Theoretically....could a vintage Ferrari be parted out for a greater figure than the whole value. in otherwords: Is the sum of all the parts greater than the Whole. I Think so! Gentlemen pull out your Ratchet drivers!
It maybe but the main problem is you have to find a person for each part. Some parts maybe worth over $500 but only if someone needs it. If they don't it may sell for $100 or less. A used compressor clutch for a car maybe $500 T. Rutlands but if no one is in need of one they can go for under $100 on Ebay. So in theory yes but how many buyers are looking for some of the less serviceable parts. How many airflow sensors do you see forsale and if so they should bring big bucks but more than likely no one needs one and it will sell cheap or it won't sell due to not getting the offer the seller wants.
I dont think I would go into the smallest parts to get the money back, Things like Doors, Bonnets, Front ends, Engine, Transmission, interiors.Etc. Take a 308 in comparison to a daytona. It would be easier to get it back with a 308.However with prices so low on 550M's and 456's. It might work there too!
I'm not sure there is enough demand, even for a 308. Let's assume the 308 as an automobile sale is worth $35,000. If you could find a buyer for every single part, how much time and money would it take to locate the customers? The sale of the car would present you $35,000, today in 2005 dollars. You could then invest the $35,000 immediately and begin generating compound interest. To sell the parts, you would likely need to have a database. Someone would have to enter each part into the data base. For customers to find you, you have to do some sort of advertising. Since you are running a business when you part out the car, you should be paying income tax on profits, as well as collecting sales tax. You need to pay an accountant to file your paperwork most likely. Does it make sense for an individual to part out a 308? I doubt it, now a specialty junkyard that only paid $8000 for that $35,000 car can overcome all the aforementioned expenses. To make money you need to get the vehicle for scrap value as junk yards do. You also need a large pool of potential customers, like a Camary would have. Even if you managed to sell all of the 308 parts and generated $100,000 in gross sales, would you have more money after accounting for the expenses and adjusting the buying power of the money received due to inflation versus the compounded interest and principle of the $35,000?
Without question. Every single Ferrari ever made is worth FAR more in pieces than it is as a complete unit. The problem however, is finding buyers for everything. From my perspective, if you could sell about 25% of the parts (big ticket ones, not the little junk) you'd be ahead of the game. . -Daniel
I agree that parting out a cheap rough car can make money, but am amazed that nobody has factored in the cost of striping the car down to its components and then cleaning them prior to sale
