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COVID19 CAR PRICING

Discussion in 'Ferrari Discussion (not model specific)' started by jyc1001, Mar 31, 2020.

  1. jyc1001

    jyc1001 Rookie
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    Apr 11, 2007
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    J.C.
    Hey folks, I didn't see a thread for this topic, but if there is one, feel free to redirect me. For people in the market for a new Ferrari, how do you see pricing being impacted in light of recent economic turmoil. I am in the market for a 2015-2017 F12 and while I do sense dealers are willing negotiate, I don't see much in way of beyond making standard "wiggle" room concession. I understand pricing greatly depends on model, spec, and other variables, but wondering do we wait another month or two to see if market further "softens". Welcome any perspectives!
     
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  3. gilly6993

    gilly6993 Formula 3

    Aug 20, 2009
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    Eric
    Most people that own these cars aren't desperate for cash....and people that were thinking of selling their car likely will wait for things to normalize.....I don't think you're going to be able "steal" anything.....
     
  4. flat_plane_eddie

    flat_plane_eddie F1 Rookie
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    Mar 30, 2013
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    Right now multiple outcomes are possible and I think everyone is waiting to see if the economy is gonna head south or rebound. If things go south, the new normal will mean you'll definitely get a lower price. Also, like Eric said above, most of these owners aren't desperate but that doesn't mean there isn't one.

    If I were you I'd create a want to buy thread since that's more discreet and maybe you'll find someone.
     
  5. vrsurgeon

    vrsurgeon F1 World Champ
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    Dec 13, 2009
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    It's early. Not enough pain yet. People with businesses still think this is just a "glitch". Give it a couple/few months. People have to realize the gravity of the situation that in May-June: No the world is not instantly bouncing back to the frothy falsely-appearing-wealthy place that it was. Reality needs to bite.
     
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  6. jjp11

    jjp11 Karting

    Sep 1, 2013
    113
    Plenty of businesses will be going under.. Some of those business owners happen to own Ferraris... I'm sure there's also plenty of owners who are already stretching themselves with loans, needing to get out of those loans. There's a rather surprising statistic out there regarding the amount of Ferrari owners who finance new cars.

    The economic impact will no doubt have a trickle down effect to the car market.. It will take some time though. You won't see it overnight, and probably not even much over the summer (during which exotic car prices are always propped up seasonally). Next winter, especially if a second wave of this hits in the Fall, you'll likely find a noticeable difference in the market.

    Sent from my SM-G960U using FerrariChat.com mobile app
     
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  8. italiafan

    italiafan F1 World Champ

    Jul 19, 2006
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    We have not yet seen capitulation...coming soon.
    F12....I’d try for aggressive negotiation in a few weeks.
    When “hope returns” price will instantly stabilize.
     
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  9. Dr. K

    Dr. K Rookie

    Jul 28, 2019
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    Boston MA
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    Dennis
    I’m in the market for a 488 and I’ve noticed that average prices are down roughly 10 grand. Probably a combo of the f8 and corona however.
     
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  10. jjp11

    jjp11 Karting

    Sep 1, 2013
    113
    "Hope returning" won't do anything to car prices. As long as the virus is lingering and economic shutdown is in full (or even partial) effect, car prices are going to continue trending down. The ripple effect of a lengthy global economic shutdown is going to impact the majority of the population, rich or poor.
    Sent from my SM-G960U using FerrariChat.com mobile app
     
  11. ChipG

    ChipG Formula 3

    May 26, 2011
    1,212
    Santa Monica, CA
    don't buy anything now, wait at least until August
     
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  13. technom3

    technom3 F1 Veteran
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    Mar 29, 2007
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    Ehh... I just bought a 16 Honda Civic with 7k miles for half of book. Wait or don't wait. It's worth trying. There are people cutting stuff now.
     
  14. LMH

    LMH Karting

    May 5, 2019
    140
    Spain
    It will be interesting to understand what is the % of Ferrari owners who finance new cars, do you have an idea?
     
  15. italiafan

    italiafan F1 World Champ

    Jul 19, 2006
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    You make good points.
    I was thinking that dealers/consignment sellers traditionally have seemed content sitting on inventory for many months without budging on prices. But if consignment sellers are over-levered and need to sell they will indeed feel the pressure. I suspect, however, the consigning dealer will try to encourage them to not drop prices too quickly as that will have a ripple effect on dealers’ bottom line. In either event it is without a doubt a “good time” coming for buyers with cash and secure financial positions.
    I will use my cash for IG bonds and high-quality equities though.
     
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  16. Thecadster

    Thecadster F1 Rookie
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    Apr 27, 2017
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    And that is EXACTLY why the high end car market will get hit hard. The stretch aspirational buyer is gone. And so is the financially secure buyer, as they are spending all their dry powder on investment bargains.
     
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  17. Shark01

    Shark01 F1 Rookie

    Jun 25, 2005
    3,926
    I agree with this for the newer, overproduced exotic market. Stretch dreamers like myself? Gone.....the low end you tuber types and their sheep followers that try to finance as close to 100% as possible? Gone...and good riddance. Alot of financial secure car people (and some speculators unfortunately) will put money into true collectibles, buying on a slight dip which will prop up these markets.
     
  18. NE550

    NE550 Karting
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  19. mdrums

    mdrums Formula Junior

    Jun 11, 2006
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    Ferrari dealers are not dropping prices much...about 5-10k on 488 and f12 I have noticed. I bet this late summer and early fall you will see bigger price drops but I do not think the used exotic market will drop like other products in the world.
     
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  20. BMW.SauberF1Team

    BMW.SauberF1Team F1 World Champ

    Dec 4, 2004
    13,224
    Interesting take on the CGT. I think that car will be the one that drops the least (percentage wise) compared to all supercars.
     
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  21. Innovativethinker

    Innovativethinker F1 Veteran
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    I feel like a visionary having sold my 911 30 days ago.
     
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  22. Thecadster

    Thecadster F1 Rookie
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    I think the bottom will fall out. Three months from now will be like catching a falling knife.
     
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  23. SCEye

    SCEye F1 Rookie

    Aug 28, 2009
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    or... at least you should feel like an.. wait for it... Innovative thinker....
     
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  24. jjp11

    jjp11 Karting

    Sep 1, 2013
    113
    The market was already heading in this direction before Coronavirus was even a thing. Exotic car manufacturers have been saturating the market with increases in production, pumping out new models every couple years, and doing everything else they can think of to squeeze out every last penny imaginable, all while devaluing their brands and the used car market. This was expected during a period of growing global wealth, but all good things must come to an end. It was only a matter of time before a recession came along and popped the exotic car bubble.. Nobody could have imagined the pop to be so sudden and encompass the entire globe, but it happened.

    Not only this, but horsepower and performance is as cheap as it's ever been, with the new C8 and some of the lower entry sports cars out there these days. Deny it all you want, but it's true. The ease of obtaining loans for exotic cars for overstretched owners these days is going to backfire big time..

    It's truly like the perfect storm raining down on the new/used exotic car market. Everything got too big, too bold, too quickly, and now it's all going to come crashing down. The fact that we now have something as stupid as supercar SUVs is a byproduct of the amount of excessive absurdity of it all.

    Sent from my SM-G960U using FerrariChat.com mobile app
     
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  25. FDP

    FDP Karting

    Mar 18, 2020
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    Daphne Alabama
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    Fred Pierce
    I've been in the market for a 458 spyder for a few months now and haven't seen the prices for the very low mileage-well optioned examples move south noticeably...any thoughts on the 458 market in particular? Regards
     
  26. Robb

    Robb Moderator
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    Feb 28, 2004
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    Robb Williamson
    If you follow prices at Marshall Goldman... they never drop prices really,EVER....

    Last two months, they have been dropping prices quite a bit.

    Going to get ugly. And I’m an optimist.

    Robb
     
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  27. jjp11

    jjp11 Karting

    Sep 1, 2013
    113
    Well, there are two ways to approach things.

    Right now, the car market is in a sort of lull.. Current sellers, many of whom already had their cars for sale prior to this epidemic, are probably trying to ride it out and hope for an economic rebound.. I'm sure some may be willing to cut a deal and get out for less than they anticipated, but it's still not going to be full-on panic selling. Buyers are hesitant to pull the trigger on anything because there's a sudden cloudiness to their financial situation. Next winter, I'd imagine, will be quite the buyer's market. The virus is still going to be a part of our lives, at least in some capacity. There will be an oversupply of exotics on the market; Holdover inventory that likely would have sold over your typical summer, in addition to an influx of cars hitting the market because their owners fell on hard times. Exotic car sales are typically slower and sell for less during the winter as it is.

    Or, you can take the YOLO approach. Buy the car now so you can enjoy it during what will be an otherwise emotionally difficult and dull summer. You might be more inclined to take this approach if you live up north and don't have any other toys to enjoy. I bought my 458 Spider this time last year and am glad I'll have it for this summer.
    Sent from my SM-G960U using FerrariChat.com mobile app
     
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  28. flat_plane_eddie

    flat_plane_eddie F1 Rookie
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    Mar 30, 2013
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    Just because prices haven't dropped doesn't mean they're selling. I think many dealers are just waiting to see what happens. I'm tempted to say denial but the optimist in me is hoping this is temporary and things get back to normal relatively quickly. I'm a watch dealer and I haven't dropped my prices on my old inventory but if a serious offer comes along and I lose money, I'll take it. However, any new inventory I've purchased has been at a significant discount compared to before all this. That stuff sold quickly for me but it was the lowest priced on the market by around 10-15% so that helps.
     
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