Newsletter 52: FERRARI MARKET ON THE UP?
Here’s a report on the top three movers.
The information below is based on the US market and, as we all know, takes a few months before any influence is felt in our local market.
Prices for normal and exotic cars are topping, but this does not apply to the mid-engine Ferrari market. That market took an extra shot of espresso and continued its upward trajectory.
Some models saw increases of up to 8%. There are of course some differences between them but, on a generally speaking, prices were strong during q2.
Let’s have a look at the current market and the top three price changes during Q2 of this year.
Firstly, we can see that the price variation for each model is very broad. It might be the largest of any automotive market.
The reason for this is of course the special models like the Scuderia, and the Pista, These push prices up.
Second, we can identify four price segments.
At the bottom we have the F355, 360, and F430.
Prices for these cars start at 75k and go up to 170k.
What’s interesting is that the 360 is priced a tad lower than the F355.
The F430, however, is priced clearly a lot higher than the two older cars. It sits neatly between the 360 and the 458 but doesn’t fully bridge the gap.
Prices are more aligned to the 360 market than to the 458 market, but this makes sense.
The second price group consists out of the 458 and the 488.
This is perhaps the most fascinating group.
Look for example at the prices for a 458 from model year 2015 and a 488 from model year 2016.
There is very little difference between them, Moreover, the market bottom is higher in the 458 market.
This shows how popular the 458 is.
It still looks the part, but it is of course that naturally aspirated engine that draws buyers to this market.
The next group consists out of 1 car only, the f8.
We can see that prices start at 400k but go up to 600k, and they overlay, to a large extent, with the 488 Pista’s.
Again, not something which comes as a complete surprise.
Finally we have the SF90.
In terms of technology this car sits in a different league and this shows up in the prices.
Starting at 800k and going up to more than 1m, this car is reserved for only a few of us.
Prices for most mid-engine Ferraris increased during Q2, some even saw an increase of 8 %. This is surprising to say the least.
In most markets, prices are topping and some markets even saw a small price decrease.
Think about most of the 911 models, some McLaren markets, and the Audi R8 market.
So, which Ferrari model saw the largest price increase?
Number three, the F8 spider.
This is a very young market but still saw a price increase of 2.8%, and this is more than we can see in the coupe market.
Prices over there were more or less flat.
The F8 spider market is young and very small. The median price points that you see are based on approximately 15 cars.
The 2.8% increase during Q2 is then also not fully statistically confirmed.
Yet, if we assume for a moment that it is correct, we can see that the price increase rate is a lot less than the 10% during Q1.
This of course means that the price trend is flattening.
Yet, even with this lower increase rate, it still performed better than many other cars.
Number two, the F430.
The price development for the automatic ones between March 2020 and now, and what a remarkable development it is. In the beginning of 2020, we saw a small price decrease, but prices sky-rocketed after that, Just like they did in the rest of the market.
Moreover, they followed the market during the winter. Prices started to cool down and the price trends for other cars were entering a new paradigm, but this does not seem to apply to the F430.
Prices increased by 3.8% during Q2.
This is decent increase for such a short time horizon.
It also means that compared to the market low of May 2020, prices are now up by 37.7%.
With such a high number, the F430 ranks among the top when it comes to price increases.
Number one, 458 Italia
With an increase of 8% during Q2, the Ferrari 458 is the clear winner of this quarter.
This is really an extraordinary price increase and further reinforces the upward price trajectory.
Since April 2020, prices have been increasing linearly. This is the only market where this happened.
All the other markets saw some form of price slowdown in between.
From this we can only conclude that the 458 remains exceptionally popular and that people are really buying into the last naturally aspirated mid-engine Ferrari story.
Being the last of its kind, the 458 market does then also start to look a little bit like a collectors market.
Compared to other supercar markets, the Ferrari market is still exceptionally strong.
Most models saw price increases during Q2 and the 458’s even went up by 8%.
This is followed by a 2.8% and 3.8% increase for the F8 and F430.
However, supply is creeping up in several markets and this might be an early signal that the largest price increases will slow down slightly.
In conclusion: Seeing the price move positively in the U.S market, we can expect a similar scenario, quite soon, in our own market. In fact, we are already experiencing that upward trajectory, with the 458.
So, with all this information, it makes absolute sense that a pre-turbo era Ferrari, right now, is a solid investment!!
As always, we are looking for stock to buy or consign.
We specialise in Ferrari but all, high end, luxury, sports and supercars welcome.
Contact Paul 082 851 3300