How often do Ferrari dealerships change hands?

In the past 10 years, I can think of 2 that have actually changed ownership.

IMO, its more about the prestige of ownership, than the profit.
"The" money is made in sales, no so much in service, which is the exact opposite of say an Audi Dealership.
Ferrari SpA controls so much of what has to be done within a Dealership, from must purchase special tool kit each new model, to proper configuration rooms, waiting room decor, lighting, training, all the way down to how much money has to be spent on clients each year... there isn't as much left over as you would imagine.

When I was last at a MB Dealership, I went through a manager class, that in the end showed us the previous years P&L statement... just over 2% profit left over in the end to the Dealership principle...

my .02 only

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that dealership group was profitable.
i looked in on that deal, but ultimately it became an inside job and we could not 'compete'

 

But, in the case of your MB numbers, you don't take percentages to the bank. 2% of a jillion is a lot of dough.

 

Don't ever leave this forum. You are such a huge resource of information.

 

Herb Chambers owns over 50 dealerships here in the Northeast, and still acquiring more. One time I asked him if he would get a Ferrari store. He said there was no way he could get one in this area since Boch had the territory. So even with his history and money he couldn't get one.

 

Just prior to Avondale buying them out, I do think it was a Billion a year group... < wink >

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That's a similar number I have heard for MB dealerships.

 

Interesting. I always thought parts and service were the major profit centers. My intel is a little old, but how many new cars does the average Ferrari dealer sell in a month? 10?

 

Wow. Never would have guessed that sales beat service. Interesting. Does SpA also specify which espresso to stock in the waiting area? If so, give my regards to the folks in Maranello! ️
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Servicing here in the Uk is getting competitive with Ferrari wanting the older models back in the fold. Main dealers are now making price matching promises against the indies for the late 90 early 20 models. The rates the main dealers give for older models is already pretty competitive with indies.

Happy days for consumers here!

As for sales; I’m not sure the numbers they turn over new, but used is 20-30ish a month in the winter!

 

There are 54 Ferrari Dealers in the Americas according to this list. There are 40 in the US, 5 in Canada 3 in Mexico, one in Chile, Venezuela, Columbia, Panama, Argentina and Brazil. Ferrari sold 2,900 new cars in the Americas in 2019. That's only 4 or 5 a month per dealer. Obviously there are some dealers that sell a whole lot more than that, and some who sell a lot fewer.

 

That’s what I thought. Even if a dealer makes $35k a car, which I doubt, five cars a month is not a lot of money.


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As far as I Know - to buy a Ferrari dealership you have to be "known" to Ferrari, both North America, and SpA. getting the allotment of cars is the hard part. Its been my perception that there is considerable political influence to get not only a good allotment of cars but also the right cars.... I know dealers had to take lots of Maserati's to get their Ferrari allotments when the two companies were linked... and you had to also take your fair share of FF's and Lusso's even if you did not have buyers. It is a weird dynamic, and Ferrari continues to be able to call the shots on who gets what... V-12's are easier sell vs. V-8's there are more allotments for V-12 open than V-8 models. There is nothing free when dealing with Ferrari... they charge the dealers for everything, yet expect you to tow the line or else.....

in the past you could have any style dealership look you wanted, but Now Ferrari requires the Look - and style furnishing etc... regardless. there is always a gun at your head .... or at least it seems like that to me. if you make a profit its on service and sales of used cars... vs. New.

 

I thought every Ferrari was all custom made to a specific buyer. The dealerships never took inventory of new Ferraris that were not built for someone. Am I wrong?

And for those who buy new, I assume everyone pays MSRP?


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I think that now dealers have to buy demo cars, so these cars are not made for any specific buyers (apart from the dealership). As Ferrari volumes increase the business may begin to look like other brands, with dealers eventually ordering cars to fulfill quotas and getting the other cars they actually want...

 

Inside job for reals man....

 

In most brands, Service is the profit center, no so much here. Now, that's not to say that Service doesn't make a profit, it does, just not at the level of a BMW or Mercedes store. When I was with Mercedes, we would run between 18,500 - 20,000 plus hours in a MONTH. 110 bays , 16 advisors, 3 service managers, 1 service director, and an amazing service facility.

A 1000 hour month for Ferrari would be a "good" month with 1500 or even 2000 possible, but only a few shops are capable of that level of work ( talking about strictly Ferrari ) that I am aware of.

You would be amazed at their level of detail when it comes to Corporate Identity..

Service IS profitable, but not at the level some may feel it is.

Oil Change, a majority of our parts come from Ferrari, so we are also paying a premium. Dealerships have to find a way to be competitive, and as noted below, many are adjusting pricing in an attempt to stay in the game. Which translates to less profit.

The same here, Ferrari is constantly pushing us to offer lower rates ( so I reduce our hourly rate to be competitive with Ferrari shops locally ) Ferrari Club member discounts help as well. We are held to a higher standard by owners who expect excellence, as well as consistency. Warranty on repairs, an often forgotten value adder, one that indi shops are having to increase on their side ( we drop rates they increase warranty term )

Ultimately its a win-win for owners, IMO ( more options )

Since Matteo came into his position, allocation has adjusted, now it leans more to what Dealership can sell what to which client that walks in and shows actual interest to buy. ( Money on the table ) Not 100% , but much more than 10 years ago.
Hence why so many 1st time owners are driving F8's and soon to be Roma's and Portofinos, 812' etc... YMMV

You may only be considering NEW Cars, usually its 1 Pre Owned car for every New car, profits adjust accordingly, though I believe New are only allowed to be sold at MSRP.

Spoken like someone who knows!



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New Ferrari sell for MSRP

You are correct, sometimes we spec our Demo , sometimes it arrives " surprise ,here is your demo.. pay for it ! "

But don't you think, with all the countless variations and options for a model, that anyone purchasing a brand new Ferrari is going to want to spend the time building it their way vs buying " the red one ' on the showroom?

I mean, there are plenty of pre-owned options with sub 1000 miles ( 300 miles? ) out there, so maybe I'm wrong, leave it to the Sales Manager to designed a middle of the road Rossa Corsa over tan daytona seats, c/f here and there, and hope for the best.
OR
Even better... build a base spec car and let the buyer add accessories to the car from the boutique , that way Service and Parts gets in on the action and everyone make a little profit... hmmm.


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I know Ferrari of Quebec recently changed ownership

 

I've had clients ask me about buying a Ferrari dealership, and I ask why? Just buy the cars and drive them. You'll have a lot more fun.

 

Sooooo you're hinting maybe I shouldn't buy one?

 

If you have to ask...