296 Values and Used Market

Cost of insurance will also rise. More costly to replace or repair!

 

It would be wise for folks who have cars on consignment to immediately reach out to their dealers and discuss pricing adjustments.

 

it’s already happening, I just spoke to my Porsche Dealership and they sold just a 2025 GT3 RS used 100 miles on it, for $100k over.

 

Tariffs are assessed at the POE by the CBP.

Now whether the increased price because of the tariff is eaten by FNA, or passed onto the dealer, and then to the custoomer, is a question that is yet to be answered.

But I have my guesses. (Hint: Get ready to open your wallet even w-i-d-e-r).

 

Assuming Ferrari doesn’t absorb the tariffs, I think it would be unwise to pay more for a used car based on a post April 1 new car price increase. This is simply because we have no idea how long tariffs will stay in place. You could pay more now for a used Ferrari and then lose your shirt if tariffs are negotiated away!

 

It was unwise to pay increased prices during Covid as well, but markets are unwise often enough.

 

you are hilarious

 

Looks like prices will not be increased for 296 orders regardless of delivery date if I am reading the press release correctly

 

phew!

 

I can't understand as possible , Ferrari will not decrease the price of the car to compensate .... , moreover how can there be a distinction between the models. I issue an invoice and the duty is applied to the value...also because we are talking about at least 10% for now but in reality it will be 25%

 

This is exactly how I feel about the sf90. best car I've ever owned and don't plan on selling.

 

Great spec

 

Does anyone know what value the tariff is calculated on? If a 296 gts shows up at a US port and the direct costs spent by Ferrari on the car are say $150k, is that the amount on which the tariff is computed?

 

that is the current going rate, before tariffs

 

I believe it's calculated on the customs value. This is the total cost paid by the importer to get the car through customs, including the transaction price, shipping and insurance. My understanding is that the transaction price is the price paid by the importer, not the end consumer, so any value added once the car is through customs (shipping to the dealer, dealer margin, etc.) should not be subject to the tariffs.

I wonder if they're able to game this by charging Ferrari NA a lower price. Some profit would shift from Ferrari SpA to Ferrari NA, but since the latter is wholly owned by the former...

 

Very interesting thank you. Probably safe to assume the dollar amount of 10% on the sales price is equivalent to the actual tariff. Is it possible Ferrari NA could pay 40% of the msrp? That would make the math work I think.

 

Interesting my 3RS due in soon - I think they were going for 100k over before tariff. Let's see if it sticks -
Of course sold my Roma Spider to dealer two weeks ago!
Some guys aren't going to care - I do wonder how they are going to work this into a lease guys who are already pushing it are going to come up with X ... wouldn't want to be in sales dept.

 

I don't know if they can actually game it this way, I was only positing the idea. I'd guess that if loopholes exist that allow something that extreme, they'd be closed pretty quickly.

If they can't lower the price to Ferrari NA, I'd guess that this translates to something like a 10% hit to US revenues (assuming no shift in deliveries away from the US to other markets). I don't know what the import prices are as a percentage of MSRP. Say pre-tariff they were 85¢ on the dollar. If they keep the 15¢ margin unchanged in dollar terms, that means the new post-tariff import price would now be 95¢ (15¢ less than the new $1.10 MSRP). To cover the 25% tariffs, that means the new pre-tariff import price would need to be 76¢, or 10.5% less than the 85¢ they got pre-tariff.

The US accounts for about 40% of revenue, so that's about a 4% hit. EBITDA margins are a little over 30%, so that's something like a 12% hit to EBITDA.

How much is RACE down since all this started?

 

Not quite sure why I’m hilarious for expressing an opinion but happy to add some laughter to your day.

 

https://www.nasdaq.com/market-activity/stocks/race

 

Not sure how much of the revenue the US accounts for, but I doubt it's 40%.
The number of cars sold in the US in 2024 was 3452 on a total of 13752 (according to Ferrari annual report); that's just a little more than 25%. Even if the cars sold in the US are more expensive (and thus generate more revenue) than in ROW, I don't think 25% of cars sold would be 40% of revenue.

 

According to Ferrari the average US client spends more on options like Atelier and TM, so the margins on US cars tends to be higher than the rest of the world on average. The 40% of revenue is based on cars sold plus options.

 

Wouldn't US revenue also include challange, corsa pilota, etc. which also would presumably be much higher dollar volume and outsized percent of share than ROW? That would also explain US being 40% of total revenue pie.

 

I would think so but they didn't disclose, but yes I would think that would be included as well.

 

Oh, you could be right if your unit numbers are correct. Others are also probably correct; higher prices per unit and other sources of revenue could make a difference, but it's hard to believe it could explain a gap that large.

Geographic revenue breakdowns should be available in their 10Qs. I took a shortcut and asked one of the AI bots to look it up for me. That's hardly foolproof. When I get a moment later, I'll pull up the 10Q.

If it's, say, 30% rather than 40%, and you plug that through my calcs you get a 9% hit to EBITDA. Considerably more than the guidance Ferrari has put out. I'd love to know how they're coming up with their estimate. I'm sure it's more accurate than mine.