Thinking about BUYING & SELLING Ferrari's

Buy high sell low is my own personal experience. I suggest you don't do the same.
BTW, don't make two of same thread as your first two posts. not going to endear your to the folks around here.

 

-Where is the best place to get a good deal on a Ferrari? barn finds where the current owner does not understand their value.

-Who is the best to sell to? Green Pilgrims! People with more money than brains.

-What is the average profit per car? If you do normal flipping:: -$5%-10% of the cost--note the minus sign. Due to the length of time between buying, and selling, you can't make any money if you finance. The only real way to make money is to find your green pilgrim first, then find the car to flip over to him (or her!)

-How long does it take on average to move a Ferrari? You should bank of 6-months min to 2 years max. More exptic limited production cars move faster, but at very high costs.

-What should I look for specifically when buying one? You are going to need a Ferrari qualified mechanic and spend $250-$500 per car to qualify whether it is even worth buying in the first place. {The used Ferrari market is not like the used Corvette market.}

 

Rumored there's larger profit margins in five finger discount cars.

 

Friend,
Before you do anything, learn the difference between plural and possessive punctuation.
Thank you!

 

Today, flipping F-cars.

Tomorrow: https://www.youtube.com/watch?v=m_MaJDK3VNE

 

Selling used cars is a tough business - magnify that by 10 when trying to sell a used Ferrari.

 

Agreed. The exotic car sales business is not easy.

I would consider selling lower end cars and financing them yourself. My brother was quite successful with that. Then maybe you move into higher priced cars and exotics.

 

I would think buying & selling Porsche 911 cars would be a better marketplace currently.

They made a lot more Porsches than Ferraris and Porsche 911's seem to have a stronger run up than the Ferraris.

To learn more about the Ferrari marketplace, you may want to read several of Michael Sheehan's articles. He is one of the well-known brokers in the Ferrari world and does a good job of writing about the good, the bad, and the ugly sides of the car brokering business.

https://www.ferraris-online.com/pages/artlist.php

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"Sell to the masses, live with the classes."

You're much better off getting a dealers license and buying Camrys and accords at a 1-2k margin.

 

If you want to be successful, read this thread over and over and over again so you don't make the same mistake:

http://www.ferrarichat.com/forum/ferrari-discussion-not-model-specific-sponsored-algar-ferrari/531582-horrible-experience-norwood-autocraft-beware-bob-norwood.html

 

I assume by your username "WNY" you are in Western New York which could mean Buffalo / Rochester.

As a WNY owner, I can tell you this is not the land of the plenty of F cars. That said, you might wish to make part of your business model moving to a city with much more F car action. Also, these are temperamental cars so you need to be very educated to buy good cars and not someone's problem.

 

Well it sounds like its hard to make money selling Ferraris. Sounds like you will even lose money. My guess you can make it up in volume. ... that is a joke.

I personally think its crazy to ask where can I buy something for under what its worth and sell it for more than its worth.

There are a lot of wealthy people that could buy millions of dollars of Ferraris if they could buy them for less than they are worth and sell for more than they are worth.

A dealer has a market and can make money supporting their customers. They can take cars in on trade, saving the buyer taxes on new purchase. In MN that gives the dealer a 6.5% advantage on pricing compared to a private party. If you are in a state that does not charge taxes this would not apply.

There are a lot of people that have made money buying a Ferrari and selling for more than they paid. But it's a car it will depreciate.

Collectors, Investors, Drivers

If you are a collector, buy a bunch and have a collection you can share. You might end up with a car that appreciates.

Investor, you better know what you are buying and know where the market is going. It's car. It's supply and demand.

A Driver - Get a car you like and have a blast driving it.

I'm a driver. I have a car I love to drive and would never expect to make money from my Ferrari. I also will not continue to buy Ferraris. I will get a new Ferrari, but will not collect multiple cars (unless I build a bigger garage).

 

I wish you the best of luck in your quest but my experience in the Ferrari world started not 6 years ago when I bought mine.. but 7 when I read everything that I could about the brand.

You're not the first guy who came to the Ferrari world thinking they can make money selling Ferrari's. I'd do more research with Sheehan's articles on the subject and read as many stickies that you can here. I've always believed that you make money when you buy the car. A good friend here bought his 3-pedal 360 a month or two before I did. I actually saw it online when it was for sale and thought.. that's a NICE car. I didn't have the money, but because of the research that I did I know what was a good deal. He just sold it for a $14k profit! OTOH another gentleman I know made money with FCars until his last. Where he lost 5-8k on it. IMHO we're at the top of the market or declining. I don't see much "upside" for a few years.

If you do decide to become a flipper.. know your product. Final question.. be able to honestly assess if you made money in the Corvette market because you could find great cars to sell -or- if you made money because the car market in general has been on fire in the last few years. The professional keeps making money in a down market while the rest loose.

 

Ferraris - YES
Ferrari's - NO

 

Agree.

I've always liked Ferraris style.

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There is terribly low margin in selling exotics at the dealer level, unless of course you're selling cars over MSRP, and then you're talking about "Ferrari Dealers", not just guys looking to flip a couple cars.

My sincere advice? Jokes aside, buy cars that are 15-20 years old in the "market correct" colors (red with tan interior) and hold them till they are 20-25 years old. Hell, you can even drive them a bit during that time. If history is any indication, you'll break even or make a little money and you'll get to stare at a Ferrari in the garage the whole time.

I wouldn't do this to get rich, merely mute the wallet draining effects of owning such cars.

 

There is some wisdom in this advice, I think.

So, a 2001 360 Modena is in this target of Ferrari years to buy now.

Imagine buying a stick-shift 360 with the rare sunroof option.

Add to that a stick-shift 360 Spider, maybe a few years newer.

Could definitely see those 2 cars going up in value over the next 5 years.
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Damn auto-correct.

 

For a short period of time I took cars I knew on consignment in the early 90's

Probably the worst business experience I have ever had. No one is happy. Buyers ask for PPI's which are a pita to get done. Then they haggle for weeks. The owners don't want to give in. You have to protect the cars which can be damaged just by looking at them.

Then there are the Lookie Lous who only want to sit in it or ask questions all day and dream about something they will never own but wish they could.

Then if a car gets a burned out bulb in the next six months they blame you for it and trash your reputation until you fix it for free and "smile".

I said it was a short time....

 

I think we've seen it happen to 308/328's, (not aware of the 348 market), 355's, 550's (which dipped and came back even more quickly). Everyone will say "there were too many cars made of X model" but I think as long as there is a market for these cars at all, this will generally be the trend.

OP, check out this thread. You don't want to sell used cars. http://www.ferrarichat.com/forum/ferrari-discussion-not-model-specific-sponsored-algar-ferrari/521016-anyone-out-there-dealt-cats-exotics.html

 

I would think the beginning key is to have your cash on hand and make as many low ball offers as you can make until someone bites and leaves you with a margin. But I'd imagine it's tough to get enough volume to work unless you set up a dealership or something. The market would have to be quite small for these cars compared to Porshe and Jags and more main stream cars that people feel comfortable buying. Best of luck.

 

I'd be happy to answer all of your questions and develop your business plan for a retainer fee of 10 Billion dollars.