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New Ferrari contract?

Discussion in '612/599' started by madmaxatl, Mar 24, 2007.

  1. madmaxatl

    madmaxatl Formula Junior

    Mar 22, 2007
    648
    Buckhead, Palo Alto
    Full Name:
    Don Johnson
    My local Ferrari dealer told me that all new owners must sign a contract that they will not sell thier new Ferrari's for one year, and if they do sell they must sell back to Ferrari. I was asking about a 599 last week and the dealer told me "not gonna happen for at least eleven months because of this new restriction". Is this true or is it just more FNA b.s?
     
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  3. mksgr

    mksgr Karting

    Aug 13, 2006
    187
    Germany
    This kind of contract is very common in Europe.
     
  4. J. Salmon

    J. Salmon F1 Rookie
    Silver Subscribed Owner

    Aug 27, 2005
    4,332
    VA
    I heard 9 months. A guy at VIR last week is expecting his 430 very soon, and also said there is a contract.
     
  5. ZINGARA 250GTL

    ZINGARA 250GTL F1 World Champ
    Owner

    Jun 21, 2002
    17,448
    PA
    Full Name:
    Ken
    OK. I've also heard that (easily verified). Sell back at what price? Seems like, with upfront money, you could drive a new car every two years forever. Nah!
     
  6. mkultra

    mkultra Formula 3

    Nov 3, 2004
    1,641
    Chicago, IL
    Full Name:
    MK Ultra
    they are basically asking that if you choose to sell your Ferrari before the first year that you give your local dealer the first opportunity to sell it. its just Ferrari's attempt to avoid "flippers" getting cars and true enthusiasts getting theirs.
     
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  8. toparkt

    toparkt Formula Junior

    Oct 20, 2006
    308
    orange county
    Full Name:
    Andrew Goetz
    i was "offered" a new 430 f1 spyder
    with 1 year contract.
    the car was at market ----sticker + 100k..
    would have done it if dealer would allow me to
    be a build list client in the future - no way was the answer !!!

    whats the point ?? only real answer to getting a new ferrari
    is to make enough money in your business buy what you want
    and forget trying to win a rigged game !!!
     
  9. 410SA

    410SA F1 Veteran

    Nov 2, 2003
    8,391
    West Coast
    Full Name:
    A
    All of these "contracts" are unenforceable unless they are absolutely specific with regards to timimg and value. This would mean that the dealer would have to obligate himself to repurchase the car at a specific time for a specific price. Anything merely attempting to make the owner have to sell to the dealer before selling to anyone else is a restraint of trade.

    Dealers also try the line that it s a an FNA decree. FNA would never jeopardize themselves by becoming party to an unenforceable, controversial contract.

    If you are ever faced with one of these so called "contracts", and the rest of the deal is fine, feel free to sign it if it does not have specific obligation of the dealer in it - you will never be called to account, especially if the dealer is saying outright that you will not be on their new car buyer list. That is the dealer's only recourse - choosing not to sell you new cars, and it appears in this case as if the dealer has already chosen that.
     
  10. ErikV10

    ErikV10 Formula 3

    Oct 30, 2006
    1,646
    I've heard of that before saying that Enzo buyers must sign a 1-year agreement with Ferrari not to sell the car. That is to prevent the car from being flipped. I think its a good idea.
     
  11. 410SA

    410SA F1 Veteran

    Nov 2, 2003
    8,391
    West Coast
    Full Name:
    A
    Buying a car is a decision regarding acquisition of property in exchange for valuable consideration. Once the deal is done and the buyer owns the car he should be able, in a free market society, to do whatever he wishes with the property he has bought. Keep it, sell it, destroy it if he so chooses, paint it, disregard it, never drive it, worship it - anything that doesn't violate the law.
    I get really annoyed at anyone who thinks they should be able to control how anyone else manages their assets.
     
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  13. toparkt

    toparkt Formula Junior

    Oct 20, 2006
    308
    orange county
    Full Name:
    Andrew Goetz
    does anyone have first hand
    knowledge as to how to
    become a build list client ???
    they as say you must be a client first
    (i am) now they want you to be a
    perfered client !? !?
    all i get is "they (build list clients) buy lots
    of cars for a long time from us"
     
  14. ErikV10

    ErikV10 Formula 3

    Oct 30, 2006
    1,646
    Hmm. Very good post. I personally agree with that!
     
  15. icemanbops

    icemanbops Karting

    Apr 5, 2006
    82
    In Europe its really a matter of getting to know your local dealer and getting a order placed.

    They will always take an order with deposit, its just a matter of then opening up a dialouge to ensure you get yours as quickly as possible and then not flipping it. Once you have one on ordered and delivered the next one is much easier.

    Thereafter you can start pulling them out closer and closer to launch.

    I have a 599GTBF1, I asked for one for my brother and was given a 6 month lead time (and have been informed it is 2 months early). When I know for a fact that they are quoting 30 months to anyone else including current customers. They pulled one out, maybe due to the fact they have seen me in my SLR, and Carrera GT or because I said "see what you can do I will send you a deposit" and I did 50,000 Euros without any order in place, so an obligation was in place kind'a !

    In the mean time they have taken orders for a Grand Turismo (Sept 07), 430 replacement (late 08), 2 x Dinos (Jan 09) and almost promised me one of their Enzo replacement allocation (they have 2) in Quater 2, 2009.

    It also interesting that once established at this level other dealers will also happily allocate you cars well before their regular customers. So there must be a register in place, Kind'a!!
     
  16. RBK

    RBK F1 Rookie

    Jul 27, 2006
    3,052
    Calif and Nev
    Full Name:
    Bob
    You are correct as far at it goes but maybe off point (certainly for me). The bottm line is repeat purcahses. If you want to do business in the future with the dealer or maybe any dealer, the contract may be the litmus test. Best
     
  17. 410SA

    410SA F1 Veteran

    Nov 2, 2003
    8,391
    West Coast
    Full Name:
    A
    You don't need a contract to build a relationship. If you are a serious long term customer of a dealership, you will act accordingly. You will buy used cars from them, you will sell cars to them when you are done, you will give them deposits to hold for ever, - in short you will become a source of revenue and profit for them that they can rely on. You don't need to sign a bogus contract to do that.
     
  18. robert biscan

    robert biscan F1 Rookie

    It bothers me that this is punishment of the innocent. It does bother me that I must agree with a contract to buy a car that's paid for in full. I know the dealers need to be protected from flippers but each one must know who they are and they are not me.
    I have bought 4 new cars and my 5th is coming in the next month. In all cases the dealer got to sell my old car except for one. I did let the dealer sell a car that I bought from someone else. So all in all he's 5 for 5. I just did a service on the 512tr that is not for sale.
     
  19. robert biscan

    robert biscan F1 Rookie

    I forgot to mention that the 430 extended warranty was required and so was the nav. On the 599 the carbon ceramic brakes were a must. I don't like required options either.
    I do however want a new car.
     
  20. RBK

    RBK F1 Rookie

    Jul 27, 2006
    3,052
    Calif and Nev
    Full Name:
    Bob
    You actually made my point - you have committed yourself to exchanging cars for the long term - that is exactly what they are training you to do -- Best
     
  21. 410SA

    410SA F1 Veteran

    Nov 2, 2003
    8,391
    West Coast
    Full Name:
    A
    I'm very well "trained" then - over 20 years of getting my cars when I want them at the best price available. I'm available for refresher courses anytime my dealer wants me :)
     
  22. pastmaster

    pastmaster Formula Junior

    Feb 5, 2006
    875
    Alma, Michigan USA
    My fellow Ferrari Buyers,

    Forgive me for saying this, and I truly ask your understanding, but this "Contract", seems Un-American, to me.

    I understand the dealers and FNA's position on speculators, who "flip", these cars for big $$$$$, but there has to be a better way than this. I don't have a solution. It may be OK, in Europe and the EEC. Not in the USA.

    I may be out in left-field on this, but it will sell a lot of Lamborghini's, etc.

    I am more in the market for a GT and to my thinking, Maserati's will be in my driving future, than Ferrari, if the contract, takes control of what is mine.

    Ciao...Paolo
     
  23. RBK

    RBK F1 Rookie

    Jul 27, 2006
    3,052
    Calif and Nev
    Full Name:
    Bob
    Although I am not sure and claim no inside knowledge, my guess is the following is true.

    Within the U.S. certain people have purchased Ferrari's for sometime or a number of them in a short time. They can buy at MSRP. Most of them also trade their cars back to the same dealers. However, in years past, too many "resold" their cars through "brokers" while Ferrari Dealers were helpless to do anything about it. FNA decided to permit dealers to sell at "market" and eliminate the "brokers", reserving a few cars to be sold to special clients at MSRP. However, to stop the reselling practice they have used every means available to them including the infamous and contestable "contract".

    Today, Ferrari dealers can sell at market and given it is a sellers market, make any demads they wish (it is, after all, their product to sell).
    Ferrari clearly does not lack buyers.

    From a philosophical point of view it is very American to make as much money as possible, i.e. supply and demand. Few of us would not charge as much as we could for a product/service and would usually never ask for less money than offered from an employer. Personally, I don't like the contract any more than anyone else does, but at the end of the day virtually every relationship demands mutual obligations. From my perspective Freedom is defined by those who control it. Best
     
  24. DRYHOLE

    DRYHOLE Karting

    Jul 12, 2004
    131
    Dallas + Seaside, Fl
    Full Name:
    Dryhole
    This month I purchased a 2006 F430 Spyder from a Ferrari Dealer. I had heard about the FNA mandated contract and inquired about the details as I also put a deposit on a 599 wait list with the same dealer. I was told by the manager of the dealership that there isn't a contract but that it is the responsibility of the sales staff to determine the intent of the buyers that they interview. FNA penalizes the original selling dealer by reducing that dealer's allocation immediately, should any of that dealer's cars be resold outside of that dealer's district within approxiamately one year. There appears to be a system in place where certain dealers will inform FNA of an other dealer's lack of control over a customer selling his car and thereby, increase the informer dealer's allocation.
     

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