| Author | Message | ||
| Jere Dunham (Questioner)
Member Username: Questioner Post Number: 539 Registered: 1-2003 |
Dave, you are right. I just found out that $7M-$10M would buy several different dealerships. A couple could possibly be had for around $5M-$6M. Quite a lot less than three years ago. I only used the figure of $20M-$30 as an example. Not saying that it would really take that much to buy one as I had not checked around recently. How about, since Rob is getting a FC 355 Challenge, maybe we could all go together and get a FC Ferrari dealership and Des could be the valet? | ||
| Drstranglove (Drstranglove)
Junior Member Username: Drstranglove Post Number: 170 Registered: 4-2003 |
"or find an existing FNA dealer that really sucks" Well, the one in Greensboro should be on the hit list!!!! They sucked in my exp. DrS | ||
| John Bicsak (Funshipone)
Junior Member Username: Funshipone Post Number: 208 Registered: 1-2002 |
Have your blood changed to Italian, marry a Ferrari relative, become Michael & Ralph Schumacher's brother, and pray a lot. | ||
| Dave (Maranelloman)
Intermediate Member Username: Maranelloman Post Number: 1381 Registered: 1-2002 |
Jere, many existing dealerships would go for less than that. I was personally involved in discussions in late 2000 & early 2001 where $7-$10 million would have bought everything except used car inventory for either of 2 mid-market established dealers. And that was at the peak of the US economy! Now, those deals never came to fruition for a variety of reasons, including me seeing where the US economy was really going and backing away from one, and one seller deciding he really loved his place too much to sell (!!!), but those sorts of deals are out there. | ||
| Eric Eiland (Eric308gtsiqv)
Member Username: Eric308gtsiqv Post Number: 784 Registered: 11-2001 |
LOL, Jere...very well put too! | ||
| Bryan Phillips (Bryanp)
Junior Member Username: Bryanp Post Number: 88 Registered: 8-2002 |
or find an existing FNA dealer that really sucks, and get FNA to take it away from them. It's been a while since i heard the story, but I recall that this is what Allie Ash was able to do w/ Ferrari of Washington. A D.C. area Mercedes dealership was the local FNA dealer and they were truly atrocious. Allie was able to convince FNA to strip the existing dealer and 'give' it to Allie and his Ferrari-rabid partners. | ||
| TomD (Tifosi)
Advanced Member Username: Tifosi Post Number: 3491 Registered: 9-2001 |
I had heard a few months back that a dealership was being added to NJ - around the mendham/morristown area | ||
| Jere Dunham (Questioner)
Member Username: Questioner Post Number: 532 Registered: 1-2003 |
Steve Wynn is building a new one in Vegas so I do not think Ferrari is going to be willing to add another new dealership in the US. They only import about 1100 cars a year here now and that is split between 29 current and Mr. Wynns new addition. I agree, test the waters on getting a current dealership. Say you had to give $20-$30M for established clientele, service customers and building and property. Now price out building a new place (Ferrari would not accept someone moving into an old building. It would not go well with their corporate ID), buying all the equipment and special tools required, hiring and training staff. Having your techs factory authorized so they could do warranty work requires training in Italy as well at FNA. Now open up your floor plan credit line at your bank and purchase a number of pre-owned cars. This is all totalling massive amounts of cash outlay. Did I mention insurance, benefits and federal regulations? And now add in all the "stuff" that you have to go through as a dealer to deal with the factory and factory guys. And last of all, add in all the grief you are going to receive from all the Ferrarichat people who are going to go for your throat because you are now, "one of them (a dealer)." | ||
| L. Wayne Ausbrooks (Lwausbrooks)
Intermediate Member Username: Lwausbrooks Post Number: 1574 Registered: 8-2002 |
Mike, email me: [email protected] | ||
| DES (Sickspeed)
Advanced Member Username: Sickspeed Post Number: 3815 Registered: 8-2002 |
...but Mike, i wanna be the valet...  | ||
| Mike Clark (Vipersrt)
Junior Member Username: Vipersrt Post Number: 90 Registered: 10-2002 |
I don't think I have the assets or the ability to get a large enough amount of money to buy an exisitng dealership. | ||
| James Glickenhaus (Napolis)
Intermediate Member Username: Napolis Post Number: 1179 Registered: 10-2002 |
Dave Be Correct... | ||
| Dave (Maranelloman)
Intermediate Member Username: Maranelloman Post Number: 1379 Registered: 1-2002 |
Somehow, I'm not sure Ferrari wants or needs new dealers. They typically have orders for 2x-4x the number of cars the produce annually, and they are not increasing production for fear of devaluing the marque. So why add to their distribution channel & cut everyone else's allocation? Methinks the better path is to buy an existing dealership from a longtime principal who may want to retire, and has no kids in line to inherit & run it like Dad or Mom has done... | ||
| Dan (Bobafett)
Member Username: Bobafett Post Number: 514 Registered: 9-2002 |
Why not start one outside of the country? --Dan | ||
| DES (Sickspeed)
Advanced Member Username: Sickspeed Post Number: 3813 Registered: 8-2002 |
Can i be the valet...? | ||
| P. Thomas (Ferrari_fanatic)
Junior Member Username: Ferrari_fanatic Post Number: 137 Registered: 4-2003 |
Political, oh yeah! I recently spoke to a now independent outfit. I know her views maybe at least a little biased as she went in to a 35 minute disertation on who she got screwed out of her (and other's had the same experience ) F Dealerships. Appearantly she spent 100s of thousands of dollars in a VERY litigious process...Bottom line, she still does not have a dealership. It was a REALLY ugly story. Gosh I walked into the showroom and was really only looking at a particular F-Car to purchase. | ||
| BobD (Bobd)
Intermediate Member Username: Bobd Post Number: 1159 Registered: 3-2001 |
http://www.ferrarichat.com/discus/messages/21/173601.html | ||
| Mike Clark (Vipersrt)
Junior Member Username: Vipersrt Post Number: 89 Registered: 10-2002 |
I am assuming there would be crazy amounts of politics involved. Money would also probably be a huge issue as well. Does anyone know how the Ferrari dealer network is setup? Are there factory reps that sell cars to the dealers in each region like other car manufactures? | ||
| philip (Fanatic1)
Junior Member Username: Fanatic1 Post Number: 180 Registered: 2-2003 |
I would also be really interested in this.......on all aspects........ | ||
| Mike Clark (Vipersrt)
Junior Member Username: Vipersrt Post Number: 87 Registered: 10-2002 |
Any ideas? I am sure the politics are crazy? |