Aston Martin, Ferrari, & McLaren Update Q 2 2020

Aston Martin, Ferrari, & McLaren Business Update Q 2 2020

In early April I posted an article on the challenges Aston Martin, Ferrari, and McLaren were facing in light of the Coronavirus (Aston Ferrari McLaren Challenges).  At that time most of the world was just several weeks into a lock down that would ultimately bring large parts of the global economy to a halt.  Eight weeks later, those lock downs are starting to lift in many countries and a “new normal” is taking root.  This new normal looks nothing like the world circa 2019 and that world is unlikely to return until a vaccine is widely available.  With all three manufacturers now having posted their Q1 results, in this rapidly changing environment, I thought it would be worth taking another look at the health of Aston Martin, Ferrari, and McLaren, the challenges they are facing, and what needs to be done to survive.

 

I am a firm believer that you need to not only understand the situation today but also have a firm grasp on history to be able to even remotely predict the future.  A strong, healthy, well-run company isn’t something that happens overnight, it takes years to build.  On the other hand, baring a crisis, a poorly run, sick company can crawl along on life support for years.  The difference is right now we have a crisis, and the risk to a poorly performing business in this environment is significant. 

 

Below are the financial indicators that I normally start with on any company I am taking a look at.  These are the full year 2019:

 

Manufacturer

(US $)

Market Cap (as of May 29, 2020)

2019 Group Sales

D% vs. 2018

2019 Cars Sold

2019 EBITDA

D% vs. 2018

Aston Martin

$838 mil.

$1,241 mil.

-10%

5,862

$167 mil.

-46%

Ferrari

$42 bil.

$4,118 mil.

+10%

10,131

$1,002 mil.

+11%

McLaren ‘

$2.5 bil.*

$1,960 mil.

+18%

4,662

$230 mil.

+30%

*Based on last round of investment in 2018. 

 

And this is Q 1 2020:

 

Manufacturer

(US $)

Market Cap (as of May 29, 2020)

Q1 2020 Group Sales

D% vs. Q 1 2019

Q 1 2020 Cars Sold

Q 1 2020 EBITDA

D% vs. Q 1 2019

Aston Martin

$838 mil.

$99 mil.

-61%

578

-$58 mil.

-266%

Ferrari

$42 bil.

$1,015 mil.

-0.8%

2,738

$345 mil.

+1.9%

McLaren

$2.5 bil.*

$137 mil.

-62%

307

-$101 mil.

-460%

*Based on last round of investment in 2018. 

 

Clearly things got very ugly for McLaren fast, Ferrari hit a small speed bump, and Aston Martin continued to unravel.  In the two months since the end of Q1 2020, these trajectories, if anything have only accelerated. 

Starting with the strongest of the three, from a financial perspective, Ferrari is clearly performing well and is well positioned to both weather the crisis and emerge in a position of increased strength.  To give an idea of just how solid Ferrari’s current position is, they have enough cash on hand to just about cover all their debt that matures in the next two years.  In the past two months Ferrari’s market cap has actually increased by $4 billion, more than the combined value of Aston and McLaren.  In fact today Ferrari, which produces just over 10k cars a year, is worth more than either General Motors (7.5 mil. cars/year) or Ford (6 mil. cars/year). The stock market values Ferrari as a luxury good manufacturer with a P/E ratio of 37, much more in line with Hermes or LVHM than GM or Ford.  When announcing the Q 1 2020 results, Ferrari did issue guidance for the balance of 2020.  At the high end of the guidance EBITDA is expected to be -5% vs. 2019.  In normal times this would be a poor year, in today’s circumstances, if they can deliver it’s a very strong result.  Ferrari will also benefit significantly from the Formula 1 spending caps coming into place and has reduced its driver cost by an estimated $40 million in 2021 with the switch from Sebastian Vettel to Carlos Sainz.  The biggest risk Ferrari faces right now is to its huge market cap should it miss 2020’s reduced targets. 

Financially, Aston Martin’s situation is just plain ugly, again.  It’s gone bankrupt 7 times in its history and an 8thdoesn’t seem out of the realm of possibility depending on how the next year plays out.  From its IPO in Oct 2018, which valued Aston Martin Lagonda at a little over $5 bil, 18 months later AML’s value sits at 16% of that after the share price recovered a bit in the last week.  It’s a spectacular destruction of shareholder value in a relatively short period of time.  Q 1 2020 for Aston Martin continued the downward spiral Aston perfected in 2019.  All of Aston Martin’s hopes and dreams right now are wrapped around the DBX SUV.  Whether the post Covid-19 economy will be a welcoming one for yet another $200k+ SUV is highly debatable.  Even if it is a success, it may be too little too late.  Lawrence Stroll, brought in to provide badly needed liquidity, is now officially the Executive Chairman and owns Aston’s future.  He recently hired Tobias Moers away from Mercedes-AMG to be Aston’s new CEO and to execute the turnaround.  What is quite shocking is this is really the only major move, other than a bit of belt tightening, Aston has made in the last couple of months. 

 

In the first article I wrote that “Aston Martin feels like it was built on the side of an active volcano that sits on top of an earthquake fault line” and nothing that has happened recently would change my point of view.  Andy Palmer, the former CEO who just recently found out (via a reporter at the Financial Times in a stunning display of poor transition management) that his presence was no longer required looks to be carrying the bag for the current mess.  Whether Dr. Palmer is to blame for the current situation is an interesting discussion.  He was brought in back in 2014 by the controlling private shareholders to polish Aston Martin up for an IPO.  Palmer was brilliant at delivering against that mandate.  He doubled Aston Martin’s revenue between 2015 and the IPO in 2018, more than tripled EBIDTA, almost doubled car sales, while holding debt levels steady.  For his troubles, Dr. Palmer walked away with roughly $40 mil. when Aston went public.  The key words in the last sentence are walked away, because if Andy had taken his cash and ridden off into the sunset, his reputation would certainly be very different than what it is today.  If pre-IPO Aston was a discipled financial enterprise under Palmer, post IPO Aston exhibited all of the financial disciple of an alcoholic locked in a brewery.  Net leverage soared in 2019 to 7.3x adjusted EBITDA, up from 2.3X in 2018 and as of Q 1 2020 sits at an even more frightening 10.4x.  The warning signs that this was going to go off the rails certainly date back to 2018 and the way the IPO was structured.   All money raised from the IPO went to the existing shareholders and did not generate any cash for Aston Martin which could be reinvested in the business.  It’s a clear message that the group that got Aston to this point had little interest in its future.  Throw in a couple of head scratching completely off strategy vanity projects like Project Nepture – the Aston Martin Submarine, and the Aston Martin Apartments in Miami, and its clear management had begun to lose the plot. 

 

So, if Lawrence Stroll and Tobias Moers are going to save the day and turn Aston Martin into the “British Ferrari” with a P/E ratio north of 30x, they first need to stabilize the business and stop the bleeding.  It’s surprising that a restructuring program has yet to be announced as reducing costs is a critical step in these sorts of situations.  The one line of the P&L that has been increasing well ahead of revenue for a few years is “operating expense”.  This points to an organization becoming increasing bloated and less efficient.  Ditch the submarine and the Miami apartments, they are nothing more than an unnecessary distraction.  Finally get the long-delayed Valkyrie finally out the door and take a hard look at if Aston really has the resources (and the demand) for the Valhalla.  Same goes for the V12 Speedster.  If not, you still have time to pin it all on the Palmer regime and to walk away.  Finally, pray hard that the post Covid-19 world really does have a need for the DBX SUV.

Which finally brings us to McLaren.  In the first article I wrote that McLaren needed to do three things to get the business back on track:

 

  • McLaren’s Formula 1 Team needs to again become a net profit contributor to the group.
  • The next generation Sport and Super series McLaren’s need to be launched flawlessly and deliver segment leading performance.
  • Need to fill the profit gap left by the longer timing now necessary between Ultimate series models given the recent market saturation in this segment.

 

Coming out of 2019, McLaren’s financials looked quite respectable.  It had a growing business, the ten-year-old supercar business made money, and as a privately held company, has been able to attract outside investment whenever necessary.  On the surface, it was the F1 team that presented the biggest financial challenge and the supercar business looked solid.  Then Q1 2020 happened and McLaren’s results imploded.  The F1 team is certainly no longer McLaren’s biggest issue. McLaren sold fewer cars and lost more money in Q 1 than Aston Martin.  Some of this was by design and some of it not.  What caused this, well the “hamster” died in late 2019.  The “hamster” in this case, which had spun the wheel that powered the McLaren financial model since 2015, was the Ultimate Series and LT series cars.  The model simplistically was that the high profitability from the limited-edition cars would help fund incentives when needed to keep the regular production supercars moving out of dealer’s showrooms.  What killed the “hamster”, overwork and exhaustion.  Instead of keeping the Ultimate Series cars as a once in every 5+ years event, McLaren had started churning them out on an almost annual basis as McLaren had become reliant on the profits.  In addition, the last LT car produced, the 600LT was no longer a capped production run and McLaren flooded the market with them.  What happened in 2nd half of 2019 broke the model.  The last Ultimate Series car launched, the Elva didn’t sell out and McLaren was forced to cut the planned production run from 399 units to 249.  The writing was on the wall for the Elva by the way the secondary market was allowed to develop for the Senna.  With no restrictions on how long you needed to hold the car for, a significant number of Senna owners flipped the cars shortly after taking delivery.  This gut of Sennas on the market depressed values and for the 1st time in memory, a limited edition hypercar was available on the secondary market at or below list.  While I do believe the way Ford managed the application process for the GT was atrocious, the one thing they did do right was lock owners into holding their cars for at least two years.  At the same time this was happening, in order to move a glut of 600LTs out of showrooms, McLaren was having to provide incentives.  So instead of the 600LT being a high profit contributor, it became a drag on the P&L. 

 

The roots of McLaren’s problem date back to 2016 when McLaren launched the Track22 plan which called for 15 new models in 6 years.  McLaren then doubled down 2 years later with an updated Track25 plan which called for 18 new models by 2025.  The plan laid out was audacious to say the least.  McLaren then borrowed heavily to fund the development of all these new models, leading to the significant debt problem they are currently facing.  Net leverage is currently at an Aston like 7.8x adjusted EBITDA.  In reality it was too many new models, too fast, that the market could not absorb.  Eight to ten years between new production models with a revite/update/facelift at the mid-point and a minimum of five years between Ultimate Series cars feels like a much more reasonable plan.  In addition, the production ramp up on all these new models did cause a few reliability issues that got very over hyped in a few social media platforms.  (Personally, we have never had any issues McLarens & Reliability). The net impact on McLaren’s reputation though has not been positive.

 

To McLaren’s credit, they did realize they had a major problem well prior to the Coronavirus taking its toll.  Planned production for 2020 was already reduced heading into this year and McLaren just announced a major restructuring.  In addition, capital spending and marketing costs have been cut substantially. The launch of the new Sport Series models has been pushed back to 2021 and the main focus for 2020 is delivering the “hamsters” dying gifts, the Ultimate Series Speedtail & Elva, along with highly profitable 765LTs. 

In summary, all three supercar manufacturers have their challenges.  For Ferrari these are not outside what one would expect for a highly successful company in a challenging environment.  What happens to Aston Martin is anyone’s guess.  It’s in dire straits but like a phoenix, Aston Martin is exceedingly good at rising from the ashes to live yet another day.  If the DBX lives up to expectations, Aston might just make it.  Or at least for long enough for Stroll & Company to cash out handsomely.  McLaren went off the rails quickly, even if the warning signs have been evident for a while.  When things are going well, and by most measurements 2019 was a very good year for McLaren, it’s easy to ignore the warning signs.  McLaren does seem to understand their issues and is taking action to address them.  The good news for McLaren though is their cars are still best in class.

 

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What to Watch, Who to Listen Too

What to Watch, Who to Listen Too

So, as a car enthusiast in lock down, how do you spend your time?  It’s a question a few of my friends have been asking each other over the past couple of months.  The hope behind the question is always that someone has discovered some new exciting show, vlog, or podcast to pleasantly soak up time.  As Covid-19 restrictions of some form remain in place in many locations and are likely to continue for some time, I thought it might be worth sharing a few of my favorites and recommendations.

The Big Screen

Two fairly recent must see movies for any pistonhead are Ford vs Ferrari (titled Le Mans ’66 in parts of Europe) and Rush.  Both feature great racing scenes and are built around compelling stories.  Equally as entertaining is the Netflix series Formula 1 – Drive to Survive.  There are now 2 seasons of ten episodes each available.  This series alone is worth the price of a Netflix subscription.  Senna and The Gentleman Driver are two more Netflix shows worth the time to watch. 

The Small Screen

In full transparency, I am generally not a fan of vlogs and don’t spend much time on YouTube.  The beauty of YouTube is it allows anyone with a GoPro and Laptop to share their thoughts, and creativity.  The downside is exactly that, a huge sea of video vacuousness.  Abraham Lincoln summed up the situation: “Better to remain silent and be thought a fool than to speak and to remove all doubt.” There are however a few YouTube Channels that are well worth watching as they are informative, insightful, and well produced:

Top on my list is Harry’s Garage. Harry was the founder of EVO Magazine and is an avid car collector.  Harry’s has owned everything from a Pagani Zonda to a Fiat 500.  His videos are insightful, cover a diverse range of cars, and his views carry a huge amount of credibility personally as a fellow owner of similar machinery. Harry’s vlogs tend to run 20-30 minutes each and normally just cover one car or subject in a good level of depth.

Following Harry, next on my list is Carfection featuring the only automotive journalist I would trust to drive our Ferrari F40 from Switzerland to the UK, Henry Catchpole.  Carfection’s videos are beautifully produced.  They cover a wide range of cars from a Ferraro 250LM to a McLaren Senna and just about everything in-between.  Henry is quite good on camera.  The videos are both entertaining and have a nice depth of insight.  At 5-15 minutes each in general, it’s a good way to soak up a bit of free time.

Last on this list is Throttle Dogs.  Throttle Dogs is C.J. Wilson and Dr. Rich Ha, basically two hard core petrolheads talking cars.  As a professional athlete and car dealership owner, C.J. brings a different focus and intensity to the conversation.  Both C.J. & Rich really know their cars and the banter back and forth between he two is engaging.  Unfortunately, it looks like they used up the entire production budget on the first vlog as those that follow have far more of a “home movie” charm to them with several just being podcasts.  All are still however compelling to listen to.

Headphones

I have never been a big one for podcasts, but DriveNation’s are excellent.  Dan Prosser and Andrew Frankel are two talented automobile journalists with a huge wealth of knowledge and experience between them.  The discussions are well researched, the topics interesting, and the information timely.  They tend to be just under an hour in length with a new podcast posted weekly.

 

Hope you enjoy the above and please share your favorites in the comment section below.

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Maintenance Costs – The McLarens

Maintenance Costs – The McLarens

Recently I asked for ideas for future articles, I got a lot of requests about maintenance costs.   I believe at the time I replied that it was a highly dangerous topic given Mrs. SSO does read all the articles I post.  However, I’ve decided to take the risk and will do so in several parts.  The first part covered the Ferraris (Ferrari Maintenance Costs) and this article will focus on the McLarens.  I have always tried to be quite religious with annual services which I’m sure has helped finance better lives for quite a few very talented mechanics.  In addition, any issues that come to light during these annual pilgrimages to the service center get taken care of right away.  My philosophy has always been that small problems only grow into big problems and it is much less expensive to take care of things immediately than to wait.  As a reference point, when evaluating the annual maintenance costs (I define maintenance as annual servicing cost plus replacement of wear & tear items), I take into account the original list price and not our acquisition cost.  A car that cost $250,000 new is always going to have $250,000 car type service costs regardless of what you might be able to buy it for a lot less 5 or 10 years later.  Unfortunately, unlike a car, service costs don’t depreciate over time, if anything they move in the opposite direction as more of a car’s components wear out and need to be replaced.

 

In no particular order here is a bit of our maintenance cost history.  For the sake of simplicity, I have kept the costs in the currencies they were incurred in.

McLaren P1 – We owned the P1 for a bit under two years. During that time, we had it service once at a cost of $2,880 which seemed quite reasonable given the value of the car.  The P1 also made two other trips back to the service center.  The first was for a replacement of the IRIS infotainment system done under warrantee and the second was a recall notice for the front hood latch.  To date though, the P1 is the only car we have sold due to fear of a large six figure maintenance bill (P1 Farewell) if the hybrid battery had failed.

McLaren 12Cs – We owned three 12Cs over a 3-year period.  While on paper this sounds a bit daft, there is a logical explanation to it that involves two moves and three countries during that period (Our McLaren History).  Across the three 12C’s in the 3 years, we only had one bill for an annual service.  The invoice came to £3,265 and included £1,530 for the hardware upgrade from the less than useful 1st generation IRIS infotainment system to the 2nd generation.  This is one case where I still believe McLaren got it wrong. IRIS was a £5,320 option that was substandard at best and should have been replaced free of change for all owners of early 12C’s.  We did take our final LHD 12C Spider in for service but right after we dropped it off, we got the offer to trade it in for a 650S Spider so I never did see the invoice.

McLaren 650S Spider – The 650S Spider has been with us almost 5 years now.  From delivery up until today, it has served as my daily driver.  Its next service is due shortly.  The bills to date are: 1st service $1,410, 2ndservice $2,275, 3rd service $1,836, & the 4th service $5,570 which included $2,100 for four new tires and $880 for the alignment.  Four years of driving around on Dallas’ horrible roads definitely took its toll.  If I take out the tires and alignment, the service costs have averaged $2,027 per year which is less than what the Ferrari 16M or 599 GTB rang up during a similar period in the same location.

McLaren 675LT Spider – The 675LT Spider is nearing four years old now.  During this period, it has been our road trip car of choice, so it’s done plenty of long trips.  The 675LT Spider has also spent the majority of its life in the mountains of Montana enjoying some of the more challenging roads in the US.  The three annual service so far have run: 1st service $1,755, 2nd service $2,405 and the 3rd service $1,700.  In addition, we had to replace the windshield last September at a cost of $5,610, which is about equal to the 675LT Spider’s service costs to date.  Despite being a Limited Edition car, the LT has been no more expensive to run than the 650S Spider.

 

McLaren 720S – We owned the 720S Coupe for just under two years and had it serviced twice at costs of: 1stservice $1,625 & 2nd service $2,925 which is in line with the bills for the other models.  These were the only two times the 720S went back to the service center.  In a departure for our normal practice of waiting for late production cars, the 720S Coupe was a fairly early build.

We also own a 720S Spider and a Senna which are not included in the above list as neither has been due a service yet.  The Senna has been back to a McLaren service center twice for recalls, both of which took less than a day.  The 720S Spider has not had a single issue in the 6 months we have had it.

 

I’m not sure what conclusions to draw from this exercise other than McLarens are not inexpensive but also are they are not unreasonable to run.  The annual maintenance costs seem very consistent across the range with the P1 being just a bit more.  So far, we have been fortunate to avoid any major “wear & tear” bills, like gearboxes, that can generate the big hits to the wallet.  In comparison to the Ferraris, the McLarens have been a bit less expensive overall.  As per the article on the Ferraris, I’m not going to add them all up as that just seems unproductive.  Anyways I am sure Mrs. SSO, who is very quick with numbers, will be in again to see me for a discussion shortly.

 

More on our McLaren ownership history in this article: Our McLaren History , the 650S Spider’s history as a daily driver: 650S Spider Daily Driver, & Collectability Ratings for McLaren’s Collectability of McLarens.

 

Next up will be our Porsche & a few of the others maintenance costs.

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Maintenance Costs – The Ferraris

Maintenance Costs – The Ferraris

Recently I asked for ideas for future articles, I got a lot of requests about maintenance costs.   I believe at the time I replied that it was a highly dangerous topic given Mrs. SSO does read all the articles I post.  However, I’ve decided to take the risk and will do so in several parts.  First, I’ll cover the Ferraris, then the McLarens and finally all the others.  I have always tried to be quite religious with annual services which I’m sure has helped finance better lives for quite a few very talented mechanics.  In addition, any issues that come to light during these annual pilgrimages to the service center get taken care of right away.  My philosophy has always been that small problems only grow into big problems and it is much less expensive to take care of things immediately than to wait.  As a reference point, when evaluating the annual maintenance costs (I define maintenance as annual servicing cost plus replacement of wear & tear items), I take into account the original list price and not our acquisition cost.  A car that cost $250,000 new is always going to have $250,000 car type service costs regardless of what you might be able to buy it for a lot less 5 or 10 years later.  Unfortunately, unlike a car, service costs don’t depreciate over time, if anything they move in the opposite direction as more of a car’s components wear out and need to be replaced.

In no particular order here is a bit of our maintenance cost history.  For the sake of simplicity, I have kept the costs in the currencies they were incurred in.

Ferrari F50 – We owned the F50 for 7 years and the total maintenance costs were £ 29,750.  In fact, looking over the service invoices, this included £13k for the once every decade fuel cell replacement and £5k for a new clutch shortly after I purchased the car.  The clutch replacement was not due to wear but caused by a seal that had failed due to lack of use as the F50 had sat unused for several years before I purchased it.  While the grand total of the services invoices was just under £30k, when you take out the £13k for the fuel cell and £5k for the clutch, the annual servicing costs averaged a quite reasonable (for a limited-edition Ferrari Supercar) £1.7k. 

 

Ferrari 308 GTB – We owned the 308 GTB for just over two years.  This was the fourth 308 GTB built and as an early fiberglass model I was hoping it would be largely immune to rust.  The first annual service was a very reasonable €460.  Turned out I was wrong on the rust and there was plenty of hidden in the door frames.  The second however was a bit more involved and included an engine rebuild repairing the door frames.  The total was €11,790.  In fact, the maintenance cost on the 308 GTB in the two years I owned it equated to just under 50% of its purchase price.

Ferrari 360 Modena – The 360 Modena had a place in our garage for 2 ½ years.  In that period of time it was serviced 3 times.  The first service was basically just an oil and filter change for £710.  The second service did much more damage to the wallet as the 360 was due for a cambelt change and there were a number of other issues that needed to be attended to including the motor mounts.  The total bill on service #2 was £4,910.  The third and final service which included a respray of the front bumper was a much more palatable £1,225 bringing the total for the 2 ½ years to £6,845.

 

Ferrari F355 GTS – The F355 was our first Ferrari and we had it for 3 ½ years. The F355 taught me a fair amount on what Ferrari ownership really involved in terms of both servicing costs and the complexity of the cars.  During our ownership, the F355 was serviced three times.  The first bill was for €3,300, the second was €3,210, and the third a very reasonable €240.  This adds up to a grand total of €6,750 which was roughly 10% of what I paid for the car.

Ferrari 430 Scuderia – During our relatively short year together, the 430 Scuderia made two trips to the Carrs Ferrari Service center.  The first was for an annual service and four new tires.  The bill for this came to £2,340.  The second trip was for a windscreen repair for £45. 

Ferrari 16M – This was our first US based Ferrari.  We owned it for just under two years.  It made one trip to Boardwalk Ferrari for an annual service.  Total bill was $2,640.  This annual service was basically for liquids and filters.  Labor charges were $1,870 of the $2,640.

Ferrari 599 GTB HGTE – The 599 GTB was another 2-year Ferrari for us.  While it was only serviced once at Boardwalk Ferrari at a cost of $3,060, it also rang up a bill of $5,200 for new wheels after losing a battle with a pothole on the New Jersey turnpike which was followed shortly thereafter by four new tires for an additional $1,590. 

Ferrari F40 – We have owned the F40 for 14 years so it’s no surprise that it has run up the biggest tab.  Total maintenance costs to date are £52,930 for the first 12 years in the UK and $5390 since we brought it over to the US.  The £52,930 includes two new clutches at about £3k each and the once every decade fuel cell replacement for £9,000.  The fuel tank replacement on the F40 is not as labor intensive as the F50 so the cost is slightly more reasonable.  The first new clutch was due to normal wear and the second due to a leaky seal caused by an extended stay in storage.  As part of the normal serving schedule, the cambelts on the F40 require changing every 2 years.  Unlike the 348, F355, Testarossa, and BB’s which the engine to be removed to change the cambelts, on the F40 the cambelts are accessible via a panel behind the seats so it’s a much simpler job.   In addition, reupholstering the seats was £3,700 and we had the suspension system refurbished for £6,500.  Other on-going “rolling restoration” expenses for alternators, AC compressors, new fuel lines, etc. are included in the annual maintenance costs.  The F40 has also been through 3 sets of tires as we change them every 3-4 years regardless of wear.  If you take out the fuel cell, clutches, seats, and suspension, the average service cost per year for the F40 in UK was £2,310.

For the Ferraris that we have owned but are not included in the above list, it’s because we either owned them for too short a time to have any meaningful maintenance history or the records have disappeared in one of our many moves. 

I’m not sure what conclusions to draw from this exercise other than Ferraris are not inexpensive to run.  The annual maintenance costs have little to do with the current value of any model, but the service costs are fairly consistent across the range at about £2k per year.  It’s the “wear & tear” items like clutches and fuel cells that really generate the big bills.  Newer Ferraris in general are less expense to run than older models and service costs in the UK seem slightly more reasonable than the US.  I’m not going to add them all up as that just seems unproductive.  Anyways I am sure Mrs. SSO, who is very quick with numbers, will be in to see me for a discussion shortly with the grand total in hand.

More on our complete Ferrari ownership history is in these two articles:

Our Ferrari History Part 1

Our Ferrari History Part 2

P.S. All of the maintenance work on our Ferraris in the UK was done by Carrs Ferrari in Exeter.  They are outstanding and I would highly recommend them.

 

Next up will be our McLaren Maintenance Costs.

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