Dear Comrades, How close do you think Ferrari now are to pumping the price bubble to the extent that the inevitable happens? With kind regards, 512 Tea Are
Dear Comrade Tea Are, The "bubble" is a fairly elastic concept that merely shifts it's position from those who enjoy momentary and transient wealth through such fine professions as dabbling with hedges and tinkering with stocks to those who enjoy lifelong riches beyond the comprehension of most souls. It therefore stands to reason that as long as Ferrari continues to churn out ever more automotive designer jewelry vehicular contraptions then there will be a constant source of adoring and willing purchasers of said products as they look to spend some loose change. The former group shall continue to purchase in an effort to aspire to the lifestyle of the second group as long as those bonus cheques continue to roll in. Should they stop rolling in due to less than favourable mortgage lending issues etc the the second group will take up the production slack and simply buy because they are bored and need something new for the man servant to wash. Thus the legend will continue forwards, unabated and continually updating it's offering of candy for the wealthy. Kind regards, isuk
Dear Comrade isuk, Very succinctly put if I may say. And indeed the new booming markets of India, Russia, China, Thailand et al will no doubt provide a willing market for the baubles. But surely, there must be a point where the second hand market cannot underpin the sale of new cars? Could it be that the Ferrari management of today are merely stoking the fires of a cataclysm yet to occur and one that they will not be around to observe? With kind regards, 512 Tea Are
Dear comrade Tea Are, Nowadays most of these vehicles are predominantly purchased as fashion/wealth statements and everyone wants to have the latest model they can afford. Aspiration is a costly business and for every buyer who falls away due to barriers to ownership - high interest rates, steep depreciation, inability to cover maintenance costs etc - there will be several always ready to step up and take their place I believe. Ferrari could comfortably double it's current output by channeling the additional cars to new markets without destabilizing the brand in existing markets. It's all a question of playing tunes on supply and Porsche have already demonstrated how successful such a strategy can be. Kind regards, isuk
Dear Comrade isuk, Seemingly you are right, as it has gone on for a long time now. But I cannot help but think that the escalation in price is growing almost exponentially. Soon now, the prices will break the two hundred thousand pounds barrier. But, and as you have so clearly stated, they do sell all that the can make and seemingly they could sell infinitely more if they chose not restrict supply. So perhaps the bubble won't burst - yet! With kind regards, 512 Tea Are
