So where will Ferrari values go next?

This is installment number 2 on Ferrari values. Please consider it an uneducated guess by an obviously biased person. Donning my Nostradamus hat, peering into the tea leaves, and consulting a pile of chicken’s bones rewards me with a view of a bleak future, a future which in many ways resembles the present. I think Ferrari values are going to remain pretty constant with prices held at their current low point by owners who are in over their heads and have to sell to a small pool of buyers who can command pretty aggressive deals. I would be willing to bet that prices tick upwards as spring and summer roll around but do not maintain that uptick through the winter of 2010. I think that 360s, 430s 550s and 612s will be the most dramatically affected of the Ferraris, in terms of price. 355s will certainly decrease in price but I doubt they will suffer the % drop of the modern cars or the front engine V12s.

First edit of the book is done

After just over one month of work I have finished my first complete edit of my book. Granted the book is not complete as I still have the car but I edited the 200 or so pages I have. Some of it was pretty good. Some of it made absolutely no sense. While rewarding writing a book is a pain. For the next edit I am going to use a triple space format. For this first pass I squashed everything together so I have notes in all the margins and arrows all over the page.

As a reward for my hard work and to take advantage of our recent spate of good weather I used the Ferrari as a daily driver for the couple of days. What a wonderful, nasty, engaging, little car. I drove all over yesterday, ran errands, when to client meetings, all in a Ferrari. It is much more fun to drive to a client meeting in a Ferrari than a Toyota truck.

To sell or not to sell.

Today I spent some time talking with folks about the exotic car market. Generally what I heard was things are not as bad as last month and way better than November but they are still slow and it is still a buyer’s market. I think saying we are in a buyer’s market, while true, understates the reality felt on the street. It appears to me that there are some tremendous bargains to be had at the $100,000 to $120,000 price point. Cars which once would have been $160,000 and upwards are now trading in that level. It also seems to me that good cars are rare and becoming more so in this market. Unless the owner has to sell now is not a financially wise time to be selling an exotic car and hoping for a quick sale. This presents me with a predicament. I don’t need to sell the Ferrari. I want to sell it so I can finish my book but a major thesis of the book is how to buy, drive, and sell one without spending a bunch of money. I have already spent a bunch on maintenance if I rush to sell I risk spending a bunch more on depreciation. I am going to conduct a poll.
What do you think I should do?

So what will 70K get you now?

Today as I was driving home I was thinking “What else could I buy for about 70K?” There are some great side effects to a recession. One of which is stuff that was once expensive is now comparatively cheap. With that in mind I searched eBay for cars with a buy it now price around 70,000. Here are some of the more interesting cars on offer. Generally speaking I think my 355 stacks up pretty well but there are some cars I might buy before the Ferrari for the same dollars.

Option 1 a 1960 Corvette with 57,000 miles for 69,900

Option 2 a 1999 Ferrari 550 with 21301 miles for 69,900

Option 3 a 2001 911 Twin Turbo with 700 horsepower for 69,000

Option 4 a 2001 Ferrari 360 for 72,000

The Inconspicious Ferrari

While driving the Ferrari today I was thankful it is not yellow, red, or lime green. The car is ostentatious enough and as I feel we are entering an era where conspicuous consumption is not as common place or as acceptable as it has been a nice grey blue Ferrari can fly under the radar. I am sure I commented on this last winter. The color of the car really comes alive on partially overcast days. The quality of light, filtered through clouds, brings out the blue in the Ferrari. That blue when viewed against the red interior is fantastic.

Spring Break Teaser

As you would expect just when I decide to sell the car Portland is experiencing what I have always referred to as the “Spring Break Teaser” that brief stretch of clear, warmer weather just before spring break. Unfortunately the nice 50 degree days we are not enjoying will turn colder, windier, and rainier by the time spring break rolls around. As spring break has not played in important role in my life in over 20 years I am happy to take good weather whenever I can get it and as the Ferrari has not been out of the garage in several weeks today seemed as good a day as any to drive it. Nothing much to report. The car is as loud, fast, and fun to drive as I remember.

On to price

Now to tackle the ticklish subject of price. I have decided to ask $70,000 for the car. A bit more, $3000 to $5000 more than most 355 owners seem to be asking right now. What makes my car special and worth the extra money? Three things in my opinion. First the unusual but stunning color combination of Grigio Titiano and Bordeaux. I have not seen another 355 with this color combo. Second, the amount of service performed in the last few years on the car. Everything wrong has been fixed. The new owner should not have to worry about valves, manifolds, cat ECWs, or engine out service for many years. That alone is worth somewhere between $10,000 and $20,000 when compared to a car without those services performed. Finally, the new owner gets a surprise, if they can find it. I have hidden a surprise somewhere in the car. It’s not much but it is nice.

I am not sure if the car being featured in the book is a good thing or not. I suppose it depends on your perspective. I will include a first edition of the book, even if I have to publish it myself for the new owner and they can decide if they want to be featured in the “Selling the car” section of the book.

Ferrari is for sale

Ok change of plans. Dad is no longer going to buy the car. This is a shame as it is the third Ferrari he has decided not to buy. On the other hand, even though I wanted Dad to get the car, it seemed like cheating to sell the car to him like I was not really selling it, just parking it at a different house for a year or two after which it would sneak back into my garage. The opportunity to get the car back appealed to me. Not that I expected to buy it back but I liked having the option to buy it back. Selling the car to someone other than my Dad will certainly make better material for the book. Less sentimental and circular but now I get to go through the process of selling a Ferrari. I am looking forward to it.

I am going to start by putting the car on eBay. I don’t expect it to sell but I hope it will generate some interest. I would not buy a Ferrari without driving it and would not be comfortable with someone else doing the same. I will also going to let the local Ferrari folks know the car is on the market and get in touch with the folks I know who are looking for 355s and approached my about the cars in general during my writing of the blog. Aside from these steps I am not going to do anything else until the weather gets better in Oregon.

So there it is. The 355 is for sale.