575m Price Shock!!!

Thats aweful.............But WHY would you want to sell, youve only had it a year ?

 

how much was it new ?????

 

Sorry about the depreciation mate, but it sounds good to me. Im interested can u post some pic's and the spec if possible.
Im looking forward to your reply.

Cheers mate
Naeem

 

I think in general all the big V12s have huge depreciaition if you buy them from new. I think there are only a limited amount of people that can spend £150k on a car. When it comes round to sell you need to appeal to a wider audience so the price needs to go down. Also most manyfacturers top end cars have big depreciation curves. Take a few examples: M5 - £60+k new - £20k in 3yrs; Merc CL 500 £140k to £60k after a couple of years etc. I guess ferraris are even worse in this as you need to tempt punters that would be willing to spend another £3k-£5k a year on servicing and insurance. You'll need to keep it a bit longer to get some more "value" out now that you depreciation curve is flatteing a bit.

Cheers
Philip

P.S. A friend baught an immaculate 3yr old 550 last year with 3k miles on it from Egham and paid £82k. I dread to think what the owner sold it for.

 

That is shocking mate, it's not even a year old. I think you should keep it as well.

 

selling it privately should get you at least another £10k.

 

Not as nice as a 04 575

 

i guess that was your bonus mate ?? ... never mind you will get another one next year

 

Your DB9 will do exactly the same thing as the 575 if you don't trade it for a small premium in the next month or two.

There are as many explanations put forward as there are posters on the site, but ultimately it doesn't change the facts : Pretty much any mass produced car priced over £100k takes a massive hit once the volumes start being delivered (a few convertibles hold firmer in the UK, but less so overseas). Look at (say) the AMG55 Merc 2 years ago. Was scarce, sold at premium, now they're down by 40% ish.

We seem to be prepared to pay the price for scarcity even though these cars are now relatively common. 35 years ago the volumes were much smaller and relative to (say) houses they were much more expensive. Now the cars are far more common (and much better built) and relative to property are cheaper. It's small comfort, but cars are actually at or around an all time historically low price, even at the top end. The manufacturers are mainly loss making, Ferrari only makes money from F1 for example.

jg

 

I fear John's spot on. Re an ealier point, it doesn't matter how much money you earn, £50k off the hip in 12 mths is an awful lot of money to lose.

 

The bum really has dropped out of the 575's in the past 12 months. I cant remember the exact fig, but I think Maranello are offereing a BRAND NEW 575 for £120k...... its pre-registered, but still, brand new. Thats not going to do much for residuals!!

Still, you may have lost a few quid but at least you've smoked a sweet motor for the last year. Good work

Jamie

 

50K depreciation.... blimey thats tough, sorry to hear it. Makes me feel slightly better about the costs of maintaining an older Ferrari .

You should be able to get 100K if you sold it on SOR with a dealer. Or perhaps give private a whirl - might get 105K or so?? Its an awesume car.. and practically new!!

 

This is no consolation, but it is not £50k depreciation. I understand that the difference between trade and retail on these cars is £15k, thats £15k profit to the dealer and £35k depreciation, which is 28% of the trade price.

Although the figures are big, and I feel for you facing such a 1 year cost, is 28% unrealistic for this period in the cars life when you are selling back to a dealer?

 

John,

I don't believe Ferrari sells it road cars at a loss (I think it may have done in the dire early 1990s). I can also assure you that the running of an F1 team is a net cost, but you are right to the extent that Ferrari actually makes its money from selling base-ball caps, flags and clothing - and other spin-offs from having a four hour global TV advert every fortnight.

The raw maths pretty much sums it up for me, as follows.... How many people each year buy a six figure car from them? Is it around three and a half thousand worldwide, maximum, I guess? Average (across the proportion of 430s, 575s and 612s sold) would be around GBP140K per vehicle, let's say. That's only 490 million (revenue with not much profit I would guess). Not nearly enough to cover their F1 costs (130 million at least?) as well as their R&D and car production costs. I agree with you. They must be getting PLENTY DOLLAR from somewhere else than roadcars ! Even if you account for the whole after-sales service industry and parts on all previous Fcars, the part that comes back to the factory can't be enough to keep the company going.

How many 25 pound / 40 Euro base-ball caps do they need to sell for 490 million pounds? 19.6 million worldwide. Or how many 50 pound / 80 Euro flags or shirts? 9.8 million. The viewing audience is over 1.5 billion, so I'm sure these sales are achieved easily, if not exceeded, but I don't know if Bernie gives the teams much of the TV rights money. If TV rights and clothes is where football clubs make their most money, way more than ticket receipts, I'm sure the same is true of F1 teams in general and Ferrari in particular.

I'd love to see a proper analysis of their revenue and profit. I don't remember if last year's annual report included this, but I think not.

Ferrari keep rumouring a flotation. I'd buy some shares if they ever do....

Meanwhile back on the topic, that is some scary depreciation!

J.

 

Unless you HAVE to have the DB9, I'd be tempted to flip the Aston for a profit and use the money as a way of making the depreciation on the Fez a bit less.

Not a nice situation to be in at all...

 

I dream of being in such unpleasant situations.

Nice idea with the DB9 Rico - FWIW I too, would stick with the 575.

 

You're not including the F1 Team's major revenue sources i.e. sponsorship, Advertising and their share of the concorde agreement. Similarly Ferrari trade at wholesale not retail prices and generally (until recently) don't own their worldwide distributors, so maintainence income doesn't go to them only parts.

The details were published last year sometime. You can get UK Maranello's accounts from companies House. They made someting like £2m profit on sales of (from memory) £50m (ish) in the last published accounts. 4.0%, not great and actually not as good as some of the specialists make.

Aston on the other hand have finally made a profit for Ford of £15m.

jg

 

I think the average would be lower. Considering the 360 makes up the bulk of sales. And the biggest markets are US and Germany (I believe).

 

Hard to see how you wouldn't be pleased to swop anything for the DB9, the car's simply awesome. Driving impressions Vs 575, pls?

 

Cheers. I've seen a few DB9s around but have only heard the one featured in Top Gear where JC races the train/plane V sweet car, BTW.