purchase)

So, your hypothesis differs from reality by €66k only ... . Well, that small variation buys me a nice new Mercedes Benz ....

And: What might I get today, IF I would like to sell (I definitely do not want to!)? Who made the better business/math, the first owner, or the second one (me)? .

Cheers, Bernhard

 

I subscribe to a different theory. If you buy new and own the car for 30 years (or more), the depreciation (amortized annually) isn't that bad, and may in fact be negative in the later years. And, you get to enjoy the car for 30 years!

I'm only on year 8 with my 612, so 22 more to go! And, in 22 years, I don't think I'll want to sell the car.

 

I'm really trying to adopt and maintain this philosophy at least to start with my daily driver, which is 11 years old now. Being a Cayenne Turbo S, it has a stunning interior, keeping the exterior like new as well. I want for nothing except maybe better mileage. I sure hope I'm still driving her in a decade.

 

Eventually I went the opposite way from new towards pre owned cars. Like the way my cars gain value while I enjoy riding em or simply keeping em covered and maintanenced )

 

The really good stuff is all used. With 3000 years of used and 3 months of new, bound to be more good old stuff than good new stuff.

 

I have only bought 20 - 25 cars in my life. Most all the time they were all used. The exceptions being when the model I wanted was unavailable used or the cost of the new model was not materially different than a low mileage used vehicle. When I did buy new, I did order the exact color and equipment that I wanted. I have particularly enjoyed the new vehicles that I ordered exactly what I wanted. The new vehicles were usually "toys" not daily drivers so I am sure that is part of the experience. But some of the daily drivers I purchased used I also enjoyed for 8 - 10+ years and since i am tight I enjoyed getting an exceptional deal on those cars as well not so concern about the depreciation. Also my corporation purchased the car so there were also tax considerations that I was able to take advantage.
I just personally (rather than corporate) purchased a 08 612 OTO car with 5,500 on the clock and the whole experience of shopping for 15 months getting an exceptional deal from the F dealer, with all current service, for 135k + tax/license and owning my first F car has been a real trip. I plan to keep and enjoy the 612 for many years. The MSRP on the 612 was 396k so I doubt that I could ever stomach paying that much for a new car I guess I am just too cheep.

 

I don't think your cheap - sounds like a great deal - what color?

 

Must be others out there like me that flat out cannot afford a new Ferrari. Used is all there is for us.

 

The experience is another factor in buying a new Ferrari. It's a long process (at least it was for me)-- almost a year. Then there was spending endless time with the configurator, spending time at the dealer (I missed out on the Atelier).

One nice thing was that I could get exactly what I wanted-- and after owning the 456 for several years, I had a pretty good idea of what I wanted.

Once it was ordered, there was various correspondence with FNA, and directly with the factory. Various hoops had to be jumped through to enable a European delivery-- Ferrari doesn't have a very organized program.

Finally, the moment of showing up at the factory in Maranello and giving them the name of my contact at the front desk. They do treat you differently when you are there to pick up a car as opposed to just taking a tour!

All of that was worth quite a bit, as far as I'm concerned.
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I can very well imagine that this is a lot of fun. In my case I would anticipate additional time with involving my wife and endless discussions about details . I would have preferred my 599 in blu Pozzi, instead of nero. Aside this the car would probably have turned out with the options and colors just like it is ...

Indeed, if really very long term ownership (decades rather than years) is intended, then depreciation of a new car becomes almost completely irrelevant (but the same is true with a used one). Because you do not actually experience the money loss. Same with appreciation. Of what "value" is it for me, if e.g. my Espada has gained in the recent years, but I do not sell? Right, none, € zero ... .

Cheers, Bernhard

 

You bought at the bottom of pricing (during the recession). Not surprised that there is a gap; I would be worried if there weren't. Your math carried out 2 more years to current and you get 126.3. You can buy one for that but not a perfect low mile example.

I agree with your assessment that appreciation and depreciation mean little unless you are selling. Not really planning on selling my car either; but I may have to add another one.

Cheers

 

In the instant hype atmosphere I am not buying anything, but spending money and time in improving my existing classic cars (I actually have enough cars anyway *lol*). Avoids me becoming bored and doing silly car purchases .

Who forces you ("... have to add another one")???

Cheers, Bernhard

 

Not forced to buy but want to buy a 599. Have a 360 Spider and use it as my DD; my wife drives a new Lexus so we have something to haul people around. I want to add a 599 but am holding off since I promised my wife a remodel and need to finish that first. I am not convinced I want to sell my 360 to get a 599 so I guess I need to have both

I could be equally happy getting an Alfa Duetto to play with. I had an Alfa for a long time and I really miss that car. So fun to drive.

 

The way I see it is a the new car "honey moon" period never lasts long enough to justify the depreciation hit you take in the first 5k miles.

I also have a lot more fun driving a used car for some reason. I guess knowing I got a deal on it helps me care less about the initial cost and depreciation/resale etc. when hammering the throttle.

Poor people problems if I recall correctly.

 

John, My 612 OTO car is Gregio Ferro Metalac/Iroko-Grigio Sucoro, which translates to Gun Metal Grey/Dark Brown w/ grey carpet & carbon fiber cabin trim. I am not sure how to add a picture so I haven't.

 

Sounds great!