Why Ferrari's Are Expensive?

Topics: Supply and demand, Ferrari, Pricing Pages: 3 (1006 words) Published: February 8, 2013
1) First of all, Ferraris are beautiful cars and luxurious which not many people cannot afford to buy them. On the eyes of economics the market system that governs our country which is capitalist gives many incentives for companies and for the buyers to best use their money. The first essential need for prices of Ferraris or any other type of property to go high or be worth more than what it really is, depends on how many people are willing of people to want those things. Consequently, the system works as on how many people want to have a Ferrari as their personal property which regulates the market system. Second, in capitalist economy there is freedom of enterprise and choice, which gives entrepreneurs and private business the right to produce their choices of goods and services and to sell them in their chosen markets. Third, is the self-interest of individual’s is a motivating force to want to drive a Ferrari. Fourth is the competition between buyers and sellers regarding what are the best prices the sellers could offer, and the amount of money the buyer is willing to pay. In addition, Ferrari’s cost so much in America because it is an international product, it is not produced within American’s sources. Also, According to an Ferrari specialist: Ferraris costs so much because of “high quality leather, detailed stitching on the interior, high tech materials such as the super lightweight and super strong carbon fiber for better strength and weight reduction, cutting edge technologies like the paddle shift, dual clutch, F1 traction control, suspension set, overall for better performance but also comfort at the same time. The paint of a Ferrari is high quality and it can recover when it got a light scratch. Ferraris are hand built (although there is some machinery works that human cannot do), they’re crafted with patience and big attention to details. The workers are professional workers too. Some short production models like the 599 GTO, Enzo, 250 GTO, 288 GTO,...
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