Would you decline delivery of your Ferrari if there is a tariff (US buyers)?

Totally agree - I have a Lambo on order that would be 100k more at a min for no reason. I could swing the cost increase but why would I? I'm not getting more car and the price increase could go away at any point making it a true pointless waste.

 

I think Ferrari of Central Florida is, though. Their building is near Porsche, Audi, AM, MB, etc, but not part of those chains.

 

And in Oregon too?

another option is to just wait for stupidity to end in 4yrs, but that’s a long time for delayed car acquisition.

 

It does not average like, allocations and therefore resulting sales, are based on volume. Some dealers like MAG might get 2 allocations a month, another dealer like Ft Lauderdale might get 10 allocations per month...but, as mentioned elsewhere, selling the same car multiple times (i.e. preowned including other makes) is a sizable revenue source as is service/warranty work not to mention hosting events like track days and more.

And Ferrari Austin/San Antonio are standalone in the sense they have the same ownership along with location(s) in Mexico, only Ferrari franchise, and I am pretty sure Lake Forest is standalone. And there probably are others too.

 

Sales would plummet because the regular production exotics of today aren't worth 25% more than the already over inflated pricing, not to mention the huge price of options dealers love to push for. They just aren't special enough.

 

I believe Ferrari of Houston and Ferrari of Washington were the last independents. I could be wrong.

Chains like to buy a Ferrari dealership as a showpiece. It may be profitable, but no where near a Toyota or Mercedes dealership. They also have one more store to spread overhead over. But typically, each store stands alone. A Porsche dealership in a chain may or may not be interested in a Porsche taken in trade by a member Ferrari store.

New car dealerships make their profits from F&I, and parts and service. Sales pays for the overhead.

 

Last I knew Ferrari San Antonio was owed by a chain, but my info is old. I used to keep closer tabs on this, but Lake Forest might be the only standalone. Point is to compare a Ferrari to a Mercedes dealership. Say the Ferrari dealership sells 10 cars a month. The Mercedes dealership might sell 10 cars in a week. Capital costs are similar, but ROI is not. Ferrari makes a butt load of money on each car, the dealers not so much.

 

After seeing trump with Zelensky today I’m fairly confident this tariff will actually be implemented as he wants to distance America far away from the EU

 

****, I'm screwed.

 

Yes, it's starting to look bad for car imports. I wonder if manufacturers will eat some/most of the tariff cost on orders placed before tariffs announced to help clients like you, but then don't do that going forward as everyone else already knows what they are getting into when they order. It would be a good gesture for the brand vs competitors that don't.

At least for the used car market, I think it's turning into a good idea to buy a car overseas and leave it there and enjoy on vacation. For example, a Speciale in mint condition is still in the $400s in Japan including tax vs basically $700k now in the US including tax. That $300k extra can easily cover car storage in Japan (even a second home) and flights...lol. No need to worry about someone vandalizing your car over there like here or insane insurance costs like here. I noticed prices in UK also pretty big gap compared to US market cars, too.

 

So according to the poll, a huge majority of buyers will decline - I wonder what will actually happen; if true the US market will be saturated with unsold foreign cars.
But if the dealers can keep the deposits (and I guess they can, since tariffs are not under their control), maybe many buyers will pay the additional tax rather than lose their deposits.

 

Or..God forbid, the manufacturer lowers the price of the car by 25%, take a temporary hit on profits, and carry on.

 

You funny guy. You should do stand up.

 

their margins aren't high enough to make selling to America worthwhile if they chose to absorb it

 

The magic of percentages is that to absorb the 25% tax, "only" 20% price reduction is needed.
Let's say the current price is 100 - with 25% tax, it would go to 125.
But if the price is reduced to 80 (so 20% drop), adding 25% (one quarter) of 80 goes back to 100 (initial price).
Besides, I suspect foreign manufacturers do have some margin (probably not 20% though) - there has been a lot of inflation in the US, but thanks to the "power of the dollar" it has not really been translated into a money devaluation (which would have been the normal consequence of inflation). For domestic products, costs have been increased; but for imported products, increasing prices (just following the US inflation) has generated additional margins.

 

Westlake / Beverly Hills / soon to be Pasadena are not part of a dealership chain, although of course the owner is well-known due to various family....connections.

And the California dealerships ain't doing 6 cars a month. I think Beverly Hills and Newport are #1 and 2 in the country?

 

Hope springs eternal. I read in today's WSJ, they estimate it will take six months to implement any 4/2/2025 tariff. My delivery date is 5/19. **** all you guys. I hope they impose a 125% tariff. That will make my car that much more valuable. That good time Rock 'N' Roll will never die.

 

Australia has had ‘Luxury Car Tax’ (LCT) since 2012 at 33%. It was introduced to preserve the Australian car manufacturing (which ceased in 2016) but the 33% tax carries on. The tax applies to any vehicle under 2 years old new or used. Yes, it can be paid multiple times on the same car in those two years via ownership changing hands. It’s a disgraceful tax that should be removed.

The threshold is
$USD56K for EV’s
$USD$51K for all other vehicles

 

The good news for owners is used prices will skyrocket since there’s no new car supply being delivered anywhere near the cost of used ones. Time to cash in before tariffs go away if you’re thinking about selling (assuming they actually get implemented)

 

I'm not sure this is true. I think the used market will tank even further.

 

If all new car prices increase by 20-25%, people will flock to used cars to avoid tariffs. Simple supply and demand, IMO.

 

All of this assumes the tariffs stay in place permanently. If they are "transitory" then anyone paying the tariff for the new car (or pays up to get a used car while tariffs are in place) will get smoked as soon as there is a deal and they levy goes away. If its permanent then yes used prices should rise.

 

Don't count your chickens however I do hope it works out for you

 

It will be the biggest shake up for Exotic second hand market ever.

 

Current tariff is 2.5%, not zero...