Midlands Classic American muscle car dealer
Discussion
Hi,
I am thinking of starting up a Midlands American Classic muscle car dealership in the Midlands area selling imported cars and car parts and offering a servicing centre too. I was wondering if I could ask you guys if you think there would be a call for this and what your experiences have been with other dealers. Many thanks for your imput I value your opinion.
I am thinking of starting up a Midlands American Classic muscle car dealership in the Midlands area selling imported cars and car parts and offering a servicing centre too. I was wondering if I could ask you guys if you think there would be a call for this and what your experiences have been with other dealers. Many thanks for your imput I value your opinion.
I don't know the area well because I live in south west London, but having owned a few american cars I would say there is a strong fan base for classic and modern muscle cars. The issue I would suggest to you is that a lot of the guys that do want own these cars tend to work on them themselves and also do the import themselves as the price is considerably cheaper than what some dealers try charge for the modern muscle cars. Look at bill shepherd mustang he has had stock in his showroom sitting for a very long time. I often think of doing something like this myself if honest but then I weigh up the risk and obviously smaller market for lhd cars and tell myself it's too much risk. If you go ahead with it I wish you the best of luck and hope you do succeed.
Mal Bird from http://www.musclecartechnology.com/index.html used to do a fair bit of sales and servicing but I think he's taking it easy nowadays. He used to sell restored cars but also ones in need of attention and anything in between depending on the customer's requirements. I never bought from him but he was always very approachable and seemed to know his stuff.
Thanks for the input guys. To be fair there was a reason why the other companies folded. One because he had contracts with manufactures and they dropped off in sales and the other was predominantly in importing. I am looking at used classics focusing on the U.S. Muscle side with servicing and transportation. I think done correctly with minimum overheads there may be a call as I can't really find anyone else around the Midlands
Flashman65 said:
Thanks for the input guys. To be fair there was a reason why the other companies folded. One because he had contracts with manufactures and they dropped off in sales and the other was predominantly in importing. I am looking at used classics focusing on the U.S. Muscle side with servicing and transportation. I think done correctly with minimum overheads there may be a call as I can't really find anyone else around the Midlands
what about Oldcott Motors, aren't they in that market - or are they purely sales?Flashman65 said:
Hi stuart,
Yes we are looking to import, source in UK, restore, sell and also carry out service work on existing and new clients cars.
Regarding area we will eventually be looking around the Tamworth area for a premises but can collect and deliver from anywhere at present.
On the face of it, it's an interesting project, but the first thing I would be looking into is why no one else is doing it.Yes we are looking to import, source in UK, restore, sell and also carry out service work on existing and new clients cars.
Regarding area we will eventually be looking around the Tamworth area for a premises but can collect and deliver from anywhere at present.
I seriously doubt that you are the first to think about this as a business plan (in fact, years ago there used to be several American car specialists dotted around the country doing this exact same business and they've all pretty much disappeared now).
The problem with the classic American car market in the UK is that it's a niche market and comparatively speaking, it's a very small market.
The next problem is that the majority classic American car owners like to work on their cars themselves, be it servicing them or repairing/restoring them, rather than paying extra money for a garage to do the work instead, as the cars tend to be a hobby for them. In fact, most owners are highly proud of the fact that they do their own work.
The fact that classic American cars are comparatively easy cars to work on also means that owners are less likely to rely on a garage/dealer to do the work in the majority of cases, especially when it comes to service work.
Added to that, most of these cars are second or third cars in the family, so are not required for daily use. This tends to mean that there are no particular hurries when it comes to getting repairs done as there are on a car used daily.
As for importing classic American muscle cars, you may well find that by the time you've added your mark-up onto the price of purchasing the car in the first place, plus the price of transporting the car to the UK, any import duties required (if applicable), the cost of making the car UK legal and all of the various other costs involved, including any required repairs, the selling price of the car will be too high for many buyers as they know they could import a car themselves for a lot less and do the work themselves.
Importing cars from the USA in need of restoration, and then restoring them in the UK and selling them could pay dividends, but it's an expensive game to get into and you live and die by the quality of your work (reputations are quickly gained in the American car market!).
A UK based American car spare parts business is another sector that might be worth looking into, but you'd need a massive storage facility, and parts can already be bought from the States directly without too much fuss or expense so the margins and frequency of business might not be enough to make it work.
I'm not trying to rain on your parade BTW, on the face of it I can see where you're coming from with this idea and if you do decide to go ahead with it then I wish you best of luck, but I suspect it might be a lot harder to make a go of it than you first thought! - As I have already mentioned, there's a reason why no one else is doing it!
I'd also add that other key element - exchange rate. At nigh on $2/£1 it was a no brainer when I bought my 1st mustang. At 1.35 it's still a no brainer the other way. I think this is why many businesses cropped up and subsequently closed down.
Saying that, I'd love a garage like that to service my Yanks, but none around me I don't think. So I've got to think further afield.
Saying that, I'd love a garage like that to service my Yanks, but none around me I don't think. So I've got to think further afield.
I've brought parts from these guys, they been in business since 1983 so they must be doing it right
http://www.americanautocentre.co.uk
very close to Tamworth, so you probably know about them
http://www.americanautocentre.co.uk
very close to Tamworth, so you probably know about them
Edited by Viper on Monday 31st August 07:49
hanks Viper,
To be honest, no I didn't know about them. I have been buying my parts from the USA. Just finished all the mechanical parts to my Mach1, I,e new suspension, power steering, brakes, exhaust (bespoke sounds brilliant), engine mounts, seals etc !! I cant believe its raining today as its the first chance I have had to take it out on a blast !!
To be honest, no I didn't know about them. I have been buying my parts from the USA. Just finished all the mechanical parts to my Mach1, I,e new suspension, power steering, brakes, exhaust (bespoke sounds brilliant), engine mounts, seals etc !! I cant believe its raining today as its the first chance I have had to take it out on a blast !!
The is s are as follows:
1. The sort of classic cars that people actually want are even more expensive in the US, anyway. You also have to find quality cars and get them across a very big country. Add your shipping, import, conversion to UK lighting and registration and add on your profit and you're into prices people don't want to pay. cars like Mustangs will always be popular.
2. You could look at cars that are less popular and more esoteric - Buicks and the like but you have to find buyers and most people who want a Yank want the prescription Mustang.
3. Most people do their own servicing.
4. Modern desirable Yanks like Cadillac CTS-Vs and Hellcats require specialist diagnostics and they aren't cheap.
5. Places like RockAuto and container imports like STS Imports make getting parts really easy and cheaper than you could sell for.
6. People will want to part-ex crappy cars.
Finding desirable cars seems to be the issue - Pontiac GTOs and the like but even these are on the rise.
1. The sort of classic cars that people actually want are even more expensive in the US, anyway. You also have to find quality cars and get them across a very big country. Add your shipping, import, conversion to UK lighting and registration and add on your profit and you're into prices people don't want to pay. cars like Mustangs will always be popular.
2. You could look at cars that are less popular and more esoteric - Buicks and the like but you have to find buyers and most people who want a Yank want the prescription Mustang.
3. Most people do their own servicing.
4. Modern desirable Yanks like Cadillac CTS-Vs and Hellcats require specialist diagnostics and they aren't cheap.
5. Places like RockAuto and container imports like STS Imports make getting parts really easy and cheaper than you could sell for.
6. People will want to part-ex crappy cars.
Finding desirable cars seems to be the issue - Pontiac GTOs and the like but even these are on the rise.
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