328: Average time on Market

If you're already looking past your ownership to the resale before you ever buy, you probably should think twice about purchasing a Ferrari.

Given that, here's my thoughts. I love my 328, but quite honestly it isn't worth the 20K premium over an equivalent 308GTSi. I got a chance to drive a 308GTSi, and it was just as fun as the 328, just in a different way. I was thinking today that I could have had a 308, an Esprit and a Delorean in my garage for nearly the same price as my 328...

Perhaps expanding your model choices will help? Buying a car and not driving it because you're concerned about too many miles and resale isn't the best way to enjoy a sports car.

My humble opinion

 

I'm absolutely confused. How does four extra months on the market mean anything financially? You're still making your payments. You're paying down your principal. The correct calculation is actually (number of months * [amount paid in interest per month]), and that is the cost that you sink into the loan. Not (number of months * [car payment]).

So if you were paying $100 in interest per month, every month longer that it takes you to sell the car, you lose $100. Negligible.

Negligible especially because IMO, 328 buyers are looking for a "good 328" in the color that they want. Some will put a "gotta have an 89" but others like me will put a "will take anything except an 89".

In the end for like cars, similarly priced, the time to sell should be negligible. Statistically over 2,000 cars, 88s will sell faster than 87s and so on through the 86s. Perhaps by the same reasoning 89s over 88s (though not everyone will take an 89 over an 88!). But it's negligible. 328s are hot and will sell fast if priced right. I think mine was on the market for a week before I snatched it up--it was priced pretty low. Dealers will price 'em at $50k, will take $47k, and will wait out however long (not more than a month or two in my experience) it takes! These cars sell, period.

My $0.02.

 

I would not finance a 17 year old Ferrari!
Or any toy for that matter.
What happens when the can of worms opens and you have a $7000.00 repair bill?

IMHO, if you want an older Ferrari, wait till you can pay cash!

 

OK, here we go…..

Fact: Pairing of buyer and seller for a rare car (as opposed to a commodity car like a Honda Accord or Toyota Camry) is highly stochastic and none of us has real data reflecting price, model year, geographic location, etc. versus time-on-market.

Conjecture: If you are asking about the late 1988 328GTS with ABS, there is zero difference in value compared to a 1989. Some dealers would argue (Ferrari Market Letter index aside) that there is little difference in value between any of the 328 model years. Condition, mileage, maintenance, and a solid history are everything.

Opinion: I loved my 1989 328GTS, but really disliked the convex ABS wheels. If I were buy another, it would be a early fiberglass 308, and very late 308GTSi, or a pre-ABS 328. It’s hard enough to rationalize buying a Ferrari (or more than one Ferrari, Porsche, Jaguar, etc.), but making payments would convince me to feed my automotive addiction some other way. Owning any Ferrari, much like sports car racing, requires you to face $1000-5000 repair and maintenance bills to keep your car in proper order and I know of no way to dial that into your calculation

Good luck!

 

I would agree that if you a thinking of financing an older Ferrari...Big mistake. You need to be able to pay for the car out right and then put the $500 per month in an "account" and save it for repairs. Not that repairs on a 328 will cost $6000 per year, but at least you will have it. One year I spent $0.00 on the car, the next year I spent $5600 + on repairs. It's averaged $2000 per year with some years better than others.

 

If you're thinking about how long it takes to sell versus what your payments are on it, Ferrari ownership is not for you. You really can't afford it.

 

Alternatively, you may be able to buy it... but wait till you get one of those maintenance bills! You may be happy it only cost you $4000!

 

don't buy a Ferrari please

please don't

 

When I sold my 1st 328 (red/tan 87 GTS) I had money in my hand 36 hours later.

Like anything, they can sell very fast, or take a while. If the 88 in question is a "88.5" with the suspension upgrade, then it would be a better deal than the 89. If it's an early 88, then the 89 is probably a better deal. I have an 89 myself, but any year 328 is great.

It sounds like this is a reach for you financially, and if that's the case, you will probably be better off waiting. 328's have been selling at roughly the same prices for about 10 years. There are lots of nice ones out there, so I don't anticipate they will appreciate much if at all in the near term.

Dave

 

I'm only going to reiterate what the others have told you. If you're breaking down the ownership into payments -vs- resale time on the market, don't buy a Ferrari. It is NOT for you. You won't be happy, and when you get whacked with your first unexpected large repair bill (and it WILL happen) you'll flip out.

Buy a Porsche, it's easier than changing your outlook.

BTW, Tillman, I can't for the life of me figure out how you arrive at a 308, Esprit and Delorean for the price of a 328. Especially since I've good a very good idea what you paid for your car. 2 car difference maybe, 3 no way.

 

My guess is that he didn't budget for that package of papers Mrs. Tillman's lawyer would send him.

 

EDIT: Better delete that part.......

18,000 for a 81-82 308GTSi

10,000 for an early Esprit

12,000 or thereabouts for a decent running DMC-12

Each price assumes you have the cash available and can drive a decent bargain, but they are not far off market. Maintenance would be a pain, but the odds are one of them would be running at any point.

 

Wanna buy a "high maintenance" car??
an early Esprit definitely fits the bill!
My brother has one, which I have kept for him for the past 4 years.
Never go anywhere in it without your cell phone and AAA card!

But... they are very unique, not terribly complex, and definitely turn heads!

 

To the original poster -- sorry about taking this so off-topic

EDIT: and to Ken, I don't disagree with your assessments, but read below for my thoughts

Actually, rust isn't a big issue down here, even with the older US and foreign cars that weren't rustproofed. I was stunned to see so many rustbuckets up in MO and IN. Maybe that's affecting my viewpoint. I do know that I've seen several 308GTSi in that price range over the past few years, and they didn't look that bad. Maybe it's a matter of intent -- I'm pricing decent daily driver higher-mileage cars, not cars intended to win the local car show.

Europas are cool, but no way can I fit in one. Not without a can opener . Once again, I'm pricing a daily driver fun car, one that you could leave anywhere without worrying about it. Absolutely at that price point you're not buying an investment-quality car, and it would not justify restoration. Lotus mechanicals scare me, but I've never owned one.

I've actually been watching that market lately (don't tell my wife). They all go on the market for the upper teens, but they sit there a long, long time. I have seen running-but-needs-work cars go for ~8500-9000. A solid cash offer of 12 would get you into a decent car that shows its age. If you want showcar, there's a almost-no-mile still-no-title one that's been in the showroom of an original Delorean (now Toyota) dealer since the early 80s....I hear they're asking 70K for it (!!) Gotta watch the frame rust on these things, bad bad news.

As you can see, I value having fun with cars, so rock chips and scuffed leather don't bother me all that much. I will have to have my 328 repainted and the leather redyed to sell it in this market, but I've had fun putting the chips on it

Take care
T

 

alert1,

As others have said, Ferrari ownership is not about analysing "the purchase equation" too much. Get the best car you can afford & have some fun.

Be sure you've enough funds available that you never have to worry about the costs.

I've an '89 328 GTS and yesterday was a track day. Heaps of fun! Also, cleaning the car this morning was enjoyable. The car is a dream come true for me.

In under three months the odometer has gone from 46,500km to over 51,000km. The motor is strong and the car well built. When things go wrong there'll potentially be some significant costs: minimise this by getting a good car initially, maintaining it and driving it.

A $4,000 premium is to me not significant. One way to consider it is if you are borrowing for purchase, I guess you're interest rate would be 5%. (I'm in Australia so don't know. Presumably you can borrow from a bank against real estate at a similar interest rate to a house loan.) Then as I see it, the extra cost for $4,000 is 5% * $4,000/year in interest payments. That is $200 per year. Beer money.

Hence, my suggestion is get the beter car.

Best wishes and let us know which way you go.

regards,
Pete