Ferrari Investment

Those two cars are not investments. Nor is any other Ferrari. Investments provide a yield. No car provides a yield unless you rent it out.

The ones you list are mass produced, very fast Fiats. They have no upside price wise because they're just too common. Whilst there's plenty of deluded buyers out there at the moment jumping on the Covid bandwagon, history will judge this period very harshly. Masturbating furiously outside your favourite cafe with your latest overpriced soon to be superseded again purchase holds little appeal once the next model comes out.

Just buy it to drive.

Otherwise throw the money into a few ETFs and forget about it.

 

I agree with those who say to buy what you want to truly drive. Drive it hard on the hills and the mountains, don’t even stop for coffee or lunch!
Drive it to feel the adrenaline flowing in your venes, drive it to hear the engine growling behind your ears!
If this is not what you like doing, please leave the cars to those who really love to use them as they were meant to.

All this said, imhi no one can tell the evolution of the future prices of any F car, from the little 208 GT4 to the magic 250 GTO. I believe that buying cara like this for profit is pure speculation, not investment.

 

There are collectible exotics that can be considered “investments”. Now will the yield be great compared to paper investments? Probably not, but compared to non-collectible cars, the returns may be huge.

Example, in 2013 I had a choice.....buy a new Gallardo for $205k (discounted from $240k), or buy a Diablo Roadster for $120k. I really wanted the Diablo, but like 6 deals fell apart for different reasons, the cars are super rare to begin with, so I got discouraged and signed a contract to buy a gallardo.

After a weekend to think about it, I cancelled the Gallardo and spent another few months to find a Diablo Roadster.

So fast forward, that same Gallardo is now worth $100k, and the Diablo Roadster $250k. So calling the Diablo an investment isn’t far fetched.

 

Murcie SV is 1 of 186 and last of the Bizzarrini engine.


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Right, I’m not saying the same cannot occur in the Ferrari world, this is just my real life example.

 

You'll have to ask Mr. McGuire.

OP was quoting a line from the movie The Graduate.

 

sorry.. I was being old.
it's a line from an movie "The Graduate". A young dustin hoffman received advice about his future. Plastic was the answer.

 

If you are seriously considering a vehicle as an investment, then timing is key like all investments.

Buy low, sell high.

Or

Sell high, buy low.

 

I recently had an offer from my dealer on behalf of a client to buy my manual 575, that would have seen me get a 30% gross profit, and around 15% net, after six years.

Not an investment compared to many things, including other things you can enjoy, like a house or art.

but pretty cool all the same for a car that is so fabulous to drive and own!

 

Maybe there is some model Ferrari you can buy today that will net a far better than normal return, but almost all other Ferrari model returns will fall far short of a stock market ETF in the S&P or NAZ.

And don't forget, storing, maintaining and insuring that collectible car ain't cheap.

 

this guy shorts

 

Youre listing two very different cars to drive, besides the elather seat smell and badge on the hood they might as well be from different continents.
I get that youre not planning on making your fortune from eitehr car and would just p[refer to buy one that appreciates as opposed to depreaciates.

If Its a longer term keeper 5-10 years then a 575 manual seems the way to go. Other than a few 599 manuals(i think 75) its the last of the front engined v12 manual ferraris, and they will not be repeated again.

For how I drive a speciale would simply be a lot more fun, and is unlikely to depreciate, I think its going to cost measurably more to buy than a 575, or put another way the 575 should cost measurably less, if not it has little upside.. If youre thinking mountain roads really pressing on, a speciale all the way. If youre looking for more of the classic ferrari experince and car that can roll down the highway comfortably its 575. One is a hard edged car, the other more classic comfort.

Given that there are speed limits, in a practical sense is there much performance difference, but if I were doing a cladestine raid on the grimsell pass where I knew I wouldnt get arrested its speciale.

Just a thought, if youre thinkign 575t unless you can get a good deal on a manual, for the same and arguably better experience just get a great 550, lI certainly wouldnt pay speciale money for a 575 manual, there very limited upside in that.

550's will remain flat with some incremental upside.
Where can speciale prices go, its superceded and outclassed by the pista, yeah its NA but if thats the bag just get a CS.

 

Exotics cost money to own and operate. Just the way it is. You're looking to own and drive likely a great condition and hopefully low mileage supercar for nothing and actually wanting to make a profit in the end. Maybe just get a Porsche?

 

Diablo especially the early 2wd model will be a $1,000,000 car one day. Limited numbers and supercar of its era.

The money to be made has been if you bought any classic Ferrari pre 2006. Now any percieved appreciation since 2015 is just keeping up with inflation. Your net earned is not profit but buys you the same vehicle basically.

 

Which Diablo variant ? 6.0 or SV?
MurcieSV 1 of 186 in the world…. I’ll sell mine for $1mil plus……accepting offers


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But the early 2 WD cars are the most common variant by far......which is why they will always be priced on the low end of most variants. If the 2WD aspect is the party trick, any Diablo can be made 2WD very inexpensively. Otherwise, the early cars are WAY underbraked, less HP and torque than '99-'01) and have a ummm....challenging dash layout.

Other than the SE30, it is the later cars ('97-'01) that encompass not only the better cars, but the most rare.

All Diablos are awesome though....worthy of it's iconic status.

 

For long term, say 10 years, drive about 500-1000 miles/year, which car would one choose between Diablo roadster or 550 Barchetta?

 

"If Its a longer term keeper 5-10 years then a 575 manual seems the way to go."
******
I've had and driven my 575M manual/FHP ( not a common combo) for 17 years. I told my wife to keep it for another 20 and it might be worth selling.

 

The first issue is these cars are in different pricing brackets. I haven’t seen what the recent ask prices on Barchettas are but they used to be $150k over what a Diablo Roadster would go for, over 40% more.

From a future investment standpoint, the numbered special edition Barchetta should fare better, even though the production numbers should be within 50 cars of each other.

Power wise, pretty equal real world what with the Barchetta having an extra gear. I have heard the Barchetta top is a total joke (like the Murcielago). The Diablo solution is genius, it even flows with the contours of the body when fixed to the engine cover, master stroke by Gandini.

Looks wise, I prefer the Diablo, but both are beautiful cars.

Dynamically, it comes down to whether one prefers front or mid engine.

 

I disagree, but to prove my point, we would have to first agree on the definition of 'investment'. Or, more importantly, a good investment. That definition has a long tail and everybody is going to have different ideas beyond the simplistic "I sold it for more than I paid for it." How liquid it is, whether you get a periodic yield, holding costs, time to maturity, capital appreciation and tax benefits are just some of the factors, so I won't go into that because there are books written about this stuff.

But getting back to your original idea, getting the use out of a Ferrari that you can eventually profit from, you should consider the fact that people often dilute their expectations from an 'investment' from which they get pleasure. Some months ago I posted a thread titled "How can I justify a Ferrari to my wife." Amongst the 300 replies, some quite humorous, was a discussion of 'investment' as a justification. I would have liked to have thought that I could have sold it that way to my wife, but after doing my research, the only honest way to justify a Ferrari is because you want it. And, hopefully, you are in a position to be able to own it without it making a material difference to your lifestyle.

As for your math on the Diablo 'investment', let's take a cursory look at that. While you didn't tell us how much you ended up paying, you said that at the time, they were going for $120k. So let's use that number. If you think they are worth $250k today, then at first glance, that looks pretty good. Your asset more than doubled in value. Over 8 years, that represents a 9.5% return. Pretty good for something you can use. But is your $250k estimate on a car that has the same miles as when you bought it or with an additional, say, 3,000 miles a year, which might be the mileage you put on it? It should be the latter. Also, importantly, you do need to deduct servicing costs, insurance, reg and storage. If you are going to do 3,000 miles a year, that is 33,000 miles, so there is going to be at least one major service in there. Only you can tell us what your costs have been to insure, house and maintain the Diablo for 11 years. $40,000? I am guessing. But if that is true, then your return is 7%.

But what nobody likes to think about is the opportunity cost of the money. You say that the Diablo that cost $120k in 2013 is worth $250k today. But if you had taken that money you spent on the Diablo and instead put it in a fund that just tracked the S&P 500, today you would have $375k. So on that basis, was the Diablo really a good investment?

Buy it because you want it, if you can afford it. There are no pockets in shrouds.

 

As I stated, it depends on everyone’s personal definition of what an investment is. Since you chose to rehash Micro Economics 101, it was obvious our definitions differ in terms of cars. I consider a gain of 130k (minus some cost) over 7 years a successful investment in a car that is nirvana to drive on a nice sunny day......especially in light of how non-collectible cars have depreciated over the same time period.