Ferrari's Q3 2023 Results

[SSO]

Just posted a blog on Ferrari's Q3 2023 Results: The Horse Flies


Thoughts?

 

[Centurion]

Thoughts?

They are printing money. In Q3, 19% of 1.3m EUR revenue was generated from personalisation. That’s EUR293m in just 4 months.

Like with Porsche, exclusivity at Ferrari is an illusion. Every year, they deliver and increasing number of cars.

 

[kiki voinea]

They are printing money. In Q3, 19% of 1.3m EUR revenue was generated from personalisation. That’s EUR293m in just 4 months.

Like with Porsche, exclusivity at Ferrari is an illusion. Every year, they deliver and increasing number of cars.

Nothing bad for some of us who may want a sport car but don't want to pay a stupid amount of money. Let others pay the premium , and wait for it to hit 1 year and buy it at a discount.

Remember one thing: Only a few Ferraris keep or increase their value. As all things should be. Now that there are more Ferraris per year then ever , value should decrease.

 

[Centurion]

Nothing bad for some of us who may want a sport car but don't want to pay a stupid amount of money. Let others pay the premium , and wait for it to hit 1 year and buy it at a discount.

Remember one thing: Only a few Ferraris keep or increase their value. As all things should be. Now that there are more Ferraris per year then ever , value should decrease.

There is no denying that their cars are lust worthy. Although the brand has heritage, it doesn’t rest on its laurels. Life cycle of their models is short and every new model genuinely looks news and offer an epic aural experience.

 

[Soup]

They are printing money. In Q3, 19% of 1.3m EUR revenue was generated from personalisation. That’s EUR293m in just 4 months.

Like with Porsche, exclusivity at Ferrari is an illusion. Every year, they deliver and increasing number of cars.

They can charge you close to $16,000 for painted shields, imagine what happens when they seduce you to fly to Italy and experience your Tailor Made Ferrari.

Special paint costs $30,000 if specced through the dealer directly. Tailor Made $50,000+ (Exterior only) depending on how deep your pocket is.

Some silly interior buttons that start to get sticky within the 3rd/4th year, is in the 4-figures to replace. A daily car from Toyota / Nissan that can get you from A to B has better buttons that last for over 10 years and never get sticky.

Level of greed with Ferrari has reached a new level.

 

[Centurion]

They can charge you close to $16,000 for painted shileds, imagine what happens when they seduce you to fly to Italy and experience your Tailor Made Ferrari.

View attachment 708246

Special paint costs $30,000 if specced through the dealer directly. Tailor Made $50,000+ (Exterior only) depending on how deep your pocket is.

View attachment 708247

View attachment 708248

Some silly interior buttons that start to get sticky within the 3rd/4th year, is in the 4-figures to replace. A daily car from Toyota / Nissan that can get you from A to B has better buttons that last for over 10 years and never get sticky.

Level of greed with Ferrari has reached a new level.

They have turned paint into a billion dollar business. This partially been driven by covid and the reason why Porsche launches lots of limited edition cars.

In the past, revenue growth is driven by producing more cars. During covid production was limited which was bad for business. However, with limited resources car manufacturers decided to prioritise higher spec and more expensive cars. e.g base cars have a lead time of 18-24months but only 3-6 months for the flagship models. Boom! There grow your margins and and revenue without CAPEX on additional production lines or factories.

I can only imagine the tactics that the tailor made team use to upsell customisation, whilst the customer and their partner is served Italian Prosecco. It's only when you cover up a few days after when you realise that you have spent $50-150k on paint that is highly personal and has limited resale value. However, cause you are now part of the Ferrari family you don't want to let anyone down by downgrading your spec. With a bit of man maths you all yourself into thinking that you will be rewarded for your spend with an allocation for their most sought-after models.

 

[Soup]

I can only imagine the tactics that the tailor made team use to upsell customisation, whilst the customer and their partner is served Italian Prosecco. It's only when you cover up a few days after when you realise that you have spent $50-150k on paint that is highly personal and has limited resale value. However, cause you are now part of the Ferrari family you don't want to let anyone down by downgrading your spec. With a bit of man maths you all yourself into thinking that you will be rewarded for your spend with an allocation for their most sought-after models.

I know few owners that have owned over 20 of their cars and got screwed really bad over 812 Competizione and 488 Pista orders. They successfully managed to open the door for their loyal customers to look into Porsche, McLaren and Lamborghini.

I've also noticed that, nowadays, all they care about is, a walk-in customer ready to pay in cash to pick up the car, that's been specced and ordered by the dealer (488 GTB / F8 Tributo / 296 GTB & GTS).

I'm not sure if the exclusive cars will also have a starting price of 500k+ any longer, but somewhere between $1.8M ~$2M plus, hence the Monza SP2 and Daytona SP3.