POWER UP
I’m a supercar dealer – we made £20m in profit last year thanks to our ‘unique business model’… but it’s risky
They claim their 'unique' business model separates them from the rest
A SUPERCAR dealer cleared £20million in profit last year thanks to "unique" business model.
The wealthy motor dealer made an eight-figure sum after shifting off 77 cars in just 11 months.
3
Tom Hartley Junior deals in exotic and high-end whips, and increased his company's turn over to a mouth-watering £181million last year.
Even more startling about the massive figure is the fact that he sold 25 less cars the year before, and still saw profit before tax rise by £8.8m.
Each car jumped in profit by 2.5 percent, from 11the year before to 13.5 percent, and the company owner - of the same name - credited his "small but extremely capable team" for getting the job done.
Speaking to , car dealer Tom, said: "It was a very good year and I’m very proud of my small but extremely capable team.
Read more Motors News
"Our turnover was in fact well over £200,000,000, as sales were also concluded on cars that we didn’t have in stock but received commission from."
Tom went on to say that the reason he's able to maximise profits is because of "unique business model" that he claims is not the same as his competitors.
In an annual report, car-dealer Hartley said: "The business model is very different to most competitors due to the fact that the company aims to buy most of its inventory, compared to just brokering cars like many others who operate at this end of the market."
He said that the unique model allows the company to earn a greater gross margin at the cost of taking on all the risk of acquiring the fancy cars.
Most read in Motors
According to the dealer, the fact that the risk is on the company means he has to pay close attention to all factors in the market - including being well-informed on the specialist motors they stock and trusting his "gut feeling" on the current market.
Motors currently stocked in his Ashby-de-le-Zouch-based showroom are some of the most high-end brands on the road, including nine ferraris, a selection of mcclarens, porsches, bentleys, aston martins, rolls royces and a selection of other motors.
'There'll never be another like it’ - Elon Musk hails upcoming Tesla with SpaceX tech to become ‘fastest road car ever’
Just to highlight the value of some of his cars, currently in stock is a 1962 Ferrari 250 GT0 - the same model sold by auction house RM Sotheby's for just over £41million.
And it's not just the financial risk that they claim is the reason behind the mammoth profits - he also said that the time taken in making sure the presentation is smack-on makes a huge difference - admitting that cars "don't sell themselves."
Previously sold stock includes several Ferrari F40 models, a Ferrari F50, Lamborghini Miura and a 1962 Ferrari 250 GT SWB.
Finally, Tom credited the loyalty of his customers which he said "does not go unnoticed" because they have been back to buy again.
Rare supercars are some of the most sought-after motors collectors hope to cop - but there huge prices can cut the que down substantially.
Recently, a classic car dubbed the "holy grail" by collectors put motorheads on high alert after discovering it will be sold at auction.
And, petrolheads gushed over an iconic motor that only has 800 miles on the clock - but the mammoth price is no small fee.
3
3
Topics