Bugged by nearly new Ferraris being sold

I too share your amazement, bewilderment and concern for the large number of very low mileage 488s - both GTB and Spider - being sold. Why is this? I can see [maybe] flipping a GTB for a Spider. I would be very interested in observations and opinions from the Forum members.

I own a fantastic 2011 458 Italia that I plan to keep and am on the verge of ordering a 488 GTB, but the large number of lightly used 488 GTBs and Spiders on the market, with such incredibly low miles, gives me some pause.

 

There is this great children's game -- the last one in is the rotten egg.

I think it is a bit like this. A lot of folks with great connections at dealerships are in a 488 for only one reason - to flip the car. I think there is a realization that the prices of 488's will not hold for very long and so, maybe folks get nervous and sell the cars earlier than they already intended.

Just a theory but....

 

Some of these guys just flip them back to get higher on the list for the next model.

It's a little game the dealers play with some of their clients to get around the "you can't sell it above MSRP rule." The dealer then sells the car twice but the second one at the market value. The dealers cannot take a car back less than 6 months old.

Also, they like them for newbies who walk into the showroom. They tell a newbie they will wait 2 years for one but "hey... for an extra 30 grand you can drive away with this almost brand new one today!"

 

And ... maybe not all new owners like these 488's ... we were reading stories of people buying back a 458 instead ...

Who knows ....

 

Could be. Latest and greatest can turn to, I want something cool and more involving. Some friends have gone from 458s to 430 Scuderias or 360 Challenge Stradales.

 

Hi Old Man

I share your annoyance for 2 reasons...

1- For those wanting to buy own and keep the latest model the Flippers just add to the wait list...yes some could by used but many that want the latest model want it to there own spec, so yep it's annoying...!

2- The people getting the allocations and flipping are making a load of money from the cars , like all those that flipped Speciales /GTOs etc... I wouldn't mind so much if they had fair mileage on them when flipped but they not even using them...!

The flips are nothing to do with people not liking them as Mel writes above, people don't put £20k down wait up to 2 years for the motor pay over another £200k drive the car less than 50 miles and then decide they made a mistake...There are not many people that are that Dim out there!!!!

This is simply down to some people that are lucky enough to have regular allocations making money and dealers encouraging it so they can make off the same motor twice in less than 6months. Especially the coupe to spider movers....

It has nothing to do with the car...just look at how many 458 and speciale are available worldwide quite a few......


It is all about greed and £££££££'s
Regards

Michael

 

Many are flipping the gtb for spider allocations. After that the flip the spider for the new speciale version. That's where many ultimately want to end up in the hopes that it will have a similar depreciation curve as the 458 speciale. Won't happen though.

 

Michael i think you're spot on. There's a number of things pressuring the 488 market:

It wasn't a "new" model it was an upgraded 458
The 458 didn't have a direct competitor where's Mc brought out a couple models that made the water cloudy
With the rumor being the next model will be a FIT out likely a significant change the 488 isn't as exciting as the 458 was to the 430.
Lastly with the 720S liking like a major step up inn performance many are deciding to cash out shoe the getting is good and they're up.

 

Listen to the Mayor. He is spot on.


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More likely you'd lose money if you flip it now. The closer to the 488 GTO launch date, your loss will be more.

 

Ferrari of Houston does not have a "List." They just slot in their long time customers who they know will buy a new Ferrari. Frankly, the allocation, even for a shop like FOH, is not that large. They don't have to worry selling out. So if these customers flip back through the dealership, so what? A Ferrari dealership is not the ATM machine everybody thinks it is. Come on, 50 to 75 cars a YEAR? Nobody is getting rich, except Ferrari Spa.

BTW, these long time customers? They were buying Ferraris back in the early '80s.



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+1 Mayor has it exactly right and I believe it's moreso in the US dealers.

 

Amen to this. I am not old but all those Ferrari flippers annoy me. I waited all my young life to get one and ppl
Are or here flipping them without respect for what they are:a soulful machine


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The main reason there are more GTBs etc available is Ferrari has increased production to increase profits and stock holdings. Since they set the price of the car at base MSRP and they make nothing on resale the best way to increase profits is to make more cars available. With more availability you will see folks selling cars to get into different models or because they want to drive a Ferrari but find that true ownership is too stressful (don't want to put on miles, worry too much about door dings etc) This is happening with all lines except the limited v12. Even 812 SF can be ordered with a limited history when the f12 was nearly impossible to get for the first 2 years back in the day. That said, I still feel it's the best product out there and why I'll always have a prancing horse in my garage. #488Spider

 

I too have for years been bugged by so many nearly new Ferrari's being in the used car market and I respect other people's opinions but this fact drives me to a different conclusion.

Since 95 when the 355 came out, I had been trying to buy a new Ferrari but was always told no. Owned plenty of vintage ones but never a new one.

The last time my wife and I went in to the local store when the 488 was announced, we were told "we're not taking any new customers or even deposits". Naturally, she was shocked by the salesman's "confidence". Although when we left she stated she felt like Julia Roberts in the movie "Pretty Woman" I just chuckled and said welcome to the last few decades of Ferrari experience. They don't want our money.

Fortunately, the local store has some new people and unknown to me, my wife met with someone who said that allocations are hard to come by, it would take some time, but they would love to take care of new customers as best as they could as well as existing customers. They wanted to build the brand and the customer base. So after years of lamborghini's, Porshe's, Audi's, a fancy Ford, and other high end makes, I am now getting a new Ferrari. Thank god for my wife's patience and people skills.

Maybe if Ferrari expanded their customer base from just the "loyal" customers, where the data and and as this thread points out, some seem not to drive their stuff but just flip them, the brand would be better off long term. Maybe there are a bunch of us out there that would love to have a new car and use them. Maybe building the brand and increasing production is a good business and brand decision? I understand the old motto of building one less car than demand, but if used cars are selling above factory new pricing, clearly they are way short of "one less car".

In any event, mine will be driven a lot, as in thousands of miles a year, and hopefully I will get another one every three or four years and drive them a lot too.

I am very grateful that the store hired this new person and I am very grateful that Marchionne seems to understand that there is more demand from people who actually want to buy and use a new Ferrari.

I appreciate that they want to take care of loyal customers, but that is no excuse not to take care of possible new customers who would like to buy a new Ferrari. The factory and its' parent does not make any additional margin off used cars. And having used cars re-sell at a price significantly above a new car is financially not the best business model. Dealers will make money off their used stock regardless of whether they sell above or below original sales price. They do every day in every brand.

Although I understand such a theory is antithetical to the flippers, maybe if more stores took this helpful, professional and positive brand attitude, Ferrari would actually be better off?

 

While many good points are being made:
Higher production, possibility of profit, dealer desire for "new" used cars, there is another motive not mentioned. Guys that want to climb their dealers ladder buy every new car as fast/early as they can in order to climb the food chain. The more cars you buy, the earlier you can get the next new model. Should you be motivated enough/rich enough to do each new offering of each model AND do a Taylor Made 100k option list you might have a shot at an LE car.
Best

 

Those customers will be the ones buying a future "SUV".

 

This is an exact description of the game. I know because I have friends who are among the favored, and get to drive their brand-new Ferraris for six months for free, then back to their dealers who then make the market-price profit. Ferrari is perfectly aware of the game. They wink. Everyone is happy except the poor sucker who buys his 'like-new' pre-owned 624 mile Ferrari for $50K over MSRP and will take the whack of a six figure loss when he sells.

 

Another perspective on new cars sold within a year of purchase, LOL.

http://www3.forbes.com/business/11-cars-owners-cant-wait-to-get-rid-of/12/


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I traded my GTB back for my Spider and it could be done in less then 6 months.