Ferrari F40 market analysis

True, but in the case of real estate the seller is not loosing essentially a fifth of the gross sale price in the transaction! and the buyer does not pay agreed sale price plus fees, not in the UK at least. it's often a fixed sum these days on more valuable properties equal to the value of an F40, even on % its only 1 to 2% at worst on a commission basis and only paid by the seller.

I doubt brokers pocket anything like such sums, or dealers who buy in stock trade under or sale and return, auctions only really work for the seller if they are lucky to get two people with the fever.

Big gamble to take, then again it paid off for the yellow race F40 which was valued way way under what it went for, or the other car I also mentioned in my initial response.

 

This isn’t even a discussion. The market price is the amount you pay sales tax on. The net number is irrelevant.

 

F40s are a world market, any additional taxes vary massively depending on the country in question, so your post is irrelevant actually.

At auction, the gross selling price is a figure just two people thought was worth paying at that moment in time, the winner and the underbidder, they do not represent "the whole F40 market"

Say a generous owner decided they no longer wanted their F40 and offered it for a £1 to the first person to turn up. do you include that sum in the figures?

 

Good points Paul, even though it has come to be generally accepted that the full price paid by the Buyer is what the car is worth, try telling that to the Seller who values the car based on what was received, I guess we have to see it both ways because both Sellers & Buyers are both an essential ingredient in the market.

You'd be surprised.

 

Cat & Adjust 89121's result is $1,875,000 all-in.

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The average auction house sell fee is 10%. The average buy fee is 12% (then 10 additional over $250k). So on a $2m sale the friction costs are $405k.

Or, involve a broker and pay less than an auction house (I’ve seen flat rates and smaller percentages quoted) but reflective of the effort of finding and liaising with buyers. In this scenario the friction costs may be more like $100k on a $2m transaction.

Or, one can private party the sale depending on how long they want to hold the car and deal with the BS of selling it. Time money factors come into play but with generally zero friction costs.

Or, there’s a liquidation sale price for instant cash, likely distressed and to a wholesaler or similar where the friction costs reflect a discount provided for immediate sale. That could end up being quite a bit less than market depending on the situation.

Ultimately the true value of a car is somewhere between those tiers, most likely between $1.6-2m in the described scenario. To me if I were a seller and likely to net $1.6 or so regardless of venue I’d probably sell the car for that and move on. Others may fight and insist for more money in the transaction even though the ultimate net number is the same. I don’t know why, perhaps people like paying auction house or broker overhead. Different strokes…

 

Well stated, and as mentioned you have to look at the time involved in conducting a sale, the hourly rate of someone who owns an F40 is no doubt very significant, and better utilised in their own area of expertise, far more cost efficient to use the services of a third party for them.

In a rising market, online auctions seem to be the most cost/time effective way for max return if an owner is prepared to do some of the basic leg work.

Going to throw another grenade into the discussion, and actually relates to the element that ttforcefed raised, and that is local taxes.

Here in the UK there are no sales tax, so buy a car already in the country and you are good to go, import one though and you have VAT at 20% and customs duty on top, for cars over 30 years the customs element tends to fall away though.

Later export the car and you do not get a refund, so the gross cost of the car to the buyer is much greater than the gross cost of purchase from say an overseas auction. Which figure should be used in the comparisons?

To really expand on that, how about if the car ends up in one of the Asian countries with upto 150% duties?

In the past in say Australia, once a car went into the country it rarely left due to the above, as the importer would never recover the total cost in any other market.

Only significant currency fluctuations make it viable on occasion.

I am not trying to be an aggressor here, just raising some of the hidden elements of cost that are not always taken into account in financial comparisons.

 

Would the contributors agree this is an example of the bottom end of the standard road car market? (high relative miles and least financially desirable spec of cats and adjust?)

However it is probably the best example to actually enjoy, nicely run in, practical and no issues with emissions whatever country you are in.

 

As you know, this is the type of car I was looking for a year ago. A driver priced for driving. Good for both buyer and seller!

Yes. According to what has been stated multiple times here, a Euro cat/adjust car is "least desirable." Add 43k km and this should be the low point of the range.

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Up next is this 1990 USA F40 www.mecum.com

Offered with the odometer reading just 3,413 miles, this 1990 Ferrari F40 features a Rosso Corsa exterior finish with a Rosso Ferrari interior. Despite its low mileage, the F40’s maintenance history includes a major engine-out service performed on January 18, 2017 at Paramount Foreign Cars Italia in Greensboro, North Carolina, at 3,354 miles. The timing belt, tensioner, idler and fuel system were serviced, and a detailing was performed on December 8, 2021, again at Paramount Foreign Cars Italia, at 3,368 miles. The offering of this rare U.S.-specification F40 includes original Schedoni luggage, a tool kit and the all-important Red Book issued by Ferrari Classiche.

As usual Mecum does not post the car's early history or the VIN number, but it's 86498.

I inspected this car years ago in California when Gerald Barnes owned it, he said he acquired the car in January 1993 with 221 miles on it.

Delivered via Auto Torino Ltd in Great Neck, NY, this is one of six (6) USA F40s that resided in the famed Jerry Moore collection which comprised over 100 cars in Texas, before Barnes got it.

The 43rd USA F40.

 

2 of the Jerry Moore F40s from the early 90s, one of them might be 86498.

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Why not?

Marcel Massini

 

As Marcel says, why not.

From what I understand from someone who managed his collection (not over 100 cars as I stated above but more precisely over 800 cars), his idea was to buy as many F40s as he could lay his hands on when the USA cars were new in 1990 to 1991 with a view to cornering what he thought would be an ever-increasing market.

It didn't work out exactly that way and for example he sold 86498 for considerably less than he paid for it in 1993, by which time the world was sliding into a recession. I recall that a number of 1992 F40s sat in showrooms with no takers for a year or so and the next few years were not good ones for the Supercar market, I was already a Supercar owner in the late 80s so this is where I get my well-known market caution from. For example I purchased my first F40 86640 in 1996 for $265k and in the car's paperwork file I could see that the previous owner had paid $500k just a few years prior.

I do have a very cool image of possibly all 6 of the Jerry Moore F40s arranged in his compound, I'll have to dig and see if I can find it.

 

Estimate: $3,000,000 - $3,500,000

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Hope you find it. ..... If you do, consider posting it here: https://www.ferrarichat.com/forum/threads/the-joe-sackey-i-have-more-than-one-f-40-thread.175954/
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$2,600,000 was the high bid, yet again underscoring the trend since the high-point in August 2022, it may yet sell post-auction, meanwhile the last directly comparable result to this F40's was 1 year ago when USA F40 90000 with 3,779 miles sold for $2,452,500 on March 4th 2022.

LOL perhaps I'd better not look for it!

 

why do I find almost nothing about this collection on the interweb?
https://www.ferrarichat.com/forum/threads/jerry-moore.27251/
.

 

Those chandeliers do love an F40! are those now being included in the results tables as well?

 

I think that's because his car collection existed before the internet became popular.

There are a few stories posted online that do mention his 6 F40s, here's one of them https://jerryroehl.com/1990-ferrari-f40/

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All I could find was a set of 'J Moore' embossed F40 luggage.

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The $2.6m bid was real, although your likely point that High Bid No Sale results are often the auctioneer's eliciting bid is well-taken.

I think most people using market data base their analysis on results where the car actually transacts as a sale, and IMO, when compiling market data it is more complete to record the high bid rather than simply list the car as not sold, www.classic.com for instance does it both ways, with some cars such as the recent Mecum 86498 listed with it's $2,600,000 high bid, whereas the previous Bonhams 92396 is simply listed as Not Sold.

 

Auction companies have the right to make/take false bids up to the reserve to try to stimulate the room, unless you have 100% certainty that an actual "no win" bid was placed then your report will not be correct I am afraid.

 

Paul, regarding the recent Mecum F40 86498 high-bid no-sale, I already assured you that "the $2.6m bid was real" in the post above, because, it was made by my client, with my encouragement.