Ferrari Mailing List: Re: Beating the system....

[Fellippe Galletta (fellippe.galletta]

I've been waiting my whole life for this reply, thanks bro..

On Tue, Nov 8, 2011 at 8:14 AM, Michael James <cavallino_rapante [at] yahoo.com> wrote:

When you FINALLY buy your first Ferrari, you get an inside track on how this all 'works', F.  There are a million ways to spend your money, and a wide variety of results are available, some of which depend on luck.

 

M

 

From: Fellippe Galletta <fellippe.galletta [at] gmail.com>
To: Michael <Cavallino_Rapante [at] yahoo.com>
Cc: The FerrariList <ferrari [at] ferrarilist.com>
Sent: Monday, November 7, 2011 8:31 PM
Subject: [Ferrari] Beating the system....

Clyde's comments on Ferrari pricing eventually tanking, illustrates what happens when you buy early to mid cycle, hold onto a car forever and then have little equity to show for it down the road.

Apparently there are two ways to beat this system:

a) Buy fully depreciated cars

This one is obvious.

One that is not so obvious is:

b) Buy brand new and flip every 1.5-2 years:

The caveat though is you have to have an in to buy at MSRP. The resale market will reimburse your "depreciation" when you're ready to move it.

From what I see, if you're one of the esteemed who can do so, then you can essentially drive a new F every few years for very little.

Given the massive depreciation on new Ferraris, Lambos, it's hard to rationalize a brand new purchase unless you are making mega money -- I'd estimate a true Ferrari/Lamborghini "client" is making at least $2-3 million a year if not more. Whatever income/wealth point allows you to flush $200k every few years without blinking an eye....that's the sweet spot for buying brand new, for *1* car, LOL.

But this flipping thing is interesting. You may have to subsidize the dealer on your first purchase, but afterwards you're good to go the rest of the way. You flip "new s***", and on the side you buy and own the legends that are more or less depreciated and worth keeping......Flat 12s, Diablos, Esprits, the right 911s, reasonable muscle cars, etc.

What do you guys think? I believe this is happening, unless certain people are lying. ;-)

FG

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