Negotiating with a Ferrari Main dealer

[Saweep]

LordOfTheManor said:

Avoid the London dealership as they are too lazy and busy with the COVID thing !

I think they opened about 2 months later than the mavericks here in the shires!

[Sarnie]

Coxey said:

Apologies for resurrecting this thread, but just been to see a 488, got sent the following finance quote

Period of hire - 37 months
Cash price including VAT £169,660
Cash deposit £60,000
Balance of cash price/amount of credit £109,660
Charges £28,947.96
Balance £138,607.96
Total amount payable £198,617.96

APR 8.9%

Monthly rentals £804.11
Final payment £109,670

Having read the above thread it looks to me that the APR should be nearer 5 or 6%?

Does this look like a good deal or do I need to start negotiating hard?

Cheers

£60k down, £109k to finance at £804pm......and then in 36 months time, still £109k to pay??

[Saweep]

Sarnie said:

Coxey said:

Apologies for resurrecting this thread, but just been to see a 488, got sent the following finance quote

Period of hire - 37 months
Cash price including VAT £169,660
Cash deposit £60,000
Balance of cash price/amount of credit £109,660
Charges £28,947.96
Balance £138,607.96
Total amount payable £198,617.96

APR 8.9%

Monthly rentals £804.11
Final payment £109,670

Having read the above thread it looks to me that the APR should be nearer 5 or 6%?

Does this look like a good deal or do I need to start negotiating hard?

Cheers

£60k down, £109k to finance at £804pm......and then in 36 months time, still £109k to pay??

It's basically an interest only agreement.

The big question is will a dealer offer 109 for a 488 in 3 years?

you'd think the answer is yes...but these Ferrari agreements don't have guaranteed future values.

[Durzel]

It's painful when you see it spelled out like that.

£60k down, which just vanishes.

£28,947.96 / £804.11 per month to rent the car for 3 years, or £88,947.96 / £2,470.78 per month if you haven't got the £109k balloon payment at the end.

In the context of how much it would cost to hire a 488 it doesn't seem so bad, but at the same time it does expose just how much you're spending if you aren't buying outright and/or happy to get locked in to the PCP model.

I would not bet money on a Ferrari dealer offering £109k cash for the car in 3 years, though I don't imagine their offer would be considerably lower.

[Francois de La Rochefoucauld]

8.9% is way to much. I got 4.2% through Lombard.

I think FFS got down to circa 6% with very little effort on my part.

[Cheib]

So it’s costing £60k + £29752.07 to run a 488 for 37 months ? Clearly the car might be worth more than £109k but it also might be worth less. It’s probably a £145k trade car right now so my guess is that’s about where it ends up.

Have to say I think that’s a very expensive way to run a car.

I’d wait a couple of months and see what manufacturers are willing to do to shift cars over winter. There were some very cheap lease deals around last year.

[911Thrasher]

Cheib said:

So it’s costing £60k + £29752.07 to run a 488 for 37 months ? Clearly the car might be worth more than £109k but it also might be worth less. It’s probably a £145k trade car right now so my guess is that’s about where it ends up.

Have to say I think that’s a very expensive way to run a car.

I’d wait a couple of months and see what manufacturers are willing to do to shift cars over winter. There were some very cheap lease deals around last year.

BOOM £2,425 per month to be exact + insurance and servicing /fuel/consumables (i suppose)...expensive rental assuming it is 109k£ worth to the dealer at the end indeed!

i believe a lot of people indeed are getting them on finance but really are probably sacrificing so so much just to be seen driving a Ferrari or any other sports car.

[Kyodo]

911Thrasher said:

I believe a lot of people indeed are getting them on finance but really are probably sacrificing so so much just to be seen driving a Ferrari or any other sports car.

This 100%. I know we all have our personal priorities but I think that if the numbers look even half scary then the answer is to buy an older Ferrari (or other marque) that you'll actually own and cherish.

[Durzel]

The only way it feels palatable to me is if he buys the car at the end, because then his payments towards it haven't been for naught. That's not really the PCP way though, and - sad to say - it can be how some people get into cars they would have no hope of affording otherwise.

~£800 a month rental to be seen in a 488 doesn't seem so bad if you forget you just flushed £60k down the toilet.

(I know PCP works for people, and it can be more prudent than using capital, not making a judgement about finance as a vehicle)

[Taffy66]

The problem with this finance is entirely to do with the very high 8.9% APR which accounts for the £28,974.96 charges..Everything else is irrelevant as it applies to buying it outright with cash..The APR needs to be around 6% APR at the most otherwise the interest is crippling..

[footsoldier]

I know you can get sub 5% from FFS if they want to

[Ferruccio]

And <2% secured on property.

[Roof down]

Durzel said:

It's painful when you see it spelled out like that.

£60k down, which just vanishes.

£28,947.96 / £804.11 per month to rent the car for 3 years, or £88,947.96 / £2,470.78 per month if you haven't got the £109k balloon payment at the end.

In the context of how much it would cost to hire a 488 it doesn't seem so bad, but at the same time it does expose just how much you're spending if you aren't buying outright and/or happy to get locked in to the PCP model.

I would not bet money on a Ferrari dealer offering £109k cash for the car in 3 years, though I don't imagine their offer would be considerably lower.

I think looking at this it says to mind that if you cannot afford to buy it either out right, or in a straightforward way, such as 60 to 100 k down and straight simple hp then you cannot really afford it, or you should not buy such things full stop.
And I cannot afford it and certainly would not be happy with such a deal, its madness. just my thoughts.

[Taffy66]

footsoldier said:

I know you can get sub 5% from FFS if they want to

I asked my dealer about the 5% APR through FFS and he said it only applied to GTC4 Lussos and subsided by Ferrari..

Edited by Taffy66 on Tuesday 22 September 16:41

[Coxey]

Thanks for all the comments really helpful. Spoke with the dealer today and asked him to try harder on the apr. To be fair I have only just started to look so early doors. I am considering hp or even buying it outright as I say early doors at the moment and want to what will happen to prices as the “nights draw in”.....

[Drclarke]

So you have been looking and negotiating for nearly four months now?

One day you will realise how short and precious life and memories are

[Beaver]

Have just agreed 6.4 with FFS on a California if that helps.

[footsoldier]

Taffy66 said:

I asked my dealer about the 5% APR through FFS and he said it only applied to GTC4 Lussos and subsided by Ferrari..

Edited by Taffy66 on Tuesday 22 September 16:41

I’m guessing that might suit him to say that...but no skin in the game!

I was offered a brand new Lusso from stock with the Ferrari incentive inc £50k off, (same deal on 812s).

My Lusso was a direct trade in, it came in one day and out to me the next, so I doubt Ferrari needed to incentivise. They started at 6.9 or so and I told them I’d rather pay for it. Deal was done, deposit paid. Two days before they came back at 4.8%. The only upside for them was in providing finance - car was sold at an agreed price already

[Taffy66]

footsoldier said:

I’m guessing that might suit him to say that...but no skin in the game!

I was offered a brand new Lusso from stock with the Ferrari incentive inc £50k off, (same deal on 812s).

My Lusso was a direct trade in, it came in one day and out to me the next, so I doubt Ferrari needed to incentivise. They started at 6.9 or so and I told them I’d rather pay for it. Deal was done, deposit paid. Two days before they came back at 4.8%. The only upside for them was in providing finance - car was sold at an agreed price already

That's incredible but i suppose things are different in Edinburgh compared to the Cotswolds...Did the £50k discount also apply for 812s or have i misunderstood your post.

[Saweep]

Taffy66 said:

footsoldier said:

I’m guessing that might suit him to say that...but no skin in the game!

I was offered a brand new Lusso from stock with the Ferrari incentive inc £50k off, (same deal on 812s).

My Lusso was a direct trade in, it came in one day and out to me the next, so I doubt Ferrari needed to incentivise. They started at 6.9 or so and I told them I’d rather pay for it. Deal was done, deposit paid. Two days before they came back at 4.8%. The only upside for them was in providing finance - car was sold at an agreed price already

That's incredible but i suppose things are different in Edinburgh compared to the Cotswolds...Did the £50k discount also apply for 812s or have i misunderstood your post.

There are significant discounts on Portofinos available too.

Times have changed.