To the vast majority of the car driving public car value depreciation is a minor annoyance, rather than some kind of huge investment affecting decision. The general pattern of practice for the average guys out there is; buy a car, drive it until it stops working, scrap it and buy a new one. This pattern is repeated once every 10 years or so until the Government prevents you from driving do to your advanced years. This is primarily because the vast majority of us don’t buy prestige cars, where a car can fall in value by up to 50% the very second it has been driven away from the dealership for the first time!
This is an incredible statistic, but let me give you an example of some of the kind of figures we are dealing with here: a brand Ferrari 599 would cost somewhere in the region of £200,000 ($324,000 approximately). A little research shows that within a year the value of this car will have plummeted to £150,000 ($243,000). You wouldn't expect your average Ford Focus to suffer such a crash in value, so why does this occur with high-performance prestige cars like Ferrari models.
Put simply the dealers reduce the price massively because they know these cars are going to be very hard to sell. Generally speaking, if you have got enough money to buy a Ferrari, you are quite unlikely to want one that someone else has pushed to the limit on the motorways and country lanes are you? You are likely to want a pristine model complete with new car smell.
If you are in any doubt as to the validity of my claims, feel free to check out the Used Ferrari market, but please beware if you are considering buying a new Ferrari, in less than a year it will be worth nowhere near the amount you originally paid for it.
