Yes, Never Fear, The Cavallino Guide Will Be Back
Without realizing it, we caused quite a stir by not publishing the pricing guide in the two most recent issues of Cavallino. We have received many calls and emails (some quite nervous and some quite upset) about the future of the Guide. It is secure.
We had decided to temporarily suspend the publication of the Guide for several reasons. In a recession, it is a maxim that people stop buying and selling large ticket items - homes, cars, art, etc; it’s a matter of wait and see. This has made the Ferrari market flat overall and nearly all of the prices have not moved. There has been some selling at noticeably reduced prices, but these are rare and can be attributed to panic selling, as some owners need to unload their Ferraris to raise cash or to pay off a note on the car. It is a truism that no one arbitrarily sells a car in a downturn and takes the loss without a good reason. This leads to some publicized unnaturally low sale prices, but these do not accurately reflect the real value of that car.
The current disruption caused by the virus means there has been little market at all, as businesses are closed, and auctions are cancelled or postponed. There has been some active private selling of the bigger and more important Ferraris, owner to owner, and these prices have held up, with no favor being asked or given because of the recession.
As examples, there was a Ferrari which sold at auction for only slightly less ($1.6m) than the range published in the last listing of the guide in February - $2.9m for a perfect car, $1.7m for a car that needs work. This was a good car that should have brought more in our opinion and we view it as a forced sale. No one in his right mind would buy a car at $2m plus, for example, and then let it go for $1.7m unless he had to. The only person who would rationally sell at that price was someone who bought it lower and wanted to make a profit or break even. On the upside, at the recent auctions, an Enzo sold for $2.6m and a 288 GTO sold for $2.3m, both well within the accepted range.
We will bring the Guide back when the market is more fluid again, most probably in the August 1 issue, and if this recession continues over time and prices do begin to decline, that downward trend will be reflected in the Guide. Please note that Keith Bluemel supplies the car type data only; the Cavallino staff supplies the pricing based on a survey of selected brokers and dealers and the auction houses.
The Guide is available only in Cavallino magazine. To view it on a regular basis, please subscribe.