A Texas Ferrari dealer has taken legal action against a customer for flipping his newly purchased Purosangue, an act that violated a resale agreement. This case highlights the increasing tension between automakers and customers who aim to profit from the resale of limited-edition luxury vehicles.
Ferrari’s Approach to Exclusivity
Ferrari is renowned for its prestigious brand and exclusive vehicles. The company deliberately limits production to ensure that its cars remain rare, fostering a sense of exclusivity among owners. However, this exclusivity also leads to high demand, particularly among buyers eager to be the first to take delivery of a new model.
One ongoing issue in the automotive world is the practice of “flipping”—when customers purchase high-demand vehicles and then quickly resell them at a profit. To combat this, some manufacturers, including Ferrari, impose resale clauses in their sales contracts. These clauses restrict how soon a vehicle can be resold or offer the manufacturer first refusal rights.
Legal Action in Texas
According to CarBuzz, the Ferrari dealer in Houston filed a lawsuit against a customer who sold his Ferrari Purosangue within a year of purchasing it. Court documents revealed that the client had signed an “Opportunity Agreement” which stipulated that the dealer had the first option to buy back the vehicle at the original price if it was resold within 12 months. By violating this agreement, the client opened the door to legal action.
Ferrari has been clear about its stance on flipping. The company aims to sell its vehicles to true enthusiasts who purchase cars for personal use rather than for profit. In their eyes, flipping harms the brand’s image by turning its cars into commodities rather than symbols of passion and prestige.
The resale price of the Purosangue is unknown, but in the U.S., the luxury crossover starts at around R7.37 million (R423,000). In South Africa, due to the tax structure, the starting price is a steep R9.7 million. Buyers of this sought-after model face long waiting lists, with deliveries extending until at least 2026, especially for those choosing heavy customisation options.
Ferrari Purosangue: A Unique Crossover
The Purosangue marks Ferrari’s first entry into the crossover market, a significant departure from its traditional sports cars. Unlike typical SUVs from other performance carmakers, the Purosangue maintains a sports car-inspired design and is built on a technical architecture derived from Ferrari’s famed sports cars. Under the hood, it features a naturally aspirated V12 engine producing an impressive 533kW and 716Nm, making it a truly remarkable addition to Ferrari’s lineup.
Resale Controversy in Luxury Auto Industry
The practice of automakers suing customers for flipping isn’t unprecedented. One notable example is Ford’s lawsuit against pro wrestler John Cena in 2017 for reselling his ultra-rare Ford GT40 too soon. Cena eventually settled out of court in 2018 for an undisclosed amount, bringing attention to the increasing trend of automakers taking legal action to protect their brand.
Conclusion
The case of Ferrari suing a Texas client underscores the ongoing battle between automakers and customers who seek to profit from limited-edition vehicles. As exclusive cars like the Purosangue grow in demand, automakers will likely continue to implement resale restrictions to protect their brand image. For Ferrari, the fight against flipping is part of its commitment to maintaining the prestige and passion behind its name.
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