Month: March 2018

The first time I drove a Ferrari, I experienced something I never had before–it’s almost indescribable. The smell of the fine leather, the feeling of being so close to the ground, the whirring of the engine…ahh the engine. I remember the exhilarating yet strange sensation of hearing–no, feeling the engine…but it was behind me. It was unlike anything I had ever felt, and while my love for Ferraris came long before that moment, if there was any doubt before, it was clear then, that I was a full-blown Ferrari-nut now.

Mid-engine…Don’t you mean rear-engine? This is a common misconception about Ferrari engines that are behind the driver.

The good news is: Most Ferraris, if not all, sound incredible. Period. Front-engine, mid-engine, they are all beautiful, melodious, machines, so as far as deciding which I like better or prefer–that is difficult to say. There is something about having the engine right behind you, and hearing it right in your ear. The first Ferrari I ever drove was a preowned Ferrari F355, and in my opinion, there’s nothing that sounds as amazing as that–it’s loud, it’s in your ear, and it sounds like a Ferrari. So, perhaps I am a bit biased. However, a Ferrari California is an 8-cylinder engine that sits in the front, and I think it sounds incredible too.

The only drawback about mid-engine Ferraris as far as I can tell is the restricted rear passenger space. Aside from the Ferrari Mondial (the only successful example of a mid-engined convertible with supercar performance and seating for four), almost all mid-engine Ferraris are two-seater sports cars…so if you’re looking for a spacious rear-seating area, I would opt for something like the Ferrari FF or Ferrari 612 Scaglietti, which offer a 2+2 seating arrangement.

When appraising a used car, one of the first things we look at is the odometer. Then, of course, there’s the year, make and model of the car, etc.– but how do we determine if the car is considered “high-mileage” or not? Sadly, for everyone, there does not seem to be a simple answer to this.

As a general rule of thumb, around 5,000 miles a year is considered “low miles,” and around 15,000 miles a year is considered “high miles.” To make matters more confusing, exotic cars play by a completely different set of rules than your average used car. The terms “low mileage” and “high mileage” take on entirely different meanings in the exotic world. Here is the cold, hard truth: anything over 15,000 miles on an exotic car is considered high mileage. Totally asinine, right? I mean, how could 15k miles possibly equate to being high mileage? And how could that make the vehicle far less expensive, less valuable and, therefore, less desirable? And what is even stranger is that from a mechanical perspective, a car with 40,000 miles is probably in better shape than the car with 4,000 miles because it has actually been driven. That’s where the car’s condition comes in.

For all used cars, exotic or otherwise, it is important to look at the service history to determine how the car was treated. Is it up to date on service? Has it been well-maintained over the course of its life? A great way to think about it is: a car that has 90,000 miles on it but has been serviced every year is going to be in far better shape than a car with, say, 30,000 miles that has not been taken care of, major service intervals neglected–that sort of thing. For pre-owned Ferraris, and all exotics for that matter, service history is critical. One of the  major services for Ferraris  is the timing belt service, and while used Ferraris (and exotics in general) are known to be garage-kept and cared for, if a service like this has not been done at the proper service interval, it negatively impacts the cars worth. So you see, all miles are not created equal–Just because a car is low-mileage, even by exotic-car-standards, it is vital to do your research on the condition of the car as well.

You may be asking yourself, if mileage is such a big issue, what is the point of buying the car if you can’t even drive it? I’ve asked myself the same thing, and wondered if I was thinking too much about the resale instead of just enjoying the car. But, when you are considering spending $160,000 on a Ferrari 360 Spider, the resale value matters a whole hell of a lot more to you than if you are buying a $25,000 car. At the end of the day, cars are meant to be driven–that has always been my philosophy. As far as mileage goes, if you are concerned about resale values, buy the car, drive the car, take proper care of the car, trade it in against another pre-owned exotic…repeat.

Dost mine ears deceive me? A Ferrari utility vehicle…could it be true? According to Sergio Marchionne, Chairman and CEO of Ferrari (among other manufacturers), the production of a Ferrari SUV–or “FUV,” as he calls it–is indeed, happening.

After Marchionne alluded to reporters at the New York Stock Exchange that a Ferrari SUV is most likely on the horizon, Ferrari lovers and enthusiasts everywhere, were shocked. For months, if not years, Ferrari has denied even the possibility that the brand would cross over and make a sport utility vehicle. Understandably so, since the idea of a four-door Ferrari in general seems perposterous, but an SUV? That is downright blasphemy to some. The closest Ferrari has come to deviating from its race-track roots is the GTC4 Lusso (formerly the FF), wagon-like in structure, but even that is still just 2-doors. Porsche and Maserati have taken the plunge into the SUV market, and have been followed by exotic competitors, Rolls-Royce, Bentley, Aston Martin, even Lamborghini. Ferrari seems to be the only notable SUV holdout in the luxury market, but that may not be the case anymore.

We can’t help but wonder…

What does this mean for the Ferrari brand? The profit margins on SUVs are high, there is no doubt about that, but is it worth it? What will this do to the pre-owned Ferrari market? What will this do to Ferrari’s most loyal followers? Ferraris already are among the most expensive cars on the exotic market, let alone in the world…is it really worth capitalizing on a financial opportunity in an effort to gain, when there could be so much more to lose? To many purists, an SUV, the ultimate sell-out move, will ultimately cheapen the Ferrari name. Are they right? And finally, what would Enzo Ferrari think of this? Some, if not most, believe that the company’s founder is no doubt spinning in his grave at the very thought of introducing an SUV and bowing to market pressure.

We discussed last week how over-production in the car market  can diminish a brand’s value. If Ferrari continues to ramp up production and create models that stray from Enzo’s initial vision, this could happen to them, too. Ferrari’s long-held strategy of limiting volume, even at the expense of profits, seems to be shifting under the reigns of Marchionne. During his appearance at the NYSE, Ferrari’s CEO explained, “We need to learn how to master this whole new relationship between exclusivity and scarcity of product…Then we’re going to balance this desire to grow with a widening of the product portfolio.” So, we can’t really get mad at anyone for wanting to grow, expand, and make more money. As Ferrari enthusiasts, however, we can kick and scream about it in the meantime. On the bright side, older Ferraris out there on the market continue to rise in value, as the exclusivity of models like Ferrari 308s and 355s remain in tact. As far as the increased production goes, our best advice is hold on for dear life.

People often ask me, “How important is color when it comes to resale value?” It’s really one of the toughest questions I’m asked, especially depending on the kind of car the customer is looking at, and what the market is telling us. When you’re dealing with exotics, especially Ferraris, there is definitely a vast majority of people that favor one particular color. Whether it’s a later model 458 Italia or a classic Ferrari 348, color is hugely important to the customer. In our case, since most of our inventory is pre-owned Ferraris, most people, in our experience, only want the color red. For first-time Ferrari buyers in particular, they say their first Ferrari has to be Rosso Corsa (Ferrari Red). There is something about a red Ferrari that everybody always dreamed of and when it finally comes time to pull the trigger, that’s what they want.

Now, coming from experience, what I will tell you is there are a lot of people that specifically do not want red. They do not want the popular color, they want to buy the navy blue (Bleu de France or Blu Pozzi), they want to buy the dark green or the burgundy red. There are a lot of people who either want something different, want something a little less noticeable, don’t really care about resale–they just want what they want. In those situations, especially in the pre-owned market, if you’re looking for a dark blue Ferrari, and 90% of the cars are red, and you finally find a blue one, some could argue that that car is worth even more than the classic red Ferraris.

When it comes to color and how it affects the car’s resale value, as a general rule of thumb, you want to pick something that is tasteful. Until you get into the crazier colors (the lime greens, the yellows, etc), which are typically harder to sell because they appeal to a narrower group of people, you could argue that staying in the realm of more classic colors all essentially has the same value. Whether you want to go for the classic Ferrari red over tan, or you want to go for something a little more understated like grey over tan (dark blue and black are also good choices), choose something that you love and are going to be excited about driving around in.

Myth or Fact: You cannot (ever!) drive your Ferrari in the rain.

We are happy to report that this is a total myth, concocted by exotic-car-enthusiasts years ago…we’re actually not totally sure where this idea came from, but after hearing countless customers echo the same sentiment, we thought we’d set the record straight.

“Well, if I buy a Ferrari, I’ll never be able to drive it in the rain, I’ll barely be able to drive it, I’ll have to spend more time protecting it than enjoying it.”
-Anonymous Customers Everywhere

Does owning a Ferrari require a lot of maintenance? Yes. Does it need to be protected and taken care of? Of course. That is true. I always ask these customers, though, “Why can’t you drive the car in the rain?” You would be amazed at the response I get when I challenge this theory. It’s usually, “Well… I dont know.”

What is it about the rain that scares people, to the point where they think it’s going to harm their Ferrari? We’re talking about water, after all…aren’t we? When these cars were built in Italy it rained, without any of them melting. Ferraris are supposed to be in the elements and it is normal that they are going to be in the rain. What I tell everybody is, if you properly maintain your Ferrari, if you wash it and wax it regularly, if you know how to maintain the physical condition of the paint on your Ferrari, driving your car in the rain is nothing to be concerned about. That being said, however, there are some things to be cautious of when taking your car out in inclement weather. Debris on the road (if it is a storm, for example, tree limbs could fall down and not be visible), and other drivers (i.e. the possibility that somebody hydroplanes and crashes into your brand new Ferrari F430). These are the things that should concern you when you are thinking about driving your exotic car in the rain, not the rain itself.

With proper care and maintenance of the physical condition of your car (maintaining the paint and regular wax treatments, etc), there should be nothing to worry about as far as rain getting on your beloved  Ferrari 360.   Rain or shine, I believe it is just fine to drive that brand new Ferrari 458 or your classic, pre-owned Ferrari you’ve chased after for years.

Caffeine and Exotics is more than just your typical car show. It is a gathering of the most luxurious and spectacular vehicles all in one place, drawing people from all over to see, in person, just how incredible these mechanical beasts really are. Caffeine and Exotics has quickly become a nationally recognized event dedicated to the passion and enthusiasm for exotic cars. There are typically over two hundred privately owned exotic cars on display, including Lamborghini, Ferrari, McLaren, Rolls-Royce, Aston Martin, Porsche, Lotus, Maserati, Bentley, Audi, GTR, Corvette, Viper, and much much more. Each show is an opportunity to showcase various pieces of our inventory, as well as an opportunity to meet and talk with other exotic car owners–fanatics like us, who share the same appreciation and excitement for these vehicles that we do.

Every two months from April to October, we at Merlin Auto Group, gather at the store early on Sunday morning to pick up the super cars that were selected the week before to be our display at that week’s Caffeine and Exotics car show. With over forty pre-owned Ferraris in our inventory, one might think we could randomly select five or six cars for every show and it would not matter, Ferrari-enthusiasts would be excited all the same…which may be true. However, our owner, Adam Merlin, carefully and strategically chooses which exotics go with us each time. “This show was all about classic and timeless cars,” Adam said, meaning various, iconic models from different years, and, of course, all “Ferrari-Red” (Rosso Corsa). So, this August, we brought our 2009 F430 Coupe, 2005 360 Spider, 1987 Testarossa, 1992 348, 575M Maranello,  1987 328. Finally, we brought our 2015 F12 Berlinetta, and while it is not Ferrari-Red, it is the most recent-year Ferrari model in inventory.

Every Caffeine and Exotics experience is a fun and exciting one. We love being around other beautiful cars and their loving owners, and all those who understand the magnificence of these vehicles more than anyone. Come out Sunday, October 15th, to the next Caffeine and Exotics show and see what we bring!

We’ve been hearing quite a fewpeople say that the 3-pedal, true-manual Ferrari market is soft right now. So, what does that mean for values?

Many of those who are trying to buy these cars make the argument that there are a lot of them on the market, perhaps too many, and as a result, the values are going to plummet. That may be true as of today, and we literally mean today, but we believe that is only true for a small percentage of the vehicles. The reason for this is because the majority of the owners of these Ferraris, the people that have bought them with the anticipation of them appreciating or being collectible, are not people that are in a position where they have to sell these cars…that is, unless they command the prices that they want.

Let’s face it, at the end of the day, it’s all about supply and demand. The only thing that’s going to make the value of these cars plummet is if a flood of them, not only hit the market, but actually started transacting at low prices, and nobody wants them anymore. The last of which being the least likely, since we all know that Ferraris are always going to be desirable. In our experience, there is always going to be a stronger desire to buy them than there are examples in the marketplace. So, if you’re a hunter or if you’re opportunistic, and you can spend the time searching high and low to find the guy that is in distress, who absolutely must sell the car for the kind of money it would have brought three years ago (that he once thought was going to be worth $200,000), yes–there may be that opportunity. Quite honestly, that opportunity exists every day if you can find it.

Our belief is that every year there are fewer and fewer of these cars available. Because of that, Ferrari values, even when the market is “soft,” remain stable–in other words, they don’t depreciate, which is why we believe they are such a great investment. Our speculation, based on what we have seen, is that people are not desperate to sell these cars, unless they get the prices that they should bring. So, it is a good opportunity now to buy a used Ferrari because you may be able to buy it for five or ten thousand dollars less than you could have when it was hot. But, the longer you keep it, the more the car will appreciate becuase there are simply not enough of them.

For most Ferrari-buffs, the answer to this question is elementary knowledge. To others, it may not be, as it is not as simple an answer as you might think. Much like the English language, there are no real rules when it comes to Ferrari Model numbers–the moment you see a pattern or rhythm, it changes on you, goes back to the old pattern, changes again, etc.

In general, for most models up until 1980, Ferrari used a 3-number naming system based on the car’s engine displacement. The V6 and V8 models used the displacement for the first two digits, then the number of engine cylinders as the third digit. So, for example, the 348 is named as such for its 3.4L V8 engine (3,4, and 8). The 206 and F355 follow this same pattern. The 360 Modena and the F430, however, refer solely to engine displacement, without the inclusion of engine cylinders. The 458 Italia, however, which succeeded the F430, goes back to the pattern followed originally, naming after the engine displacement followed by the number of cylinders. Other patterns were used also. The Flat 12 (boxer) models, for example, followed a naming pattern that used the engine displacement in litres for the first digit and the number of cylinders for the last two digits. Some models, such as the Mondial and Testarossa, did not follow the three-number system. This can prove to be very confusing, not just because of the changing in naming-system, but because some models share the same engine type, so most Ferraris were also given designations referring to their body style. In general, the following conventions were used:

M: Stands for “Modificata,” in Italian, (modified in English). Appearing at the end of the model’s number, a modified version of the model, not a new model entirely. 575 M Maranello, for example

GTB: Stands for, “Gran Turismo Berlinetta,” meaning coupe.

GTS: Stands for, “Gran Turismo Spyder,” meaning convertible. Convertible models are now spelled with an “I”, Spider.
*In more recent models, this is used for targa top models (i.e. F355 GTS), the 348 TS being the only exception, which is the only targa named differently.

GTO: Stands for, “Gran Turismo Omologata,” which, like M, appears at the end of a model’s number, denoting a modified version of its predecessor. The difference being that the model has been designed and improved for the racetrack, though it is still street-legal.
*Only three models bear those three letters; the 250 GTO (1962), the 288 GTO (1984), and the 599 GTO (2010).

F: Added to the beginning of all models in the mid-1990s, but was abandoned after the F355, then added again with the F430, but not with the following model, the 458 Italia.

The inconsistency of Ferrari’s naming system can be confusing, as it does not always follow the same pattern, but we can be sure of one thing: Each and every model is spectacular.  So, while there is not a distinct consistent throughout that applies to all models, you can be sure there is a reason behind each model’s specific name and number.

Ferrari, 308, true six-speed, clutch life these words used to be non existent in my life. That is, until I married a Ferrari-osessed man with a passion for these European exotics. Suddenly, my world became flooded with a wide variety of terms I didn’t understand. A few years into my marriage, I decided to join my husband working with him at Merlin Auto Group, watching as he and his team sold everything from collectible Ferraris to the more common California. Never in a million years did I expect to not only understand the obsession, but actually come to appreciate the Ferrari on another level.

Observing the true Ferrari Fanatic was something that baffled me at first. I couldn’t comprehend the reaction people would have when a new Ferrari would hit our showroom for the first time. I would hear comments on everything from the color combination, to the rarity of the model in a particular year. The thing I found the funniest was that there are actually group of people who love a manual Ferrari and will choose it over an automatic every time. A stick shift….crazy, right? Lets just say I had a lot to learn about Ferraris, and boy did I.

One of the first things I learned is that Ferraris are not seen as just a car, it is so much more than that: They are a luxury item leaning heavily into the realm of collectibility. When I realized this, it was a concept I could finally wrap my head around, because I have experienced the same feelings before. It is like an amazing Louis Vuitton bag, a vintage Gucci piece, or the discontinued Chanel purse that has become collectible. The details and the stitching are precise and iconic. How about Hermes Birkin bag? This infamous purse starts at roughly $10,000 and can retail up to $150,000. Better yet, you cannot just go and buy one. You have to know someone or sometimes there can be waiting lists for years. Seems absurd to some, but I do love a great bag and can appreciate the process Hermes has set forth. Little did I know, Ferrari has a similar selection process with their cars. Not just anyone can go and buy a new Ferrari, Ferrari looks at a variety of criteria, such as the number of Ferraris you have owned, the length of time, etc. This really opened my eyes to take a second look at the world of Ferraris.

Looking at this 2003 Ferrari 360, it suddenly went from being just a used car, to a classic Ferrari 360 with a true six speed manual that was discontinued years ago, making it a rarity in the car world. The same way we see celebrities sporting their vintage Chanel dresses on the red carpet, you will find a true Ferrari enthusiast driving around in their 1987 Ferrari 328.

Oh, and color is a thing too. I once saw a customer refuse to buy a Ferrari in any color other than one in red because he wanted his first Ferrari to be Rossa Corsa, or Ferrari Red. Kind of rings a bell when it comes to closet staples, i.e. LBD, red-soled Christian Louboutins, certain things are a must.

Clearly, I started to realize all the parallels between my interest in fashion and his in Ferraris, but at this point, I had yet to experience what it was like to drive a Ferrari. I think it is difficult to really comprehend what 0-60 mph in 3.0 seconds feels like until you actually are the one with your foot on the gas. Forget the speed aspect, because I am not even one who cares to drive that fast, but having the power and accurate handling when you are driving day to day is really quite nice to have. Some of these exotics have a fit in finish that is spectacular with everything being hand-made and with all the options. Others, while still having the hefty price tag, will come stripped of all the options; and I mean cloth seats, not leather. Absurd right? Not when it comes to Ferraris, which are race cars that evolved to street cars, some of which are still built purely for speed and performance. Take the Ferrari F430 Scuderia for example. This is a car stripped of its leather and replaced with a carbon fiber interior just so it can be 220 lbs lighter, and in the world of racing, lighter=faster. Once again, Ferrari is staying true to its roots and producing an unbelievable car. In the world of fashion, I think of some of the outfits top designers will parade down the runway. Many of the over-the-top outfits are probably worn once, if at all, the same way I bet not everyone who purchases a Ferrari 488 drives it to its top speed of 205 mph. It still is one of the best, most sought after cars out there.

Evidently, I prejudged my Ferrari-crazed husband. Today, I understand that when he stares at his beloved 308, he sees a work of art that will never be produced quite the same way again. And he’s right. Never did I expect to uncover these truths as I set out snickering at the enthusiast who could find such love in a prancing Italian horse.