Trade Ferraris/sports cars?
I (27) have saved up about €120,000 through my self-employment. With this starting capital, I would like to start trading in vintage Ferraris. I've always been fascinated by Ferrari models from the 2000s. For example, the Ferrari 360, 430, California, etc. These are available starting at €80,000.
I've never been interested in trading small, inexpensive cars. There are bound to be problems with warranties and defects due to high mileage. Older Ferraris in particular have very few kilometers on them and are probably not driven much by their new owners (mostly collectors). I think therefore I will have little to no problems with warranties or other defects, as such cars sit idle more than they are driven. All I need is €80,000 for the first car and €500 a month to rent a small garage to store it in. So, capital-wise, it wouldn't be a problem. My plan would be cheap (buy from a private individual for around €80,000 and sell on for €10,000-20,000 more). I still have my main business as a freelancer, so it doesn't matter how long it takes for the cars to go. I would see this more as a side income to my self-employment with the cars.
The problem: I have no technical knowledge of cars, such as engine problems, and I'm not a mechanic. That's the only thing keeping me back from this business.
Is it possible to trade in Ferraris without this knowledge? I would go to a garage for every test drive before buying the car and have them quickly check for any problems. If the garage doesn't notice anything, I would clean it up as is and relist it with better pictures as a commercial dealer. Registering my business, etc. beforehand, of course. Could it work that way, or am I forgetting something important? As I said, I would always make sure to only buy flawless cars, clean them up, and sell them on with better pictures as a reputable commercial seller.
Am I forgetting something important in my project?
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Honestly? If you have to try this forum for such simple thoughts, it's nothing for you.
If you're seriously thinking about it, you should go through the whole thing again and consider if you want to do it.
Thanks for the answer. Yes, there are no experts on this topic, but especially of people who have nothing to do with it come mostly good suggestions where people in the bubble would not think about it. 😊
The outsource of technical know-how can already be a gamebreaker. A workshop stay for such an exotic car is immensely expensive.
The other question that comes to me, where do you want to buy such cars? And sell to who?
I suspect that the fewest customers who want to spend a lot of money for such a car just look at Autoscout as if there is a Ferrari right now.
Do you have a corresponding network? How are you going to build such a thing?
What are you doing if you don't get rid of a vehicle for months? Then you only have expenses and bound capital.
Your only added value seems to be the better marketing of the vehicle. That's a little bit.
I don't think that's a good idea.
Thanks for the answer 😊
The network is a problem that's right. However, I see many Ferrari models on eBay classifieds that are set with very bad pictures by private. And even these cars are not online for long. When I buy this, and really professional pictures after a thorough preparation make the car significantly better and can be sold much easier. The network would then automatically build by finding the first customers, who in turn know people interested in such cars.
I hardly know the market for exotic cars.
However, I doubt that a collector wants an Ebay Ferrari. And above all for this still pays a lot, as the models on Ebay etc are usually rather larger series.
What collectors want are small series models.
But let's stay with the eBay Ferrari. You buy this, make better pictures, maybe let him do something and put him back in.
How much time do you need? How much can you ask for more? In the end, not your product improves, but only the placement of it. And you won't be able to add value to your customer.
Furthermore, there is a reason why the models you want to buy are selling quickly. Because they're cheap. With your extra charge, they are probably no longer cheap and a less well advertised similar vehicle is then less attractive.
I also see it difficult to respond to the specific needs of customers (the specific model in the execution) as you do not have a network of potential sellers. If you could build this, you would at least offer the customer the added value that you can drive a rare model that is currently nowhere else for sale for him.
That's how I think it's difficult. Because your business idea consists of "I sell better". This might work with small scrap from China (see tropshipping) but I will not work with anything.
It's gonna be hard to get around with old cars and have no idea about car. Even Ferrari dealers can't promise anything if the box runs round. But what is strange to me, if you have a lot of money, would you burn a lot for a car or how should your business continue in the future?
That's the problem. That's right. That's why I haven't started it yet. I am self-employed in the dropshipping area and I want to continue and live on it. The Ferrari business would be aside the income of money that is anyway aside and is currently not needed.
You seem to have forgotten the reality.
Why?
Why would anyone want to pay you $10,000 more than your seller – just because you think you can shoot great photos? You don't know anything about cars in general nor about the special copy. And have no name, no reference, no odor.
And how is this all going? You buy such a sleigh somewhere in Germany (the market is very manageable, as you will have to drive routes) and take it to your garage. Do you even have a transporter?
Then he is there – registered or unsubscribed? If the latter, you can't offer test drives – rather stupid. If first, you pay taxes and insurance.
And how many vehicles do you think you can implement in a year if you have only one (if any) in stock?
You forget what you want to achieve. Earning profit? How high is he supposed to be? Why should someone pay you more than a thousand euros, just because you do some chic pictures if you don't buy the boxes massively (how do you want to do that?)
to win. About 10,000 per vehicle. I'd trade off a cheap car from a show with bad pictures and dirty car. Then I would have the car ready, take beautiful pictures and adjust it as a serious dealer for 10K more. Then my thought was your a successful businessman who wants to buy the car is ready to pay 10K more to a reputable dealer and get a clean car to hand over than to leave himself with a dirty car from private. Especially in the price class the prices vary from 70-90,000€ for the same vehicle every week. So if I had the choice as a customer to buy a Ferrari for 90K at a dealer who has standing the car in perfect condition there, or privately for 80K from a renter who has not washed the car for 4 years in the garage, I would rather pay 10K more at the reputable dealer.
Well, if you mean… it sounds like a huge schnapps for me. Only the margin is so low. If that's a crate, you'll be with you for a few months because you don't find someone right now, you're losing.