shakalaka's House of Supercars

[The_Rural_Juror]

Pfftt...no hypercars.

[shakalaka]

Though the idea of supercar rental has also crossed my mind, but I would personally get into actual buying/selling rather than renting. There's way too many variables with that. If I was doing the renting business, I wouldn't do supercars, I would do luxury cars that your regular rental places don't have. Lease a few - rent them out, make sure they are bringing in more money than the monthly payments and sell them when they are reaching their mileage limits etc. I thought about that a couple of years ago but I think nowadays even Enterprise and Budget have started to carry those sort of cars so that's something where you're definitely going to have a tough time competing with big players like those.

But if you put a modern twist to that operation - app based, car is delivered to you etc., I am sure lot of people would be attracted to that. I mean we always had cabs and food deliveries and then you suddenly say things like Uber and Skip the Dishes take off which is providing the same services but with a little twist. What Killramos said is definitely a good point when you're trying to compete with already established player it can't hurt to have some sort of a different twist to the operation.

[The_Rural_Juror]

Like delivering food in an NSX? Sounds like a great idea. It's good on gas.

[Darkane]

I’d love to do something like this, I don’t know if it’ll work as a side gig though.

Need to quit lawyering.

[90_Shelby]

If you have enough coin to accumulate your own collection, you can determine on your own if you can fund your habit by moving your own personal inventory while working with Kulu or a broker etc. I don't think you need to actually start a business. Roll the dice on what cars you think are appreciating, drive them as much as you want before you think you'll hurt resale, watch the market and buy or sell based on your own predictions. Once you've created enough of a network you'll probably be able to buy or sell a few without the assistance of a broker.

Most collectors attempt to do this currently and you don't need a storefront to succeed, but you also need to recognize that you won't always make money on every car. If you can pull it off with your own collection and once you've created a big enough network, move on to a storefront if you think you can compete with the big dogs. The quality of cars will determine if you're playing in the big leagues or just another used car salesman.

[rage2]

Just so you know how tough it is, someone like ZR with deep pockets couldn’t crack the market. Aside from a handful of friends and associates, ZR didn’t grow past that and has now pivoted to wraps and mods.

You’re spending 99% of your time networking and trying to break loyalty of customers who doesn’t care too much about saving a few bucks.

[Rocket1k78]

Id wait for mitsu to chime in, im sure he knows someone who knows someone thats done this. If not im sure he'll have some good professional knowledge himself

[zipdoa]

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Just so you know how tough it is, someone like ZR with deep pockets couldn’t crack the market. Aside from a handful of friends and associates, ZR didn’t grow past that and has now pivoted to wraps and mods.

You’re spending 99% of your time networking and trying to break loyalty of customers who doesn’t care too much about saving a few bucks.

Is this because there's not a lot of justification for supercar ownership in this town outside of conspicuous consumption?

[max_boost]

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Id wait for mitsu to chime in, im sure he knows someone who knows someone thats done this. If not im sure he'll have some good professional knowledge himself

[ercchry]

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Is this because there's not a lot of justification for supercar ownership in this town outside of conspicuous consumption?

Probably due to being a notorious pawn shop owner with an exotic dealership in the heart of the hood with bottom of the barrel inventory and questionable style... proof that not all publicly is good, but dude is highly entertaining at least... but dumping an Enzo in the ocean and rebuilding it as an fxx doesn’t play well in a small world where people want transparent ownership, original, low mileage cars

[Disoblige]

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Id wait for mitsu to chime in, im sure he knows someone who knows someone thats done this. If not im sure he'll have some good professional knowledge himself

Wow, A+

[flipstah]

shakalaka wheel emporium? I approve

[The_Rural_Juror]

In my opinion, a shitty cars dealership would be more profitable.

[flipstah]

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In my opinion, a shitty cars dealership would be more profitable.

Does that include the 11% interest loan?

[rx7boi]

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Though the idea of supercar rental has also crossed my mind, but I would personally get into actual buying/selling rather than renting. There's way too many variables with that. If I was doing the renting business, I wouldn't do supercars, I would do luxury cars that your regular rental places don't have. Lease a few - rent them out, make sure they are bringing in more money than the monthly payments and sell them when they are reaching their mileage limits etc. I thought about that a couple of years ago but I think nowadays even Enterprise and Budget have started to carry those sort of cars so that's something where you're definitely going to have a tough time competing with big players like those.

But if you put a modern twist to that operation - app based, car is delivered to you etc., I am sure lot of people would be attracted to that. I mean we always had cabs and food deliveries and then you suddenly say things like Uber and Skip the Dishes take off which is providing the same services but with a little twist. What Killramos said is definitely a good point when you're trying to compete with already established player it can't hurt to have some sort of a different twist to the operation.

Shak's Turo fleet

[you&me]

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You need access to low mile, special cars at wholesale prices... so you need access to a large enough client base that is high net worth enough to not bother selling their own shit or to source their own shit.

For sourcing you need access to worldwide networks for most of these special cars, you need to find the people willing to sell and you need the ability to actually get the thing into the country... making money as a broker vs “car dealer”

In principle it is simple... but in reality... Kulu has the reputation already, what do you have?

This is the most accurate post in this thread, besides turning using "z" for all "s'" (obviously).

In this market, you aren't dealing with widgets; each car is unique and you have to have a good understanding of what the market values and likes for each individual car, model, etc (hint: it's not always what you like). The key is to be able to find those cars on a consistent basis.

Then you have to buy them at the right price. You have to understand market demands and trends, what the manufacturers are doing (new models, upgrades, finance rebates which can kill used values, etc). You have to be able to do this consistently as well, otherwise you end up buying compromised inventory just to keep the shelves stocked (presuming you have a full-fledged retail business). You truly need to know the market & thumbing through autotrader or Dupont registry doesn't count (that could lead to some very expensive mistakes).

Then you have to have the right contacts to get everything done. Transport, detail, repair work, reconditioning - all can be hyper expensive if you don't know what you're doing / what needs to be done and don't have the right connections.

I know everyone here is a car enthusiast (mostly) and thinks this would be a "cool side gig", and as easy as it is to slag "used car salesman", you have to realize this is real business. The used car market in the US is a nearly $800B a year industry - that's massive. You're talking about playing in the corner of a very large sandbox that lot of people and major corporations take very seriously. Manufacturers are helping their dealers succeed by constantly creating new tools that you won't have access to... Finance deals, CPOs, closed dealer auctions, etc are just the tip of the iceberg, yet make competing harder and harder for the independent. In the more "enthusiast" level of the market, there are the established players (the Kulus or Marshall Goldmans of the world), the major auctions (RM, Gooding, etc) and the digital platforms (BaT, PCar, etc).

My suggestion would be to stick with what you know and make as much $$$ lawyering as you can. Get the right connections and relationships and do it with your own cars, without the formality of a business, etc. Edit - yeah, like 90_Shelby said.

Double edit -

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Probably due to being a notorious pawn shop owner with an exotic dealership in the heart of the hood with bottom of the barrel inventory and questionable style... proof that not all publicly is good, but dude is highly entertaining at least... but dumping an Enzo in the ocean and rebuilding it as an fxx doesn’t play well in a small world where people want transparent ownership, original, low mileage cars

Nailed it.

[zechs]

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Definitely good points there. As I am typing this, I am sitting at a shop called Oraizen Automotive as I need wheel alignment. This is the guy I mentioned above that just seemed to have money and a few fancy cars who has started the shop. Pretty cool shop with simulators and nice waiting area etc. I think it's super cool when your hobby or passion can make you money like that. There's his own Huracan in here right now which is all modded up, there is a modded GTS, Gallardo, couple of pick up trucks, modded Mustang, modded GTR sitting here that are I am guessing are cars here to get work done.

.

I should share this with the owner next time I chat with him. An acquaintence of mine, this commentary brought the lulz.

I don't think the market for what you are looking at is particularily strong, or weak. With the right business model, anything is possible. There is a lot more competition in the Alberta market for what you are thinking of offering than you realize. It would appear some demand is there.

Very few people make real money off of automotive pursuits in this province. Most got their wealth other ways, and then semi-retire into the enthusiast car industry. You clearly already make very decent money. Is this a "grass is greener" thing?

[88CRX]

I don't know much about Kulu (or their business operations) but I'm going to guess that the amount of time, sweat and hard work that they've put into their business is significantly higher then the OP thinks (sorry Shak). Like whoever runs that place eats, sleeps and shits the luxury car market 24/7/365; and has done so for the last couple decades.

And it helps that they've been in the business for so long, and one would assume have built a fuck-load of relationships. Starting cold would suck.

[rage2]

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I don't know much about Kulu (or their business operations) but I'm going to guess that the amount of time, sweat and hard work that they've put into their business is significantly higher then the OP thinks (sorry Shak). Like whoever runs that place eats, sleeps and shits the luxury car market 24/7/365; and has done so for the last couple decades.

And it helps that they've been in the business for so long, and one would assume have built a fuck-load of relationships. Starting cold would suck.

I've been friends with Kulu since before he sold his first Lambo, what you described is 100% accurate. I would say it's next to impossible to start cold here without decades of grind.

[ShermanEF9]

Just do what the Ghermezians do. Buy a car, drive the shit out of it for a bit, then raffle it off at crazy prices in the middle of a mall, do the draw when you've profited.