296 Values and Used Market

There is also another trivial thing, the price. Adjusted for inflation, the price of a new LaFerrari today would be less than €1.6M. If people were ready to pay €3.2M (in today's money), it benefited the buyers paying €1.6M (who could then sell with a large profit), not Ferrari directly.
Now the new policy by luxury car makers is to leave no money on the table - the F80 is priced €3.6M.
Obviously people are ready to pay that, but is anybody ready to pay more than €7M (what would be needed to have the price doubling on the second hand market) ?
It would need a market far more enthusiastic than ten years ago, whereas the market seems to be at best as it was.
IMHO something as simple as the pricing should not be overlooked.

 

Back to 296 values, perhaps Ferrari would like to slow down the flipping. Charging higher prices works to remove the excess value extracted by those who have no intention of keeping and driving the vehicles. It won't take too many years for the flippers to move on. Yes, there will be collateral damage, but the overall health of the brand will increase as orders will be placed by those who have no immediate intention to sell once the prohibition period expires. Think of the basic low optioned specs on the secondary market. Many of those were never intended to be owned and driven by the person ordering. Over time, the secondary market will have better specs and fewer overall vehicles, which will lead to a higher general opinion of the brand as well as a higher price.

 

Agreed.

But even after accounting for inflation, the Top 1-3% of the richest individuals in the world have seen their wealth increase faster than inflation.

In other words, while we can't overlook the increase in price, we also cannot overlook the (even faster) increase in personal wealth.

 

If Ferrari really wants to discourage flipping, they need to stop the practice of encouraging customers to take "one of everything" in order to maybe get a shot at the special edition cars they really want. The fact is, there is a subset of buyers who are real Ferrari fans begging for a chance at the next SV or even that F80 and they are being told the only way to get there is to take everything on offer from Ferrari to move up the list. Ultimately, they are driving their own customers to buy cars they never want or intend to drive / own. So of course they flip them. Perhaps the new prices will mean they can no longer flip them for a profit, and this practice will naturally eliminate those buyers as they face losses instead of gains on resale. I'd just be happy if they would build my car sometime soon!

 

Very well said.

 

Maybe this is why they are releasing the coupe and spider together with the newer models

 

None will trade at a premium because Ferrari will increase the new price to the market value. Isn’t the SF90 XX well over $1m? The LF was trading at $4m and guess what, the F80 is $4m new. The next 812C will be $1.5m, the next Comp Aperta will be $2m, the next SP3 will be $4m. It’s over people. Meanwhile the capital tied up in cars isn’t making 4.5% in T bills or whatever your favorite investment is, plus insurance etc. The game is over, done, no more. Buy these expensive cars because you don’t care about the money, because you are passionate about Ferrari but you can no longer buy them because it makes financial sense.

 

New GT3 and Revuelto pricing similar. VAG taking ADMs off the table and keeping for themselves since their China EV biz is tanking

 

Dealers wanted the flip and rewarding it.

 

Didn't help transition me...

We'll agree to disagree on that one.

 

I can only dream of owning an 812 Comp A or a Daytona SP3. Hope you enjoy them in good health!

I have a question though, are you net positive on cash or on paper? If the goal of buying so many Ferraris is to get allocations for the 812CA and SP3, I would imagine you’d be keeping them? I’m not in this situation so I’m honestly just curious.

 

there are no rules and everything changes and evolves all the time, life is hard to predict as anyone beyond a certain age knows!

the danger for ferrari is them not identifying they are potentially on the cusp of a change of what people actually want

 

with the sf90xx which is essentially a VS sf90 being £700k+ spec'd I wouldn't be suprised if they leave little on the table for resale esp considering high numbers produced

 

https://www.europeanprestige.co.uk/stock/for-sale/details/2023-ferrari-296-gtb/606

first car I've seen in the £180's

 

I may be wrong, but I think the sf90xx may be the last car you can make some money on. Maybe wishful thinking but its v8 hyrbid and pricing was released before the f80 and its got the xx tag. I definitely agree that it was stupid releasing coupes and spiders at the same time. I placed the order for both 296's assuming their would be a gap and my spider showed up a month before the coupe. Who'd want to go to a coupe after the spider? Then my puro showed up a month later, you'd think between the dealership and the factory, they'd be like lets not send this guy 3 cars in 3 consecutive months, two of which I'm guaranteed to lose money on.

 

The UK market is crazy - this being said, if we would have such prices in France, I would probably buy ...

 

Both. You can see the cars I own and the cars I’ve sold in my profile.

 

F80, F80 XX, 499P, 12 Cillindri GTO car, 296 Speciale car, next Icona. All those cars will “make money.”

 

Agree with you on all of those except the 296VS. And sadly that's the only one of that group I am confident I am getting!

 

pretty nuts but we do like the F8 for example:
https://www.pistonheads.com/buy/listing/15122910
£45,000 more expensive than that 296 and with slightly more miles too

 

Ty for the response. Tried viewing profile but wasn't able to, can't DM either.