550 'rapidly appreciating classic'?

While I hope that this is the future I instantly think of real-estate being sold by the Beach. "timeless cottage" in an ad is really code for really dumpy small house never remodeled with original 1960's avocado appliances.

 

I doubt that you will find your best deal at a dealer. That said, there are not many private party 550s available.

 

Right now everything with the name Ferrari that is older than 15-20 years or is limited edition is "rapidly appreciating." Same is true for a lot of other cars (actually all kinds of collectibles). Countachs that people could not give away 5 years ago have suddenly developed character and command 5x the price. I believe this behavior will continue as long as the Fed/ECB/BOJ continue to flood the market with liquidity.
A rising tide lifts all boats!

 

I agree with [gTr] and have to question whether it is simply a strong economy and all luxury items are appreciating, or if it is an accurate acceleration of the market. Given that most all Ferrari's are appreciating (except newer models like the 360), I am inclined to think it has something to do with the strong economy.

 

I've said this in other market threads, although I don't think I've articulated it explicitly yet. My feeling re: 550 Value, especially in the context of the larger Ferrari market, is this:

I think there's an ambient core value that defines the majority of a 550's total value regardless of market pressures. That value is what drives stable appreciation, and that's what I think is driving the majority of appreciation we've seen amongst these cars. Timing wise, this coincides the rapidly rising prices in the vintage market, so people might just chalk it up to that. Not the case, although I DO think they're indirectly correlated...

The increasing rates of appreciation on vintage Enzo-era metal is pricing a lot of Ferrari enthusiasts out of that market so they're looking elsewhere. Incidentally, the 550 happens to sit beautifully perched in their scope with it's V12, gorgeous coachwork, gobs of leather, and, shining gated shifter. It's an increase in demand. It's not dealers and private guys throwing their cars out there at crazy inflated asks because they see Daytonas for $900k; instead it's enthusiast/collector types who are seeking out good cars and paying what the market commands (what owners will rationally sell for at a point in time). For the most part, this is happening in private transactions. Otherwise we'd see 30 550's for sale online. We've had the same 550's for sale online for months-- the ones that have lingered are far from representing the demand or going price for a top 550.

I think Daytona's are interesting cases for this conversation. In the last few years they went from $300k to $900k. At $300-$400k, laymen didn't think twice about their value. It wasn't until they blew the top off that people started talking about a bubble-- but they were still $300k cars for a long, long time without hesitation. I don't think anybody would argue that a Daytona is worth $500k, regardless of the market (except for major crises). That's the aforementioned core value, and I think the 550 core value is increasing reasonably and with stability. A 15% annual increase in $1MM car might be attributed to some hysteria influence. A 15% increase in a $100k is probably indicative of that car maturing and coming into it's own. I don't think the two are directly comparable.

I'm still optimistic that long-term on 550 values are going nowhere but quite a bit higher than where they are now.

 

Its a love hate. If the 550 was all of a sudden $300K like in the lunacy of the mid 80's we would all be polishing our 550's instead of driving them. I hope to pepper my 550's nose like Barry's 550 before I realize it has value and I should drive my BMW instead.

 

Asking price has gone up loads in the UK this year. Almost doubled. Asking price remains asking price though...

Mainland Europe not responding to it (neither with Challenge Stradales really). Almost certainly has to do because of the RHD being much fewer of them....

In 7-10 years I can see the 550's going up (easily triple currely EU value) as it's a classic for sure...but at 3000 something made there are simply to many of them for the 550 to get serious money for them. UK/RHD value will be higher though.

Buy one, drive it, keep it.

 

Low production numbers is only one piece of the puzzle. There are lots of valuable collector cars out there, where production exceeded more than 3000 units. It really comes down to supply and demand...and right now we have more buyers than sellers...and that will drive the prices up.

 

How true. Who would think pre 65 VW's, ghias and micro buses would have value? As time goes by unfortunately more 550's will be in the scrap heap. They can be totaled by insurance companies for the most minor of issues and that will work to owner's advantage taking more out of circulation.

 

Since one 575M HGTC 3 pedal just sold for around $200K and another has generated a ton of interest at a similar price, pretty much the same for all Maranellos.

 

Countachs are probably the most iconic exotic ever made - not sure I'd use that as a benchmark. (Boxers are also doing very well.)

But I agree on the rising tide. The US economy is having its best year since the '90s.

 

I think the Maranellos, and with some further delay the 456, will become classics, maybe not as stratospheric as the 1950-early 70s 2 seaters, but in the range of the 330 2+2 now. I don't think production numbers are very decisive, at least in this league, just look at the 356/911 or even the Merc 190sl...not to mention the Corvettes (as Taz always does). Why? because they are timeless beauties.

But turning to the current market: maybe not in the US/UK, but my impression from wasting countless hours on autoscout etc is that all three (575 550 456) have been losing about 10-15% in continental Europe over the past 2 years. What bought a nice 456M about two/three years ago now buys a decent 575...550s in the middle. Of course there are cars which will command a premium, the 575hgtc is a case in point (and has actually appreciated significantly over the past three years). But the trend for 'normal' cars appears downward. I don't think for much longer, so now is a great time to buy a Maranello. I would, and have seriously looked into it, but my family situation demands four seats, so I will stick with my 456M and look into a Mondial for that analog feeling...true logic! cheers, Chris

 

There is a 550 on Ebay, Grigio for sale at 67K with decent miles and no history. Nice car.

The others seem much to highly priced at high eighties to low nineties. I note they have sat for a while also. This Grigio should move quick , although as another sign, it has been on ebay for 2 weeks already.

 

That car has been listed for more than a month. Market is slow. 550 prices are rising though. Shall be an interesting year in 2015 to see what prices do..

 

It just appreciated a tad more....

https://www.youtube.com/watch?v=_LCNuf4Vd04

Man this guy sucks. You know, the type of guy who buys a Ferrari for all the wrong reasons? Look at ME!!! Whoops. LOL

 

I remember seeing that video elsewhere on this forum and thinking that he was lucky not to hit the boy taking pictures and was fortunate simply to crash the car.

 

I would like to term tools like him "Thinning the herd", and for this reason 550's will continue to appreciate. Because, for every one of the mature 55o owners out there , there are two goofballs who will do this to an unsuspecting 550/575. this will ultimately generate more spare parts at the same time reduce the number of viable models extant. Any wise collector knows that to keep a car on the road long term.... there will be a need for spares.
Sadly, idiots like this will keep us in rear quarter panels for many years to come... not to mention sundry other spares. Maybe 3000 total 550's built will be seen as an advantage to collecting 550's.
Aside from the exterior styling and the raw BHP, there are so many plusses for 550's that market forces will inevitably force prices up. Buy one now or you will be left in the dust while the 550 ahead of you is collecting your bugs.
Ciao

 

It might be worth considering what has - and
is - happening in other collector markets:

1) The "really old" stuff goes sky high (Is there
an echo from the Ferrari side of the aisle ?)

2) The "new stuff" is ALSO going out of sight.
(Priced an F12 lately ?)

3) The "middle group" looks better and better,
since "stuff" on either side of it is "appreciating" quickly.

4) The "middle" can grow in price, and STILL have
a cost advantage over the older AND newer items.

Ergo: If you want an "inexpensive" Ferrari V12,
what other choices do you HAVE ?

Ergo: 456, 550, 575 have a lot of "headroom"
before they become "overpriced."

I have two x 456 and 1 x 575.

Almost bought another 456.

Might get a 599 when they
get down a little more........

 

Didyou buy the cars primarily for investment purposes?

 

The question may seem a bit personal, and of course you need not reply, but I asked it only because I don't recall many folks saying they bought a 456 primarily as an investment.

Your doing so might be the start of a trend.

 

I think if you bought a 456 GT in the Uk during the last few years you will already be doing well on it.

 

If a dealer touts a car as a "rapidly appreciating classic" that's a yellow flag, at least to the extent that he probably doesn't know all that much about the car itself (or doesn't want you to.) I always wonder about dealers who write paragraphs on their web sites about the history of the brand or model, but just a few lines about the specific car he's flogging. If someone wanted to research the history of a brand or a model, there are more reliable places to get that information than from a dealer's web site. Just give us the facts about the car you're selling, please, thoroughly and honestly, and don't go on about "investment potential." We, as enthusiasts and informed buyers, probably know more about that than you do.

 

Agree...I don't need a history lesson about the marque, nor do I want to take a trip down memory lane, nor do I want to hear the opinion of an uninformed speculative seller as to future values...when reading ad descriptions about a car. I want the meat and potatoes. Unfortunately as buyers we have to put up with this crap so we don't miss a possible opportunity...