Ferrari Dealer Margins

I think 10% is more then fair at a Ferrari dealer and maybe even a tad more considering they ( usually) go over the car before they list it for sale and it's either repaired or if minor issues they are disclosed. Buying a Ferrari from a brand x dealer should be at or a bit below 10% especially in areas like where I am and there isn't a Ferrari dealer close, nor an independant, that can properly ppi a car. Then there are the independents. It's really a crap shoot one these as there are fairly reputable independant dealers and there are the ones that hide everything and stick the bumpers on with silly putty. An exaggeration but sometimes you feel that way.

Far be it for me as a business owner to begrudge a business from making money. But I also know how cars are. I see all the time these dealers that post lowest price already on the car so no haggle pricing but a week or so later the price is reduced. The ask on most used cars is subject to negotiation for a lower price.

The cars I have been paying attention to usually start out with about a 20% markup and the ones where I know the sell price are usually at around 10% - 12% markup where they sale. There are plenty though where people don't haggle they pay sticker. Not all dealers may be stuck on a 20% mark up but the cars I have info on appear to be at or very near that. And there is kind of an art to haggleing on the price of a car which appears to be a fading talent. And full disclosure I hate haggleing on prices.

Usually when I purchase I have a limit that I generally don't go over by much and I generally know the average sale price for what I'm buying. Exotics are a new niche for me though so I'm learning more as I go. One thing I'm sure of is currently we are in a buyers market not the opposite, so I'm certainly going to go into any negotiations ready to haggle and will have other cars on tap if I can't get a deal on the first one. Of course I'm not overly picky on options on what I want in a Ferrari opening up a lot more cars then other people.

 

I agree. So what if you figure out a Ferrari dealer's margin down to the last penny. You actually think they will cut you a deal?

 

A fair deal to buyer and seller is all that can be expected. It's incumbent on the buyer to research the car and truly know it's worth. Valuation and market data are critical.

Just watch out for dealers who lack a professional attitude like RTGT in Portland .. Steve Wintermantel lacks the tools to close a deal he makes when he can scape out another couple bucks for the dealer regardless of the car having already been under contract. Never do business there...

 

If you want to buy a new Ferrari, be prepared to lift your leg high. You are running with the big dogs now, Bubba.


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If a particular car has value to you, why worry what the dealer is making?

 

I think the OP (Jeff) is just trying to determine the amount he will lose his ass trading in his 488 for a Pista

 

from my experience ... the answer is it depends most dealers will only take the car if it is a trade in and in that case they may have a wholesaler that they can sell it to so they may just pass it through or if it is a model they think they can sell or have a need for they will probably want to pay you 20 to 25% less then they can sell it for ...

re consignment I have had dealers charge anywhere from 5 to 10% ...but in the end it will always come down to what will you take .. regardless of the agreement you will get a call asking you to take less money then agreed ...maybe just a little or maybe a lot....

 

If that's the case, there is always a price to pay for wanting to be first on the block with the latest and greatest. There's no escaping that fact.

 

Here is a god example of what might happen...

I'm in the market for a 612 and have written on this forum.
In an earlier thread I wrote who a good consignment relationship is built knowing that the representative will reflect all offers to the owner (true seller) so that they make the final decision. Life happens, things change and on any particular day a car may sell for a number it wouldn't have days before.

I'm looking at a 612 that's on consignment but already here in California having been shipped all the way from New York at the car owners expense. It's a nice car but it is from New York and also may have spent time in Florida. Several price reductions and has been on eBay and re-listed 3 times and now at 99,950. I presented a written offer which I attached. Here is the response I received:

Hi Mark

Sorry, that doesn’t work

My regards.

Mike.

It's a polite, professional response but here's what missing .... Any mention of the offer having been reflected to the owner, the owners feedback or a counter proposal. In fact, I don't know if the offer was shared with the owner. Buyer, Seller and Consignment Representative all win only if a car sells.

So as mentioned in many notes on this thread ... It isn't the margin as that's not the business of the buyer but it is in all of our best interest to be sure we see and personally decide on any real offer that's not just an off the cuff remark.