Podcast Summary
Car Market Volatility: Not a Crash but a Rollercoaster Ride: Despite recent instability, the car market is not crashing, but it's a volatile rollercoaster with risks for those in the sale or return business model. Be informed and cautious to avoid losses.
Key takeaway from the discussion with Carl Hartley is that despite the recent instability in the car market due to COVID-19 and other factors, it is not crashing, and those who have gained profits in the past few years should not assume that they will continue to do so. Carl emphasized that the car market is back to where it was before the pandemic, and while some people have made money in cars during this time, others have lost money due to lack of experience and being caught off guard by the market's volatility. The sale or return business model can be sustainable for some, but it comes with risks, and it's important to be aware of the potential downsides. Additionally, there have been instances of high-profile individuals having their cars seized, but the reasons for this can vary, and it's essential to be informed and cautious when dealing in the car market.
Being transparent and honest in car business transactions: Maintain trust and reputation by offering fair deals, adapting to market changes, and having a plan for quick car sales.
Transparency and honesty are key in business transactions, especially when it comes to buying and selling cars. While it may be tempting to try and manipulate the market or take advantage of a situation, it can lead to mistrust and ultimately harm your business relationships. Instead, it's important to be upfront with your clients and offer fair deals. However, the car market can be unpredictable, and values can drop unexpectedly. In such situations, it's important to be adaptable and find creative solutions to keep your business afloat. This may mean adjusting your pricing or finding new buyers for your stock. Additionally, having a plan in place for selling each car as soon as it comes into your inventory can help ensure a quick turnaround and minimize the risk of getting stuck with unsold stock. Overall, building trust and maintaining a strong reputation with your clients is essential for long-term success in the car business.
Personal connections drive sales in high-end car market: Effective sales in high-end car market come from long-term relationships and knowing clients' desires. Skepticism towards electric cars as supercars due to lack of sensory experience and soul.
The car market, especially for high-end and supercars, relies heavily on personal connections and long-term relationships between dealers and buyers. The most effective sales often come from word of mouth and knowing what specific cars your clients desire. The speaker also expressed his skepticism towards the future of electric cars as supercars due to their lack of the sensory experience and soul that comes with traditional petrol engines. He believes that electric cars may eventually become the norm, but not for a very long time. Additionally, the speaker shared an experience of making a significant profit, around 2 million dollars, from selling a very expensive, non-disclosed car.
Finding balance between profits and personal needs: Making substantial profits in cars requires calculated risks, but personal circumstances and priorities ultimately determine their value. Balancing financial gains with personal needs and relationships is essential.
Making significant profits in the car market can be achieved through calculated risks, but personal circumstances and priorities ultimately determine the value of such gains. The speaker shared his experiences of making substantial profits, including 200% and 100% returns, but also emphasized the emotional significance of replacing a cherished Pagani with the happiness of his family. While the allure of hypercar ownership remains, the speaker acknowledged the importance of balancing financial gains with personal needs and relationships. Selling a prized possession like a car can be difficult, but when circumstances necessitate it, the speaker encourages looking at things from a new perspective and considering the potential benefits. The speaker's journey from owning a Lamborghini Countach to a Bugatti Veyron and Pagani Huayra illustrates the evolution of his car preferences and the influence of personal experiences on his choices. Ultimately, the speaker's goal is to find the perfect balance between his love for cars and his commitment to his family.
Balancing personal desire and financial investment when buying a car: Find a car that aligns with both emotional attachment and financial considerations to ensure long-term satisfaction.
When it comes to buying a car, it's essential to find a balance between personal desire and financial investment. The speaker emphasizes that purchasing a car you love is crucial because if you don't, you'll likely sell it once you see a profit. Ferrari's F40 is a dream car for many, but its unpredictable twin-turbo engine and lack of driver aids make it a challenging and potentially dangerous vehicle. Despite its iconic status, some prefer the look and feel of the F50, which is now significantly more expensive than the F40 was in its prime. Ultimately, the decision to buy a car should be based on both emotional attachment and financial consideration.
Luxury Assets: Interconnected Market: Dealing in luxury assets requires staying updated on their values, as prices can fluctuate significantly over time. Luxury car dealers cater to a lifestyle where clients buy multiple assets, making them a one-stop-shop.
The world of luxury cars, boats, helicopters, and high-end watches is an interconnected market where the values of these assets significantly impact each other. The speaker, a car dealer, shared his experiences of dealing with these assets and the importance of keeping up-to-date with their values. For instance, a LaFerrari, a hypercar, was once a "sleeper" that could be bought for half a million pounds a decade ago but now commands millions. The speaker has even taken four cars and eight watches as trade-ins for a single LaFerrari. He also shared his experience with owning a helicopter and the challenges of maintaining it. The dealer emphasized that they cater to a lifestyle where their clients buy supercars, classic cars, hypercars, boats, helicopters, and high-end watches, making them a one-stop-shop. Thus, understanding the values of these assets is crucial to their business, as they trade in and out of them regularly.
A Mercedes V Class limousine became a game-changer during the pandemic: The pandemic forced businesses to adapt, and the Mercedes V Class limousine, with its office facilities and Wi-Fi, enabled the speaker to maintain productivity, revenue, and a unique selling proposition by delivering cars directly to clients.
During the pandemic, a Mercedes V Class customized limousine became an essential business tool for the speaker, allowing him to conduct deals while adhering to lockdown restrictions. This luxury vehicle, equipped with office facilities and Wi-Fi, enabled him to maintain productivity and revenue by delivering cars directly to clients, thus outpacing competitors in the market. Moreover, the speaker shared his personal experience of losing his driving license and how the V Class provided a solution to his mobility issues. He also discussed the financial aspect, expressing his disagreement with Dave Ramsey's advice against borrowing money for cars. The speaker argued that cars can serve as assets, appreciating in value, and that borrowing money to invest in a car while earning income from it is a sound financial decision. The speaker's experiences demonstrate the importance of adaptability and innovation in business, particularly during challenging times. The Mercedes V Class, in this context, served as a game-changer, allowing the speaker to maintain productivity and revenue while adhering to restrictions and providing a unique selling proposition in the market.
Three types of people who fund cars through borrowing: Smart financial move for business, first-time supercar buyers, or those with cheap interest rates. Negotiate effectively, understand your finances, and prioritize a positive experience.
Buying a car and borrowing money against it can be a smart financial move for certain individuals. However, it's important to consider the reasons for doing so and the potential risks involved. There are three main types of people who fund cars in this way: those who prioritize business decisions over equity, first-time supercar buyers who can't afford the upfront cost but can manage monthly payments, and those who take advantage of cheap interest rates. It's also possible to secure interest-only deals, allowing for lower monthly payments, but there's a risk of balloon payments if the car's value drops significantly. Negotiating effectively involves finding common ground with the person you're dealing with and ensuring they have a positive experience. Remember, the goal is to make the car buying process enjoyable, not a chore. When it comes to financing, the cheapest option is often to buy the car outright, but interest-only deals can offer lower monthly payments for those who qualify. Overall, the key is to understand your financial situation, negotiate effectively, and prioritize a positive experience.
Starting with a lower offer and persisting can lead to successful negotiation: Be open to starting with a lower offer and explaining reasoning, persist through initial resistance, and focus on building a long-term business relationship
Successful negotiation often requires starting with a lower offer than expected and being persistent, even when faced with initial resistance. The speaker shared an experience where he had to lower his initial offer for a car significantly in order to eventually reach a deal. He emphasized the importance of keeping the communication open and explaining the reasoning behind the offer. The speaker also acknowledged that sometimes, the customer may have the upper hand, and it's important to remember that negotiation is a give-and-take process. Ultimately, the goal is to build a long-term business relationship and keep the customer satisfied, as they may be a repeat customer. The speaker shared that he has sold and bought various items, from supercars to trees, and is always looking for opportunities to make a profit. He doesn't consider himself a materialistic snob and is open to buying and selling anything that can make him money.
Considering resale value when specifying a car: Balance personal preference with market demand to ensure a car's resale value. Features like carbon fiber and suspension lifters add value, while unique colors may not.
When specifying a car, it's essential to consider its future resale value. Specifying a car too individually to cater to personal tastes might make it difficult to sell in the future. Instead, consider the car's purpose and whether it's a lifelong investment or a temporary solution. Some features, like carbon fiber and suspension lifters, add value to certain cars, while others, like unique colors, may not appeal to everyone. Therefore, it's crucial to strike a balance between personal preference and market demand. Additionally, some customers may have unrealistic expectations, leading to challenging experiences. Overall, carefully considering the car's specifications and the buyer's market can help ensure a satisfying car-buying experience.
Customer demands can escalate if clear boundaries aren't set: Setting clear boundaries can prevent unreasonable customer demands and save costs in the long run.
Providing exceptional customer service can sometimes lead to unreasonable customer demands. In the discussed scenario, a customer bought a used Lamborghini Aventador and was upset about missing items like white gloves and a few spanners. The seller, trying to maintain good customer relations, ended up spending £710 on new gloves and a spanner. However, the customer's demands didn't stop there, as he later requested respraying for stone chips. The seller realized he had given the customer an inch, and the customer was trying to take a mile. If the seller had set clear boundaries from the beginning, the situation could have been avoided. Regarding the ranking of luxury car brands, the seller expressed his personal opinion that Ferrari is the best due to its brand reputation and overall experience. Lamborghini was considered great but not as good as Ferrari, as they make excellent cars but have average after-sales service. Porsche and McLaren were not directly compared to Ferrari and Lamborghini, but McLaren was criticized for having poor after-sales service.
McLaren vs Porsche: A Matter of Personal Preference: McLaren offers a more thrilling driving experience compared to Porsche, but requires more maintenance and has a negative reputation for aftercare. The choice depends on personal preference and priorities.
While some people may find Porsche cars to be reliable and predictable, others, particularly McLaren enthusiasts, argue that McLaren makes better driving cars with more engagement and excitement. McLaren owners appreciate the value for money, even if the cars require more maintenance and have a reputation for poor aftercare. The McLaren 570, for instance, is seen as a good value sports car that competes with the Porsche Carrera 4S GTS. However, McLaren's business practices and the challenges of maintaining their cars have given the company a negative reputation among some. Ultimately, the choice between Porsche and McLaren comes down to personal preference and priorities. While Porsche offers reliability and consistency, McLaren provides a more thrilling driving experience.
Preferences for supercars shaped by experiences and perceptions: People's opinions about supercars are influenced by their experiences and perceptions. Some cars, like McLaren and Maserati, are perceived as having quirks or issues but offer unique experiences. Others, like Ferrari and Porsche, are favored for their reliability and high standards. The choice between character and reliability is a personal one.
People have strong opinions about supercars, and their experiences and perceptions shape their preferences. Some supercars, like McLaren and Maserati, are often considered unpopular due to their perceived issues or quirks, but their loyal fans argue that these cars offer unique experiences and character that set them apart. Brands like Ferrari and Porsche, known for their reliability and high standards, are often favored for their consistent performance. However, even these cars can have issues, but their manufacturers are often seen as better equipped to handle them. Ultimately, the choice of a supercar comes down to personal taste, experience, and the value one places on reliability versus character.
Personal Preferences and Experiences of Luxury Car Enthusiasts: Individuals share their reasons for buying specific luxury car models, opinions on features, and thoughts on the value and exclusivity of brands like Porsche and Ferrari.
This discussion revolves around the personal preferences and experiences of the individuals when it comes to owning and appreciating high-performance luxury cars, specifically Porsche and other supercars. The speakers express their reasons for buying certain models, their opinions on specific features, and their thoughts on the value and exclusivity of certain brands. One speaker shares his experience of owning a Porsche GT 3 RS and expresses his reservations about its large wing and high price, while another defends the continuity and engineering excellence of Porsche cars. They also discuss their admiration for other supercars like the Ferrari SF90 and Lamborghini Aventador, acknowledging the pressure and challenge that car manufacturers face in creating new and improved models. Overall, the conversation showcases the diverse perspectives and passion of car enthusiasts towards their beloved vehicles.
Personal connections and respect for others: Unconventional decisions can be made for personal connections and respect, even if it means passing up significant financial gains.
Personal connections and respect for others can lead to making unconventional decisions, even if it means passing up significant financial gains. The speaker shares an anecdote about turning down an opportunity to buy a highly coveted car, worth millions, for a friend and the respect he has for the brand and the friend. He also expresses his preferences for certain cars, like the Bugatti Chiron Super Sport, Ferrari SP 3 Daytona, and LaFerrari Aperta, and shares his opinions on the value and looks of other supercars. He emphasizes that a supercar should be something extraordinary and exciting, just like a child's drawing, and that every car has its unique features and appeal. The speaker also mentions an encounter with a young client who came in to buy a car late at night, and the importance of maintaining good relationships and being approachable to fans and customers.
Unexpected interaction with a knowledgeable 9-year-old buyer leads to a sale: Unexpected conversations with customers can lead to unexpected sales and valuable experiences.
A 9-year-old boy, who called about purchasing a Lamborghini Urus, surprised Carl with his extensive knowledge and maturity during their conversation. Initially skeptical, Carl was impressed by the boy's inquisitiveness and the depth of his questions. Although Carl assumed the call was a prank, the boy's mother later contacted him to discuss the deposit for the car. The unexpected interaction led to a sale and an encounter with the family when they came to collect the car. However, the story took an unexpected turn when Carl encountered a potential buyer for his recently acquired Bugatti Chiron Sport. The buyer, who was there to pick up the Urus, had seen the Bugatti at a service center and inquired about its availability. Despite the significant savings, Carl refused to sell the Bugatti for less than its asking price, recognizing the value of the unexpected interactions and the impact they had on his business.
The Importance of Financial Gain in Business: Success in business often stems from a strong financial motivation, as demonstrated by young buyers and influencers making significant income through various platforms.
Success in business often comes down to the drive to make money, not just the love for the product or industry. The speaker shared stories of young buyers, including one who was responsible for purchasing expensive cars for his family, and another group of individuals making significant income through social media platforms like OnlyFans. He also emphasized the importance of being money-driven in business and shared that he enjoys his work primarily because it allows him to earn a profit. The speaker also mentioned Andrew Tate, a wealthy individual with an impressive supercar collection, and shared his thoughts on Tate's business acumen and influence. Overall, the conversation highlighted the importance of financial gain in business and the potential for innovative ways to generate income.
Appreciating authenticity and individuality: Valuing authenticity and individuality, even if it leads to controversy, and making informed decisions based on personal values.
Authenticity and individuality are valuable traits, even if they may sometimes lead to controversy or misunderstanding. The speaker admires a person who is unfiltered and unapologetic for their opinions, but recognizes the importance of discretion in certain situations. Regarding Tom Hartley, despite conflicting reports about his wealth, he is described as a grounded, old-school individual who values practicality over material possessions. The conversation also touches on the high maintenance costs and exclusivity of owning a Bugatti, making it a financially impractical choice for many. Overall, the discussion emphasizes the importance of staying true to oneself and making informed decisions based on personal values.
Avoiding Overpriced Luxury Car Repairs: Luxury car owners can save money on repairs by seeking out alternative, reputable service centers instead of relying on dealerships for expensive quotes.
Overpriced repairs by luxury car manufacturers like Bugatti can be avoided by seeking out alternative, reputable service centers. In the example given, a wing mirror motor that was quoted for £9,500 plus VAT was instead sourced for just 89p. This demonstrates significant cost savings and sheds light on the inflated prices often charged by luxury car manufacturers for repairs. This trend can make owning luxury cars like the Bugatti Veyron seem less financially viable, but as more people become aware of these alternatives, the value of these cars is likely to increase. It's essential to remember that justification for high prices doesn't always equate to actual value. Instead, it's crucial to explore all options and challenge quotes that seem excessive. Additionally, the current market presents an excellent opportunity to purchase high-performance cars at lower prices. Cars like the McLaren MP 4-12C can offer supercar performance at a fraction of the cost of a new model.
Finding joy and personal growth in unique cars: Unique cars can offer joy, improve driving skills, and provide personal growth despite challenges
Cars, particularly unique and high-performance models, can offer exceptional value beyond just monetary terms. The speaker shared his personal experiences of owning various cars, including a Testarossa, Aventador, Atom, and a BAC Mono. He emphasized the enjoyment and improvement in driving skills that come with these cars. However, some cars, like the Atom and BAC Mono, can be antisocial and demanding, requiring full focus and attention. The speaker also reflected on past experiences that hurt him, such as being dismissed for his privileged background. Despite this, he found success in his business and proved his critics wrong. Overall, the discussion highlights the importance of finding joy and personal growth in the things we value, even if they come with challenges.
Growing up in a family business: Unique challenges and opportunities: Confidence, quick decision-making, and resilience are crucial for success in family businesses or starting from scratch.
Working with family in business can be just as challenging as starting from scratch, but it also comes with unique opportunities. The speaker shares his experience of growing up in a family business and being pressured to buy into it by the age of 18. He describes the risk he took in investing all his savings into the business, and how valuable the experience was in teaching him to think on his feet and make quick decisions. He emphasizes the importance of confidence in one's abilities and the danger of overthinking or hesitating. The speaker also reflects on the importance of being a disruptor in business, someone who challenges the status quo and doesn't follow the crowd. He encourages listeners to be active on social media, specifically Instagram, to follow his journey. Overall, the speaker's story highlights the importance of resilience, quick decision-making, and confidence in one's abilities, whether it's in a family business or starting from scratch.
Building Strong Relationships - Personal and Professional: Building strong relationships, both personally and professionally, can lead to positive experiences and fruitful outcomes. Utilize various communication channels to access stock and collaborate effectively.
Learning from this discussion with Carl Hartley is the value of building strong relationships, both personally and professionally. Carl shared his positive experiences of buying cars from Tom Hartley Cars, emphasizing the ease of accessing their stock through their website, phone, or email. He also complimented the interviewer's ability to extract the best content. This marks the third interview between the two, demonstrating their rapport and the success of their collaborations, which have garnered millions of views. The episode serves as a reminder that taking risks can lead to fruitful outcomes. To explore more insights from Carl and other disruptors, be sure to check out the other episodes on the interviewer's show.
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