Ferrari to raise US prices up to 10%

so 10% for sure then, fair play to Ferrari for absorbing the rest of it and reducing their margins

 

And what of 296, SF90 and Roma??

 

The Maranello, Italy-based sports car maker said prices will remain unchanged for all cars imported before April 2. After that, the “commercial terms” for three of its model families — the Ferrari 296, SF90 and Roma — will “remain unchanged,” the company said in a release.

seems an odd way of wording it

 

Are they saying this because tariffs? I think Tariffs like covid are a great excuse to raise prices with no evidence of an intrinsic need to raise prices. With all the 47 tariff rattling has anyone paid a 25% increased tariff since january 2025? I don't think so.

 

There hasn't actually been a 25% tariff yet, but the other tariffs have absolutely caused product price increases. Electronics are taking their 10-20% beating coming from China.

 

The the release says it is in response to import tariffs.....what if they are scaled back?....Will they scale the increase back?....likely not

 

Of course not, this is the new price and easy for them to shift the blame.

 

I don't see how it's an 'excuse' to raise prices - if Ferrari/Car manufacturers have to pay an additional 25% on every car or individual car part exported to America then it's common sense

 

So I’ve got a Purosangue allocation coming around end of this year (best guess)

If in fact the price increase becomes 10%, is that inclusive of the 2.5% previous tariff, making the total price increase 7.5%?

My two options are:

1, Keep the allocation. Pare down my options to keep price “reasonable”. Possibly get car sooner from more people dropping off wait list.

2, Give up allocation. I am a fan of the Puro but don’t want to sucker pay the tariff which may arbitrarily disappear without warning.

I do think that Ferrari absorbing most of the tariff is the right move. I hope they also keep the options annual price hike less so (wishful thinking I know) to offset the cost to US buyers.

 

I think they have to absorb it, I personally noticed a few older people I know that as soon as they stopped the cycle of buying new Ferraris (in the cases I know due to price increases) they stopped and never bought a new one again but still have their last car now and are happy with it.

Routine can be a funny thing when you've been doing it for a couple of decades

 

It's the dealers that have to swallow this, not the factory.

Marcel Massini

 

Imagine that.

 

Where does it specify the dealers are eating it? I read it such that Ferrari Corporate is eating it. I didn't see dealers expected to eat any portion of this.

Net for Ferrari it is 15% to 25% decline in margin for a market that is 42% of their worldwide shipments. I don't know what the mix is between the cars they are raising prices and those they are not. So for any car they are eating it all they take a 25% hit and for the ones with prices up 10% to the consumer that is a 15% margin hit. Overall, this is a pretty big hit to their operating income.

Ferrari said they will take a 50 basis point hit. I don't see how that math adds up based on the above.

 

And, as competition prices rise due to tariffs as they’re implemented so to shall domestic manufacturers’ prices. Of course the prices will not reset lower after the market damage just like they didn’t contract for the most part post COVID.

 

Dealers don’t absorb the cost of tariffs; manufacturers do.

Tariffs on automobiles are one issue, but blanket tariffs on various components used to build cars will likely lead to further price increases. This will almost certainly reduce new car sales and put more pressure on the used market. However, if we’re heading toward a recession, used car values might stay steady or even drop instead of rising. Interesting times ahead.

 

I think this price rise is nothing to do with the proposed tariff. Prices here in the UK have already hiked by a similar amount, options too. The Purosangue in particular has increased. Worst case is that the proposed US import tariffs apply to these updated prices in addition. Not good news for anyone, really.

 

The price increase I believe is in effect for orders placed after the tariffs take effect. You shouldn't see a price increase.

 

Ferrari CEO Benedetto Vigna mentioned in a recent interview with CNBC that while Ferrari’s customers are affluent, the company must be careful not to pass on too much of the increased cost from tariffs.

Ferrari confirmed that it would maintain unchanged pricing for orders of all models imported before April 2, 2025.

Furthermore, the pricing for three key models—Ferrari 296, SF90, and Roma—will not be affected regardless of the import date.


For remaining models, Ferrari indicated that a price increase of up to 10% would be implemented, in coordination with its dealer network, due to the anticipated impact of tariffs.

Per a CNBC report, the price increase for the Purosangue, starting at around $430,000, will add roughly $43,000. For the limited edition F80, priced over $3.5 million, the hike will raise the cost by more than $350,000.

Experts predict that these import tariffs, which aim to boost U.S. manufacturing, will lead to higher prices for new and used cars, increased maintenance costs, and elevated insurance premiums, as replacement parts become more expensive.

The Kelley Blue Book reports that new vehicle prices have already increased by 25% since 2020, with the average new car price now surpassing $48,000.

Despite potential risks to its profitability, Ferrari reaffirmed its 2025 financial targets, including a possible 50 basis point reduction in EBIT and EBITDA margins.

 

Ferrari is going to increase the price 10% on all the other cars because these models are at the end of their life cycle. I'm sure they'll leave the 10% increase even if the tariffs go away...

 

It’s usually the importer who absorbs a tariff, but I imagine at a 25% rate, there is some splitting of the burden going on between manufacturer and importer. And of course, manufacturer, importer, and customer for certain models.

 

I find it surprising how misunderstood tariffs are, how they are applied and who actually pays.

Eventually, one way or another, it is the final consumer that ends up paying the “tariff” (or more correctly import tax). It is naive to think otherwise.

If Ferrari has increased 10% now, it is the thin end of the wedge, especially since the US$ is forecast to keep dropping in value vs the major currencies on account of your dear leader’s “alternative” fiscal policies.

Nobody, other than the final consumer will “eat” the tax. After this tapered introduction of price increases either Ferrari will cost reduce the product, or they’ll raise prices even more further down the line (especially once they see what Lamborghini, Porsche, Aston etc. do)

The only way to avoid that is to buy a locally produced vehicle, and I don’t think Ferrari are about to build a factory in USA.

Sorry to bear the bad news, but tariffs are going to wreck the US economy driving inflation, increased interest rates reduced consumer spending. The cracks are already there, and they are going to open up into a chasm.

It’s a real pity because the US economy was actually doing fairly well under the last administration.

 

Spot on. The interest rates are too high, the banks aren't going to loan the money and the people don't have the money. This isn't 2021.

 

It seems that Ferrari understands that fewer people would buy a new Ferrari with a 25% price increase.
They are absorbing 15% of the tariff costs on some models and 25% of the tariff on the 296, SF90, and Roma.

What people are not factoring in is that it is very likely that Ferrari will allocate fewer cars to the US market, and there are more buyers worldwide than there are Ferraris made (at least up until now)

Since the US market makes up 20-25% of Ferrari's allocations worldwide, I could imagine that they may start to allocate more of these cars to other nations without tariffs and make more profit

I disagree with the posters above who say that the consumer pays the tariffs in every situation as a blanket statement, as it is clear today that the tariff impact on Ferrari will most impact Ferrari's profit margin on US sales, with Ferrari eating most of the tariffs.

Ferrari can afford to do this as their profit is more than $120,000 per vehicle sold - it just would mean that their profit margin would go down on the cars it sells in the USA - hence my thought that they may balance this out by allocating more cars to other markets

 

I disagree with what you have said - I am no fan of tariffs but in the case of Ferrari, it is clearly not something that the end consumer is going to eat, particularly with 296, SF90, and Roma - the price on those remains unchanged - Ferrari is eating the Tarrifs

When it come to other car brands - they don't have the same profit margins so I am sure there will be increased consumer costs on those