The UK's first billionaire car dealer.
Discussion
Arnold has done well for himself.
driving.co.uk said:
SIR ARNOLD CLARK has become the first billionaire car dealer after the wealth of his family rose £350m in a year to £1.025bn.
Clark, 88, has greatly increased the gap between himself and Lord Edmiston, the second-wealthiest car dealer, according to The Sunday Times Rich List 2016, published tomorrow. It will say that Arnold Clark Automobiles, based in Glasgow, saw profits rise sharply in 2014 to £107.2m on record sales of £3.2bn. Other family assets include the yacht Drum, once owned by Simon Le Bon.
LinkClark, 88, has greatly increased the gap between himself and Lord Edmiston, the second-wealthiest car dealer, according to The Sunday Times Rich List 2016, published tomorrow. It will say that Arnold Clark Automobiles, based in Glasgow, saw profits rise sharply in 2014 to £107.2m on record sales of £3.2bn. Other family assets include the yacht Drum, once owned by Simon Le Bon.
Lots of profits coming out the car industry, at a time the global economical outlook is quite gloomy, sounds to me like things are setting up for a big upset.
The amount of cars being sold on pcp and lease deals with very generous final valuations seems dangerously high, I wonder who is actually carrying that liability.
The amount of cars being sold on pcp and lease deals with very generous final valuations seems dangerously high, I wonder who is actually carrying that liability.
poing said:
It's not really a surprise with such a professional and respected car business. I've never heard anyone say a bad word against them.
Oh my, how I chuckled. Back around the year 2000 my integrale developed a noise from the rear, I took it to the only remaining Lancia approved dealer/repairer in Scotland, you guessed who? I was quoted 1300 quid for a new propshaft and universal joint.
Took the car to a back street garage with a second hand prop shaft and new cheap universal joint. overal cost was around 200 quid. The fault wasn't any of this, was an inner wheel bearing. How did he get so rich?
ging84 said:
Lots of profits coming out the car industry, at a time the global economical outlook is quite gloomy, sounds to me like things are setting up for a big upset.
The amount of cars being sold on pcp and lease deals with very generous final valuations seems dangerously high, I wonder who is actually carrying that liability.
The amount of cars being sold on pcp and lease deals with very generous final valuations seems dangerously high, I wonder who is actually carrying that liability.
Dyl said:
Sales in 2014 of £3.2bn?! Thats almost £9million per day, seems very high!
3% profit margin, on the other hand, is lower than i would expect. Especially including gap insurance, servicing, et al which one would expect to be high in profit.
Thats the level of margin in it for a volume big dealers. Yet people think the dealer is making thousands per car.3% profit margin, on the other hand, is lower than i would expect. Especially including gap insurance, servicing, et al which one would expect to be high in profit.
ging84 said:
The amount of cars being sold on pcp and lease deals with very generous final valuations seems dangerously high, I wonder who is actually carrying that liability.
The manufacturers finance division. Apparently BMW Finance were down hundreds of millions back in '07 when the market crashed and people handed back their cars on VTs and at the end of term instead of trading in.The margins are small but there are no end of customers, I assume the profit margins tie in quite nicely with all the investment in new plots & shiny showrooms going up all over the place in the car business.
The backend cashback from the manufacturers on the bulk sales is where the money is made, retail side is almost 0% margin or at a loss going by what I glean.
They have a few good things going on dealer wise like in house non sales people who chat & advise customers, some quite neat sales video things on the cars in stock etc.
What happens when people can't afford their £190 a month for their econobox when the interest rates go up to 10% I don't know.
The backend cashback from the manufacturers on the bulk sales is where the money is made, retail side is almost 0% margin or at a loss going by what I glean.
They have a few good things going on dealer wise like in house non sales people who chat & advise customers, some quite neat sales video things on the cars in stock etc.
What happens when people can't afford their £190 a month for their econobox when the interest rates go up to 10% I don't know.
ging84 said:
Lots of profits coming out the car industry, at a time the global economical outlook is quite gloomy, sounds to me like things are setting up for a big upset.
The amount of cars being sold on pcp and lease deals with very generous final valuations seems dangerously high, I wonder who is actually carrying that liability.
Precisely.The amount of cars being sold on pcp and lease deals with very generous final valuations seems dangerously high, I wonder who is actually carrying that liability.
What people need to understand is it isn't a car industry, it's a CREDIT industry... and as we're currently enjoying the biggest debt binge the world has ever known then any manufacturer that offers cheap and easy finance for it's products is going to do well.
For now...
deltashad said:
Oh my, how I chuckled.
Back around the year 2000 my integrale developed a noise from the rear, I took it to the only remaining Lancia approved dealer/repairer in Scotland, you guessed who? I was quoted 1300 quid for a new propshaft and universal joint.
Took the car to a back street garage with a second hand prop shaft and new cheap universal joint. overal cost was around 200 quid. The fault wasn't any of this, was an inner wheel bearing. How did he get so rich?
Breaking News. Secondhand parts cheaper than new parts. Back street garage cheaper than franchised dealer. Shock!Back around the year 2000 my integrale developed a noise from the rear, I took it to the only remaining Lancia approved dealer/repairer in Scotland, you guessed who? I was quoted 1300 quid for a new propshaft and universal joint.
Took the car to a back street garage with a second hand prop shaft and new cheap universal joint. overal cost was around 200 quid. The fault wasn't any of this, was an inner wheel bearing. How did he get so rich?
mike74 said:
ging84 said:
Lots of profits coming out the car industry, at a time the global economical outlook is quite gloomy, sounds to me like things are setting up for a big upset.
The amount of cars being sold on pcp and lease deals with very generous final valuations seems dangerously high, I wonder who is actually carrying that liability.
Precisely.The amount of cars being sold on pcp and lease deals with very generous final valuations seems dangerously high, I wonder who is actually carrying that liability.
What people need to understand is it isn't a car industry, it's a CREDIT industry... and as we're currently enjoying the biggest debt binge the world has ever known then any manufacturer that offers cheap and easy finance for it's products is going to do well.
For now...
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