Is it true that for every Enzo Ferrari that gets destroyed, all the remaining Enzos go up in value by $100,000?
We’ve read and heard this a few times now and wondered if this could be the ultimate example of supply and demand affecting market price.
Only 400 Enzo Ferraris were made, between 2002 and 2004. From that total, 399 of them available to buy, while the other one was given to Pope John Paul II. Demand upon release was huge and every car that went on sale was snapped up. So accordingly, if demand is still high in the second-hand market, reduced overall numbers would logically make the remaining Enzos more valuable. But it turns out there’s more to it than that.
Tommy Wareham is director of sales for exclusive car dealer SuperVettura in London. He specialises in rare Ferraris and tells Esquire that even if one were totally destroyed it would have no impact on the price of the others. “There are still a lot of them in the market, because while 399 doesn’t sound like many, when you are talking about something so special, it’s actually a seriously big number.”
So, the Enzo — for a supercar — is actually not that rare? “I would say that unless 300 of the 399 were wiped out there would be no increase in value,” he says.
The value of the Enzo has increased, but that is simply with age, and Wareham says that while they previously delivered a new one for around Dhs1.66-Dhs1.94 million (depending on exchange rate), a good condition model is now worth Dhs3.88-Dhs4.44 million. A Ferrari spokesperson tell us that Enzos have always changed hands for a lot more than the original ex-factory retail price. And while many change hands privately, three that were auctioned this year sold for $1.38-, $1.43-, and $1.49-million each.
The spokesperson also tells us: “What influences value is condition and mileage — the lower the mileage, the more they tend to be worth. It’s nothing to do with crashed cars.”
So are all 400 still roadworthy or do we know of any that have been wrecked? While some are in private collections and will probably never see the light of day again, it turns out that it’s surprisingly difficult to permanently destroy an Enzo, simply because Ferrari themselves get teary-eyed and insist on rebuilding them.
“There are a number that have been involved in accidents,” Wareham confirms, “but mostly they will be repaired by Ferrari as they are too important a car to be lost.”
Here’s an example. In 2006, Stefan Eriksson, a former executive of Gizmondo, smashed his Enzo into a California’s Pacific Coast Highway while driving intoxicated. According to police reports, he was racing against a friend and doing 199mph (with video footage from the passenger confirming this) when he lost control, ripping the car in half, as the picture on the above testifies.
Incredibly though, and as a testament to Ferrari’s safety engineers, he suffered only a cut lip. Police said the car was technically the property of the Bank of Scotland and was in the process of being repossessed at the time of the crash, and Ferrari estimated that it would cost between $250,000 and $300,000 to fix.
Although not able to comment on specific owners’ high-speed mishaps, the people at Ferrari’s base in Maranello confirm to Esquire that, “If the cars have been crashed, then we can completely rebuild them at the factory.” Indeed, the bits of this car were bought by Ferrari and repatriated back to Italy and rebuilt, although it’s highly likely that the only part of the original to survive was the serial number.
In the case of the abandoned Enzo that was famously pictured collecting dust in Dubai, a Ferrari spokesperson says: “For privacy reasons, we do not disclose details about our owners.” Dubai police issued a statement to say it was being held, “…because Interpol has identified the vehicle as stolen.” If it gets released, though, it will be restored.
So does the supply/demand equation apply to any car? For example, if a Ferrari 250GTO was wrecked this weekend would it have an effect of the value of remaining ones? “If the vehicle is in incredible demand and there are so few vehicles in the market, then potentially it would affect values. And the 250GTO would probably be one of these cars,” Wareham says, adding that the McLaren F1 would also be in this category.
But he goes on to say that, again, even a total write-off would not wipe this car out as McLaren or Ferrari would rebuild their prized assets, maintaining numbers.
So there’s no point destroying rival Enzos to increase the value of your own — just keep it in good condition. And if you’re looking for an investment then Wareham says that modern Ferraris depreciate like any other car but classic Ferraris are “appreciating in value like crazy”. Models to watch are the Ferrari Boxer and Daytona as these will be the next big Ferrari investment vehicles.
For Esquire Magazine, August 2013