Dermot, out of curiosity, could you go into more detail on the opening and closing values of your various Ferrari's you've had over the years? I'm personally interested in this topic, too, and $10k a year in depreciation is less than I would have ever imagined. When you buy used, what's the "sweet spot" for age / mileage that you've tended to purchase in?
Sure lets see, over the last 11 years or so:
- Silver 355B, 90k cost, 75k traded about 2 years later with an extra 8k on the clock
- 360 stick, 155 cost, traded for 150 for 360 F1 (Added about 3k to the clock)
- 360 F1, 165 cost, sold for 149 (about 18 months later)
- 360 Stradale, purchased at 170, sold for 150, Again about 2 years later with an extra 5k on the clock.
- Still got the 550 so do not know the depreciation yet.
All these prices exclude taxes, I'm afraid "Uncle Sam" gets his slice regardless :-(
Now, to be fair I am a really hard negotiator (Just ask my wife, she hates been with me when I'm buying or selling anything) so I will always walk from a deal if I don't get the price I want - So remember its not the price you buy at that's the issue, its really the price you resell at - Always be thinking of that when you are buying so that you drive the hardest bargain possible. (ie: In two years what will this car be worth and how much am I willing to loose over that period of time) Right now there are great deals to be had on Ferrari's as the market is soft, so if you are bidding on a car you should be aggressive on price (10% off asking price is my guide at the moment)
As for sweet spot, I'd avoid ultra low mileage cars unless u are a collector who does not drive the cars - I always aim for cars that have been driven at least a couple of thousand miles a year on average. That's important as it keeps the engines fresh and hopefully means that cars have fewer issues + it avoids the low mileage premium that Ferrari's tend to have. For me at least, I will quickly start adding miles to the car anyway (Prob 2-3 k per year), so there's no point of buying an ultra low mileage car and all the extra "buyers premium" that entails.
The other pearl of wisdom for what its worth is that it appears when ferrari First bring out a new model (430 for example) it tends to hold its value (Even appreciate) for the first couple of years due to limited availability/coolness factors etc: After that in years 3-4 the price falls quite fast as lots of cars are now in the market and supply exceeds demand in the second hand market. So it might make sense to buy in years 3 or 4 of a cars introduction rather then years 1 or 2 if you want a better deal (Assuming you can wait that long) That's how I bought my 360's and that probably has helped minimize depreciation.
Hope this helps