Dino Valuations - going, going...

Is it me, or does it seem that every time there is a quality 246 on the market it is gone immediately? (unless they are advertised falsely as 100pt cars with asking prices of $200k) Owners don't want to part with this F-car because, like anything else that has investment as well as pride of ownership value, there needs to be a purchase of something of equal or better value after the sale.

From a pure investment standpoint, I think the dino is one of the most under-valued F-cars out there right now. Take a look at the valuations of the Daytona and 330 gtc's and their trajectory recently!

Although not as rare as the '60s Ferraris, this extremely rewarding model rivals many of them in all of the "thrill" factors. It may not be better performing than the v12s but, like women, its not always the size but the proportions that matter!

Supply/demand, relative valuation, qaulitative factors. Whatever the method, there is somewhat of a lag that these classic F-cars have experienced recently in the run-up in prices. As the markets for other securities and investments become fully valued (like real estate and muscle cars) the buyers will seek quality classic F-cars that can still be had for around $100k.

Finally, to look at prices in the 80s without adjusting for inflation, and more importantly, the cost of other investments at the time, the market for the classic F-cars is even more undervalued. In the late 80s, Ferrari 308s were going for $75,000, Daytona coupes $500,000, 275 GTB4s and Daytona Convertibles for $1.2-1.5 million. How much is that "investment in collectables" money worth in today's dollars? Certainly the $500,000 spent on a Daytona coupe in 88 would be more valueable in 2006 dollars, but ONLY if it had been invested in something that outpaced inflation.

But what about the un-quantifiable aspect of thrill? Whether you are a driver, competitor, concour showman, there is that factor you can't put a price on. Ownership of an F-car should certainly be worth much more than a copmarable financial instrument, stamp, coin, piece of art or other collectable if you have the right perspective.

Finally, grand sope of things, what value would you put on driving your favorite Ferrari everyday in the last year of your existance on the planet?

Sorry about the soapbox, but just think we are about to see a severe upward movement in Dino prices over the next year and half!

For an excellent article on F-car market forces and gernal valuation discussion, take a look at this article;

http://www.valuerichonline.com/04spring/index.php?id=nmotion1

http://www.ferrarichat.com/forum/attachment.php?attachmentid=268112&stc=1&d=1136608283
http://www.ferrarichat.com/forum/attachment.php?attachmentid=268114&stc=1&d=1136608331
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I hear you on the "real" ************. Definitely a Ferrari, invented by Enzo to memorialize his son. -- See the History Channel special on Enzo's life. Since he was in love with the idea of V-12 as the S.F. engine, there came a time when the 6c engine found a place in the stable. Since he lost his brother Dino and son Dino it was a good way to remember them.

About the valuations of the 80's ... i think that is something akin to the 99 tech bubble when you have complete dislocation of buyers and any grip on fundamental values of an asset. today is completely more rational appreciation of prices for both F-cars and stocks!!!!

Where do you guys predict dino prices in a year, two or three?
i would say easily 15-20% annual price appreciation for the next three years.

 

it does seem like the valuations in the UK are much higher right now. that could be due the pound and the weakness of the dollar in 2004, but also b/c there are much fewer proper right hand drive cars around. just my 2c