Negotiating with a Ferrari Main dealer

Negotiating with a Ferrari Main dealer

Author
Discussion

chrisbell08

34 posts

3 months

Monday 8th June
quotequote all
mercGLowner said:
Which particular cars are you going to see?

I love that Nero one in the post above... that Nero/Rosso interior is just lovely.
Notts have one:
https://nottingham.ferraridealers.com/en_gb/search...

Brum have 3 but one has no pics yet:
https://birmingham.ferraridealers.com/en_gb/search...
https://birmingham.ferraridealers.com/en_gb/search...
https://birmingham.ferraridealers.com/en_gb/search...

I love the contrast stitching on the headrest and rear logo, some only seem to have it on the front tho not the rear seats which is a shame

mercGLowner

1,649 posts

139 months

Monday 8th June
quotequote all
chrisbell08 said:
Notts have one:
https://nottingham.ferraridealers.com/en_gb/search...

Brum have 3 but one has no pics yet:
https://birmingham.ferraridealers.com/en_gb/search...
https://birmingham.ferraridealers.com/en_gb/search...
https://birmingham.ferraridealers.com/en_gb/search...

I love the contrast stitching on the headrest and rear logo, some only seem to have it on the front tho not the rear seats which is a shame
Let us know how you get on.....

jtremlett

859 posts

177 months

Monday 8th June
quotequote all
chrisbell08 said:
...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! ...
I would give them a call first and see what they say. Probably worth calling both Birmingham and Nottingham. Although they're both Graypaul they may say different things especially if one or other is keener to sell a car you are interested in.

JW82

129 posts

63 months

Monday 8th June
quotequote all
To reply to the original comment, I'm paying around the same as those APR figures but on an agreement started in 2018 so the % you mention might be a reflection of the current market / risk etc.

At the time, they also said that they'd improve pricing slightly as it was my 3rd car from the same dealer and they were keen to keep me which I valued. They were really good to deal with also and I had no reason to go elsewhere unless the pricing was massively cheaper.

I was speaking to the One Of the Other finance companies that has been mentioned at the same time as they wanted the business as had helped my Dad out on a car around the same time. This was a complete disaster. There were some eyebrow raising T&C's being put out there which were massively geared towards them taking ownership of the vehicle (via their dealership partner who they slipped in at the last minute) should I happen to miss a payment by a few days etc - not that this would happen in any case. I raised this as something I was not comfortable with and the chap I was dealing with said I had failed a credit check which was just a silly thing to say at the time and highlighted my overall experience with them.

chrisbell08

34 posts

3 months

Monday 8th June
quotequote all
mercGLowner said:
Let us know how you get on.....
So I got a test drive, fell in love with it!

The guys at brum are great and I put a deposit down on this smile

https://birmingham.ferraridealers.com/en_gb/search...

Stickyone

Original Poster:

34 posts

2 months

Monday 8th June
quotequote all
chrisbell08 said:
So I got a test drive, fell in love with it!

The guys at brum are great and I put a deposit down on this smile

https://birmingham.ferraridealers.com/en_gb/search...
Fantastic news, good for you, it looks awesome!

Spill the beans, what did you get the car for, and did you go with Ferrari finance?

Lee Jones Jnr

508 posts

125 months

Monday 8th June
quotequote all
chrisbell08 said:
mercGLowner said:
Let us know how you get on.....
So I got a test drive, fell in love with it!

The guys at brum are great and I put a deposit down on this smile

https://birmingham.ferraridealers.com/en_gb/search...
Very good, congratulations

chrisbell08

34 posts

3 months

Tuesday 9th June
quotequote all
Stickyone said:
Fantastic news, good for you, it looks awesome!

Spill the beans, what did you get the car for, and did you go with Ferrari finance?
Ahh so here's the one sticking point, it was 6:20pm and my son (he's 5) was getting fed up and hungry. I wasn't happy with the deal they gave but it was close so I agreed to put a deposit down pending the finance getting agreed.

I wanted to have the chance to shop around to ensure I'm getting the best deal on the finance (not just the numbers but also lowest risk) and didn't think just saying yes on the day was the smartest thing todo.

The best they would do is:

Sale Price: £115,000
Deposit: £20,000
Baloon: £66,000
Monthly: £1149
APR: 8.2% (Started at 9.7)!
Term: 48 months Lease Purchase

They've said there's some movement on the sale price and apr but they need to contact Ferrari about the apr. I said I wouldn't go higher than 6.9 as that seems the industry standard.

My budget is £1000/month £20k deposit so I will see over the next few days how they get to that (Without kicking the balloon up we agreed that was the max).

I told the guys that I would be planning to keep the car 2-3 years but they said the 4 year deals are pretty standard and there shouldn't be any concern about negative equity after 2 years, does that sound right or just salesmen BS?

The other car I was considering was an Aston Martin DB11 and they gave me this deal (which seemed a great deal tbf)

Sale Price: £93,000
Deposit: £13,000
Baloon: £69,000
Monthly: £1000
APR: 6.9%
Term: 24 months PCP

johnnyreggae

2,448 posts

115 months

Tuesday 9th June
quotequote all
My sense is that in 24 months (more like 24 minutes actually) the Aston will be worth less than the balloon so you'll give it back with no equity whereas the Ferrari should stay within the balloon so always giving you options

celticstevie

326 posts

206 months

Tuesday 9th June
quotequote all
jsw777 said:
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.
I can confirm that - I bought a 430 in April 2019 from Wilmslow at that level

footsoldier

1,690 posts

147 months

Tuesday 9th June
quotequote all
They're giving you nothing in that deal...
Full asking price, high rate of interest (over a longer period to make your monthlies look better), and lease purchase, so no floor to value like you would get with a PCP.
Not a chance that's the best they can do, imo.

chrisbell08

34 posts

3 months

Tuesday 9th June
quotequote all
footsoldier said:
They're giving you nothing in that deal...
Full asking price, high rate of interest (over a longer period to make your monthlies look better), and lease purchase, so no floor to value like you would get with a PCP.
Not a chance that's the best they can do, imo.
Yeah, I had the same feeling that's why I wanted to just get the car reserved subject to getting the numbers right. Although I don't think Ferrari do PCP, had that told to me by 2 dealers and quite a few on here

Stickyone

Original Poster:

34 posts

2 months

Tuesday 9th June
quotequote all
chrisbell08 said:
Ahh so here's the one sticking point, it was 6:20pm and my son (he's 5) was getting fed up and hungry. I wasn't happy with the deal they gave but it was close so I agreed to put a deposit down pending the finance getting agreed.

I wanted to have the chance to shop around to ensure I'm getting the best deal on the finance (not just the numbers but also lowest risk) and didn't think just saying yes on the day was the smartest thing todo.

The best they would do is:

Sale Price: £115,000
Deposit: £20,000
Baloon: £66,000
Monthly: £1149
APR: 8.2% (Started at 9.7)!
Term: 48 months Lease Purchase

They've said there's some movement on the sale price and apr but they need to contact Ferrari about the apr. I said I wouldn't go higher than 6.9 as that seems the industry standard.

My budget is £1000/month £20k deposit so I will see over the next few days how they get to that (Without kicking the balloon up we agreed that was the max).

I told the guys that I would be planning to keep the car 2-3 years but they said the 4 year deals are pretty standard and there shouldn't be any concern about negative equity after 2 years, does that sound right or just salesmen BS?

The other car I was considering was an Aston Martin DB11 and they gave me this deal (which seemed a great deal tbf)

Sale Price: £93,000
Deposit: £13,000
Baloon: £69,000
Monthly: £1000
APR: 6.9%
Term: 24 months PCP
Here's my thoughts, as I am deep in the throes of negotiating with a Ferrari dealer

Their car is VERY expensive for a 16 plate Cali T (it might be because its Rosso/Crema), The two I am looking at - one Main Dealer 16 plate 9500 miles with Special Handling pack and lots of options (£107000). The second independent trader; 16 plate 5700 miles (20 months Ferrari warranty) - £99,995.

I assume you have no part ex. So I would want at least £5000 off the price of the car (and probably more - show them evidence from the others cars on sale) and ask for a rate of 6.8% which I have had from every Ferrari dealer I have dealt with. This will bring the monthly payment to under £1000.
The basic CAP value of a 16 plate Cali T as a Trade in with 8000 miles is £88,000. This is without options, so this would increase (maybe even to £95K for a car with lots of options, decent colours). That's a HUGE dealer margin on your car.

If it were me, I would be wary of the high Balloon, and you can ask for a lower one - which will increase the monthly payment, but it will give you more protection, if you want some equity at the end. I have a PCP quote on both of the above cars (via Oracle) and the 4 year GFV is around £43000 for a 16 plate Cali T with mid 20k's mileage)


chrisbell08

34 posts

3 months

Tuesday 9th June
quotequote all
celticstevie said:
I can confirm that - I bought a 430 in April 2019 from Wilmslow at that level
Did they move much on the asking price if you don't mind me asking? I wasn't sure how much main dealers will move on this

Durzel

8,776 posts

123 months

Tuesday 9th June
quotequote all
~£20k dealer margin is probably par for the course, maybe even on the low side, though maybe not on a rosso/crema car. Doesn't mean they're going to be prepared to give that away though.

They will have had to prep it - a variable cost no doubt, but one that is probably averaged out as a "win some lose some" expenditure across all of the cars they buy, put a warranty on it, etc. Then they have those big glass buildings and staff to pay for, plus wanting to actually make some profit.

They are absolutely not going to be interested in "only" making less than £10k on it.

That being said I think there's a great deal more negotiation that you can do on that Cali T. As has been said already they've basically given nothing away and just made the term long to artificially lower the monthlies.

Regy53

59 posts

86 months

Tuesday 9th June
quotequote all
I can confirm i have been offered 6% today from FFS

Stickyone

Original Poster:

34 posts

2 months

Tuesday 9th June
quotequote all
Regy53 said:
I can confirm i have been offered 6% today from FFS
That's useful info, can you say which dealer it was?

blueg33

23,811 posts

179 months

Tuesday 9th June
quotequote all
Have you tried Oracle Finance - they have financed cars for me at better rates than dealers

I have a contact there i can put you on to if you require (I have no connection with them other than having been a customer)

chrisbell08

34 posts

3 months

Tuesday 9th June
quotequote all
blueg33 said:
Have you tried Oracle Finance - they have financed cars for me at better rates than dealers

I have a contact there i can put you on to if you require (I have no connection with them other than having been a customer)
no, but happy to give them a call if you have a contact there

chrisbell08

34 posts

3 months

Tuesday 9th June
quotequote all
Stickyone said:
Here's my thoughts, as I am deep in the throes of negotiating with a Ferrari dealer

Their car is VERY expensive for a 16 plate Cali T (it might be because its Rosso/Crema), The two I am looking at - one Main Dealer 16 plate 9500 miles with Special Handling pack and lots of options (£107000). The second independent trader; 16 plate 5700 miles (20 months Ferrari warranty) - £99,995.

I assume you have no part ex. So I would want at least £5000 off the price of the car (and probably more - show them evidence from the others cars on sale) and ask for a rate of 6.8% which I have had from every Ferrari dealer I have dealt with. This will bring the monthly payment to under £1000.
The basic CAP value of a 16 plate Cali T as a Trade in with 8000 miles is £88,000. This is without options, so this would increase (maybe even to £95K for a car with lots of options, decent colours). That's a HUGE dealer margin on your car.

If it were me, I would be wary of the high Balloon, and you can ask for a lower one - which will increase the monthly payment, but it will give you more protection, if you want some equity at the end. I have a PCP quote on both of the above cars (via Oracle) and the 4 year GFV is around £43000 for a 16 plate Cali T with mid 20k's mileage)
So they have a Black Cali T similar age and mileage Handling Speciale for £109,000.. I choose this one as I felt it was worth the extra to get the red/cream and the options on this one are pretty much everything.

It's the only one on auto trader with the right color spec and all carbon interior. Most of them have an odd bit of carbon missed for silver.

But as much as I loved the car I didn't feel the deal was very good, and it seems to be backed up by you guys, that's why I only reserved the car pending getting better finance numbers. Will see what they come back with after they have "Contacted Ferrari Finance to ask for a better APR" lol