2005-08-01T05:37:00.000-07:00

Why do we buy Ferraris? For some of us it is the looks and for others it is merely the pleasure we get from driving such fine automobiles. Unfortunately, I might argue that the former represents a majority of today’s Ferrari buyers. To cite some evidence for such a claim I simply urge you to look at the abundance of Ferrari’s with chrome rims or the F1 option- chrome rims are poor heat conductors while the F1 is an arguably less engaging prancing horse. I believe that the decrease in Ferrari ‘driver enthusiasts’ has created a stigma around high mileage Ferraris-Many cringe at the thought of acquiring a high mileage 355 or 360. As a result, many Ferrari owners barely drive their cars, but is such behavior rational? Or more importantly, does reasonable driving significantly affect the value of your Ferrari?

I embarked to examine the supply and demand characteristics of 355 and 360 purchases in the second hand market. Each respective model was examined individually to isolate value from the modernity of the model. For data I used ebay, which arguably is a superior source for examining supply and demand. What I found (and the following graphs highlight) is that price is more highly correlated with year than miles (respectively .8 to -.47). The significance of this you ask? Simple! Higher miles have less of an effect on price than year. Although mileage plays a role below a certain mileage barrier (ie: <10k)>20k). This means that if one buys a newer year used 360 or 355 with ‘high Ferrari miles (20k+)’ that individual can own the car while minimizing depreciation! These graphs highlight that new Ferrari owners are rational for minimizing their driving while buyers of used Ferraris with fairly high mileage would be negligent to not exercise their stable-mate. Although this concept might appear a bit hackneyed please feel free to examine the data and come to your own conclusion.

2005-07-01T18:41:00.000-07:00

I think this is the undisputed supercar champ. For those of you who have never seen an F1 in the flesh, I highly recommend you make the trip to whatever magical isle these creatures dwell on. The BMW sources V12 is a work of art. From the gold palted engine compartment to the center mounted driving position, the F1 demonstrates how unparalleled ergonomic efficiency leads to perfection. It will be interesting to see how the Veyron discussed later will compare to the F1! Any thoughts?

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