The classic car market has become a multi billion dollar business with a prominent position of the classic Ferrari market. This can be illustrated by the auction houses sales results. In 2018 the total turnover sales of the auction houses only, was over $1.2 billion. The Ferrari sales were $334 million, almost 28% of the total auction sales.

Besides the auction houses, which have a substantial but a relatively small position in the market, most cars are sold by classic car dealers and on the private market. Although the numbers of sales by classic car dealers and private sales are not publicly known, the total turnover of the classic Ferrari market is estimated to be $2 – $5 billion per year.

Market Capitalization
To provide insight in the financial classic Ferrari market Red Blossoms has introduced the financial method of market capitalization (market cap), a calculation of the total value of all cars on the market (=model(s) x number of cars x average value of the car).

Market Capitalization of Categories Models dec-08 – dec-18 (in $ x Million)

In December 2018 the market cap of all Ferraris built until Y2000 was $39,55 billion, which means the total value of all 105.000 Ferrari cars produced until Y2000 is $39,55 billion. In December 2008 the market cap was $16,0 billion, so in 10 years time, the market cap increased by 147%, an average annual value increase of 9,5%.

Market Capitalization of Categories in dec-08 and dec-18 (in $ x Million) and increase in % in 10 years

Models Y1947-1972
The 12.975 cars of the Y1947-1972 models showed the strongest value increase of 221% in 10 years. The market capitalization was in December 2009 $8,0 billion and in December 2018 $25,8 billion. The value increase of 221% in 10 years implies an average value increase of 12,4% per year.

Models Y1972-1989
The value of 45.544 cars of the Y1972-1989 models increased by 152%. The market capitalization was in December 2009 $3,2 billion and in December 2018 $8,2 billion. The value increase of 152% in 10 years, which implies an average value increase of 9,7% per year.

Models Y1989-2000
The market capitalization was in December 2008 $4,7 billion and in December 2018 $5,4 billion. A value increase of 16% in 10 years, which implies an average value increase of 1,5% per year. Many of the models in this category have been in their depreciation phase until Y2010 and Y2011. From Y2012 the market cap started to increase with a few percent per year, in total 38% in the last 5 years.

Models and sales prices
In December 2008 the average value of a Y1947-1972 model car was $619.807 in December 2018: $1,9 million. A value increase of 221% in 10 years, which implies an average value increase of 12,4% per year.
In December 2008 the average value of a Y1972-1989 model car was $71.930, in December 2018: $180.990. A value increase of 152% in 10 years, which implies an average value increase of 9,7% per year.
In December 2008 the average value of a Y1989-2000 model car was $101.035, in December 2018: $117.336. A value increase of 16% in 10 years, which implies an average value increase of 1,5% per year.

Average Value Models in Categories in dec-08 and dec-18 in $, and the increase

Million Dollar Cars
There is no other car brand in the world with more ‘million dollar’ classics than Ferrari. In December 2018 an estimated number of 6.572 cars are valued over $1 million, 864 cars are valued over $5 million, 493 cars are valued over $10 million and 152 cars are valued over $20 million.

Number of Classic Ferraris per Value Group

Remarks
In general, the more valuable cars become, the better they are stored, preserved and restored. In the last decade many cars were restored which, of course, had an impact on their value. So the number of Ferraris in poor and average condition has decreased and the number of Ferraris in good and excellent condition has increased. It is impossible to determine the total value creation of all restorations and to see the effects on the average price of the models, but they have gone up.
In the comparison of the average values of the models and the assessment of the market capitalization over the last 10 years, this should be kept in mind.

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