There are many levels of wealth and a Ferrari buyer is not stereotype. There are plenty of people, for instance, that buy new Ferraris on finance, and plenty of them are Cali buyers as an alternative for a Merc SL AMG or something similar. Some people put 10% down, some 50%, some 80%. For them, depreciation is very much a factor. Not everyone buys a car for the pure driving experience either, even Ferraris. A combination of status and looks is plenty for some buyers and they'll be off buying a Maserati next year and maybe a Merc again after that. I'm not judging - it keeps Ferrari in business.
For myself, depreciation IS a factor. Not the main worry, but it is destruction of my net worth and I worry about it just as much as I do about my investments. I've worked very long hours for that money, so it'd be dumb not to take it into account. But, once the decision is taken, you shouldn't worry about it anymore.
Well-stated points; I always enjoy your posts.
In sporting rebuttal I will offer that a car, particularly a new car, is a liability and not an asset, even as the car may retain a % of it's MSRP value for a given number of years.
This is the thrust of my position: My net worth is compartmentalized and standing apart from a luxury purchase such as a new car (or for a used car). Net worth conservation is buttressed and promoted if and only if purchasing a collectible car, a hard asset, such as a 250SWB. Otherwise you are parting with money for recreational purposes at the Ferrari level. You figure it in as a vainglorious expendable.
The segment of buyers that depreciation would probably apply to are the finance/money-down/credit segment who opt for leases, who flip cars every 2 or 3 years because they must have a new car at any time.
The segment of buyers to whom that applies to notwithstanding, perhaps some of the points don't apply to my mentality; at this level of buying it would appear that if one were concerned about depreciation then they shouldn't consider a Ferrari in general. I would never consider seriously financing a Ferrari. And I know that doesn't mirror everyone else's choices. Your points are again well-taken.