How much of a ferraris desirability is due to the fact that they are exclusive??

IMO, that is 90% of their desireablity. Let's face it, the reliability, warranty, and quality are subpar. Their exclusivness and their history is what makes a Ferrari a Ferrari

 

Scarcity of F-cars is part of the true genius of the company throughout the decades. As Luca stated when speaking of the F50, a market study determined that there was a "demand for 350 cars like this worldwide. So we made 349, because a Ferrari should always be rare."

 

Scycle: Yes.

 

Even though they *say* things like this, I still think they undershot the worldwide Enzo market by ~100 units. Hence the price increase. In economic supply/demand terms, if there was really only demand for 1 more car worldwide, the resale would have gone up maybe $30-50,000 (or the minimum amount that ONE Enzo owner around the world would accept as a profit from the car). In fact, turnover for just one car could be related to other factors other than price (let's say someone couldn't use enough in their city), we could have seen ONE Enzo changing hands for invoice price (assuming no one else in the world with $675k cash wanted one).

For a price to nearly double (early Enzos fetched $1.1-1.3MM), there has to be a severe shortage. If there were demand for only 400 units and they built 399, basically there would be no price increase to used cars. At all. In fact, it would mean that with the charity Enzo #400 they built to auction, the world market (according to Ferrari's marketing dept) would be fully saturated with Enzos.

I guess this is all just to say that that line of reasoning you mentioned is overrated and is not actual Ferrari policy.

 

Short supply is one half of the equation. The second half is demand.

Ferrari as a product creates a high demand because of its performance and style. It does this in spite of its shortcomings.

-F

 

Yes! I think we're stating the obvious here

 

It may be true that scarcity keeps these cars of interest to many but I would have to believe it would only be those interested in collecting or turning a profit. I have wanted a ferrary since I saw my first Dino. I am into the flowing, rounded design of the ferraris and have never been interested in the angular nature of some newer cars. To me it is the driving experience, handling and certainly the SOUND of these cars that draws me to them. I finally bought one several months ago after going through some 50-60 cars over the years because they seemed "close" to the ferrari or and better performance. It was a waste of a lot of time I could have enjoyed this car. If I have my way there will be at least one ferrari in my garage until they pry my license out of my cold dead hand.

 

Think you are taking it all too literally. The idea is they intentionally make supply < demand. Who knows the real numbers...

 

Yugo's were very exclusive and rare but nobody bought them because they were crap cars. Their only positive feature was a heated rear window to keep your hands warm when you pushed them.

Ferraris are great cars, exciting, seductive, and generally very quick and superb handlers, automotive jewlery in a sense. Exclusive? sure but that only a small part of the allure.

 

yeah, they are geniuses......isn't ferrari losing money???? they are so smart that they haven't figured out how to price their cars and leave $$$$$ for the customers on the list to flip cars at a profit.

if my company had a product that retailed for x, but sold for 2x, i'd be a fool not to either increase supply or raise prices.

i'm sorry, i forgot they don't follow econ 101 principles in most of europe.

 

Absolutely it is a factor. I feel that later-model Corvettes and Porsches are great cars, but they make too many of them! I like the fact that everywhere I take the F-car, people enjoy seeing it and want to know more about it.

 

I think Ferrari coveting has a lot to do with rarity on the street, racing history, & for me, as an artist, the appreciation of the timeless aesthetics of their design. Also, that unique whine of an Italian V12 winding up makes a statement of its own. Its not so much “desirability” but “reverence”. I work w/ physicians that can afford most any car & have fairly expensive tastes. Ferraris are still just plain too exotic for 99.9%. Ha, I love being the only one driving a Ferrari to work!