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Who decided the Enzo is worth $1.2 Million?

Discussion in '288GTO/F40/F50/Enzo/LaFerrari' started by the stranger, Jul 19, 2004.

  1. the stranger

    the stranger Karting

    Feb 18, 2004
    58
    Just curious, but how did the 'market' decide that a $650K car should have an asking price of $1.2 million? Did someone actually buy one for that price and then everyone that had one to sell listed it for that much? It seems all the Enzos that have been advertised at that price for the past year haven't sold but they're still asking the same amount. Comments?
     
  2. Chiaro_Slag

    Chiaro_Slag F1 Veteran

    Oct 31, 2003
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    Supply and demand.

    Economics 101.
     
  3. flyingboa

    flyingboa Formula 3

    Nov 27, 2003
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    Too much money around?

    Ciao

    Eugenio
     
  4. JSinNOLA

    JSinNOLA F1 World Champ
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    LOL, what he said!
     
  5. gil308

    gil308 Formula 3

    Jun 22, 2004
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    The way it works for cars is the same for houses. You want it, I got it...but it will cost you. And Supply and Demand is absolutely correct. This creates bidding wars and the highest bid gets it. Obviously, someone believes $1.2 mil to be a fair market price. As soon as one person pays that amount, the market is set. If noone else pays that amount, the market price will drop.
     
  6. ryalex

    ryalex Two Time F1 World Champ
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    Most likely yes. More than one has sold at this price though. When people figure out that *someone* will pay $1.2 million, of course that's what they're going to ask for it. Otherwise they would be losing the difference.

    People wanting to flip it and maximize their return will 'ask' higher than market, expecting market offers (or an offer for what they want, if the person either needs that one in particular, or hasn't done their homework).

    In principle, prices rise much faster than they fall. A few reported bids in an afternoon can jump ALL Enzos on the market to $1.2m, but it could take years for those prices to hit MSRP again (if ever).

    After a few more months you'll see prices settle a bit. And slowly step down until those cars sell - but only if the owners really *want* to sell. Basic economics assumes a motivated buyer and a motivated seller. Unmotivated sellers won't drop prices.

    I presume though that many are being driven along with being listed, owners just trolling for bites. There's a LOT of wealth around nowadays though, and plenty of people who could buy at $1.2m.
     
  7. bernardo66

    bernardo66 The Crazy Cat Man
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    Dec 14, 2003
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    From market guide in Cavallino magazine:

    ''Indicated prices are based on either actual sales, or on a knowledgeble estimate of what a specific model should sell for if ever brought to market.''

    Makes sense? BTW, Cavallino evaluates an Enzo between 750K and 1.6M$.
     
  8. BigTex

    BigTex Seven Time F1 World Champ
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    It's a classic feature of the infamous practice of "land flipping" in real estate, to double your investment overnight.

    These cash speculators are no different.


    cash + profit = sale price.

    Gee, they are not selling? Maybe there are not 300 totally stupid cash rich Ferrari collectors in the world after all, that were not on the original Factory list.....hmmmmmmm.


    ..or the short answer: Andrew Gavi! (Do a search.....) ;)
     
  9. Mojo

    Mojo Formula 3

    Sep 24, 2002
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    They didn't make very many.
    So the more hype they get the more people want them.
    There are a lot of millionaires in the world, but only 399 Enzos
    or is it 299 I can't remember, very few tho.
    So people will name there price.
    Awsome car!!
     
  10. bernardo66

    bernardo66 The Crazy Cat Man
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    399
     
  11. BigTex

    BigTex Seven Time F1 World Champ
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    Be careful with parts of that logic on "value" ryalex!

    I have friend that wholesales 4000 - 5000 cars a month who gave me very wise advice concerning "used" cars, (which ALL Enzos now are...)

    "It's worth what you count in your hand, as you watch it drive away.."

    So the fact that these Enzos are not LEAVING the lots tells you something, eh????

    Can you say "Market Saturation"??? I knew ya' could! ;)
     
  12. tbakowsky

    tbakowsky F1 World Champ
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    Well minus the 4 crashed ones 395 :)
     
  13. ryalex

    ryalex Two Time F1 World Champ
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    I'm not certain if the "market is saturated" as much as the sellers are unmotivated. If they, like your wholesaling friend *wanted* to move the car on the short term for a profit, they would step prices down until they sold (I'd wager that at $900k-1m they'd all be gone).

    The owners are not doing this, and by camping out for the eventual buyer prove they are not needing to sell it.

    As a side note, I think if Ferrari intended to completely saturate and squeeze every drop from the Enzo market, they would have made about 500-550 cars. Nothing more than some student in a basement's opinion, but I think if they had a stronger campaign to find buyers and court the money, they could have gotten many more than 399. But THAT would have affected the used car values a lot. We'd see closer to MSRP trading hands.
     
  14. BigTex

    BigTex Seven Time F1 World Champ
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    You are misusing the word "owner"!

    These cars are on "Used Car Lots" which is different. They cannot eat them.

    It is an interesting market, to say the least, largely bouyed by the economey and ego.... The economy doesn't look too healthy right now, from my read of the market. But heck, the other factor, ego, is still blooming around the world, so hey, maybe there's hope they'll all find homes at $1.2M.

    My .02, is that the real factory customers who bought at $675K makes the $1.2M customers look like fools. Every one of them!
     
  15. BigTex

    BigTex Seven Time F1 World Champ
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    The $1.2M number is driven by what I'll call the "First on the Block" syndrome.

    Obviously this effect has a VERY limited half life.

    Where is Andrew Gavi? He had two contracts, or at least options, on 2 Enzos. Did anyone deal with him on his cars?
     
  16. alanhenson

    alanhenson Formula 3

    Dec 2, 2003
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    I guess Enzo was right. Make one less than you can sell, he used to say. Aparently they made several less than they could sell.
     
  17. ryalex

    ryalex Two Time F1 World Champ
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    I'd add though that many qualified buyers were never invited to do so. With more of a widespread and open sales campaign, they could have given more people Enzos. The factory brags they do "Market - 1" production runs, but this is BS. The market could have been 25% larger.
     
  18. BigTex

    BigTex Seven Time F1 World Champ
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    But another consideration is that the ALTERNATIVES to the Enzo have become more numerous, IMO.
     
  19. ryalex

    ryalex Two Time F1 World Champ
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    True, true. CGT and SLR are going to milk everything they can... with a combined production of what, 5,000 total??
     
  20. Forza1

    Forza1 Formula Junior

    Mar 20, 2004
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    "Million-dollar cars... everybody's got 'em."
    -Will Smith



    -DC
     
  21. ClassicFerrari

    ClassicFerrari F1 World Champ
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  22. Testacojones

    Testacojones F1 Veteran

    Nov 3, 2003
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    One "used" Enzo sold for 1.2M in Ferrari of Central Florida
     
  23. ClassicFerrari

    ClassicFerrari F1 World Champ
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    kaaaa-chinnnngggggg
     
  24. Bimmerista

    Bimmerista Formula 3

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    Agreed, but I learned that in Economics 2301.
     

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