Your input welcomed

[A-Mac]

People
My current business does not keep me fully occupied and it is dependant on some outside influences that cause a feast or famine trading style. I am thinking of taking a small unit in or around Milton Keynes to specialise in entry level water cooled Porsches i.e. 944 944T 968 and early higher mileage Boxsters. I would like to be in the c£6k through to c£15k selling range with me covering overheads and contributing to our overall operating overhead. I am not looking to have monster margins but sensible cars at realistic money ??

Whatcha think

Allan

[Blow Dog]

Certainly seems like an interesting job.
I'd be cautious based on the sheer volume of independant Porsche dealers around. I've got 3 within a 3 mile radius of me.
You could pop into a few and 'enquire' about their business?

Cem

[Henry CSL]

A great idea, I guess you`ve looked around your area and realised the potential for such a place?

I`ve got CamTune & Bramley almost next door, AFN is 20 minutes, Mid-Sussex OPC and Interporshe are 30 minutes.

I think an entry level Porsche Garage is always going to do well. A smart garage with a great reception area , the smell of fresh coffee and expert help & advice is a big thumbs up from me. Make people feel welcome and important.

[clubsport]

People
My current business does not keep me fully occupied and it is dependant on some outside influences that cause a feast or famine trading style. I am thinking of taking a small unit in or around Milton Keynes to specialise in entry level water cooled Porsches i.e. 944 944T 968 and early higher mileage Boxsters. I would like to be in the c£6k through to c£15k selling range with me covering overheads and contributing to our overall operating overhead. I am not looking to have monster margins but sensible cars at realistic money ??

Whatcha think

Allan

location & competition is obviously important, but it sounds like a lot of hassle to me. There may be margin to be made on the cars, but when early 944 can be found for £1500 with a max of £10k the kind of buyers will be new to porsche with great expectations and cars of this age can have expensive problems if maintenace has not been kept up. potential warranty claims and trader liability could make it difficult to make consistent profit in my opinion. best of luck if you give it a shot.

[Moz]

In principal you could make a profitable and viable business out of this (like pretty much ANY type of business I suppose).

However :

- Is there plenty of good quality Porsche stock in this sector ? (as in my experience, Porsche's that have dropped into this price bracket are pretty much all duffers, that you wouldnt want to attempt to sell from a 'quality portfolio / specialist' perspective)

- Assuming that you can tap into a source of good quality stock, is this stock likely to be coming from 'enthusiasts' who have cherished their Porsches over the years, and who typically adopt a higher value to their cars than others / & their true market value ? (surely you wont find quality cherished stock coming through the auctions at dealer prices ?)

I suppose if you can hook up with a number of OPC's and look to become their first port of call for anything that is coming in on trade-in (that would be too old or low value for them to stick in their showrooms), then you could tap into a good source. (You already personally know the Dealer Principal at OPC Silverstone, call him and have a chat about what comes through them ?)

Also, maybe you could look abroad (as you already buy trucks and plant machinery from all over the World, I dare say you are ahead of the game with a network of contacts here) - as if you can find good quality RHD (& LHD to a degree) Porsches from sunnier climates, where they are likely to of suffered less from weather corrosion etc, and you can maybe use the strength of the £ to buy them at really good prices...you could be onto a winner here. Are there many Porsches coming through the auctions in Japan ? (as they would typically run high spec versions, keep them in good condition and have enjoyed a good climate to keep a car 'fresh' + should be very cheap as 2nd hand car values are next to nothing in Japan's disposable society.

I also think that their is a really good market for selling Boxters out there right now - most folk hanker after owning a Porsche once in their lives, and the Boxter is now making that a real option for the 'everyday' man. Boxters are not far off falling into the £15k sector...there is good money to be made here I think.

FYI: we had a couple of Boxters on our Company Fleet to shift last year...I had an UNBELIEVABLE amount of strong interest from Traders on these - that must say something (I ended up getting strong money on both of them from 1 Trader)

Good luck

[A-Mac]

Thanks for all the positive comments. My thoughts are based on:-

1] I have already established a supply route from 1 x OPC and 1 x premium independant.
2] Can source exceptional cars outside these established routes.
3] I believe a market exists for a mixture of good entry level 944's & 968's along with exceptional examples of above and the natural progression is to early 986's.
4] Really want to keep to lower priced watercooled. Air cooled is a minefield for those of us with little knowledge. SC's start at c£11k Carrera 3.2's at c£14k and good 964's from c£17k all of which can cost plenty to put right if faults develop.
5] As cars come into stock. Carry out 87 point check by independant. This determines type of sale i.e. retail with sale of goods act etc or sold with faults disclosed [911 Virgin "millenium bug" style]
6] Progression will be natural by evolving into early Boxsters, early 996's as these become older. They will become desireable as said by someone "everyone wants to own a Porsche at sometime in their life" and as mileages increase, values decrease. Supply on either 986 or 996 will not be an issue in a year or two.
7] Reward for effort: I am looking at reasonable margins and minimal stock. So for example if a good 944S was on offer at £10,000 retail. I would expect to make c£1,500 gross from it after repairs etc. Same for a £17,000 Boxster 2.5 at around 12--15% A lot less than fancy outlets
8] I intend to start small with small, tidy , efficient premises but will invest & expand as required.
Camtune & Shirleys dont look that great but Autobahn does. All started very humbly just a few years ago, some have invested more than others in a future and an image.
Does this make sense ?

Allan

[Henry CSL]

When you`re buying anything as a customer you want a quality product and to be treated with total respect.

In point of fact I would go as far to say that if you do this right then word of mouth will be your greatest advert. I`m all for the coffee pot and luxury leather sofas approach, tastful decor and basic good manners. Presentation is the name of the game.

As Clubsport says;
the kind of buyers will be new to porsche with great expectations and cars of this age can have expensive problems if maintenace has not been kept up. potential warranty claims and trader liability could make it difficult to make consistent profit in my opinion. best of luck if you give it a shot.
I`m sure you have taken on board these points and your quality of stock will depend on you or your buyers intimate knowledge of the various Porsche models.

Good luck. :)

[A-Mac]

Thank you all for your kind words and enthusiasm. Now watch this space...Prob take 2 months or so to set up.


Allan

[A-Mac]

For those of you that are interested, I have located a quality retail unit in a good estate. Now awaiting OK on whether it is zoned for "Motor Trade".

I have also involved a well respected Porsche enthusiast who paticipates in concourse events, he will prep my cars for sale as well as take on outside work, thus diluting my cost of occupancy and providing stock that looks breathtaking. He will be on site full time.

I am meeting with my primary source of stock tommorow to discuss the mechanics of how it will work, along with quantities. He has outlined that he alone could supply 6 to 8 cars per month. I only need to generate the enquiries and close the deals [Only !!]

It's looking like it could happen

Allan