When Is Too Much To Spend On A Ferrari Service and Restoration?
Adam Merlin June 25, 2019
Investing money in a Ferrari can get expensive real quick, and knowing when is enough is key to making sure you don’t end up spending more on the car than it is actually worth. This scenario is one we are faced with on a daily basis as we hunt down used Ferraris across the country.
So, when exactly does the cost of the Ferrari service and restoration exceed the value of the car to the point that you just have to say it’s not worth it? The answer to this question heavily depends on the Ferrari model you are talking about. As we all know, Ferrari is one of the most collectible brands in the world, and therefore, most models stand a chance of appreciating over time. Other than the Ferrari model, you will also need to consider other items that might make that particular Ferrari more valuable such as, supply and demand on the market, rare packages, color combinations, number manufactured, etc.
Does this mean that it really does not matter how much you spend having your Ferrari serviced because it will eventually be worth it? Well, that very well might be true. We were just faced with this question regarding a 1983 Ferrari Mondial Quattrovalvole that needed restoration work. When we looked at the cost of the restoration on top of what we paid for the car, it was clear we would own the Ferrari for above market today. We also considered other factors and, given that we believe the Mondial’s value has nowhere to go but up, the Quattrovalvole motor is a good motor, this particular Mondial has low miles and is a great color combination, we decided it was worth restoring. In addition, we will be able to show the car, drive it, and enjoy it while we wait for the value to increase to the point where we can make a good return on our investment. So, yes this specific Mondial is worth the investment in the long run.
In the Ferrari market, we currently see a lot of opportunity in the 20+ year old Ferraris. Right now there are many used Ferraris that you can buy, and have serviced and restored to top condition, while still investing under $100,000 total. As long as you stay under $100,000 and you have the time to wait, the Ferrari will eventually appreciate enough for you to realize a return on your investment.