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Old 10-31-2017, 07:16 PM   #1
Bud
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Default Antique car dealerships

How do the folks who run these businesses manage to purchase these huge inventories of antique automobiles, list the cars for high prices, and basically sit on the inventory for several years still stay in business? Don't taxes, overhead and slow sales eat their resources up? I don't understand how this works. I am just curious.
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Old 10-31-2017, 07:46 PM   #2
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I think it's a tough business, and many hobbyists tend to throw stones at these guys, citing price impact on the market and dishonesty. I have had the pleasure of seeing my good friend Tom Laferriere grow his business and he recently celebrated 10 years in business. I can say that he absolutely works harder than I do as a middle manager in a corporate setting. Dealers add value in several ways, often locating specific cars, carrying inventory so choices are in one place, handling logistics, etc.

Buying, selling, taking consignments, doing some consulting and now providing storage are all active parts of his business. We did business with Tom buying, trading and consigning. He was great to work with and we became friends. He is now doing more of the big iron amd big brass but still can help someone find or sell an early Ford.
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Old 10-31-2017, 08:37 PM   #3
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Default Re: Antique car dealerships

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How do the folks who run these businesses manage to purchase these huge inventories of antique automobiles, list the cars for high prices, and basically sit on the inventory for several years still stay in business? Don't taxes, overhead and slow sales eat their resources up? I don't understand how this works. I am just curious.
Well using your criteria it doesn't work. Having worked in and been around this paticular industry for twenty five plus years I have a good knowledge of the business. First off they either need a good banker or the have made their money in other businesses, and can self finance. Purchasing inventory comes mainly from hunting down leads from adds to word of mouth like you see on chasing classic cars. Some cars come from auctions but predominantly they come from private sales. Like any industry they need to turn the inventory quickly but how fast depends on the grade of cars. High end cars can take longer but the return is usually greater than run of the mill collector cars where the margins are smaller. Any time you have to sit on a car very long overhead cuts into profits,. Collector car dealers are just a glorified used car dealership with the same rules, the one difference is keeping a consistent quality in the inventory . I hope this helps
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Old 11-01-2017, 08:49 AM   #4
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Default Re: Antique car dealerships

Haven't you ever seen that car that someone is trying to unload because they can't store it. It gets cheap because they can't find that one person that would really love it. You can't buy it because your garage is full or your wallet is empty. Buying that car is the service that the dealer provides. If the dealer will work on commission, he doesn't need flooring costs, but still has rent and risk. Throw in possible service, parts, transport, appraisals, and a small room to rent to the local clubs for meetings and you can make a go of it.
Buying low and selling high isn't theft. There's a substantial service in spending the time and effort getting the right car to the right driver.
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Old 11-01-2017, 09:03 AM   #5
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Default Re: Antique car dealerships

I would think today is much harder for these specialty dealerships than it was 30 years ago with things like craigslist and facebook marketplace (classifieds).

Theres a local specialty classic car dealer to me and he sells classic cars but also motorcycles, ATV/dirtbike golfcart sorta stuff as well. They have to turn a profit so they are like any other dealer. Your car is worth 12 they may offer 9 but thats check/cash in hand that day and usually gone the same day or next on a towtruck VS you trying to sell it, weed out tirekickers, weed out morons, weed out scams for that extra 3k it may not seem worth it. Now hes gonna give it the best cleaning it can get and try to sell it for 15.
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Old 11-01-2017, 10:02 AM   #6
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Yep, it is a lot of work but there is a substantial service in getting the right car to the right person. Case in point, here is a car we bought through Tom and later when it was time (actually a weak moment) sold via consignment.

On the buying end – he came to get it in inventory by retrieving it around 600 or so miles out as a target car for another client looking to downsize from a big Classic to a little bit easier car to handle. The deal was never completed for one reason or another. Tom reached out to me because I had another collector friend looking for a nice Jr. Packard. Well, it never got to my friend. We did a deal and he took a Model A in trade on this car. Delivered from RI to CT. Cleaned up, serviced, etc.

When it came time to sell we consigned. Yep, he gets a cut, but takes care of all advertising, vetting serious vs. time wasters (I have sold cars myself and that to me is a huge plus) and uses outlets I would not be able to – his own web site and network as well as usual advertising channels. Turns out the buyer was overseas so he handled all of those logistics including getting the car to the port in NJ. It was kind of interesting to almost be a bystander for that process, yet no hassles – check in hand before the car left the house. Dealer takes care of any escrow, export paperwork, transportation logistics, etc. – whatever is required for both parties to be comfortable with the transaction.

So Tom made money on this car twice – but had to earn it both times – if you are not a hustler I would think you would starve. He has some help now, but was largely a one man show for a long time. That means you need to decide who to pay, if anyone else for hauling, cleaning, servicing, administrative, etc.

Here is a pic when we owned it and another one I like the buyer from Switzerland sent – all registered and on the Autobahn! Buyer took the time to advise he was pleased - I think because the car was honestly represented, some minor needs up front were communicated. An up front guy like that builds a reputation which might make people more comfortable with a long distance buy. I might be more inclined to buy from a dealer halfway across the country than an unknown private party, especially if he has a good reputation.
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Old 11-01-2017, 10:39 AM   #7
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Default Re: Antique car dealerships

I've often wondered the same thing. These guys don't have Factory Support like all the new car dealers with the holdback money they get at the end of the year, factory warranties, etc.

I have a friend that decided he wanted to sell his 1930 Model A Coupe, and put it in the local paper. He does things the old way. An area classic car dealer called and then came to his house, they agreed on a price and the car was sold to the dealer. My friend made a little money on the deal from what he paid for the car originally, not very much, the dealer detailed the car and fixed a few saftey issues, and sold it at a nice profit very soon after he got the car. It was only on his lot about two months.

Everybody walked away happy, the new owner got a pretty nice little Model A Coupe that had been gone-over, and the car dealership had cash in hand to buy another collector car.

So, I guess if they want to do the work, it works out. Can't be a lot of money in it as SeaSlugs says you are competing with CraigsList, and all of the stupid 'Picker' shows on cable TV that have everybody with an old car thinking they are sitting on a gold mine.......and demand stupid money for their cars. That and today, most people you deal with while you are trying to sell an old car are 'Flippers' inspired by the 'easy money' the TV shows promote. I've had a few of my own I've had to run off. What a nuisance they are.
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Old 11-01-2017, 02:31 PM   #8
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Default Re: Antique car dealerships

Another answer to your questions . As to how a lot of the cars are obtained if the dealer has been the business for a reasonable time he starts having a lot of people who know where the cars are and also who want him to sell for them their cars. I was in a specialty market for almost 20 years and I was asked many times the same questions you did.
I could be down to just a few cars in my lot and out of the blue I was over flowing with inventory. And in all price ranges . The wife and I were many times astonished what came into our possession for us to either buy or sell for the customers needs.
Also things happen to the owners of the cars divorce death bad business deals and the cars become a luxury that the owner needs to part with regardless of the price they have in it.
And the others have offered insight to the time and efforts of the dealer to maintain his operations and still keep the doors open. Even during the best of times it’s a struggle with all of the legalities and regulations from state and federal rules to keep his head above the waters.
So when you see a dealer who has been around for quite awhile you need to remember he’s payed his dues to stay afloat and unless he’s gotten a real lucky streak going he has been legal along the way or he would have been shut down long before.
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Old 11-01-2017, 03:26 PM   #9
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Default Re: Antique car dealerships

There was a comment that it was easier thirty years ago and that is a true statement it is a tough business. I had the opportunity to buy in as a partner fifteen years ago when this particular buisnesses sold and I took a pass it was a good dealership but I learned as a young man if you can't control the Supply of the product and the quality it is never going to be a stable business. These guys work very hard for their living but the do love doing it.
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Old 11-01-2017, 03:55 PM   #10
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Default Re: Antique car dealerships

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How do the folks who run these businesses manage to purchase these huge inventories of antique automobiles, list the cars for high prices, and basically sit on the inventory for several years still stay in business? Don't taxes, overhead and slow sales eat their resources up? I don't understand how this works. I am just curious.
Do they set up as "Antique Car Museums" charge the public to see the collection and sell them off to "collect" more?
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Old 11-01-2017, 06:04 PM   #11
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Do they set up as "Antique Car Museums" charge the public to see the collection and sell them off to "collect" more?
Some do like the museum in murdo sd but more likely the ones that do charge admission use it to keep the riff Raff out but the money they make on it was enough to pay for the lights only, if they have to run it like any other car dealership the fact they are collectible cars makes no difference.
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Old 11-01-2017, 06:39 PM   #12
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Some do like the museum in murdo sd but more likely the ones that do charge admission use it to keep the riff Raff out but the money they make on it was enough to pay for the lights only, if they have to run it like any other car dealership the fact they are collectible cars makes no difference.
The museum in Murdo is a long time family business. (At least three generations). Many of their museum cars are leased and not owned by them. They also buy and sell cars and parts. They have an annual auction also.

One of the things that is often overlooked is the ability to connect with other car enthusiast through there museum.
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Old 11-01-2017, 07:58 PM   #13
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The museum in Murdo is a long time family business. (At least three generations). Many of their museum cars are leased and not owned by them. They also buy and sell cars and parts. They have an annual auction also.

One of the things that is often overlooked is the ability to connect with other car enthusiast through there museum.
Yep I have know Dave geisler all my life and my dad used to buy cars from their Ford dealershIP from his father first and then Dave. When I was 17 Dave drove a mustang cobra inside the museum threw me the keys and said drive her home. Most of the collection he has owned but has turned over in the fifty years I have known it. Dave is careful to call it an attraction and not a museum. Museums are curated his is not
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Old 11-02-2017, 03:36 AM   #14
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Like antique shops, many of the car sellers have had other businesses that have generated quite a bit of money for them-sometimes an inheritance. In most cases, these
antique car lots are NOT highly profitable and are merely a passion.
The only ones who seem quite profitable are those on the high end of cars or those who have been thieves. Most struggle.
definitely not an easy business...............
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Old 11-02-2017, 12:22 PM   #15
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Default Re: Antique car dealerships

We sometimes "PUT DOWN" Guys that commercialize, selling CARS/PARTS, but it's a NECESSARY/INVALUABLE part of the Model A HOBBY!
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Old 11-03-2017, 12:06 PM   #16
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Hey Bud, I admire and respect most of the people who are in the business of buying and selling antique vehicles. It’s a lot of work, but if they love those vehicles like I do then it is also a constant treasure hunt. And, the feeling of being able to sell an antique car, motorcyle, boat, or airplane to someone who has fallen in love with that vehicle is priceless.

I regret not being able to keep all the wonderful vehicles that I’ve owned over the years, but the expence of SAFELY storing them in a climate controlled warehouse or whatever is way beyond my means. I’d rather have one individual have and love my ’34 Ford cabriolet, my ’51 Ford Victoria 2 dr. Hrdtp, my ’37 Ford coupe, or any other of the dozens of neat cars, boats, motorcycles (no planes) that I’ve owned. It’s not just Fords, but Chevies, Plymouths and foreign cars as well. If I’d kept them all, I wouldn’t be a collector, I’d be a hoarder which is a very selfish thing.

These people have to make money to survive, and if the price seems high then think of what it costs to keep something neat and worthwhile in that condition.

Thank god they’re around because there are a lot of cars that wouldn’t still exist without them.

As to how these dealerships stay in business, they've got to have the ability to recognize something that is worthwhile to reselling over something that is not.

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Old 11-03-2017, 08:02 PM   #17
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I appreciate all the responses. It has just been a topic I have wondered about and wanted to understand better. I thought it may also be an interesting topic to discuss and I believe it has. Thanks to everyone for their comments.
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