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STRADALE said:
Quote:
Hurst said:
Although for joo this is great news: he got the car he wanted and all the exhiliration is proivded!

It still does not solve the issue: Ferrari is gouging the customer base and creating this mythic sense of "brand loyalty" amongst its "existing customers."
Sounds more like a lame cult/ponzi scheme than a true business model. People buy into the mystique and pay up the ass for it.

You begin to understand it when you go to South Beach and see 20 Gallardos per F430. Still, this is a fabricated sensibility and its not good business practice...

Manufactured elitims at its best. Just like going out to any boutique club, any hyped reestaurant etc... manufactured elitism.



You've got it all backwards my friend.

"Ferrari" the company doesn't gouge customers at all, matter of fact they're the ONLY manufacturer that doesn't charge market price for their new vehicles. I'm on my second new Ferrari and after making money on my first car after 2 years of pleasured ownership I could easily sell my 430 for way above the msrp I paid. Not "gouging" customers at all in fact quite the opposite.

Ferrari dealers just like any other car dealer in the entire world are free to charge market price for used/titled/reg cars. Besides the fact this is fair it's the only way in which such low volume dealerships can survive. Although I didn't have to pay over msrp most dealerships will charge a new customer over msrp for their first car w/ them, afterwards they will continue selling cars to repeat customers at msrp, that's how my dealer works w/ the majority of their customers anyway.

For the poster who just bought that Spider he will definitely spend less in depreciation over the next few years than if he had bought a 997 turbo and more than likey if his dealer is like mine will now continue to sell new Ferrari's to him at msrp in which he could eaily make money from & drive the hell out of and trade every couple of years and it will cost him nothing.

The fact that SOME new Ferrari owners choose to pay extra for their first car hurts them way less financially than every single Lambo owner that decides to pay sticker only to be given much less $ for their trade. But the difference is w/ Lambo and every other manufacturer you pay through the nose w/ every single used car trade where the Ferrrai customer can easily get away w/ buying and trading cars paying nothing for the experience or even making money in the process. The people that end up "paying up the ass" is the Porsche owner like myself or the Lambo owner when they want to trade. I can't even describe to you how different it felt when I traded my Challenge Stradale for my 430 and I GOT BACK more money for the CS than I paid. And that was dealing straight w/ the dealer, trading in the CS without worrying about selling to a private party. PLUS I ALSO saved $18k in taxes because in NY you only pay tax on the difference in value from trade to new car. It's in big contrast to the feeling when I've trade Porsche's, trust me. Sure these cars are meant to be driven and enjoyed and 99.9% of the time re-sale isn't what I' thinking about when I'm driving them but let me tell you it's a huge difference everytime you need to get the check book out and make up for the cost of depreciation as w/ my last Porsche which cost 30% of the msrp and now I'm looking at trading my 997 S cab for a turbo cab and probably looking at another 25% depreciation. Yeah here comes the posters that say these cars are meant to depreciate blah,blah,blah but they're probably not the ones trading every year and if they're someone that honestly cares zero about $30k x 2 cars per yr depreciation every year then good for them.

But back to the Ferrrai thing - Some of you guys either just don't get it or don't understand how it works or whatever. But the last thing that happens is repeat Ferrari customers get 'gouged' it's completely the OPPOSITE.

btw: Aren't you the guy I had a bet w/, that if you found a new 430 spider for msrp anywhere in the US I'd buy it for you vs. giving me $1...Where's my buck?



Couple of things:

1.) Although you make the valid statement that this is a system of Ferrari dealerships in N. America (perhaps just US?) but not Ferrari the manufacturer, Ferrari the manufacturer is the one that only 60% of the demand of their product to the States for whatever inexplicable reason (global strategy, whatever...). As a result, I think they are somewhat accountable for the economic status.

Furthermore, you assert that it is okay for Dealerships to profer markups on used vehicles. What about new vehicles that are driven minimal miles and offered as "used"? Is that ethical?

2.) I understand the economics of the Ferrari. Based upon the setup given (1. buy MSRP+100k Fxxx, sell 2 years later at MSRP+20k--->80k loss investment ~ same as G/P/MB deprec. + added bonus of "dealer family system"), there is financial incentive for the Ferrari customer if they get into the family. But what of the people that are not extensively involved?

I have a friend who resides in South Beach who had been a longtime exotic purchaser, including various F cars (308, 355, 575, 360 Spider). Not being the type who cares about the smaller things in life (the Fs are part of his enormous stable), he went into a dealership in South Florida (he bought the afformentioned Fs in Washington DC) to look at an F430 and was given rather rude treatment, told not to touch any of the cars. He drove off in his Corniche, not wanting to deal with the situation ever again. What of people in his situation? Does everyone in the "ferrari family" get the same benefits? What happens when there are more "family members" than available allocations? Who gets screwed? The last person to pony up 100k+ MSRP?

3.) Our bet a few months ago was that if there was a viable listing of an F430 @ MSRP in the US, you would buy it for me. Someone found one on a site that did not specify origin (it was found later to be in Europe) and I could imagine you were sweating bullets

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I don't mean this as an attack on you Stradale. I love your poingant insight in various threads. I'm just citing my opinion on the system based upon circumstantial evidence of some people I know as well as a general understanding of the economic principles behind it.

Enjoy your cars in great health