Ferrari. Exclusivity only works if it holds its value.
Ferrari built its empire on loyalty and scarcity. Now second hand values are sliding, and the allocation game depends on cars holding their price.
THE GIST ON FERRARI: "Selling access"
How did the Ferrari system work?
Ferrari's system has always been about loyalty. To get the rare allocations, the numbered cars, you had to cosy up to dealers and often buy cars you didn't really want, just to prove you were worthy of the ones you did.
It worked because the cars held their value on the second hand market, and sometimes even went up.
What has changed?
Since parting with Pininfarina and taking the design in-house, the cars aren't holding up in the resale market, and prices are falling. In the UK, tax changes have made it worse.
Why does it matter beyond Ferrari?
Huw's view: Ferrari isn't just selling cars, it's selling access. If customers stop seeing that halo in the second hand market, the incentive to play the allocation game weakens. When loyalty fades, so does aura.
It's a warning for the whole luxury sector that you can't rely on scarcity and gatekeeping. Once the myth starts to unravel, you can't stick it back together.
Buy a car you don't want to earn one you do?
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Quick answers
Why do Ferrari buyers need good resale values?
The loyalty system only works if the cars hold their value, so buying unwanted cars to earn rare allocations is worth it.
What does Huw think this means for luxury?
You can't rely on scarcity and gatekeeping. If resale value and exclusivity slip, even icons can lose their shine.
See you on the next one.
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The conversation
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