Guest89

Re: PH - could be. I don’t read PH - find it hard to follow. I keep up with the UK automotive media and have a few car friends in London but I still find a lot of PH arcane.

Perhaps!

dgoldenz

The biggest barrier to entry for these cars and other exotics is the long-term repair/maintenance costs for cars out of manufacturer warranty. I'm not in a position to be buying new McLarens/Ferraris/Lambos, I wish I was. Would love to buy a used one if I could easily obtain a warranty that wasn't $6k+ PER YEAR. The fact that warranties are so expensive and have to pass inspection first means that resale values are reduced when potential buyers like me drop out of the market for those reasons. If you buy a car from a third party dealer, you are taking a chance that your new used car may not qualify for the factory warranty without significant expense. If you a buy a car from a private party, they have to get the car inspected and buy the warranty first, then transfer it to you. That's a lot of hassle to deal with.

Pre-paid maintenance/warranty being available on all used cars at a reasonable cost would go a long way to improving resale values. They need to weigh the warranty/maintenance cost against the overall value to the brand. If people that are buying new don't buy because of the massive depreciation, it cheapens the entire brand. If they offered something like a 10-year 100k warranty/pre-paid maintenance on all new cars, that would go a LONG way towards improving overall sales and prop up resale values, which in turn makes them more attractive to your new car buyers. Nobody else in the price segment offers that (yes I know Ferrari goes 7 years maintenance/3 years warranty, but that isn't 10 years). If you had a choice between a McLaren with 10-year 100k warranty and Ferrari/Lambo with 3 years, which would you buy? Just my opinion.

stanwine

If you want to buy a expensive toy you’re going to have to pay one way or another. I purchased a 2 year extended warranty for my 675LT last year for $9,400($4,700 per year) but I also paid a greatly deprecated price for the car. My overall cost for 2 years of depreciation plus warranty will be significantly less than if I had purchased the car new. It’s unreasonable to expect to drive these cars without paying real money every year. The warranty on my BMW M6 Gran Coupe is up next month and if I want to extend the warranty the cost is no different than what I’m paying for my McLaren’s warranty. You cannot have your cake and eat it to.
Additionally the McLaren warranty is transferable and you can also cash out and get a prorated refund.

AlexCeres

it’s less about eating cake and more about maximizing McLaren’s revenue. Ferrari simply makes fewer cars so the supply demand balance is more favorable to value maintenance

McLaren could do that by ... selling fewer cars which (checks notes) makes less revenue. They may have to in this economy, but then both we and they lose out.

if they can find other ways to prop up used prices without being forced to reduce supply it’d be a win for them and us. Offering extended warranty At Cost might be a middle ground. It’s a tough spot business wise.

hf1

Is this warranty only available for a used car bought from a Mac dealer or can you bring any Mac to the dealer and request it? If buying from private party or a non-Mac dealer maybe do a PPI at the Mac dealer and use that inspection as a basis for a warranty quote? What do you plan to do when the warranty expires?

I agree that there's no cheap way to own and maintain an exotic -- just cheaper (buy a depreciated used car and pay for warranty or maintenance out of pocket) and more expensive (buy new with warranty and pay depreciation).

Gary(SF)

Really? I did not know that...

dgoldenz

think I read the prices went up to $6-7k per year now? Even so, you can’t get the warranty if buying through a third party dealer unless you take the chance it will qualify after being inspected.

i didn’t say I want to drive the car for free, but I’d rather pay more for the car if I knew it had a fixed long term warranty and maintenance package behind it. That also makes it easier to sell the car when you’re ready to move onto the next one. They aren’t selling new cars because their buyers can’t sell the ones they already have without eating their shirt.

It’s the same way that Hyundai broke through and became a respectable competitor to Toyota and Honda. They simply offered a better warranty than the competition while improving the quality of the cars being sold. IMO they would more than recoup the warranty cost by making the cars and brand more valuable. I’ve seen people saying they’ve gotten $60-80k off a brand new 720s. As the dude in the video said, that’s terrible for business because you’re cheapening a brand that’s supposed to be at the high end of the market.

ipse dixit

Neither did Ferrari ...

hf1

If repairs are expensive, then warranty will be expensive, period. You’ll just need to add the price of the warranty to the price of the car and see if the total makes sense. You could make an offer to the seller contingent on the car passing PPI and warranty inspection. Sellers would then be encouraged to do this inspection themselves to make their car more attractive for buyers.

Maybe there is a reason why no exotic car maker offers a 10yr/100k mile warranty. They’re not suicidal. Mac’s steep depreciation from new (or big discounts on new cars) may simply be a reflection of their overly optimistic MSRP’s and have little to do with the new car warranty terms.

dgoldenz

When Carmax and Fidelity can offer a 5 year 100k warranty on a Turbo S or GT4 for $3-4k total, I find it hard to believe that a 5 year warranty for a McLaren or Ferrari should cost 10 times the price.

They charge it because the owners keep paying it. Eventually they’ll stop when the price gets too high. Even exotic owners have common sense and most hate losing large piles of money. it’s an immediate turn off for a buyer looking to get into an exotic car, especially when Porsche’s hold their value so well. If I can buy a GT3 for $100k or a 570s for slightly more but the depreciation and warranty/maintenance/repair costs are insane, I’m going to stick with the GT3. There’s a lot of people like me out there.

Financial suicide is pricing your cars out of the market, cheapening the brand by doing it, and turning away potential buyers because they see the crazy high ownership costs. The long term warranty would fix a lot of those problems in one fell swoop. Sometimes you need to think big to turn around a dying brand. I agree with the dude in the video 100%.

stanwine

McLaren production numbers are about half of Ferrari’s, 5,000 vs 10,000. Since Ferrari became a public company the old established limit on cars has been abandoned.

Maverick787

hf1

No one’s forcing them to pay for extended warranties. How much is a Carmax and Fidelity 5yr/100k warranty for a McLaren or Ferrari? How about Pagani? What are the costs to repair a McLaren or Ferrari without warranty compared to Porsche?

You seem to know how to run a profitable exotic car company. Consider buying or starting one and show them how it’s done, starting with 10yr/100k warranty.

Guest89

I read his post and assumed he meant lower production relative to demand.

yesyoucan

Typical car forum behavior.... Can't afford the car so crap on it or the marque.

Your previous posting said that your budget was $120K and you were thinking of trading in your gt3 for an FF or Cali T but 458 was outside your budget ($170K range). You think you have the solution but if that solution was valid then the 570/12c wouldn't be in your budget to even buy...

fwiw; there are 60 exotic cars in my neighborhood.... one is a gt3rs, the rest are all ferrari's, mclarens, lambos. Exotic cars have different buyers, different rules of engagement.