In 2019, Ferrari first time sold 10,000 units in a year. The company brought more than $4.5 billion in revenue by selling 10,131 units. This means that on average, every Ferrari unit sold brought in $444,181. Buying Ferrari is another thing but do you know how much does it cost to own a Ferrari?
Well, this article is exactly going to be about it, how much it costs to own a Ferrari and can you afford it or not.
How Much Does it Cost to Purchase a Ferrari?
The average cost of purchasing a Ferrari is above $300,000. So, we can safely say that these beauties don’t come at a cheap price. On the other hand, leasing a Ferrari is quite expensive as well. The down payment will cost you above $50,000 and the monthly installment will be around $5,000 for a custom 72 months plan.
However, the following are the prices for some of the most famous models of Ferrari. For your convenience, we have calculated the cost of purchasing a Ferrari via the leasing option as well.
- Ferrari California
Net Cash: $328,100
Down Payment on Lease: $65,620
Monthly Installment: $5,269
- Ferrari 488 Spider
Net Cash: $350,000
Down Payment on Lease: $70,000
Monthly Installment: $5,621
- Ferrari 488 GTB
Net Cash: $284,700
Down Payment on Lease: $56,940
Monthly Installment: $4,572
- Ferrari Portofino
Net Cash: $215,000
Down Payment on Lease: $43,000
Monthly Installment: $3,453
- Ferrari Roma
Net Cash: $225,000
Down Payment on Lease: $45,000
Monthly Installment: $3,613
- Ferrari F8 Spider
Net Cash: $274,280
Down Payment on Lease: $54,856
Monthly Installment: $4,405
Also read: What’s the Cheapest Ferrari to Maintain? (+Costs)
How Much Tax Do You Need to Pay?
There is no universal cost of tax you pay on a Ferrari. It keeps on changing from country to country and model to model. However, the average Ferrari owner has to pay approximately $750 each year in taxes to own a Ferrari. The one-time tax on imports will be decided according to the initial price of the car.
Ferrari has a wide range of collections. The prices of their cars start from $200,000 and go to $1,500,000. So, the taxes are charged according to that amount. Similarly, the rules of lease taxation also differ from country to country. Some countries charge tax according to the engine capacity, some according to the seating capacity, and some according to the purchase price.
In Asian countries like India and Pakistan, a Ferrari can cost up to three times its actual price. This is due to the mind-boggling tax rates. Here you have to pay twice the money in taxes as compared to the purchase price.
Europe has a unique perspective on the taxation of luxury cars. For example, in France, the tax is charged according to the C02 emission of a car. A supercar like Ferrari that is a gas guzzler would pay taxes amounting up to $59,000.
How Much is an Annual Ferrari Maintenance and Repairs?
The annual maintenance and repairs of a Ferrari can cost about $8,500. This price only amounts to regular maintenance and servicing. For this amount, you could maintain a car of a luxury brand like Lexus for at least 15 years. And for 5 years maintenance cost of a Ferrari, you could buy a Mercedes C-Class.
The reasons for such high prices of maintenance are common, as they are with every supercar. The dealership network is limited, and skilled labor for working on such fancy cars is always short. The parts prices are also a factor. Even the regular items like spark plugs would cost you about $3,000.
Trending Video: How to Easily Bring Back to Life any Old Car Battery and Save Tons of Money (click to watch)
Someone quoted a funny incident with their Ferrari where they went to purchase a missing muffler bolt. It cost them $45 to buy a single bolt. The same bolt of another car would cost less than $5. So, this is where things go wrong with the maintenance of luxury cars.
Following are the actual cost of regular servicing for a normal Ferrari:
|Major Service Check||$7,000|
Also read: How Much Does it Cost to Own a Bentley (a Year)
How Fast Does a Ferrari Depreciate?
Ferraris depreciate really slow. If maintained well, they hold a staggering 85% of their value after 3 years of operation. The reason for this high-value retention is the lesser number of used Ferraris going on sale. Hence, your investment in Ferrari is safe, and you would not lose much by purchasing it.
Following are the resale values of popular Ferrari models after 3 and 5 years.
|Model||Yearly Depreciation||MSRP||Price after 3 years||Price after 5 years|
How Much Do You Need to Pay for a Ferrari’s Insurance?
Across all models, a Ferrari would cost you an average of $10,000 per year for insurance. But getting insurance for a Ferrari is unlike getting insurance for a Mercedes or a Volvo. Since only a few insurance firms provide coverage for such exotic cars. A Ferrari 488 would cost $868 per month in insurance premium.
The insurance costs can vary with respect to your model and driving patterns. Some drivers might have a clean record, this would reduce their insurance cost. Still, for the annual insurance cost of a Ferrari, you could easily buy a second-hand Toyota or Honda.
Also read: How Much Does it Cost to Own a Lamborghini (a Year)
How Much Do You Need to Pay for a Ferrari’s Fuel?
You would pay no less than $3,400 per year for a Ferrari’s fuel. This means an average monthly expenditure of $284. These stats stand for driving 15,000 miles a year. For drivers driving less or more, a more useful equation would be that each mile of driving Ferrari costs $0.23. The average fuel consumption of a Ferrari is 15-20 mpg.
Though, Ferrari cars are slightly efficient in comparison to other supercars. One must not be amazed at these extravagant numbers, since V6 & V8 engines producing heaps of power would not go easy on your pocket. If you are into performance cars, then fuel cost is one thing you should get used to.
In Total, How Much Does it Cost to Own a Ferrari?
It would cost you a fortune to own a Ferrari. The cost of ownership for Ferrari would consist of its regular maintenance, insurance premium, taxes, and fuel cost. This price varies from year to year since newer vehicles tend to be more reliable. Lesser problems mean lesser maintenance costs. It also varies with the country of ownership.
Now we will calculate that how much it costs to own a Ferrari in real life:
- For 1 year:
- Vehicle Maintenance: $5,500
- Insurance Cost: $10,000
- Fuel Cost: $3,800
- Tax Amount: $1,000 (Calculate as per your region)
- Total Cost of Ownership for 1 year: $20,300
- For 3 years:
- Vehicle Maintenance: $25,000 (It includes scheduled maintenance after 3 years as well)
- Insurance Cost: $28,000
- Fuel Cost: $11,500
- Tax Amount: $3,000 (Calculate as per your region)
- Total Cost of Ownership for 3 year: $67,500
- For 5 years:
- Vehicle Maintenance: $60,000 (It includes scheduled maintenance after 5 years as well)
- Insurance Cost: $55,000
- Fuel Cost: $19,700
- Tax Amount: $5,000 (Calculate as per your region)
- Total Cost of Ownership for 5 years: $139,700
How Much Do You Need to Earn to be Able to Afford a Ferrari?
You need to earn a lot, to be able to afford a Ferrari. That’s the only best answer one can give. Firstly, to purchase a Ferrari, you should have at least $100,000 in your bank account. Then with a steady income of $150,000 or more per year, you could think of paying lease and maintenance of cost of a Ferrari.
There are two hurdles at owning a Ferrari, one is the purchase cost and the other is ownership cost. For purchase, you might have a chance at finding a decent $100,000 second-hand Ferrari. It would have a monthly installment of about $2,500. This with a $20,000 down payment seems like a doable task.
Then comes the main feat, which is maintaining, running, and insuring a Ferrari. If you aren’t making over $150,000 per year, then it will be difficult to afford a Ferrari. Let me put it this way that you must have $30,000 to $40,000 to spare every year, only then you can foresee a Ferrari parked in your garage.
You can see that for the 5-year ownership cost of a Ferrari, you could purchase 3 2021 Mercedes-Benz C-Class. So, yeah, it’s super expensive to be able to afford a Ferrari.
Also read: Mercedes vs. BMW- Which is Cheaper to Maintain?
Are There Any Cheaper Sports Car Alternatives?
Ferrari is a trendsetter in the sports car industry. It is difficult to substitute your Ferrari as the brand carries weight. But still, there are some pretty cool options, if you are looking at buying sports cars at a cheaper price. Some of the best alternatives for a Ferrari are:
- Porsche 911
If asked for an alternative to a Ferrari, most enthusiasts would jump at a chance to own a Porsche 911. Porsche 911 is offered in an all-wheel-drive transmission that could hit 60 mph in just 2.6 seconds. It has a top speed of over 200 mph as it is equipped with a healthy engine making 641 hp. All this is available at a rather cheaper price of $101,200.
- Audi R8
Audi is known for manufacturing rough and tough sports cars. Audi R8 has an aggressive exterior that will get you all the attention in the world. The V10 performance engine of Audi R8 could produce a notable 612 horsepower. You could purchase it for a price of $146,500.
- Mercedes-AMG GT-R
Mercedes AMG GT-R is an excellent option to replace your power-packed Ferrari. 4.0L twin-turbo V8 engine of this car is capable of producing 577 bhp. This car would feel nothing short of lightning. The elegant and meticulously designed supercar can be purchased for $118,300. It’s not cheap, but this is way below the average purchase cost of a Ferrari.
carbuzz.com, resources.carsguide.com.au, motor1.com, ferrarislc.com, ferrarifl.com, parkers.co.uk, business-standard.com, forbes.com, zeebiz.com, quora.com, mtvehicles.com, axleaddict.com, carfromjapan.com, redlinespecialistcars.co.uk, jalopnik.com, motorandwheels.com, valuepenguin.com, fueleconomy.gov, motorbiscuit.com, e25usa.com, americancarloan.com, autocar.co.uk, cars.usnews.com, cars.usnews.com