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Old 08-29-2012, 12:29 PM
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Default Starting up a supercar dealership?

why is this a thing i hate children

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Old 08-29-2012, 12:46 PM
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Talk to dealers, like Roy Cats who may be able to help. I think the addage is "if you want to make a small fortune in the car business, start with a large one".

or you could just broker cars and not get into the full brick and mortar operation at all.

Last edited by key03; 08-29-2012 at 12:48 PM.
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Old 08-29-2012, 01:36 PM
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Good luck. There are a LOT of those types of dealerships in LA LA Land. Basically you start by getting inventory and then seeing what you can do with it. For a real b&m shop to run you need good marketing and then decide your culture. Is it going to be good prices, full red carpet service?

I actually had a lot of ideas about this sort of thing and considered doing the same thing. PM me if you want to discuss more.
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Old 08-29-2012, 01:51 PM
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Quote:
Originally Posted by Gasman View Post
Good luck. There are a LOT of those types of dealerships in LA LA Land. Basically you start by getting inventory and then seeing what you can do with it. For a real b&m shop to run you need good marketing and then decide your culture. Is it going to be good prices, full red carpet service?

I actually had a lot of ideas about this sort of thing and considered doing the same thing. PM me if you want to discuss more.
Actually, I'd plan on doing the full red carpet services so I people prefer my dealership over others! What do you think would be some good services to provide?

Thanks!
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Old 08-29-2012, 02:19 PM
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An investment banker, who has a lot of cash, and wants to open an exotic car dealership asking Finance 101 questions? Really?
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Old 08-29-2012, 02:28 PM
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Originally Posted by Market Top View Post
An investment banker, who has a lot of cash, and wants to open an exotic car dealership asking Finance 101 questions? Really?
Yes.
I know a lot about finance, but I have no idea whatsoever what it involves when it comes down to exotic dealership costs. Maintenance, upkeep, employees, etc, are under finance, but I never studied them in detail. That is accounting. Not my area of expertise. Anyway, I didn't go around researching too much about car parts and companies like Gemballa did not want to disclose too much information (this is regarding my other post), so where else to come other than exotic forums? I know the basics about cars, but I have never been too much into the dealership aspect, it came by suddenly as an idea while browsing the SeamlessWeb for a dinner.
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Old 08-29-2012, 03:20 PM
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Sometimes knowing what you don't know can keep you out of trouble. Makes sense to me to ask the questions.
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Old 09-03-2012, 12:59 PM
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Hire someone experienced to start it and run it for you, like Vic Keulian! Oh wait, isn't he in jail....

Otherwise you will get eaten alive if u don't know your margins & customers. If you want to blow your money, there are easier ways to do it.
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Last edited by carbuff; 09-03-2012 at 01:02 PM.
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Old 09-05-2012, 07:16 PM
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Exotic dealers need to be large, over the top, and have spectacular amenities, along with the most knowledgeable and courteous employees.

even a small dealer would need 2 detailers, 2 mechanics, 2 salesmen, finance guy, service manager, parts guy, and admin assistant. You're looking at an easy $800k/year in salary. Finding the right mechanics, service manager, and parts guy will bring you business immediately. Not being familiar with the industry, it will be extremely difficult to find these people. And even harder to make sure you're not being screwed.

I'm not familiar with hollywood prices, but even here i'd estimate a nice small dealer in a good location at ~$3 million (including lifts,floors,lights,air compressor,shop tools,office equipment, etc).

You only have x amount of months a car can sit on a lot without paying interest on it. In the exotic world that's pretty likely. 15 exotics @ $300k/piece sits at $4.5million.

Problem with exotics is the clients expectations start at the top of the mountain. Even the slightest dissatisfaction is likely to cause a lost sale. Which doesn't help word of mouth reputation. In the car industry you can't afford any lost sales or bad reviews. Margins aren't near as glamorous as you would imagine. The big exotic dealers earn through service work, and on trade ins. A used exotic dealer would put you in higher margins with a larger clientele. However every week you see people scared to buy a car out of state from roytoy, whose an extremely established and reputable dealer.

You're better off finding an established dealer/shop and investing, with an iron clad contract of course.
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Old 09-24-2012, 11:01 PM
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Is there any reason you want to invest in a car dealership? I know nothing about this business so I can't offer any concrete advice.

However, from a profitability standpoint, this seem like a very matured industry without a lot of money left on the table. It is also very capital intensive.

If you are after bigbucks, become an Angel and invest in seed stage high-techs. Peter Thiel turned $500,000 from 2004 into $1,000,000,000 in 2012 from his investment in Facebook.

You are in ibanking so becoming a financier is the perfect progression.
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