Author: Developer

Purchasing a used Ferrari or exotic?  There are many ways to purchase a vehicle, nowadays you don't even have to enter the dealership.  However, there are many things to consider and do beforehand to ensure you are getting the car you want. 

First, and somewhat obvious, look at your needs.  Is this Ferrari a want? Is it just for weekend fun, or is it a need?  Does the used Ferrari FF need to accommodate the family?  Then, fully research the vehicle online, are there good years and bad years?  Some Ferrari models may have years that experienced issues in certain years.  Look at customer reviews for the particular model you are looking at.  Reading customer reviews is immensely helpful in gathering information and you should be able to determine quickly if the model has any quirks to note.

Once you’ve narrowed your decision down to what Ferrari you want, we recommend you look at a few more items.  First, Carfax can be very helpful, but you need to know how to read one or else you could be passing up on a great car. Many people will only consider cars with a clean Carfax and this is not always the best method.  This will greatly reduce the number of vehicles for you to consider and it will also remove vehicles that may have a Carfax due to a minor accident, such as hitting a parked car, or a minor scratch.  These minor incidents will not cause major damage and could still be possible contenders for many buyers. 

Once you have narrowed in on a few cars, contact the seller or dealership and ask for any service history they can provide.  When you are purchasing a used Ferrari, it is pertinent to know when the last major service was done because a Ferrari service can be a considerable cost.  Further, you don't want to buy a car without knowing if it needs tires, brakes, etc.  While researching the service history, be sure the dealership is equipped to sell the brand of exotic you are considering.  Chances are a dealership that’s primary car is a Honda, will not know too much about a Ferrari service.

Pricing is the next step, once you have found and vetted the vehicle.  There are numerous resources online that can help with this, such as KBB, but these sources can be more difficult to give accurate information when dealing with exotics, especially collectible ones.  It can be helpful to visit chats and clubs specific to the brand you are shopping because many of the members are extremely knowledgeable.  However, the one item we cannot stress enough in regards to pricing is to consider the service because this could affect your cost/price by tens of thousands.

We have heard from too many people that buying a car is something they dread.  We hate hearing this because we believe that buying a Ferrari, especially if you love and appreciate them as we do, should be a fun experience that you will always remember.  Hopefully, some of these tips will help you navigate the process a little and make it much more enjoyable.

Many people are wondering what kind of impact COVID-19 will have on the used Ferrari and exotic car market.   While none of us know for sure, history will tell us that we can certainly expect some volatility in values and the possibility of some great deals hitting the market.  We believe this to especially be true in the late- model, more mass-produced exotics like McLaren, Lamborghini and even certain model Ferraris, such as the California, Portofino, FF, etc.  People who stretched to buy these cars when times were great, could potentially be suffering now, and the huge car payment, upcoming service bills, and insurance obligations might result in some cashing out with a focus on quickly, as opposed to maximizing exit price.

That said, history also tells us that top examples of collector cars always seem to fetch top dollar, and we believe this will be the case today as well.  If you are buying a pre-owned Ferrari with the investment in mind, you need to think long term.  Unlike late-model exotics, the older and more collectible cars, have values that tend to be more stable so the value fluctuation is usually much less.   No doubt there will be some collectors who panic and that will create a few examples of top quality cars being sold for bargains, but it’s doubtful that there will be a mass liquidation resulting in any meaningful value reduction.

Our philosophy when it comes to collecting a Ferrari or other collectible exotic is simply “the longer you keep it, the more money you stand to make.”  Take Warren Buffet as your example, operate with a buy and hold strategy.   Watch for great deals and great cars being on sale and do not panic when you have invested in good cars.

 

Another aspect to consider is what you can do with your Ferraris as you are holding them.  Did you know that you can use collectible automobiles as collateral for loans? We all know that auto loans exist, but did you also know you can pledge your exotic car collection as collateral on longer-term loans or revolving credit lines that you can use for other purposes? Sometimes we all would like a little more cash in the bank or some available funds to invest whether it be in securities, real estate, our businesses, or anything else.  Some people are lucky enough to walk into their garage and see $1 million-plus worth in their exotic collection sitting there, but wouldn't it be nice to have those cars and access to the cash to invest in other areas to generate returns. There are several niche products in the market that will allow you to pledge cars as collateral and have operating lines of credit and lump sum cash payments that you will be able to use as needed.

With the state of the economy today and all that's going on with COVID-19, this is definitely something to consider when analyzing your financial situation and trying to determine how to plan for the unknown. This could also be a great alternative to dumping a car you never intended to dump and ultimately giving you the best of both worlds.

Does the volatility of the stock market affect the prices of exotic and collectible automobiles?  This is an interesting question because many people believe the stock market is an indication of the state of the economy and that luxury goods and specifically investible, used Ferraris are affected by this.  So, does a surge in the economy increase the prices in the used Ferrari market?  No, and the reason is simple economics, supply and demand.

Supply and demand, there is a much smaller supply of collectible, used Ferraris than there is a demand for them.  There are many more billionaires that are in the market for these rare, investible Ferraris and, because there is such a limited supply, when one comes on the market, price is not factored in in relation to the economy.  In fact, price is often not considered and people will pay whatever to obtain a specific Ferrari.  Unique Ferraris that are recession-proof pertain to scarcer models or features.  A Dino or GTO are both great examples of vehicles that will always be highly desired.  A manual transmission is an example of a feature that is becoming more and more sought after as there are fewer of them in the market.  I recall a few years ago I came across a manual transmission Ferrari that had just been listed for sale that I was very interested in.  I had to return a client call and took the five minutes to do so before calling the guy selling his Ferrari.  In five short minutes, the car was sold and the seller mentioned he had already received 6 other inquiries.

While the economy does not affect the prices of these rare Ferraris, the state of the economy does affect what investors are doing.  Specifically, over the last few years, we have encountered more and more people who are looking to invest in the used Ferrari market, especially during volatile times.  The prices of these exotic automobiles will appreciate and there will always be a market for them.  This alternative investment option seems to be of greater interest lately, as we are being asked more frequently to help with growing collections.

If you are a Ferrari lover, this will be of no shock.  However, if you have some money to invest and you appreciate Ferraris or other exotics, this is a great investment option that has been well proven.  These collectible cars are not just the million-dollar Dinos either, there are many options on the market that you can safely invest in for under $100,000. And, let’s be honest, what can be more fun to invest in than a Ferrari!

As the technology and performance of cars continue to change year over year, what effect does this have on older, classic, collectible Ferraris? This is a very interesting question that can be looked at differently in the used Ferrari market.

On one hand, many people appreciate the simplicity and mechanical nature that make up the older, classic Ferraris. These are the people who get almost more enjoyment out of staring at their beloved Ferrari 308 or displaying it at car shows as opposed to driving it.  Sounds crazy, right?  Actually, this is very common for many Ferrari enthusiasts.  It is also not uncommon to hear somebody talk about how underwhelming of an experience it is to drive a vintage car, whether it is a Ferrari, Maserati, or Lamborghini. In fact, the “underwhelming experience† is so common that there are companies that will take a portion of a car and try to make them more modern. This “resto mod†is not a new phenomenon, and has been around for a long time so that you can buy the classic, used Ferrari you love and enjoy the driving experience as well.

The “resto mod” seems to be in full force if you look at recent auction data such as the Barrett Jackson auction.  Many auction houses now feature collectible, vintage Ferraris and other classic vehicles with modern drive trains, engines, and  transmissions to make them more reliable and so they can perform like modern cars; many of these modified vehicles are bringing premiums as compared to the most pristine, original versions.

Naturally, there will be many who believe in modifying a Ferrari 308 or Testarossa and having it drive like a 458 or an F12, but there will also be many Ferrari lovers that will see this as sacrilegious and be strongly opposed to it.  Many enthusiasts would actually be incredibly upset because as time goes by there are fewer and fewer original Ferrari examples.  As with any situation, there will always be two views so it really just depends on your end goal and desire.  Now if you asked me, I would kill to have a Ferrari 308 that drives like a 458; however, I would only do this as long as I had my pedigreed and collectible 308 sitting under a cover, up on a lift and in my garage where not a thing could harm or disturb it.

If you can dream it, you can do it’s Enzo Ferrari.

Whenever many think of the name Ferrari, chances are they associate its founder with a level of wealth and prestige.

They may not think of a man who had all odds against him, one who had a tragic family life and the disapproval of those who he regarded in high standards.

This was a man who was constructed of nothing but passion, obsession, and raw drive. We are talking, of course, about Enzo Ferrari.

The Beginning

Alfredo and Aldegisa Ferrari would welcome Enzo Ferrari into this world in Modena, Italy, on February 18, 1898. Despite the legacy that would ensue, his parents predetermined that Enzo and his brother Dino would work within the family business. Alfredo was a structural steel contractor and would strive for his sons to join him.

As a boy, Enzo already knew work in his father’s shop was not the life he wanted. Despite what his romanticized imagination may have dreamt up for other career choices, Enzo still respected and loved his father. Perhaps Alfredo’s biggest blunder in raising his boys to follow in his footsteps? Taking both Dino and Enzo to their first automobile race in 1908.

Enzo initially had intents and dreams of living life as a journalist or an opera singer. He already knew that he wanted to be front and center in the limelight. Once he was exposed to the world of automobile racing, he had found his true calling.

During his very first visit to the track, Enzo would encounter the same addictive elements that many auto enthusiasts had experienced the speed, sounds, and smells of the racetrack. He quickly became addicted, nearly obsessed. The only antidote for this sickness could only be found in a troubling but triumphant future of the young Enzo Ferrari.

The World Wars

Before Enzo could follow or find his path, he and his brother would be exposed to the world wars that had stricken Europe. Before this, both Ferrari sons were being tailored for the family business. While Dino would follow his father’s dream, Enzo was resilient and would flunk out of school.

By 1915, Dino had enlisted in the Italian Army and served as an ambulance driver. In 1916, as the war waged on, Alfredo would pass away to pneumonia, and his brother would soon fall to typhoid fever.

Without Alfredo, the family business would fall, and Enzo was naturally sent into a whirlwind with the sudden losses of both his father and his brother. In 1917, Enzo was drafted into the Italian Army, and despite his claim of being a skilled auto mechanic, without any formal education or boastful background, Enzo was given the task of shoeing the mules.

The Ferrari Emblem

Despite a somewhat discouraging experience during World War I, Enzo would not walk away empty-handed. It was here he would be inspired by fighter ace Count Francesco Baracca, a man credited for 34 aerial victories. The black stallion painted on the side of Baracca’s fighter plane would result in the Ferrari emblem we know and love today.

Ironically, when Enzo had no choice, and the Fascist War Machine of WWII came to fruition, Enzo would serve again. Many historians are not sure exactly what the army initially wanted from Enzo, but they soon used him for his superb capabilities to manufacture and develop equipment.

Racing Career

After the war, Enzo had nothing left but to forge his way in the world. With a letter of recommendation from the colonel of his regiment and a dream in his heart, Enzo headed for Turin, Italy, to seek employment.

As a child, the Fiats on the racetrack had captured his soul, and he would look to the Agnelli Family for employment in the Fiat plant. However, much like those who turned him down in the war, they too would be unimpressed and turn Enzo away. It was then that Enzo would swear vengeance, and as a gentleman, he would settle this vendetta on the racetrack.

While living in Turin, Ferrari met a test driver who would get him a job with one of the small automakers in Milan. From the point of no employment and defeat, this was Enzo's first big break that gave the youngster the funds to purchase and race a used car. Ultimately, this car and Enzo's time on the track would land him the chance to race for Alfa Romeo.

The Birth of the P2

After several years of running with Alfa Romeo's racing team, Enzo and his fellow driver, the very one who landed him the job in Milan, would arrive at the European Grand Prix in Monza. Here, the Alfa Romeo P1 was planned to debut, however, with Enzo's dear friend Ugo Sivocci behind the wheel, the car had spun out, killing the driver.

Enzo felt the P1 was to blame for his friend’s death. This drove him to team up with engineers in the field to reimagine the car and develop what they had dubbed the P2, which would hit a top speed of 121 mph – an amazing feat for the 1920s.

With the P2, Ferrari and companions would reign victorious on the track, pushing the Agnelli Family off the track. From here Ferrari was backed by wealthy investors to develop racing cars for Alfa Romeo. For a man who was pushed to the proverbial gates of hell and back, this was the real birth of Ferrari as we know it today.

Ferrari

Not long after his steps to develop racing cars under his new business Scuderia Ferrari, WWII would postpone any further development into automobiles. Though, almost as soon as the war had ended, Enzo would develop the Tipo 125. This was a car with a massive V12 engine and was the first Ferrari car. Though in its very first race the fuel pump had broke, the Tipo 125 had held the lead with just three laps to go. Enzo took this as a promising failure.

With momentum under his belt and the attention of the world, Enzo was ready to grow from local hero to legend, but he needed more capital. It was an opportune time for Luigi Chinetti to approach Enzo for the exclusive rights to begin selling road cars under the Ferrari name in America. Enzo, a man obsessed with auto racing, had little interest in these vehicles, but it would provide the foundation necessary for him to continue to pursue his passion.

Life After Death

Enzo Ferrari never stopped pushing to develop the greatest racing cars of all time and always channeled his struggles, hurdles, and emotions into the desire to achieve excellence. Year after year, he would turn out more and more fantastic race cars that redefined what would be considered the standard of a racing automobile until his death on August 14, 1988.

In 2002, Ferrari would develop the Enzo Ferrari, also known unofficially as the Ferrari Enzo or F60.  Only 400 were produced between 2002-2004, and the F1-inspired, 651-horsepower Enzo Ferrari would become the pinnacle of Ferrari design.

At Merlin Auto Group we live and breathe Ferrari’s, and we owe it all to Enzo. Check out our latest selection of pre-owned Ferrari’s, as well as our expert-operated service center.