296 Values and Used Market

Expecting profit from a depreciating asset just seems odd to me.

 

Unless it’s an appreciating asset, which in some cases it has proven itself to be.

I made a profit on both my F8 and my 296 while still following Ferrari’s rules. I don’t expect that to be the norm, but it can certainly happen.

 

If you plan to keep a car forever(ish), resale should be irrelevant(ish). But if you only plan to keep a car for a few years, it's quite logical to consider it.

To make the numbers round, let's say you buy a $300k car and plan to keep it for two years. And let's say the cost of carry (insurance, taxes, opportunity cost of the capital, maintenance, whatever) is $30k per year.

If you can sell the car after two years at MSRP, your total cost of ownership is $60k. If the car depreciates by 30%, your cost of ownership is up 150% to $150k.

Obviously that will matter more to some of us than to others. And yeah, I wouldn't recommend that anyone buys a car if they aren't prepared to take a sizeable hit. But if I go in with the expectation that a car will cost me $75k a year to own vs $30k (base case, not worst case) that will factor into my calculus, even if I can afford it.

 

Not here in florida , I saw few weeks ago a 296 with AF with 500 miles on it sold for over msrp ....... , other on sale for 15% over msrp ...............
even the most basic configurations are all above

 

My dealer told me that only 1 out of every 10 people care enough about the AF pack that they’ll actually pay more for it when looking for a used 296 or SF90. So if you order a AF pack when spec’ing a car, keep in mind you’ll probably take a more significant resale hit than if you ordered a car without it.

 

That's only relevant if you (the generic "you" and not you specifically) think that 300k is actually a material sum of money.

For many, some even on this forum, 300k is not even a rounding error.

For them, they wipe their asses with $5 bills and blow their noses with $10 bills.

For people that are worried about resale value of the 296, it's because 300k (as an example) is actually a meaningful amount to them. It keeps them up at night, if you will.

If that's you, then perhaps you should reconsider the 296, or any car north of 300k USD. (Again, "you" in the generic sense, and not specifically anyone here).

For those people the juice simply isn't worth the squeeze, as they say.

 

This is true but going into it with an expectation of profit is unwise imo.

 

$5 bills are entirely too rough. $20 are much softer. $100 are like 2-ply.

 

Bruce giveth, Bruce taketh away.

 

It’s a spectacular drivers car - just drive it.

 

agreed - it’s definitely too extreme for most UK roads so unless it’s someone wants a dedicated track car it will trade at a discount..

 

If one has enough money that they don't care, good for them. Personally, I'm blessed that I can afford depreciation on my Ferraris. But if I expected to lose a lot, I still might make different choices.

Who am I kidding though, I probably wouldn't.

 

I've got a friend who is a baller, multiple Bugattis and many others. He isn't buying anything that's not appreciating or getting something that does. Point is, to each their own. No one give a f*** if, how, why or whatever you do to justify your purchases. Just do your own thing but don't judge others. Everyone has their own thing going on.

 

The heading of this topic is 296 resale and values which is why I chimed in about what’s going on in the market where I live.

Seems like people are too quick to judge others affordability status of the car and wiping their behinds with $100 bills. Like buying these toys and loosing money all day long is how they live their lives.

It adds up when you have 5-6 or more of these in the garage and all loosing tons everytime new purchases are made year after year. In business this would shut the doors of the operation.

All that’s being said is it’s a forum and staying on topic.


Sent from my iPhone using FerrariChat

 

it's all about psychology really, when I bought an s63 new in 2007 after my company had a great year, I knew it was a lavish purchase and i'd lose a **** load of money

Ferrari's on the other hand are known more for holding their value to a larger extent

it depends entirely on the individual really

 

No one likes losing money but pre covid most understood that cars aren’t investments. Let’s return to reality.

 

AND lets not forget, those hoping for cheaper 296s are always those who can't afford (or can't justify) the price. Wonder what effect continued inflation and Ferrari price increases will have on car values....?

 

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I respectfully disagree with this post. I can entirely afford a Ferrari, which is why I'm waiting for my 296. Regardless of how much money I have or ever had, $455,000 (my spec), is a LOT of money. I have a 720S and Aston Martin Vanquish, both purchased new and that took (and will continue) to depreciate heavily. One of things that appeals to me about the Ferrari is that if I buy it and don't like it (I love my 720 but the 750 just doesn't look different enough for me to want one), I can sell it and likely not lose too much money. I can't speak for others, but I would think that anyone wealthy enough to buy a car like this, unless it's multi generational wealth or a fluke, has some sense of value of money. They want the happiness and pleasure derived from a purchase to outweigh their cost or opportunity cost for that money. And looking at the purchase of the Ferrari, it's maybe easier to justify that. I admit I have reservations about the 296 being a hybrid and potential problems with the car, but I figure it's worth the risk because the resale market should be decent enough that if I hate it, I won't get slaughtered on the sale. Am I going to lose sleep, no, but the depreciation factor on the Ferrari makes it easier to take a risk with the hybrid I am unlikely to take on say, an Artura.

 

Well said.

 

IF Ferraris were to follow the same depreciation curve as a normal car.....would that change your mindset about buying a Ferrari? For many it absolutely would. Ferrari of course knows this.

 

That's a great question, and I think for me the answer is still "no", but it certainly makes me more willing to purchase the car based on a spec and wait what will likely be 3.5 years by the time it is delivered. I also think it's less likely I will replace the 720S with a 750 in the meantime (and perhaps decide I was happy with that 750 and skip the Ferrari), because I know I would take a hit on the 750 while waiting. So I keep the 720 until the Ferrari arrives. Said another way, I guess it makes me more likely to wait for the Ferrari....and to take aforementioned risk on a hybrid drivetrain.

 

in the UK the depreciation curve is as bad if not worse...however Ferrari seems to be still selling enough cars

 

Anyone buying a production range Ferrari new and expecting to come out whole

People want to hear what they want to hear. When it comes to the reality of Ferrari ownership, they really don't want to hear the inconvenient truth, which is that production range Ferraris are depreciating assets which additionally cost money to own. And when you point that out they will say not everything is about money. Maybe so, but it doesn't change the facts.

 

Buy the car, enjoy it and trade in for the next one. Period.

 

What do you expect the depreciation curve will be for electric Ferraris? I think it’s going to be a major problem for all premium car brands as the technology shift accelerates.