Cost extrapolation on new Ferraris

but just figure how fast most of them sink like a rock in prices after someone buys them new. there is hope. just don't buy any of them new. lots of older ones look better anyway.

 

The demand for these vehicles and the willingness of buyers to pay $300,000+ over sticker price makes this possibility seem a lot more realistic than many might think.

I hope not, you reach a point where you just can't justify paying so much for a name and an exotic exterior.

 

A very large factor in car price increases is the constant refinement of the machine, forged alloy parts, carbon fiber aluminum frames, multipul valves, more and more sophisticated electronics, The list goes on and on.

Have you checked health care prices - increasing specialization and electronic/mechanical sophistication.

And all of this comes back around to jack up the inflation rate too

cm

 

If that is your notion of Ferrari, then you need some serious help!

 

+1.

Just go ask bonzelite!

 

It's not the cost of the car or production that's the root of the price increases. It's the feverish level of demand combined with the dealer's ability to price at market rather than MSRP that has caused pricing to spike. Those factors do, unfortunately, cause a more limited universe of people to be able to afford the cars. I saw a quote somewhere on the forum yesterday by Enzo, always wanting to produce one less car than there's demand for. I'd say it's a lot more than one less right now....as someone said, buy a gently used car at a price you can rationalize and be happy.

 

This is a good explanation, and the fact that when Michael Schumacher joined Ferrari in 1996, F prices started climbing as well?

Ferrari SpA has to come up with an extra $50 mil a year just for him! (With Marlboro support too).

 

+1

In fact, it all makes used Ferraris very coveted. People are still paying near US$100K for late, used F355 Spiders when there are any number of truly great new cars out there in that price range.

I think Ferrari have a uniquely brilliant strategy.

 

In Aspen people pay $2 million to $8 million for a lot. Some with tear-downs, some undeveloped. The Average home that's not a tera-down is $8 million. There are alot more people who have the money to buy these properties than there are properties available. We have several people in Aspen that have premier Ferrari car collections.

We met a woman who is a chef from Manhattan and owns a catering service. She was hired by a family to cook for them for 5 weeks. They have three homes: NY, Fla, and Aspen. Private jet. Their daughter also has a house in Aspen. 4 children and 5 nannies. We are talking big bucks. The town is full of these billionaires and more keep coming.

As long as capitalism keeps chugging along, there will be more and more people who can and will buy anything scarce like Ferraris. My wife points out almost every day a woman who has a $10,000 purse and $5,000 shoes. Bentleys are getting real common. Porsches are so common that if I don't see a hundred a day I haven't gone outside to look.

As countries like China and India develop, more and more people will wnat Ferraris as they are able to afford them. As long as Ferrari holds production to about 5,500 cars a year

 

They sell out. They can sell every one without discounting the price. For a long time people who bought new ones could sell their car for more than they bought it for any time during the first few years of ownership. That is evidence that the list price is too low. I'm happy I can afford a used one because they are a kick to drive and be seen in.

 

As I was saying...

As long as Ferrari holds production to about 5500 a year, premiums will be high. They may moderate some during a recession, but basically demand far outstrips supply for Fcars.

 

In the UK, 599GTBs are hard to come by. Used versions with 5,000miles are going for around £245,00, new cars are as high as £260,000, and LHD cars are around £215,000. It seems they can sell the cars around these prices, so its more than likely premiums and higher prices will continue.

 

With Fcar production at only 5500 per year and with half coming to the USA, it would be no problem for just the state of California to buy all the US allocation not to mention Florida, the Northeast, Chicago and Texas.

I do not see Fcar premiums for new cars going down for the foreseeable future...next 10 years at least. 7% compounded over 10 years is a double. So entry Fcars will be $400k to $600k no problem. And if the dollar continues to weaken against the Euro$, could be worse than that.

Plus it's an image thing, a status thing. People want to have something others don't have. People pay $5000+ for ugly orange purses. You see alot more of them than you do Fcars. Go figure.