FOW

FOW changed hands a few years ago and the new owners brought back track days and events.

Hopefully these owners are focused on more than selling cars.

 

The small boutique Ferrari dealerships are a thing of the past. Ever since Bob Segal sold Algar it was evident that these auto aficionados were a dying breed. It’s all about the bottom line now
Sad but true. I hope Ron Tonkin won’t be next.
Luckily Algar’s new owner, Bob DiStanislao
Is a true car guy and good things are yet to come .
He should of been the new owner years ago when Bob Segal sold but Ferrari politics prevailed at the time

 

This is the forth owner of FOW in the last 13 years ... not a good thing for anyone .. .. they also owned several other Ferrari dealers I wonder if they bought them all or just FOW..

 

Just FoW and from what I know they got more for that dealership than what they bought the 4 for.

 

interesting but wonder why....

 

They all for for roughly $80m and sold FoW for $ $100m. Kind of a no brainer if it were me.

 

yeah definitely a no brainer interesting hard to believe it is worth that but what the heck

 

I agree, especially considering they didn't own the property.

 

The existing dealership recently had a very nice renovation done which I doubt they leave anytime soon. In regards to the sale amounts, I can't give anymore detail.

 

not that nice(ie 100mm)... but if they did not buy the RE hopefully they have a long term lease.. I suspect it was a way for the non US dealership group to get a foot hold in the USA which maybe worth it.. as the dealership is about 10 miles from DC and has some influential customers.... I guess....

 

SweetJeebus it's been 18 years since I worked there...

So much was cut out of the initial design of that building to make the move happen from FOW Origin. Pretty much everything but Allie's office had some sort of cut or elimination to make the move work. Obviously was a viable business for a while, but is a far cry from what was on the first blueprints.

The visual of the place is GREAT from 28, but getting in there anymore, the area development, and the lack of event space/parking, etc isn't. Would not surprise me if they moved and another marque took it. Not sure they care about the renovation $ another company spent.(?)

 

The problem is that they are committed to a very expensive lease and they aren't getting out of it without paying. I don't remember the exact cost but it is ridiculous for that location. I doubt another dealer will take over at that level and the LL has no reason to let them out.

 

The future doesn't exactly look rosey for car dealers.

 

They really need to get more loaners. Only 5 loaners available but always 20+ cars there for service at any given time.

 

So if you invest $100 million in buying a Ferrari dealership……exactly how do you make that back selling and servicing cars?

$1,000 per hour labor rate?
20% buyer premiums?
500% markup on parts?

Just servicing the debt on $100 million is more than FOW makes annually.

 

Like many dealers they also kill it on the trade in, low ball the trade and sell for a taste profit.
Agreed that's a lot of merchandise to sell, I can't see it being profitable either.

 

The company that bought the dealership isn't some new company. They are the largest dealership owner in Canada and are privately held. I'm sure they plan on expanding into the US and Ferrari of Washington is a trophy store as much as many don't like it or have issues with the way they do business. Its in like the Top 3 every year of Ferrari Dealerships and with it being the only Ferrari store to service MD/VA/DC its probably the one to pay up for. Especially with the amount of government money around here. One in New York sold for like $65 Million last year and there are at least 3 stores in NY. Look how many Ferrari stores are in Florida and California. Also, I'm sure the recent renovations added to the price as well. It may not make sense to us(me included) but it makes sense to the people writing the check and they know a lot more than me about owning/running a dealership.

 

Oh.....I understand it now.....FoW is going to be a Watch store as well.

https://www.foxbusiness.com/lifestyle/worlds-thinnest-watch-million-ferrari

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They’ve got a 328 in the showroom that they probably paid $50k for, and now asking $200k. That’s how, ha.

 

I was gonna say, they must be killing it on 348 Spiders. They have 2 listed for over $100K.