all I know is that I paid 106 K for my 01 tt and sold it for 80 K in less than 2 yrs. that's a 25 % hit. but what do I know, I majored in biology....

 

I totally agree, the amount of money depreciated on any of my cars has been worth it since i drive teh carp out of ( not necesarrikly drive it hard) but i use it almost everyday..
i but 30,000 miles on my 02 996 before i traded it in (unheard of in the 996 realm lol) i got screwed big time on the trade but all the miles was worth it..

now i gotta see how many miles i can pack on my TT..

 

Read the post next time, its said " Very few Ferrari owners" Not "All".

 

sadly i'm in the ''very few'' group!

 

There are several ways a car can depreciate in $$$ value.

First way is due to the basic laws of Qty Supply and Qty Demand. Even if the new cars are never moved off the dealer's lot, they can depreciate in $$$ value if the manufacturer continues to flood the market with more cars than there are qty demand for it.

There are several other factors that can slow down or speed up the rate of depreciation for sold/used cars.

One is through wear and tear. Some cars like Toyota and Honda have a sterling reputation for reliable cars even as they age. Their used cars are as sought after as their new cars because of reliability, low cost of ownership, and remaining years of service. Even though their supply (new and used) is on the high side, their value (perceived and tangible) remains high to the many.

Second is by way of obsolescence due to design, style, or construction. High style and/or high performance cars suffer from this the most. Tightening up the supply may or may not help slow down their depreciation.

Third is again back to supply and demand. If there is demand for a certain model that has reached collector's status, and the pristine samples are low in supply, then depreciation can sometimes stop or even reverse and appreciate, as long as its wear and tear are kept to a minimum.

 

Bought 2004 spider. Drove it for 9 months. Drove every other day and even on a racetrack. Sold it for more than I paid for it.

I can't do that with any Porsche. In my book, that means lower depreciation than any Porsche I have ever owned.

 

The limited supply of late model Ferrari's on and off the dealers' lot allowed you to do meet the strong qty of demand. No surprise there.

People were also able to do that with the 2001TT back in 2001. Buy, drive, sell within a year while demand is still high, especially on a new model, is possible with minimal or no loss.

 

exactly my point........

 

360 Spyder is the EXCEPTION, not the rule. 360 coupe has done pretty well but if you average those plus the 12 -cylinder cars it ends up the same as Porsche. The trick is buying a new 8-cylinder Ferrari at sticker when it's a hot property. then you are driving for free for awhile.

 

Exactly.

 

Nice Write Up

 

The trick is buy anything new at sticker when it's a hot property, drive it while it's hot, and sell it while it's hot

 

Collin your supply/demand remarks are fine - but have nothing to do with my initial comment. Forget for a second about artificially restricting supply or messing with the entire supply/demand interaction to produce low depreciation.

Just assuming the world is as it is, 360/430 etc. Ferrari's depreciate IMMEDIATELY so did 2001 Turbo's. You just have to take into account the market price as the initial price and NOT the selling price (because the market price is your true opportunity cost of ownership).

Dr. Bill-
Again you own a 348, had you bought a older model Turbo (993 or previous) in very good condition at a steal of a price, you would have experienced VERY little depreciation.

Terrence-
You DID lose money on your Spider. Quite a bit in 9 months actually! When you purchased it new you could have probably transferred it immediately to someone else for maybe $40K (probably more depending on when you bought it). How much over sticker were you able to sell it for 9 months later .... exactly. That's alot of money you paid (lost) to drive it for 9 months!

Imagine for a second that a contestant on a game show wins a new car. Using the Ferrari owner's reasoning that person would never experience any depreciation on the car they won because the car didn't cost them anything. In fact they won the market price of the car and will start experiencing depreciation immediately from there.

 

carnut, you are a nut indeed.

i thought we're talking about depreciation during car ownership here. cars are not like stocks or futures. their ownership is not just for a profit. although for some people who are in the business of flipping their waiting list position for money it is. for the rest of us "real owners" who want to enjoy the car for a few months or years, the opportunity cost of not flipping it immediately has to be ignored. the real value is in OWNING and enjoying the car.

you should stick to comparing the capital depreciation cost, not ROI cost. car "ownership" is not an investment for most.

 

I never thought I would ever see even a semi-serious discussion on efficient markets and determining a proper discount rate when it comes to Ferraris or Porsches.

If you use a simple capital asset pricing model formula, all cars over time are a pretty ****ty investment. Hell, you could make better yields in the bond market.