Ferrari makes a ton of profit on each car sold

Ferrari is killing it when it comes to profitability per car. The company makes more money on each model that just about any other automaker.

When you think Ferrari, you automatically think money. If you were thinking that building high-end supercars isn’t necessarily a smart was of making money, then you need to check out data reported on by CarBuzz. According to a study performed by a Duisburg-based economics professor named Ferdinand Dudenhöffer, Ferrari makes about 69,000 euro profit (around $80,000) on a car costing 280,000 euros.

That number far exceeds the profit margin of basically every other automaker on earth. CarBuzz noted that Porsche earns around 17,000 euros (about $19,000) for each vehicle it sells, which is still considered pretty good in comparison with other automakers in the industry.

Apparently, some automakers lose money on the sale of some of their vehicles. Dudenhöffer’s study revealed that Tesla and Bentley lose significant amounts of money. However, CarBuzz did note that those companies spend a lot of money on research and development. If they didn’t spend as much, it would change.

The Prancing Horse Is Powerful and Profitable

Ferrari demands a lot of respect in the automotive industry. Part of the reason the company can demand such a high price for its cars and make so much money is that it has consistently branded itself well for decades. The exclusivity factor of a Ferrari car makes it highly sought after, and that in turn drives up prices and profits for the company.

That kind of branding means that the company doesn’t have to spend as much money on advertising and marketing its cars. Automotive journalists, enthusiasts, and the general public clamor for a chance to own a Ferrari, and that eliminates the need for much-targeted marketing. The Prancing Horse brand only has to put out a new car or make subtle changes to a current model to get plenty of attention.

Its praises are warranted, though. By all accounts, the company’s cars are some of the most impressive in the industry, and they should demand a significantly high price. It’s not really the price tag that’s so astonishing, especially when compared to the competition. It’s the fact that Ferrari is making money hand over fist with its expensive and difficult to design vehicles that’s so jaw-dropping. As CarBuzz points out, the profit that Ferrari makes per car is actually higher than the average U.S. annual income. That number is $60,000.

It will be interesting to see if this continues over time. We’d think that Ferrari will continue on its currently profitable path, but with the profit per car being so high, we wonder if the brand is interested in selling cars at a higher volume. If that happens, it could dramatically change the company as a whole.