Recently, a Ferrari spokesperson chose to speak about the news it bans certain owners from buying new cars in the future. That list includes Justin Bieber and the Kardashian sisters. Ferrari wants to explain what has happened and why it institutes bans. We’ve got our popcorn ready, so let’s go.
What did Bieber do to get banned from Ferrari?
First, it says that the Kardashians and Bieber are not on a banned list, though there are restrictions. Those restrictions resulted in “some bans” on Bieber because he “failed to comply with certain conditions of Ferrari.” This involved the white 458 Italia with white wheels.
After he bought it, he had West Coast Customs modify it. Then he sold it. It doesn’t mention whether the modifications prompted him to sell the car.
This violated two conditions Ferrari owners must adhere to. First, he had “excessive modifications” made. The other was that he sold it within a year of purchasing it.
But then Ferrari says it does ban some owners
Then the company says it does have bans on the singer and sisters buying Ferraris. It says they’re banned from purchasing “exclusive models and special editions.” They can only buy series production models. “Ferrari reserves the right to decide on special editions,” it said in a statement to the Spanish site Marca.
Besides the banning of customers, there has also been conjecture about how new models are purchased. According to the company, anyone can walk off the street and purchase a new Ferrari. However, that person goes on a list. He or she can’t just walk in and buy a new model off of the showroom floor. So technically, it is a purchase, but it is really an order. Semantics and all.
Those who have ordered a Ferrari before, or those on a dealer’s preferred list, get ahead of any new buyer. So if the dealer takes your deposit and tells you to wait two-to-three years, that may or may not happen. Towards the end of a particular model’s series production, you might get one. But sometimes production ends before your order shows up. In that case, your deposit is refunded.
Does getting on a Ferrari order list mean you’ll get your car?
Ordering a just-introduced or low-production model isn’t going to happen for the new buyer. Again, he’ll be on a list, but there are plenty of previously qualified buyers ahead of you. How can you move up the list?
Buying a used model from the dealer “buys” your way up a list. You’re spending cash with the dealer, and that could be your reward. Or, you can order a less desirable model and wait. You have a better chance of getting a lower-demand model. Then, you can get on the list for the recently introduced, low production, or more popular car, and have a better chance of getting it. Someday.
One thing dealers can’t do is pad the MSRP. Ferrari has rules forbidding that. But supposedly, there is a little new-car shuffle that some Ferrari dealers entertain. It involves selling a new model to a bonafide customer.
It’s a win, win, win!
He or she drives it for six or eight months, then returns it with 300 or 600 miles on the odometer. The “buyer” gets their full money back, and now it is a used car. Ferrari doesn’t place the same restrictions on used cars as it does new ones. So now, the dealer can mark it up by $100,000 or so, and either sell it to a previous customer, or to someone who walks in off of the street.
The original buyer is happy because they drove a new model for a few months for free. The dealer is happy because it makes an extra hun or so, and the new buyer is happy. They get into a virtually new model without getting on the dreaded list and waiting three or five years.
As for the outright bans, Ferrari admits that certain banned buyers can’t buy anything but high-production series cars new. But let’s be honest. The people who buy a Ferrari to modify don’t want the pedestrian model. They want something more exclusive. So Ferrari has found a way to ban those previous owners without having to say they’re banned.