I was going to say since he was so kind to tell us what he paid he should post the final invoice along with pictures of the car, weird your 180 got turned down but his 175k made it happen?
How was your 180 offer rebuffed and he got the car for 175....this makes absolutely no sense...would love to see the buy sheet as well....
Not necessarily. 1) What if the 180 offer was all cash, and the 175 involved financing and a trade-in. The dealer figured in the profit on the trade-in and the kickback on the financing, and decided it was worth more than $5k. 2) The car was on consignment. The consignor turned down 180. Then had second thoughts that maybe he should have taken it. An offer comes in at 175. Consignor figures, what the heck, I'll take it. I'm sure there are many more possibilities in the car dealing biz.
Scott, You made an offer on a Silverstone Scuderia in S. California? Or are you talking about a different vehicle? DL
Guys- no. Different car entirely. Just commenting that I offered 180 on a 3k mile Scud and was told that was never going to fly. So it was good to see Don's deal to know that I'm not entirely off base.
Tony, Thanks! Looking forward to heading up to OC for some drives. I'll monitor the So Cal section. Perhaps we should all do a drive up Mt. Palomar! Cheers, DL
Don, Sounds great, I live in San Clemente so it is not too far for me. Plus I have family in Carlsbad.
Sorry, but I think this post deserves the "post of the year." Just shows that a smart buyer did his research and ended up with a great car for a great deal. 175k was his number, for others it maybe higher or lower.
Lets be clear about the car he bought...he didn't get it from a dealer....or a owner. He bought it from a wholesaler. Ask Don how he did this.....he was smart and got a little lucky. Had this car made it to a dealer it would of been listed in the high $180s. Don got the car before it had even been 'reconditioned' by the dealer. Again, score for Don. Yes this was a legit sale. However, good luck reproducing his results.
It is an interesting story. PM me if you want to know details, but in short, I "intercepted" this vehicle from wholesaler to retailer, but sales paper and CPO "reconditioning" + warranty are via fanchise Ferrari dealership. Reproducible? Who knows... Cheers, DL
Right on Don! You did it!!!! Congrats, that is one of my all-time favorite scuds! If I weren't looking for a deal on a 458 I personally would have bought that car providing I didn't know you. Your welcome and a class act!
Wouldn't be too hard to "reproduce" his results, I would just have to decide when I wanted to quit being a "tire kicker" and change to a buyer, plus I am seriously out of garage space as it is. I had been watching the Yellow 2008 that dropped to 175k at Ferrari of San Diego, but then CNC snapped that up. That car was reduced at least 3 times.
That yellow Scuderia is a nice car! First Scuderia I ever drove. I really considered it, but I just got out of a yellow GranSport, so I was looking for a color change. F of SD's best offer to me on that car was $170K (doesn't have US Carbon Package). I think CNC is now asking mid $180s for it. Note that it has twin black stripe, not the more common Grigio stripe with black pinstripe. BTW, that yellow one is my son's favorite Scuderia. He really wanted me to buy another yellow car. It reminded him of the Camaro in Transformers, esp. with the black stripe! DL
For example here is another deal, $187k asking for a 2009, so would have to have F430GT calculate what a 2009 is worth compared to a 2008, no alcantara seats, but still nice: http://www.autotrader.com/fyc/vdp.jsp?ct=p&car_id=310211969&dealer_id=66784537&car_year=2009&model=F430&pager.offset=50&search_lang=en&start_year=2008&keywordsfyc=__c2N1ZGVyaWE%2C__&keywordsrep=115099117100101114105097&search_type=both&distance=0&rdm=1321644424225&marketZipError=false&advanced=y&keywords_display=scuderia&lastBeginningStartYear=1981&end_year=2009&showZipError=n&dma=YAKIMA-PASCO-RCHLND-KNNWCK&page_location=findacar%3A%3Aispsearchform&body_code=0&first_record=51&isFlashPlugin=true&default_sort=priceDESC&address=99336&sort_type=priceDESC&make=FER&seller_type=b&num_records=25&cardist=1667&standard=false
Could easily get a referral from Ferrari of San Diego, but I posted just to show that there are plenty of "fair" deals out there, just have to flip between Dupont, Autotrader, EBAY, and Cars.com. Probably other sources available too that I am not aware of. Need to get back to my job as #1 tire kicker.
I think your economics are a fair bit off because there is no way that a bank is going to floor plan a car with 5-10% equity - especially in this environment and especially something as illiquid as a Ferrari. Can you buy a house with 5-10% equity today? In this climate, a dealer is going to need at least 20% equity against inventory and perhaps more. However, they generally get a pool of funds that are not allocated to a specific car so it is hard to tell what "games" they may play with valuations. In any case, with a significantly higher equity burden, the holding costs go up a fair bit. You also assume they are stealing cars so with enough mark-up they can wait. Perhaps that is true but they don't steal all the cars. Lastly, credit is not infinite. They only have so much access to credit - the more of it that is tied up in inventory that doesn't move the more costly it is for them from an opportunity stand point. You can look at the publicly traded car dealers to get a sense for how much money costs them. In fact, some have also filed their loan agreements. Your estimate for the cost of debt is in the ball park. In my mind, it still can't understand why they would sit on a car for a year or longer but I don't know what they have to pay to get the cars. Ferrari of SF told me they were into that 09 FDE Scud for a little more than $200k but who knows and really who cares. In the end, it's whatever the market will bear. Last I knew, the market didn't care what I owned stock for - it was worth whatever the market will pay at the time. Just like Scuds .
Depends on the dealer I would say on credit. Many of my friends own dealerships and they will own 30% or so of their floor. This gives them a very nice leverage point with banks if they choose. So I don't think I am far off. As far as trade-in values on these cars the typical buyer gets hammered. Wholesale at best. So yes these dealers have large mark- up. I don't own a dealership and don't want to but my math is a lot closer than you think. Stocks can't be compared to high end exotics, Car or female. Your Apple stock or B of A stock ALWAYS has a buyer, Always. These cars don't and dealers know it. 6 months of flooring is nothing to them and they know it. The other thing not discussed is a lot of them are also consigned. Therefore the asking isn't dictated by the dealer. They make there 5-10k off the car " if" it sells and whenever they sell it. They only care about flooring these if they run out of space. Dealers also love consignments. If you have 50 cars on your lot vs 10 your customer pool multiplys significantely So sell your stocks to the criminals on wall street and be prepared to pay more for these cars than the tire kickers in this thread because like I said these sellers just aren't that desperate
4:30pm yesterday. I'll post better pics on a separate thread. A little surprise when she arrived. Dealer had installed skid plates gratis! I had mentioned to my contact that I'd get them installed immediately, but probably through F of SD 'cause they are a bit closer (I thought about asking to throw them in, but the deal was good enough without). Even more happy! Put about 60 mi on her last night. WOW!!!!! DL Image Unavailable, Please Login Image Unavailable, Please Login
