Do Ferraris Hold Their Value?

Ferraris are fast, expensive, and do not look like any other car out there. But do they hold their value? There is no question that Ferraris do hold their value in comparison to some other luxury vehicles. However, do not let this fool you into thinking that a Ferrari will always maintain its resale value for eternity.

The market is highly competitive and subject to change. For example, the 1992 Ferrari F40 only holds 31% of its original value today (according to Wikipedia).

If you do decide that a used or pre-owned vehicle in general will not achieve your desired resale values, there are other options available for financing. Many dealerships offer lease returns as a great alternative to pre-owned cars.

Do Ferraris Hold Their Value?

Many car enthusiasts will do anything to own a Ferrari, but do they hold their value over time? The short answer is no. Ferraris are notorious for having large depreciation rates in the first year of ownership, and this has been confirmed by research conducted at different times throughout history. So while owning one may be fun, it’s not always a smart investment.

Although Ferraris do have the highest depreciation rates of all cars in general, they are actually very similar to other luxury car brands when it comes to holding their value over time. The main reason for this is that these cars just don’t depreciate more than others, but they also do not increase in value as quickly. Ferraris do not hold their value at all, but they do depreciate less than other brands in the luxury car market.

Ferrari models have been around since 1929 and are still being made today. The oldest running model is a 1947 Ferrari 125 S which sold for $18M USD in 2012 to an anonymous bidder at a Pebble Beach auction. This car is still worth that price today, and it’s not even the oldest or most valuable Ferrari model in existence!

Although Ferraris do hold their value over time more than other cars do, they do still depreciate at an alarming rate for new buyers. It does make sense to research any used car before purchase, but do not expect a Ferrari to make you money.

How well do Ferraris hold their value?

The reality is that Ferraris are notorious for holding their values much less than other vehicles, especially ones with comparable performance to cars like the Ferrari.

Lot of people do not realize that there are certain benchmarks for luxury cars to remain competitive in the market if they do decide to sell them down the line. These benchmarks include depreciation value and miles per gallon (MPG). The less your car depreciates and the more MPG you receive, the better your car will do in terms of holding its value.

The reason that most Ferraris do not do as well is because they are typically only produced every couple years with a limited number of vehicles made each time resulting in higher demand than there was supply available for those who would like to purchase them. This means that the price of a used Ferrari is going to be much higher than its competitors which do not have as high a demand for them, thus resulting in lower depreciation value and MPG for those vehicles.

Are Ferrari Good Investment?

If you were offered the opportunity to purchase a limited edition, brand new $200k+ Ferrari do you think there would be many takers? More than likely yes! There is something about owning such an exclusive and prestigious car that makes one feel like royalty.

However, if presented with the same question in five years time do you think people would still be interested? More than likely not. Why? Well in five years time, the ferrari do you own will have depreciated or lost a massive amount of its value and instead of being rare it would be common to see other people driving around with the same model as yours.

In fact if your do were brand new do you think their price drop would be drastic? Yes do ferraris do depreciate at a very high rate.

Due to the fact that do ferrari’s are so exclusive and have such a large number of wealthy people who want them, they do not hold their value well over time which means if you wanted to sell your do in five years time would not get much for them do to their rapid decrease in value.

Will a Ferrari go up in value?

Ferraris do hold their value, but that doesn’t mean they will go up in price. They do not appreciate like fine art or other collectibles do and no one can predict when a car’s value is going to increase, if it ever does at all.

There are several luxury cars out there which do actually show appreciation over time and it’s not just limited to Ferraris. People do want the best cars available and they do pay for them.

Luxury car depreciation is a complicated subject and there are many factors to take into account. For example, your choice of color can have a huge impact on the value of your vehicle. In fact, black cars do lose their value faster than any other color! The same goes for white and silver cars next in line when it comes to being the most devaluing colors.

On average, a car depreciates between 20 and 30% of its original price after one year; 40-50% after three years and 60 – 70% five years down the line. With luxury cars this is even more drastic: they do lose up to 80 percent of their value in just two or three years!

Luxury cars do have an expiration date, just like fine wine. Only when they do come down in price is when people are really interested in them and looking to make a purchase. The trick here is timing your investment right because the market fluctuates all the time so do your research before you buy anything.

Are Ferrari expensive to maintain?

If you’re thinking of buying one, the long-term costs are going to be at least as much as whatever price you pay for it now. But if you do actually buy one, do not expect it to lose much value.

In fact, a recent study by iSeeCars has found that Ferraris are the most resilient of all luxury cars when it comes to holding on to their original values. Only about 15% of used models cost more than their new prices after three years; for other luxury brands like Porsche, Aston Martin and Mercedes-Benz, used prices are more than 20% higher.

If you do buy a Ferrari with the intention of reselling it in three years’ time or less (like some luxury car dealers do), then this will be good news for you; but if your aim is to keep the vehicle long term – ensuring that the car is kept in good condition will be critical.

Keeping your Ferrari well-maintained and serviced will do it no harm, but if you do plan to sell on, make sure that the engine bay has not been clogged up with mouse droppings (yes this happens) or leaves etc., which can all affect its marketability.

Ferrari do hold their value well, but do not expect to get back all that you have invested in it. If your aim is long-term ownership, this should be less of an issue for you – so long as the car has been kept in good condition throughout its life.

Conclusion

Ferraris have a good record in terms of the rate at which they hold or increase their values. The market is very price sensitive, so do not expect these cars to maintain high prices during difficult economic times when buyers are more inclined to buy cheaper options.

If you can afford one and like driving fast then do not be put off. You do need to consider what you can do if the car does not hold its value though, so do your research before committing!