How Much do Ferrari Dealers Make?

As an independent I can guarantee you there is no money in used Ferrari sales. As far as the new car profit margin I have no clue. I would estimate 15%.

Taking 30Mil and buying a franchise that sells 3 new and 6 used is plain insane. The 30Mil will burn a $200,000 carrying cost hole into your pocket every month at 8% interest. Even if you have the money there is a carrying cost. In addition you have property tax, sales people, salaries for all kinds of people working there, other operating expenses. You have to make a $300,000 profit just to be even Steven.

Dealers like Shelton have a chance since they are long established. They have a large customer base, they have probably owned facilities, their overhead is smaller than if you go and buy a $30Mil dealership. And they sell more than 3 cars a month.

 

I'm a student accoutancy and I know that the famous Belgian Ferrari importer 'Garage Francorchamps' had in 2001 a turnover of 20 mio euros and made a profite a lot less than 1 mio euro (after tax where paid, tax = +50%).

 

They don't make anything. They do it for LOVE!

Hi, Dr. Tax. Pretty good SWAG!

Now, my brother's bank repo'd the note an a major tit bar here in Houston. Now your talkin' BIG MONEY. But I thought it over and hell, I can't even get my construction workers to all come to work on a reguler basis! Imagine those coke addled babes!

I gave it a pass.

The owner of FoD and FoH looked like a happy, healthy guy when I saw him yesterday.

Happy Holidays!

 

Seems like quite a risk for 6-8%. Thanks and thanks to DrTax.


Excellent observation about what's HOT being too late. I've been noticing lots of gas stations closed around here. I think it's EPA regulations. I wonder if they're going to become the business noone wants and if that spells "opportunity" or "big mistake".

 

Ok, I do know the FLG story quite well. Lets start here:

http://www.svcn.com/archives/lgwt/08.30.00/ferrari-0035.html

Look at the date.

Second thing, FLG was SOLD back to FNA in Feb of this year, by the now-ex owner of the dealership.

In regards to the topic at hand, you guys should really look at the TRUE cost of running a dealership. Every time we see this thread, someone says X on a car and Y on Service = profit profit profit. Not always true. There are so many other aspects that need to be looked at, just like any biz.

 

how much do salesman make? I would bet that a good toyota/honda/whatever salesman makes more.

 

Along with my partners, we passed on the available F-car store in Vancouver that was recently sold back to FNA. It wasn't because we didn't have the capital either.

I can't say anymore than that.....and that says a lot.

 

I would be surprised if their was any real money in owning a dealership. Just the interest on the land and building, electric bill , insurance, inventory , employees and burden would be as mush as profit. I'd be surprised if the owners make 200k a year. Now back to the harley shop. I'ts possible to make 800k or more with no problem right now and for the last 5 years.

 

Sorry for offtopic, but Porsche is still independent !!!

 

Yes,yes, I know. I cut and pasted once too often.

Mea culpa, mea oldfarta.

 

I don't think there is a lot of money for the salespeople - especially in dealerships that sell a fairly small number of cars. At the local dealer here, they seem to have more turnover than I would have expected. It's most likely not because the salespeople are going home rich everyday. Maybe it's hard enough for the owners to take something home......

 

I suspect that for many Ferrari dealerships, ROI is not an issue. In the case of my local dealer, I believe the motivation is more 1) gets new toys (i.e. Enzo) at cost, and 2) tax deduction for the income generated by his 20 or so other dealerships.

I wonder how many other Ferrari dealers fall into this category?

 

That's a good point! The New Detroit Michigan Dealer.... is right next door to his huge Cauley Vette dealership. They must sell 5-10 vettes a day.... The Ferrari store next door looks like Cauley's hobby shop, and if he sells a few f-cars... Great! it pays for his hobby.

 

Bear in mind that most new car dealers make thier money in the service department. I recently stopped at Ferrari of DC. They had only one new Ferrari on the floor and that was due to a cancelled order, everything else was used, many consigned. There were nearly twice as many Ferraris in the service department!

 

Seems like a lot of dealers sell them---no money?

 

13 year gap between posts, like, wow. And who said the Internet is new?

Interesting thread though thanks for reviving!

 

Lol...13 years to reactivate a thread.

But this is a very interesting thread. Even I am curious to find out on how much Ferrari Dealers make (with much drastic low volume sales due to small number of clients who can afford Ferraris and other exotics)

 

take your Ferrari in for out of warranty service and you will get a real good idea .....parts and service has to be what carries these

 

Has that NDA expired yet? Can you divulge the numbers now?

 

Yes but the information is so outdated, it's all irrelevant now. Ferrari dealerships are a whole different world now. I might as well know nothing about the subject. This thread is so freaking old.

 

I especially enjoyed the line about the $8MM 250 GTO...

 

c.180# Officially registered Dealers Worldwide.

 

This has to be some sort of FChat thread resurrection record.

 

No kidding. I didn't see the date at first, I was just reading along and someone said something like "today in 2003," and I stopped right there. LOL