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how does one own a Ferrari dealership

Discussion in 'Ferrari Discussion (not model specific)' started by an032nv, Aug 16, 2004.

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  1. an032nv

    an032nv Formula Junior

    Jul 5, 2004
    253
    Clovis, California
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    Chris Torosian
    #1 an032nv, Aug 16, 2004
    I heard that Ferrari was buying several privately owned dealerships back (ferrari of beverly hills for example(?)), not sure if this is true or not, but I was just curious to see how one goes about starting his/her own "Ferrari of ______________".

    I know the owner/one of the owners (not sure if he is the only one) of FoOC and FoSD was in Monterey with his orange Enzo, does anyone know how he got started? Armen used to own Newport Autosport too, maybe he will see this thread.

    I apologize if this is an old topic, just curious to see how it goes. I'm assuming the cars are purchased through a bank, the dealership marks them up, sells them, pays back the bank and profits the mark-up, am I on the ball as far as that goes? I'm also assuming the location has to be approved by FNA, and the 'franchise' is very, very, very expensive...
     
  2. VROOM!!!

    VROOM!!! Formula 3

    Feb 11, 2004
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    Armen
    #2 VROOM!!!, Aug 16, 2004
    More like, VERY VERY VERY VERY VERY VERY VERY VERY VERY VERY VERY VERY EXPENSIVE. Im also curiouse about that though. I want to start a,"Ferrari or Armen and only Armen", one day.
     
  3. Smiles

    Smiles F1 World Champ
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    Nov 20, 2003
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    #3 Smiles, Aug 16, 2004
    Ferrari of North America is not interested in starting any new franchises. They can sell all of their alotted production--at a premium--and have no need for more distributors.
     
  4. smg2

    smg2 F1 World Champ
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    #4 smg2, Aug 16, 2004
    very true i would assume, but i'll throw in wrench here. how about Maserati? they plan on really upping production so they are going to need more dealers than just the current ferrari ones.
    possibly stand alone???
     
  5. an032nv

    an032nv Formula Junior

    Jul 5, 2004
    253
    Clovis, California
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    Chris Torosian
    #5 an032nv, Aug 16, 2004
    Well I wanted to know how one goes about it, I'm not looking to start my own or anything, just wanted to know the details from start to finish, if anyone has that information.
     
  6. Smiles

    Smiles F1 World Champ
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    #6 Smiles, Aug 16, 2004
    You can't go about doing it; that was my point.

    I think that Maserati may be a different story.
     
  7. an032nv

    an032nv Formula Junior

    Jul 5, 2004
    253
    Clovis, California
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    Chris Torosian
    #7 an032nv, Aug 16, 2004
    I know, I gathered that, I believe you are missing my point. I am not trying to start one, I am not finding out for a friend or relative, I am not from a group of investors, I'm not even an owner, I just want to know how someone once went about it, obviously it was possible at one point, the gentleman with the orange Enzo at Concorso has two dealerships.
     
  8. ryalex

    ryalex Two Time F1 World Champ
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    Aug 6, 2003
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    #8 ryalex, Aug 16, 2004
    Someone probably already had a car dealership or two, and made the necessary connections (dinner party friends? golf games? racing team connections? cousins with F SpA executives?) to start making official orders for cars to Ferrari and then FNA. They likely had an "in" to the company.

    Read the story of Luigi Chinetti for more inspiration.

    There were rumors a while back that Maserati would start being serviced and sold at selected Audi dealers. FNA's control will not be as tight on the Maserati brand.
     
  9. Smiles

    Smiles F1 World Champ
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    #9 Smiles, Aug 16, 2004
    I'm sorry to have missed your point, an032nv.

    Ryalex is completely right. Those dealerships were formed a (relatively) long while ago, when both the marketplace and the Ferrari cars were very different. Those relationships were pretty casual, and no two were really alike in their history.

    Luigi Chinetti was an interesting and unique example. Almost all Ferraris during the 1960s that went to the eastern United States went through his agency. He was one "dealer" that could actually convince the factory to produce cars to his preference!
     
  10. tjacoby

    tjacoby F1 Rookie

    Nov 1, 2003
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    #10 tjacoby, Aug 16, 2004
    It does happen though, our dealership here in Vancouver changed hands last year. The major BMW dealer here had owned the previous franchise and threw in the towel after 4-5 years. A new owner stepped in earlier this year and is in the process of putting together a Ferrari-class building in the high-rent side of town. I seriously doubt the investments required will support even 4x his volume, unless he can keep his mechanics very, very busy.

    I'm guessing the dealership is a status symbol and not viewed as an investment - and why would FNA care. But they do have a fair bit of interesting inventory and a decent sales guy on board now.

    Rumour has it big cheques and frequent bowing towards FNA's office is all that's required.
     
  11. ryalex

    ryalex Two Time F1 World Champ
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    #11 ryalex, Aug 16, 2004
    Matt and Tom have indicated the only way to acquire a Ferrari dealership now - buy out the current franchise license holder. This happens every few years, as happened with Ferrari Los Gatos, one of the Texas dealerships, and now Vancouver.
     
  12. Agent Smith

    Agent Smith Formula 3

    Apr 20, 2002
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    #12 Agent Smith, Aug 16, 2004
    The gentleman who opened the one in Michigan a few years ago already owned a chevy dealership. Rumor has it he was into Corvette racing and made contacts through racing events at Ferrari. Ferrari pulled the franchise from the person who was originally opening the dealership in Michigan and awarded it to the person who now owns it.

    The lesson? $$$$$$$$$$$ and connections go a long way.
     
  13. superyota

    superyota Formula Junior

    Mar 29, 2004
    351
    Newport Beach
    #13 superyota, Aug 17, 2004
    There is a Maserati dealership opening next door to Newport Auto sport.... You guys might be able to put 2 and 2 together on this one and guess who the owner is..I wont give it away.
     

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