Dream car giveaways.

[Charlie Farley]

Noticed an RS4 B7 on dream car givaways.

Nice bus but they are making a fair few pounds in profit .
1224 entries at £19.99 = £24,467.76
We buy any old bus valued it as a 5 previous owner car with part service history at £11,340 even allowing for we buyanybus low valuation , they are still making probably £8-£10k profit on it by selling as an online comp.

I may start this sort of business.

 

[Sidrick]

Great bunch of lads I'm obviously quite fond of them but having watched almost every draw for a few months I've built up an appreciation that it's not quite as simple as flipping a car and pocketing 10 grand.

Your 8-10k profit is based on:
- Buying a car near WBAC prices when, of the cars I've heard of being bought, they've often paid over list price to end auctions early, for example.
- All tickets selling out (they don't always, in fact they've made some significant losses)
- The car they buy being bought in the condition they give away (it rarely is, if you watch the draws they speak of anything from tyres and a service, to complete resprays or engine builds)
- The cost of sourcing, transporting, sometimes importing the cars
- Storage/premises/staff/hosting/tax/etc

Sure, on paper it may look like they're 'making' 10k per car, but that's not net profit.

 

[Charlie Farley]

I'm not having a dig at them scott, they have some nice cars , i've had a few goes myself.
I just cant help thinking they are making a lot more profit out of it than meets the eye, maybe it's just me.

I'll still stick a few pounds on one every now and again though.

 

[Sidrick]

How can they be making MORE profit than meets the eye?

 

[Charlie Farley]

Not sure scott, maybe they are just making lots of profit full stop with no eye involvment..lol, you know what i mean.

Maybe i'll just look at it as a high end raffle then.

 

[Sidrick]

That's all it is, really. Sorry, I know you weren't having a dig but I just wanted to say there's a lot of overheads in what they do, especially if a car ends up needing work before it can be given away. I wish I'd thought of it or had the capital to do something similar before though. I've a suspicion they make more actual profit from their non-car giveaways (Tech and tool bundles which are probably heavily subsidised by the manufacturer, or pure cash giveaways).

There's so many of these companies though; it would be impossible to start one now. One of the good things about the one you mention is that they set a date for the draw and that's it set in stone, whether they sell out or not. I've seen others delay and delay until they've sold all tickets, which can take weeks.

 

[tr7]

Selling thousands of tickets in a matter of days is no easy feat.

It takes a very well oiled machine.
Marketing costs
High Credit card processing fees as falls under gambling
High Chargeback rates (refunds)
On going Website development
Staff costs

Yes clearly they're making money and turning over a fair few per year, but they're not making much more than a good car dealer.

The difference is they were still 'selling' stock in the middle of lockdown as people were still buying tickets rather than visiting dealerships

 

[Charlie Farley]

I must say that despite all that they do offer some serious kit, and yes i agree with the closing date being set at the start.

I stuck a few quids on the BMW M3 that ends tommorow , looks like a nice bus for some weekend drives.

 

[Shaun Osborne]

Possible they get there stock from dealers, maybe even police repossession places, maybe they buy cars and have their own facilities to spit and shine them. Trust me they make shed loads of profit, otherwise it wouldn't be such a good business. I reckon they make upwards of 20% profit. Even you tubers like Calvin's car diary, and LLF do the raffles now.

 

[Shaun Osborne]

I must say that despite all that they do offer some serious kit, and yes i agree with the closing date being set at the start.

I stuck a few quids on the BMW M3 that ends tommorow , looks like a nice bus for some weekend drives.

Now that's a weapon right there.

 

[Sidrick]

Possible they get there stock from dealers, maybe even police repossession places, maybe they buy cars and have their own facilities to spit and shine them. Trust me they make shed loads of profit, otherwise it wouldn't be such a good business. I reckon they make upwards of 20% profit. Even you tubers like Calvin's car diary, and LLF do the raffles now.

They don't.

 

[Ricky Burrows]

Possible they get there stock from dealers, maybe even police repossession places, maybe they buy cars and have their own facilities to spit and shine them. Trust me they make shed loads of profit, otherwise it wouldn't be such a good business. I reckon they make upwards of 20% profit. Even you tubers like Calvin's car diary, and LLF do the raffles now.

Ricky @ LLF is probably one of the most savvy hard working business minded creators out there on social media platforms right now and he wouldn't do it if there wasn't a clear opportunity to earn a lot of money but i think its just like the car trade sometimes you make a shed load of money on one car the next you might just clear your overheads or break even and the next you may lose some money, at the end of the day only time will tell and separate the big boys and the toddlers, its just a glorified fancy car dealer anyway and we all know how many cowboys are in that trade.

 

[Shaun Osborne]

They don't.

And you know that? Please enlighten me.

 

[Shaun Osborne]

Ricky @ LLF is probably one of the most savvy hard working business minded creators out there on social media platforms right now and he wouldn't do it if there wasn't a clear opportunity to earn a lot of money but i think its just like the car trade sometimes you make a shed load of money on one car the next you might just clear your overheads or break even and the next you may lose some money, at the end of the day only time will tell and separate the big boys and the toddlers, its just a glorified fancy car dealer anyway and we all know how many cowboys are in that trade.

Yeah that's fairly true, however Ricky does have a manager, and a team that work in the background.

 

[Ricky Burrows]

Yeah that's fairly true, however Ricky does have a manager, and a team that work in the background.

He never started his journey with them people around him he's built a good platform and surrounded his self with people to help him become more successful, as you get successful you generally hire people to help you and take it to the next level, saying that though he isn't perfect he was stupid enough to try it on with DMO and ultimately got laid out for it at vmax lol.

 

[Sidrick]

And you know that? Please enlighten me.

I literally just did.

 

[Shaun Osborne]

I literally just did.

OK thanks.

 

[Shaun Osborne]

He never started his journey with them people around him he's built a good platform and surrounded his self with people to help him become more successful, as you get successful you generally hire people to help you and take it to the next level, saying that though he isn't perfect he was stupid enough to try it on with DMO and ultimately got laid out for it at vmax lol.

Yeah it looked that way, always two sides and I'm guessing we didn't see all footage.