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The value paradox

Discussion in 'Ferrari Discussion (not model specific)' started by Madaboutred, Mar 15, 2025.

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  1. Madaboutred

    Madaboutred Formula Junior
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    #1 Madaboutred, Mar 15, 2025
    Ferraris are typically cherished by their owners, kept in pristine condition, and driven sparingly to maintain low mileage. Because of this, high-mileage Ferraris—especially modern ones—are often seen as less desirable, and their market value reflects this. Similarly, a Ferrari that has been in an accident, no matter how well it has been repaired, is generally considered a “story car” and is valued significantly lower than an equivalent accident-free example.

    However, there’s an interesting exception when it comes to rare vintage Ferraris. A few years ago, a historically significant Ferrari was involved in a major crash during a historic rally, with almost half the car destroyed. Yet, after a meticulous restoration, its value remained intact—or arguably even increased. This raises a key question:

    Why do common Ferraris lose so much value due to high mileage or accident history, while rare vintage Ferraris can survive (or even thrive) despite major damage?
    It seems that provenance and rarity play a huge role. A rare competition Ferrari with race history—even if crashed and restored—still has an undeniable historical significance. Collectors prize the story behind the car, and as long as it has been properly restored (often at great expense by top specialists), it remains highly desirable. In contrast, a high-mileage or repaired Ferrari that lacks such a backstory is seen simply as a “used car” rather than a historical artifact.

    Does this double standard make sense? Or are we too harsh on modern Ferraris when it comes to mileage and accident history?

    In the same context, do some of you consider a modern Ferrari with a racing pedigree and an engine rebuild or accident damage a future sought-after car, or is it just a damaged and abused one?

    Would you put your money on a Ferrari that participated in the Ferrari Challenge if it was damaged but rebuilt to soec appreciating its history or pass because it has a "story" and pick a shiny low milleage one if they were at the same price?
     
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  2. Texas Forever

    Texas Forever Eight Time F1 World Champ
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    #2 Texas Forever, Mar 15, 2025
    Gerald Rouse of Ferrari Market Letter fame said the only three things that matter when valuing an old Ferrari was, condition, condition, condition. It is a safe bet that almost all the early Ferraris have been wrecked at some point. Big motors, so-so brakes, skinny tires, and no traction control other than the grey matter in your head. This means trying to find a vintage Ferrari that doesn't have a story is a tough assignment.

    There are, however, lots of newer cars that have never been wrecked. Why take a chance on car with a story?

    The low miles thing is apparently driven by collectors. They don't plan on driving their cars, so they want cars with low milage. I don't understand the collector mentality so I'm not a good person to ask about their motivations.
     
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  3. Shark01

    Shark01 F1 Veteran

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    #3 Shark01, Mar 15, 2025
    Bolded the key words....IMO there is no double standard, it is a common rule of thumb everybody is aware of.
     
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  4. GrigioGuy

    GrigioGuy Splenda Daddy
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    #4 GrigioGuy, Mar 15, 2025
    There's a huge difference between a rare vintage Ferrari and one of the "mass" produced moderns. No normal production vehicle since the 308 is immune from the depreciation of miles and damage.
     
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  5. willcrook

    willcrook F1 Rookie
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    #5 willcrook, Mar 16, 2025
    purely down to rarity, same as the mclaren f1 - crashed and repaired cars hasnt affected value
     
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  6. Shark01

    Shark01 F1 Veteran

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    #6 Shark01, Mar 16, 2025
    Including the 308, which was the poster boy for "cheap Ferrari" for decades
     
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  7. Shark01

    Shark01 F1 Veteran

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    #7 Shark01, Mar 16, 2025
    Also needs to be a car that is admired, there are many rare cars that most wouldn't buy.
     
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  8. Bullfighter

    Bullfighter Two Time F1 World Champ
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    #8 Bullfighter, Mar 17, 2025
    This. And it's not only a Ferrari valuation factor. If you want a 250 GTO or Porsche 550 Spyder, production was under 100 cars for either, so if one comes up for sale, it's a rare opportunity.

    Also, vintage cars have typically been restored at least once, so you're likely not expecting original paint or untouched body panels.

    Low mileage keeps the painted parts nicer, but again with vintage stuff the odometer is probably wrong, and odds are it's had a respray anyway. I actually find the vintage/classic ownership experience liberating -- not worried about the odometer, just that the mechanicals are in proper working order.
     
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  9. Texas Forever

    Texas Forever Eight Time F1 World Champ
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    #9 Texas Forever, Mar 17, 2025
    That was Gerald's point. At the time, he was talking about a 250 GTO that had been wrecked to the firewall. It still sold for all the money.
     
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