Can You Afford to Drive a Ferrari?
12-11-06, 09:21 PM
#1
Can You Afford to Drive a Ferrari?
http://www.sportscarmarket.com/articles/archives/939
Can You Afford to Drive a Ferrari?
Cheaper than a jet, but more than a Jetta
Only weeks into ownership, the 30,000-mile service was repeated and the front shocks were replaced, for a total of $6,196.57
By Michael Sheehan
Answering daily phone calls and emails provides a never-ending supply of topics on which to pontificate. The "real-world" cost to drive a late model Ferrari is one of the more frequent questions I'm asked.
I recently sold an unusually well-documented 1998 550 Maranello, S/N 111317, with 36,200 miles to a client in the jet aircraft industry, and comparisons between Ferrari and jet costs inspired this column. Like a private jet that requires three to four hours of maintenance for every hour of flight time, Ferraris are not cheap to own.
FIRST TWO YEARS ALMOST FREE
550 Ferrari S/N 111317 was sold new on March 19, 1998, at $225,000, to a wealthy Santa Monica real estate investor and used for weekend retreats to his ranch in Ojai, a 150-plus-mile round trip. Thanks to an unlimited mileage warranty, the first two years were relatively expense free.
The first bite came in August 2000, five months after the warranty expired. At 13,637 miles, the owner brought the car in for a 15,000-mile service, two rear tires, and an oil, filter, and coolant change for $2,665.70. Two months later, in October, at 17,220 miles, noisy cam belts and bearings were replaced at no cost (thanks to a warranty extension by Ferrari). The windshield washer reservoir was also replaced for $529.25. A month later, in November, at 17,618 miles, the front spoiler and three wheels were refinished because of road-rash, at $1,285. Total for the first year out of warranty, and about 4,000 miles: $4,479.95, or $1.12 per mile.
As 2001 rolled around, in January, at 18,124 miles, two ball joints and sway bar bushings were replaced at $253.47, a standard procedure for a heavy, high performance, front-engined car with power steering. Three months later, in April, at 18,998 miles, a coolant leak, new front tires, another repaint of the wheels, and a detail added $2,718 to the ongoing maintenance bill.
A few days later, at 19,002 miles, the check engine light came on and an O2 sensor was replaced at $261.31. A month later, in late May, at 19,329 miles, the dash pod had to come out for an instrument panel repair, at $1,290.18. Five months and 1,289 miles later, in early October, at 20,618 miles, an annual oil and filter service and new rear tires added $2,386.60 to the expense column.
$8,988 FOR SECOND YEAR OUT OF WARRANTY
In December 2001, a service at 21,358 miles for dash lights, rattles, and a radiator R & R for coolant leaks closed the year out at $2,078.82. Total for the second year out of warranty, and another 3,740 miles: $8,988.38, or $2.40 a mile.
In January 2002, at 21,966 miles, the owner had the battery replaced, new suspension bushings installed, and a wheel alignment for $1,228.35. In March, at 22,956 miles, the license plate frame was replaced for $124.99, and in May, at 23,802 miles, the power steering pump was replaced and the fluids serviced, at $500.95.
Four months and 2,657 miles later, in September, at 25,607 miles, the steering box, power steering rack, and rear shocks were replaced, and the wheels were aligned for $8,641.69. The year ended at 26,236 miles, with a compression and leakdown problem discovered in late December at the 30,000-mile service. New cam belts, engine mounts, and a valve job followed, with all 24 valves and valve guides replaced at $7,954.66. Fortunately for the owner, Ferrari supplied the valves and guides under an extended warranty. Another year, another 4,878 miles, adding up to $18,450.64, or $3.78 a mile.
TOYOTA MONEY: 37 CENTS PER MILE
The Ferrari gods were smiling in 2003, with only 672 miles added and one service for hood shocks, in March, at 26,908 miles. Cost of ownership was only $249.38. Little use means no visits to ever-vigilant Ferrari mechanics, who point out problems that need to be resolved. This year cost Toyota money—just 37 cents per mile. Of course, there weren't many miles driven either.
In 2004, 550 S/N 111317 saw little use, but frequent visits to the service center, beginning in January, at 31,688 miles, for a seat control switch and wiper blades at $1,366.43.
A week later, in early February, at 31,860 miles, sway bar bushings were replaced at $208.63. In late February, at 32,035 miles, the handbrake shoes and rear brake rotors were replaced and four new tires were fitted, at $3,365.79. In early March, at 32,122 miles, a coolant leak added $903.21 to the annual cost. Another year, another 5,214 miles, another $5,844.06. The cost per mile, $1.12.
In late December 2004, Ferrari 550 S/N 111317 moved on to her second owner, for $90,000, and no service bills were added to the year. A real estate investor and self-confessed "Porsche guy," the second owner had always wanted a Ferrari and bought the 550 simply because he knew the car through the original owner.
Only weeks into Ferrari ownership, in January 2005, at 32,945 miles, a 30,000-mile service was again done, under the "while-you're-at-it" theory, because of oil leaks. The front shocks were also replaced, at $6,196.57. Only weeks later, the second owner also had the nose repainted, and his 550 "personalized" with the front fenders modified for fender shields and the calipers redone in yellow, at $7,759.70.
NOT FOR THE TIMID: $10.27 PER MILE
A month later, in March, the steering wheel was recovered for $450, and in April the windows were tinted and a "clear bra" installed for $935. Only weeks later, the owner continued to personalize his 550 with a Tubi Exhaust for $3,155.94. In August, at 34,235 miles, the oil hoses and other minor items were replaced, at $3,194.44. Total mileage for the second owner: 2,113 miles and $21,691.65. Most of this work was pure pride-of-ownership personalization, but the financially timid need not apply, as the cost per mile, at $10.27 per mile, was approaching that of an M1 tank.
As 2006 rolled in, our second owner next had a new clutch installed, in January, at 35,625 miles, for $4,852.59. After sitting for six months, the second owner decided that he really was a "Porsche guy" at heart. The 550 was too big for his tastes and so, in August, 550 Ferrari S/N 111317 was picked up from his home and dropped off for an a/c service, at 36,196 miles, for $519.40. Cost of ownership for the second owner, for 2006: 1,961 miles at $5,371.99, or $2.73 per mile.
In August 2006, our subject 550 was again sold for $90,000, with 36,196 miles, to the third owner, the president of a corporate jet maintenance and sales company. During the pre-purchase, an oil leak was found, and while the estimate was $3,000, the final bill was $1,582.58. The third owner appreciated the subtle lines and wanted a user-friendly Ferrari that could be driven daily in New York weather and traffic.
A long-time Ferrari owner, he appreciated that virtually all of the depreciation was reflected in the purchase price and that at 36,000 miles, adding mileage wouldn't kill the value. His last toy was a new Porsche Turbo at $160,000, and while it had been nice to order a car exactly as he wanted, the depreciation wasn't worth the thrill when he sold it after three years for $95,000.
The warranty on 550 S/N 111317 ran out in March, 2000, at about 13,500 miles. Our subject 550 went to the third owner in September 2006 at 36,200 miles, so the total miles out of warranty was 22,700 miles, with a total spent of $65,760.50, or $2.90 a mile, right at $11,000 a year.
Ferrari ownership is both a lifestyle and a socio-economic statement, just as owning a polo pony is a different venture than keeping a draught horse. As one former owner of S/N 111317 put it, "I spend more than that on crap on eBay every year." No other statement quite sums up the difference between those who lust for a Ferrari from those who can pay the price of ownership.
MICHAEL SHEEHAN has been a Ferrari broker and race car driver for 30 years.
Can You Afford to Drive a Ferrari?
Cheaper than a jet, but more than a Jetta
Only weeks into ownership, the 30,000-mile service was repeated and the front shocks were replaced, for a total of $6,196.57
By Michael Sheehan
Answering daily phone calls and emails provides a never-ending supply of topics on which to pontificate. The "real-world" cost to drive a late model Ferrari is one of the more frequent questions I'm asked.
I recently sold an unusually well-documented 1998 550 Maranello, S/N 111317, with 36,200 miles to a client in the jet aircraft industry, and comparisons between Ferrari and jet costs inspired this column. Like a private jet that requires three to four hours of maintenance for every hour of flight time, Ferraris are not cheap to own.
FIRST TWO YEARS ALMOST FREE
550 Ferrari S/N 111317 was sold new on March 19, 1998, at $225,000, to a wealthy Santa Monica real estate investor and used for weekend retreats to his ranch in Ojai, a 150-plus-mile round trip. Thanks to an unlimited mileage warranty, the first two years were relatively expense free.
The first bite came in August 2000, five months after the warranty expired. At 13,637 miles, the owner brought the car in for a 15,000-mile service, two rear tires, and an oil, filter, and coolant change for $2,665.70. Two months later, in October, at 17,220 miles, noisy cam belts and bearings were replaced at no cost (thanks to a warranty extension by Ferrari). The windshield washer reservoir was also replaced for $529.25. A month later, in November, at 17,618 miles, the front spoiler and three wheels were refinished because of road-rash, at $1,285. Total for the first year out of warranty, and about 4,000 miles: $4,479.95, or $1.12 per mile.
As 2001 rolled around, in January, at 18,124 miles, two ball joints and sway bar bushings were replaced at $253.47, a standard procedure for a heavy, high performance, front-engined car with power steering. Three months later, in April, at 18,998 miles, a coolant leak, new front tires, another repaint of the wheels, and a detail added $2,718 to the ongoing maintenance bill.
A few days later, at 19,002 miles, the check engine light came on and an O2 sensor was replaced at $261.31. A month later, in late May, at 19,329 miles, the dash pod had to come out for an instrument panel repair, at $1,290.18. Five months and 1,289 miles later, in early October, at 20,618 miles, an annual oil and filter service and new rear tires added $2,386.60 to the expense column.
$8,988 FOR SECOND YEAR OUT OF WARRANTY
In December 2001, a service at 21,358 miles for dash lights, rattles, and a radiator R & R for coolant leaks closed the year out at $2,078.82. Total for the second year out of warranty, and another 3,740 miles: $8,988.38, or $2.40 a mile.
In January 2002, at 21,966 miles, the owner had the battery replaced, new suspension bushings installed, and a wheel alignment for $1,228.35. In March, at 22,956 miles, the license plate frame was replaced for $124.99, and in May, at 23,802 miles, the power steering pump was replaced and the fluids serviced, at $500.95.
Four months and 2,657 miles later, in September, at 25,607 miles, the steering box, power steering rack, and rear shocks were replaced, and the wheels were aligned for $8,641.69. The year ended at 26,236 miles, with a compression and leakdown problem discovered in late December at the 30,000-mile service. New cam belts, engine mounts, and a valve job followed, with all 24 valves and valve guides replaced at $7,954.66. Fortunately for the owner, Ferrari supplied the valves and guides under an extended warranty. Another year, another 4,878 miles, adding up to $18,450.64, or $3.78 a mile.
TOYOTA MONEY: 37 CENTS PER MILE
The Ferrari gods were smiling in 2003, with only 672 miles added and one service for hood shocks, in March, at 26,908 miles. Cost of ownership was only $249.38. Little use means no visits to ever-vigilant Ferrari mechanics, who point out problems that need to be resolved. This year cost Toyota money—just 37 cents per mile. Of course, there weren't many miles driven either.
In 2004, 550 S/N 111317 saw little use, but frequent visits to the service center, beginning in January, at 31,688 miles, for a seat control switch and wiper blades at $1,366.43.
A week later, in early February, at 31,860 miles, sway bar bushings were replaced at $208.63. In late February, at 32,035 miles, the handbrake shoes and rear brake rotors were replaced and four new tires were fitted, at $3,365.79. In early March, at 32,122 miles, a coolant leak added $903.21 to the annual cost. Another year, another 5,214 miles, another $5,844.06. The cost per mile, $1.12.
In late December 2004, Ferrari 550 S/N 111317 moved on to her second owner, for $90,000, and no service bills were added to the year. A real estate investor and self-confessed "Porsche guy," the second owner had always wanted a Ferrari and bought the 550 simply because he knew the car through the original owner.
Only weeks into Ferrari ownership, in January 2005, at 32,945 miles, a 30,000-mile service was again done, under the "while-you're-at-it" theory, because of oil leaks. The front shocks were also replaced, at $6,196.57. Only weeks later, the second owner also had the nose repainted, and his 550 "personalized" with the front fenders modified for fender shields and the calipers redone in yellow, at $7,759.70.
NOT FOR THE TIMID: $10.27 PER MILE
A month later, in March, the steering wheel was recovered for $450, and in April the windows were tinted and a "clear bra" installed for $935. Only weeks later, the owner continued to personalize his 550 with a Tubi Exhaust for $3,155.94. In August, at 34,235 miles, the oil hoses and other minor items were replaced, at $3,194.44. Total mileage for the second owner: 2,113 miles and $21,691.65. Most of this work was pure pride-of-ownership personalization, but the financially timid need not apply, as the cost per mile, at $10.27 per mile, was approaching that of an M1 tank.
As 2006 rolled in, our second owner next had a new clutch installed, in January, at 35,625 miles, for $4,852.59. After sitting for six months, the second owner decided that he really was a "Porsche guy" at heart. The 550 was too big for his tastes and so, in August, 550 Ferrari S/N 111317 was picked up from his home and dropped off for an a/c service, at 36,196 miles, for $519.40. Cost of ownership for the second owner, for 2006: 1,961 miles at $5,371.99, or $2.73 per mile.
In August 2006, our subject 550 was again sold for $90,000, with 36,196 miles, to the third owner, the president of a corporate jet maintenance and sales company. During the pre-purchase, an oil leak was found, and while the estimate was $3,000, the final bill was $1,582.58. The third owner appreciated the subtle lines and wanted a user-friendly Ferrari that could be driven daily in New York weather and traffic.
A long-time Ferrari owner, he appreciated that virtually all of the depreciation was reflected in the purchase price and that at 36,000 miles, adding mileage wouldn't kill the value. His last toy was a new Porsche Turbo at $160,000, and while it had been nice to order a car exactly as he wanted, the depreciation wasn't worth the thrill when he sold it after three years for $95,000.
The warranty on 550 S/N 111317 ran out in March, 2000, at about 13,500 miles. Our subject 550 went to the third owner in September 2006 at 36,200 miles, so the total miles out of warranty was 22,700 miles, with a total spent of $65,760.50, or $2.90 a mile, right at $11,000 a year.
Ferrari ownership is both a lifestyle and a socio-economic statement, just as owning a polo pony is a different venture than keeping a draught horse. As one former owner of S/N 111317 put it, "I spend more than that on crap on eBay every year." No other statement quite sums up the difference between those who lust for a Ferrari from those who can pay the price of ownership.
MICHAEL SHEEHAN has been a Ferrari broker and race car driver for 30 years.
12-12-06, 01:57 AM
#2
Lexus Test Driver
hopefully its not like that with every other exotic car company or higher end companies.
Now I see why people here in Montreal return their Ferrari's after 2 years.
12-12-06, 02:09 AM
#3
A year or so back, I took a buddy to several of the exotic shops around OC. We were amazed that there were some as new as 1 year there (5K miles) and by far the common observance was just before the first major service. ~10K-15K miles.
Coming from the Toyota reliability standpoint, it's a different world for this crowd.
Even though we'd pulled up in my aging Lex, we were treated well by the sales staff. I've had worse treatment from some BMW dealers...the P-car and Ferrari dealers were cordial.
Coming from the Toyota reliability standpoint, it's a different world for this crowd.
Even though we'd pulled up in my aging Lex, we were treated well by the sales staff. I've had worse treatment from some BMW dealers...the P-car and Ferrari dealers were cordial.
12-12-06, 05:19 AM
#4
Former Sponsor
Join Date: Jan 2003
Location: D2'sville
Posts: 13,002
Likes: 0
Received 0 Likes
on
0 Posts
That's really interesting, I can't belive these guys are paying this amount for maintenance. I find it even harder to believe that they are taking their cars to the dealer when they are so far out of warranty. I'm positive there are reputable independent specialists that can perform this type of work for a mere fraction of this amount.
I'm not suggesting they take a Ferrari to "oil can harry" on the corner but I know our partner RPM Racing does a lot of maintenence work on exotics, as an example.
I'm not suggesting they take a Ferrari to "oil can harry" on the corner but I know our partner RPM Racing does a lot of maintenence work on exotics, as an example.
12-12-06, 05:26 AM
#5
Former Sponsor
Join Date: Jan 2003
Location: D2'sville
Posts: 13,002
Likes: 0
Received 0 Likes
on
0 Posts
The MB SLR is probably one of the best at 4years unlimited miles
And your right it is just amazing what that out of warranty does to the price of these cars! I'd have to say an exception is the F360 and F430 Ferraris, those cars hold their value soooo well.
12-12-06, 05:31 AM
#6
Dealer service records protect the value of the car. I have cars that I COULD rip apart and put back together with little or no problem. ....BUT I need those FACTORY service records for any hope of a respectable resale.
If an exotic car doesnt have full docs. its a serious negotiating point for the buyer.
In about 3yrs, I'll feel comfy enough to pick up a DB9 (I hope!) theres no way in hell I'd buy it from someone who didnt have full Factory service invoices. If I were looking for a bargain and willing to deal with potential problems associated with an 'unknown' car. I'd seriously lowball any asking price they started with.
Theres a BIG difference between Buying a 100k car and building one
If an exotic car doesnt have full docs. its a serious negotiating point for the buyer.
In about 3yrs, I'll feel comfy enough to pick up a DB9 (I hope!) theres no way in hell I'd buy it from someone who didnt have full Factory service invoices. If I were looking for a bargain and willing to deal with potential problems associated with an 'unknown' car. I'd seriously lowball any asking price they started with.
Theres a BIG difference between Buying a 100k car and building one
12-12-06, 05:36 AM
#7
[url]As 2001 rolled around, in January, at 18,124 miles, two ball joints and sway bar bushings were replaced at $253.47, a standard procedure for a heavy, high performance, front-engined car with power steering.
A few days later, at 19,002 miles, the check engine light came on and an O2 sensor was replaced at $261.31.
A few days later, at 19,002 miles, the check engine light came on and an O2 sensor was replaced at $261.31.
Trending Topics
12-12-06, 06:23 AM
#8
There can only be One
For a car that is completely hand made from the engine to the install it sure does have a lot of time in the service areas!
I think I will stick for trying to buy this one.
Or this one..
Mmmmmmm 450 thousand dollars to spend!
I think I will stick for trying to buy this one.
Or this one..
Mmmmmmm 450 thousand dollars to spend!
12-12-06, 08:18 AM
#10
Lexus Champion
Join Date: May 2006
Location: FL
Posts: 1,600
Likes: 0
Received 0 Likes
on
0 Posts
How many of those items in the Ferrari were necessary though? And how many of them were "eh, what the heck, replace the shocks, suspension bushings, and steering wheel cover, even though they're fine..."?
12-12-06, 08:32 AM
#11
Lexus Test Driver
Its probably worst for the Koenigsegg and Bugatti.
I forgot what the warrenty is for the Koenigsegg, it think its like a 1 year warranty LMAO ****ing insane.
One thing how's Aston Martin & Bentley service compare to Ferrari and the rest of the gang?
I forgot what the warrenty is for the Koenigsegg, it think its like a 1 year warranty LMAO ****ing insane.
One thing how's Aston Martin & Bentley service compare to Ferrari and the rest of the gang?
12-12-06, 09:07 AM
#13
I thought mb and bmw's were bad.
Now I see porsche is a real bargain/much more reliable compared to these animals...how is the CGT though?
12-12-06, 09:53 AM
#14
Former Sponsor
Join Date: Jan 2003
Location: D2'sville
Posts: 13,002
Likes: 0
Received 0 Likes
on
0 Posts
I can't speak for Aston Martin but the Continental GT is really really good. It has a 3yr unlimited mile warranty and is very reliable. I started doing the blue on on our site over a year ago, and we have taken that car to Florida, Virginia, DC, Boston and all up and down NY, NJ with nary one hiccup. And the best part is this car is putting down close to 700hp after the engine software, custom intakes, and exhaust, so imagine how good a bone stock one must be.
The fact that the car can withstand the NYC potholes with 22" wheels and such a slammed stance and never give a issue makes it a great proposition (much better than these older Ferraris)
12-12-06, 09:56 AM
#15
Former Sponsor
Join Date: Jan 2003
Location: D2'sville
Posts: 13,002
Likes: 0
Received 0 Likes
on
0 Posts
Another exotic that gets great reviews reliability wise is the Lamborghini Gallardo, I have spoken to Lambo tech's personally and they all had great things to say about thecar in that respect.
(seems audi is taking all these mega-buck manufacturers to the reliability promised land!! lol)
(seems audi is taking all these mega-buck manufacturers to the reliability promised land!! lol)