This Dolphin Ferrari has created controversy with my listeners
I bid this car at $25,000 (1993 Spyder) told listeners on air to call in if someone wanted to give more. I had 50 emails critisizing my bid, but no one offering more…which is EXACTLY my point. Books don’t buy cars. Here is an email from a concerned fan of the show, and a long response from yours truly (click more)
On your show this morning, you said you were going to bid $25,000 on this car because it needs a paint job, which you valued at $5,000.
This car is worth considerably more than that given its low mileage and service record history. Even if it needed a major service (~$15,000) the car is still worth north of $50,000. Check out AutoTrader, Ebay, and Ferrari dealer websites.
Are you offering Low Trade, or just “Wholesale” pricing?
If you are offering wholesale pricing to folks who listen to the show, I am not sure why anyone would sell their vehicle to you, when they could fare better simply by going to CarMax (generally offer “Low Trade” on NADA values), or doing a private party sale.
I am curious to hear your philosophy on thinking this car is only worth $30,000 ($25k + paint job)
John in Houston
@ John in Houston. You bring up good point, I’m going share this question with the listeners next Sat. Truth is, your looking at retail $$’s on the Ferrari. wholesale $$ on this car is mid 30′s, but the paintjob kills it. What KBB, or Ebay, etc say, or what people are ‘asking’ for their cars, does not determine the market. THE MONEY, auction sales, actual wholesale transactions determines the market, and no book or guide can replicate that.
Low Trade-High Trade, wholesale, retail are all titles. I’m offering $$, typically 1-5,000 back of the end retail $$ (depending on the marketability of the unit, and needed recon). IF you book out all the cars I bid on air, you’ll see some 5000 back of NADA loan, and some over NADA Retail. The method to the madness is one thing ‘marketability’ what sells NOW, what has a liquid/fluid market, and that is the unit that we can trade the closest to the edge on ‘the end gate, retail public-buy money”
I’ve bought roughly ten thousand cars from Carmax over the past 15 years. Meaning, you sell it to Carmax for 10k, they sell it to me for 11k, and I sell it to another dealers for 11,7, then it finally get’s retailed to the public for 13,500. I outbid Carmax all the time, and Carmax out bids me all the time, and 1/3 of the time, we offer the exact same number. That difference of opinion, is what makes a market…exactly that…a market. But to clarify your Carmax concdern, I am literally a customer of Carmax when I’m buying your car from them wholesale, and they are a customer of mine when buying a wholesale car from me at the dealer auction.
There are some cars that simply don’t sell, and those units need to ‘cheat’ the book, and in some cases cheat it bad. So when you hear me bid some late model SAAB with 80k miles on it, and you look at the book to say ‘John’s trying to steal this’ you’re right. I have to steal it, bc the only way it will ever sell is for everyone along the line buy it bc it’s “too cheap” If you don’t, it will never ever EVER sell.
If you think of the commodity markets, and figure Wall Street Journal only publishes it’s stock prices once per quarter, then the wholesale car biz will make more sense. If a market tanks (drops) IE domestic convertibles, the book says X, but the market says Y, and until that book catches up it’s reporting with what’s happening in the auction lanes, then there is confusion.
Also, this model of Ferrari is not very attractive to begin with, it’s not a hot seller before it had the dolphins butt painted on the hood. The cars worth what someone is willing to pay, and it’s such an oddball, it will not bring a premium to a dealer.
other comments from the peanut gallery.
the reason the bid is so low is because when you paint even 1 panel on that car it devalues it horribly, so imagine trying to sell a total repaint ferrari. if he spent $25k on the paint, he immediately lost $50k on that car!!!Charlie: This is the ugliest, stupidest car I’ve ever seen or heard of.