Another Record Year for Ferrari in South Africa
Mervyn Eagle, CEO of Viglietti Motors, said 2013 had been another record-breaking year for the company, the sole distributor of Ferrari automobiles in South Africa.
“We said we’d have a record year in 2012, we did it, 2013 hasn’t yet ended and we have broken that record as well. We aren’t allowed by Ferrari in Maranello to quote specific numbers, but the numbers grew significantly year on year,” said Eagle. “Residual values are always a keen indicator of how well Ferrari is doing. We are one of the best manufacturers in the world in this respect. On average, our cars only lose about 10% of their initial value per year, and that levels out as the car reaches true classic status. But this performance is far in excess of what many other luxury and sports cars achieve. In fact, in some models in our Ferrari range, there is no loss.”
Eagle said one of the keys to Ferrari success here in South Africa was the absence of speculators in its client base. “When the cars are launched, that’s when speculators tend to jump in, get a new model and sell the car at a premium over list price. We have learnt who these guys are now, and we simply move them down the list. We are one of the fortunate brands to always have a waiting list.
“We are also very firm on our pricing. We have a firm price that we work out with the factory, and that is our price for the year. No discounts, and no premiums above list price. We have some flexibility in trade-ins, but in our pre-owned division we only sell Ferraris, and that has also done phenomenally well, up 35% since last year. Other cars trade in; we move them out to the trade.”
The no-numbers policy comes on the back of a worldwide decision by Ferrari this year to limit production, despite intense demand. “Exclusivity equals residual value,” remarked Eagle, “and I have to say, I am very much a person who likes managing a waiting list.”
This year Ferrari and its sister division Maserati reported to NAAMSA combine sales figures of 12 to 20 cars a month.
Photo:Mervyn Eagle, CEO of Viglietti Motors