Part of the reason Ferrari NV’s wealthy customers are happy to fork out almost half a million pounds for a supercar is they expect these stunning vehicles to retain their value, or even appreciate, making ownership almost free. However, at least one of the prancing horse’s most iconic models — the plug-in hybrid — is depreciating rapidly, in some cases losing around 30% after just three years on the road, according to examples I found on UK listings site Auto Trader; the cheapest costs “just” £315,000 ($399,000). These value declines could bode ill for the company’s strategy of charging more for vehicles and its plan to launch a fully electric model late next year priced at stratospheric levels.
Ferrari declined to comment, referring me to management remarks earlier this year that residual values remain pretty good while “normalizing” from elevated pandemic levels and showing different regional dynamics. Since going public in 2015, the Italian company has expanded both the volume and variety of cars it sells, while preserving exclusivity by raising prices, restricting who can order vehicles and resulting in long waiting lists. Around three-quarters of its cars are purchased by existing clients, while almost half the company’s vehicle sales are hybrids.
Away from the Formula One race track, Ferrari has rarely put a foot wrong: Profit margins have increased, helping it obtain a stock market valuation similar to luxury fashion house Hermes International SCA..
