Negotiating with a Ferrari Main dealer

Negotiating with a Ferrari Main dealer

Author
Discussion

Stickyone

Original Poster:

34 posts

2 months

Saturday 6th June
quotequote all
So, I am focussing on a 2015 Cali T from Meridien Modena and will probably drive 250 miles to go and see it next week. Its a Grigio Titania with Nero leather and duo tone paint, so Nero roof.

Dealer has come up with a deal that is not far from where i want to be, its a 30 month contract so the two year warranty and service pack cover (2 services left) works out near perfectly.

My question is, how hard can i push the dealer on the finance. I have spoken to a few main dealers, and they all seem to say ' we will speak to ferrari finance to get a better rate/higher residual balloon" etc, is this BS or do they actually have to refer to Ferrari FS for this to 'tweak' the deal?

I have seen finance rates ranging from 6.6% APR to 8.8% APR, even 6.6% seems a bit high, but how low will they go - has anyone any experience of this?

The residual balloon seems high, but do they genuinely pitch these to ensure that they keep the customer at the end with some equity for the next one?

Is there anything else that can be bartered into the deal? Official merchandise, driving experiences?

Any help appreciated - this would be my first Ferrari. smile

Regy53

59 posts

86 months

Saturday 6th June
quotequote all
Stickyone said:
So, I am focussing on a 2015 Cali T from Meridien Modena and will probably drive 250 miles to go and see it next week. Its a Grigio Titania with Nero leather and duo tone paint, so Nero roof.

Dealer has come up with a deal that is not far from where i want to be, its a 30 month contract so the two year warranty and service pack cover (2 services left) works out near perfectly.

My question is, how hard can i push the dealer on the finance. I have spoken to a few main dealers, and they all seem to say ' we will speak to ferrari finance to get a better rate/higher residual balloon" etc, is this BS or do they actually have to refer to Ferrari FS for this to 'tweak' the deal?

I have seen finance rates ranging from 6.6% APR to 8.8% APR, even 6.6% seems a bit high, but how low will they go - has anyone any experience of this?

The residual balloon seems high, but do they genuinely pitch these to ensure that they keep the customer at the end with some equity for the next one?

Is there anything else that can be bartered into the deal? Official merchandise, driving experiences?



Any help appreciated - this would be my first Ferrari. smile
Cant help you as going through the same experience at the moment, 6,8% is the number they are stuck at.... I was at the dealership today could of looked for you smile I saw your car as i was looking at that specific colour in a 458 elsewhere

Stickyone

Original Poster:

34 posts

2 months

Saturday 6th June
quotequote all
Regy53 said:
Stickyone said:
So, I am focussing on a 2015 Cali T from Meridien Modena and will probably drive 250 miles to go and see it next week. Its a Grigio Titania with Nero leather and duo tone paint, so Nero roof.

Dealer has come up with a deal that is not far from where i want to be, its a 30 month contract so the two year warranty and service pack cover (2 services left) works out near perfectly.

My question is, how hard can i push the dealer on the finance. I have spoken to a few main dealers, and they all seem to say ' we will speak to ferrari finance to get a better rate/higher residual balloon" etc, is this BS or do they actually have to refer to Ferrari FS for this to 'tweak' the deal?

I have seen finance rates ranging from 6.6% APR to 8.8% APR, even 6.6% seems a bit high, but how low will they go - has anyone any experience of this?

The residual balloon seems high, but do they genuinely pitch these to ensure that they keep the customer at the end with some equity for the next one?

Is there anything else that can be bartered into the deal? Official merchandise, driving experiences?



Any help appreciated - this would be my first Ferrari. smile
Cant help you as going through the same experience at the moment, 6,8% is the number they are stuck at.... I was at the dealership today could of looked for you smile I saw your car as i was looking at that specific colour in a 458 elsewhere
Its a minefield, and I am petrified of buying the wrong car with the wrong spec! I have just been speaking to a main dealer in Leeds and mentioned the silver Cali T. I said that it doesn't have Magenride suspension, to which he said, don't buy it!

Oh, and the lowest i got from Meridien was 6.8%

Lowlands

20 posts

7 months

Saturday 6th June
quotequote all
Good luck with the purchase. I’m going to be looking for a California soon and would prefer to buy from a main dealer. Would you mind sharing if you got a discount on the sticker price and if they seemed motivated to do a deal? Thanks.

jsw777

19 posts

2 months

Saturday 6th June
quotequote all
Regy53 said:
Stickyone said:
So, I am focussing on a 2015 Cali T from Meridien Modena and will probably drive 250 miles to go and see it next week. Its a Grigio Titania with Nero leather and duo tone paint, so Nero roof.

Dealer has come up with a deal that is not far from where i want to be, its a 30 month contract so the two year warranty and service pack cover (2 services left) works out near perfectly.

My question is, how hard can i push the dealer on the finance. I have spoken to a few main dealers, and they all seem to say ' we will speak to ferrari finance to get a better rate/higher residual balloon" etc, is this BS or do they actually have to refer to Ferrari FS for this to 'tweak' the deal?

I have seen finance rates ranging from 6.6% APR to 8.8% APR, even 6.6% seems a bit high, but how low will they go - has anyone any experience of this?

The residual balloon seems high, but do they genuinely pitch these to ensure that they keep the customer at the end with some equity for the next one?

Is there anything else that can be bartered into the deal? Official merchandise, driving experiences?



Any help appreciated - this would be my first Ferrari. smile
Cant help you as going through the same experience at the moment, 6,8% is the number they are stuck at.... I was at the dealership today could of looked for you smile I saw your car as i was looking at that specific colour in a 458 elsewhere
They can go to 5.8% APR, that is what I was offered and had confirmed by a few main dealers that all are able to offer this.

Cam555

12 posts

4 months

Saturday 6th June
quotequote all
The sun is having the right effect as I enquired on that car too this week :-)

I thought maybe there had been a typo and it had mag but was confirmed not, it really is a 'must have' option and I'd be extremely careful buying one without it. In terms of other options, from my research the carbon driving zone is a must have and the central carbon bridge is preferable (although quite a few don't have this).

I put an offer in on the silver one that Gray Paul has up for £99k, that has a great spec and I think the colour works well with black roof and black wheels. I'm not sure silver is the best colour for re-sale tho and my offer wasn't accepted. I've decided I wont chase anything for the moment and wait till the right car / spec presents itself.

I did notice that just in the last couple of weeks there are many more 'T''s now under the £100k


Edited by Cam555 on Saturday 6th June 19:21

PrancingHorses

2,614 posts

162 months

Saturday 6th June
quotequote all
Just be careful what you sign up for. Ferrari Financial Services (FFS) do not do a PCP product. Your gfv is not guaranteed and there is no option to hand the car back and walk away after your loan term of 24/36/48 months!

What you are signing up for is a balanced payments plan. The gfv is usually 50% of a car’s value so you end up with low monthly payments but a higher APR!

If you fund through Magnitude / Oracle etc they can get you down to around 2.9% on the same products Dealers offer through FFS. Payments though maybe around the same as what FFS offer you as the gfv will be much lower than what FFS can offer you.

The FFS finance used to work very well when things were good economy wise but think very wisely before signing up to finance without a guaranteed baloon in this climate!! Many many people on this type of finance are going to now be seriously out of pocket due to values dropping rapidly.



Edited by PrancingHorses on Sunday 7th June 08:14

LamboPH

40 posts

5 months

Sunday 7th June
quotequote all
Sorry, what do you mean guaranteed balloon? Isn’t the balloon at the end the amount you have to pay, and not the amount they will give you for the car?

Surely the lower the balloon the better?

Sorry, completely confused with how this works now.

PrancingHorses

2,614 posts

162 months

Sunday 7th June
quotequote all
LamboPH said:
Sorry, what do you mean guaranteed balloon? Isn’t the balloon at the end the amount you have to pay, and not the amount they will give you for the car?

Surely the lower the balloon the better?

Sorry, completely confused with how this works now.
You are getting confused. A lower balloon is good if you intend to keep the car forever but not good if you intend to move to a new car after the contract ends. If you intend to own the car at the end of the term then HP is the product you want not PCP.

Have a read here: https://www.carfinancemadesimple.info/gfv-explaine...

LamboPH

40 posts

5 months

Sunday 7th June
quotequote all
Sorry, I understand how PCP works, but Ferrari don’t offer PCP, they run a Lease Purchase With Balloon, which is different than PCP.

With LPWB, you have to pay the balloon at the end of the agreement. You don’t have the option to walk away.

jw673

70 posts

71 months

Sunday 7th June
quotequote all
PrancingHorses said:
Your gfv is not guaranteed
A Guaranteed Future Value ("gfv") is, by definition, guaranteed - as used with PCPs (the final balloon payment being optional/the ability to hand back). HP with a non-optional/mandatory balloon payment at the end does not have a GFV.

PrancingHorses said:
What you are signing up for is a balanced payments plan
Is this really the case with FFS? or is it HP with a balloon and a fixed rate of interest, and not a variable rate (as associated with balanced payments)?

PrancingHorses said:
If you fund through Magnitude / Oracle etc they can get you down to around 2.9% on the same products Dealers offer through FFS
2.9% - is this the flat rate and not APR? Depending on how it is structured 2.9% flat is likely ~6% APR. FFS may be offering a regulated agreement, Oracle's best deals may be unregulated.

Always compare like with like. Some obscure unregulated 2.9% "flat" rate agreement (which may not be 2.9% fixed at all - if balanced payments/linked to LIBOR) is in no way the same as a regulated HP with a non-optional balloon at 5.8% APR from FFS.

There will likely be reasons for differences in the rates offered, not unreasonably the lower rates (unregulated/balanced payments/etc) may be due to the additional risks falling on the borrower. Understand what it is you're signing up for.

PrancingHorses said:
Just be careful what you sign up for
^ 1000% this.

MDL111

4,515 posts

132 months

Sunday 7th June
quotequote all
I financed a car with FFS in Germany and as said above the final payment was not optional/option to hand the car back. Rate was 3.9 percent at the time (2017). The final payment from memory was about 60 percent of the total used price and I paid 20 percent upfront as down payment

Stickyone

Original Poster:

34 posts

2 months

Sunday 7th June
quotequote all
Great debate...

There is much to ponder here. I have now put a deposit on a Cali T smile

MDL111

4,515 posts

132 months

Sunday 7th June
quotequote all
Congrats - have you got pics?

TP321

1,167 posts

153 months

Sunday 7th June
quotequote all
PrancingHorses said:
You are getting confused. A lower balloon is good if you intend to keep the car forever but not good if you intend to move to a new car after the contract ends. If you intend to own the car at the end of the term then HP is the product you want not PCP.

Have a read here: https://www.carfinancemadesimple.info/gfv-explaine...
So with PCP there is a GFV, which is the value you must pay if you want to keep the car.

But is it the value a dealer or any other dealer in the manufacturer's franchise has to offer in px against another car??

Stickyone

Original Poster:

34 posts

2 months

Sunday 7th June
quotequote all
MDL111 said:
Congrats - have you got pics?




037

1,188 posts

102 months

Sunday 7th June
quotequote all
Fabulous car.
My wife who has zero interest in cars commented on a California recently saying what a great looking car it is.

PrancingHorses

2,614 posts

162 months

Sunday 7th June
quotequote all
TP321 said:
So with PCP there is a GFV, which is the value you must pay if you want to keep the car.

But is it the value a dealer or any other dealer in the manufacturer's franchise has to offer in px against another car??
Only it is guaranteed.

chrisbell08

34 posts

3 months

Monday 8th June
quotequote all
Really interested in the feedback here too, I'm going to Ferrari Notts or Birmingham today and also looking for a Cali T,

Test drove an Aston Martin DB11 v12 on Saturday and the v12 sounded immense but, well, it's not a Ferrari lol.

Has anyone had experience with test driving Ferrari's since lockdown? I've been to McLaren and Lambo, both said no test drive until finance is in place. However, Aston couldn't get me in the car quick enough. I have to say the service at Aston Martin was second to none!

Unfortunately, the Ferrari dealer around the corner was closed over the weekend so going over today, I hope the experience with them is just as good. Does anyone have experience with Notts or Birmingham and could recommend one over the other? Birmingham is a bit further but it looks like it has more cars.

Good to hear people's feedback on the Magneride suspension as this wasn't something I had considered so I will add that to my wishlist lol.

I'll let you guys know what Ferrari tell me RE Finance numbers and APR's.


mercGLowner

1,649 posts

139 months

Monday 8th June
quotequote all
chrisbell08 said:
Really interested in the feedback here too, I'm going to Ferrari Notts or Birmingham today and also looking for a Cali T,

Test drove an Aston Martin DB11 v12 on Saturday and the v12 sounded immense but, well, it's not a Ferrari lol.

Has anyone had experience with test driving Ferrari's since lockdown? I've been to McLaren and Lambo, both said no test drive until finance is in place. However, Aston couldn't get me in the car quick enough. I have to say the service at Aston Martin was second to none!

Unfortunately, the Ferrari dealer around the corner was closed over the weekend so going over today, I hope the experience with them is just as good. Does anyone have experience with Notts or Birmingham and could recommend one over the other? Birmingham is a bit further but it looks like it has more cars.

Good to hear people's feedback on the Magneride suspension as this wasn't something I had considered so I will add that to my wishlist lol.

I'll let you guys know what Ferrari tell me RE Finance numbers and APR's.
Which particular cars are you going to see?

I love that Nero one in the post above... that Nero/Rosso interior is just lovely.