Ferrari limits UK car exports amid tax-driven shifts

Published: 17 October 2025. The English Chronicle Desk. The English Chronicle Online.

Ferrari has significantly reduced the number of cars it sends to the UK, responding to shifts in the country’s tax landscape and concerns about declining residual values. The move reflects broader trends in the luxury car market as some wealthy individuals reconsider their UK residency in the wake of recent fiscal changes.

The Italian carmaker began limiting exports to the UK approximately six months ago, according to sources familiar with the company’s strategy. The decision was intended to prevent a drop in the secondhand value of its vehicles, a key consideration for buyers who often acquire high-end cars on leasing or finance arrangements that rely on expected depreciation rates.

Benedetto Vigna, Ferrari’s chief executive, told the Financial Times that the company has seen a “stabilisation” in sales following the export reductions. “Some people are getting out of that country for tax reasons,” he said, noting that taxation is only one of several factors affecting residual values. He also highlighted practical considerations, such as the challenge of selling right-hand drive vehicles in markets where left-hand drive cars dominate.

The tax environment in the UK has shifted markedly in recent months. In April, the government abolished favourable treatment for non-domiciled residents—those UK residents who declare their long-term home overseas to avoid paying UK taxes on global income and assets. Other duties targeting high-net-worth individuals were also increased, prompting speculation about a potential exodus of wealthy residents.

Chancellor Rachel Reeves dismissed such claims as “scaremongering,” asserting that the UK remains an attractive destination for affluent individuals. “This is a brilliant country and people want to live here,” she told the Guardian. Reeves has indicated that the upcoming budget will target the wealthy with measures such as higher capital gains tax rates and additional national insurance on certain income streams, though she has ruled out a direct “wealth tax.” Campaigners for reform continue to propose options, including new council tax bands and levies on partners in professional services.

The tax adjustments generated concern among luxury car manufacturers like Ferrari, whose UK clientele includes a significant number of high-net-worth individuals. Residual values—the estimated secondhand price of a vehicle at the end of a lease—play a crucial role in determining the affordability of leasing agreements. Weakening residuals can make cars more expensive to finance and lease, creating instability in the market.

Data from AutoTrader highlights the effect of these changes. The residual value of Ferrari’s Purosangue model fell by 12.2% between January and October, while the SF90 Stradale experienced a 6.6% drop over the same period. However, prices have begun to stabilise in recent months, suggesting that the limited supply strategy may be mitigating some of the downward pressure.

Ferrari’s 296 GTB, launched in 2022, illustrates the gap between new and used pricing in the market. While the vehicle’s recommended retail price started at £256,275, used examples are now listed for as little as £189,490 on secondary marketplaces. Such disparities can influence leasing arrangements and customer decisions, reinforcing the importance of maintaining residual values.

Industry analysts note that luxury car markets are highly sensitive to changes in fiscal policy and buyer confidence. A decline in residual values affects both the manufacturer and the secondary market, as financing institutions base lease and loan calculations on expected depreciation. For brands like Ferrari, which cater to a discerning clientele with high expectations for value retention, these factors are particularly significant.

The strategy of restricting exports is not unique to Ferrari. Several luxury carmakers have adjusted supply to specific markets in response to tax reforms, currency fluctuations, or shifts in buyer demand. By controlling the number of vehicles entering the UK, Ferrari aims to maintain exclusivity while ensuring that its cars retain long-term value for owners.

Benedetto Vigna emphasised that Ferrari’s approach balances market stability with customer satisfaction. The decision to limit exports is not a reflection of diminished demand, he said, but rather a proactive measure to protect both the company’s brand and its customers’ investment in their vehicles.

While the tax changes have prompted some high-net-worth individuals to consider relocating abroad, it remains unclear whether this will result in a sustained reduction in the UK luxury car market. Many wealthy buyers continue to value the prestige, infrastructure, and lifestyle associated with owning a Ferrari in the UK. As such, the market may gradually adapt to the new fiscal environment without experiencing dramatic long-term disruption.

The move also underscores the interplay between government policy and consumer behaviour in high-value markets. Luxury goods are particularly vulnerable to changes in taxation, and manufacturers must carefully monitor shifts in policy, consumer sentiment, and economic conditions to remain competitive. By acting decisively, Ferrari seeks to safeguard both brand reputation and financial stability amid an evolving landscape.

As the UK luxury car market navigates these changes, industry observers will be watching closely to see how other premium manufacturers respond. While some may follow Ferrari’s lead in limiting supply, others might explore alternative strategies such as bespoke orders, limited editions, or targeted marketing to retain affluent customers. The outcome will likely shape the market for years to come, influencing pricing, availability, and the broader appeal of luxury vehicles in the UK.

Ferrari’s actions highlight the challenges of balancing exclusivity, demand, and value retention in a changing fiscal and economic environment. By controlling the supply of vehicles and monitoring residual values, the company aims to ensure that its cars remain highly desirable, retain value for buyers, and continue to reinforce the brand’s position at the pinnacle of the automotive world.