[ChiragM]

Big shoutout to Jatin Ahuja for taking the time out & sharing his industry knowledge with us! Jatin is the Founder and Managing Director of Big Boy Toyz, a pre-owned multi-brand luxury car dealership.



Q: What cars do you personally own?

A: I have personally owned a couple of Land Cruisers, Range Rover Autobiography, Mercedes-AMG G 63 and the Toyota Alphard.

Q: How many outlets does BBT have in India?

A: Big Boy Toyz has its HQ in Gurgaon to cater to demand from North India, the Mumbai studio to cater to Western India demand and the Hyderabad studio to cover sales in Southern India. We plan on expanding the same to a couple of other semi–metro cities. We also have after-sales facilities in all three respective locations with the Gurgaon one being owned and run by us, and outsourced facilities in the latter two.



Q: And your total team size?

A: We are a team of 150+.

Q: Which city has the highest demand for supercars?

B: In the last couple of years, we have experienced strong response from our south market which is via the Hyderabad showroom. We witnessed maximum demand for supercars last year (GTO adds = driving is perhaps the safest leisure activity in these Covid times).

Q: Which city has the highest demand for luxury cars?

A: Our Gurgaon showroom receives the highest enquiries for luxury cars / super luxury cars as it acts as the centre position for catering to the demand from the whole of UP, Delhi and Haryana (GTO adds = North India makes for our country's largest market for new luxury cars too).

Q: How many luxury cars & supercars do you sell in a typical year?

A: Our annual sales of luxury & supercars together make it to approximately 350 – 400 cars.

Q: What is the lowest priced car that you sell? Minimum price band or segment?

A: Our car’s price range usually starts from Rs. 50 Lakhs for SUVs and sedans, and goes up to 6 crores for supercars.

Q: What is the most expensive range of cars that you sell?

A: There are many, but the top three include Lamborghini (SVJ for 5.75 crores), Ferrari and Rolls Royce.

Q: Which is the most interesting / rare car you have sold till date?

A:

• Lamborghini Gallardo LP 560-4 Noctis
• Lamborghini Aventador SVJ
• Rolls-Royce Phantom Drophead Convertible
• Ferrari F12 Berlinetta
• Lamborghini Huracan Performante
• Porsche 911 GT3

Q: Any car that you regret selling, wishing you’d kept it for yourself instead?

A: The challenge that comes with this business and being a car enthusiast myself is that every 5th car is something that you crave for. However, one that is imprinted in my memory is the Phantom Coupe. We had it in stock for quite a while, but eventually, we sold it and I clearly am waiting for a chance to own one.

Q: Tell us what you love about the luxury car business?

A:

• You meet successful people who are your target audience
• I see ourselves as "spreading happiness"
• Being surrounded by some stunning machines
• One gets to learn a lot everyday

Q: Things you dislike about the expensive car business?

A: There are some drawbacks of this business:

• A very capital-intensive business
• Inter-state registration is the most tedious process!
• The demand for high-end cars is always higher than the supply. Availability of these cars is not easy
• Highly technical inventory in terms of complex tech under the hoods of these high-end cars

Q: What are the biggest challenges of this trade?

With the current situation, procurement of cars has been our challenge, along with transportation issues.

Q: You once stated that selling a 7 Series is easier than selling a 3 Series. Why do you say that?

A: For us, selling a 7 Series is easier than a 3 Series as our audience are more into buying 50+ lakh than <50 lakh priced ones. Our holding period is 10 to 12 days so that’s when demand for 7 Series is higher compared to 3 Series (GTO adds that many industry players have told him the 7-Series buyer is less fussy than a 3-Series buyer).

Q: Which luxury brands in your opinion are the most reliable?

A: Luxury Toyotas are the most reliable - like Land Cruiser, Vellfire and others.

Q: Which luxury brands in your opinion are the most problematic?

A: Jaguar.



Q: Which car models are the easiest to sell?

A: “Luxury Utility” cars have shown higher results in the last couple of years; the sales of sedans and SUVs have increased.

Q: Which car models / brands are difficult to sell?

A: We have not faced too many challenges in selling a car, but at times, supercars stay around for sometime.

Q: Do you have an in-house workshop to take care of your cars? Or do you have a tie-up with an external provider?

A: Yes, we have in-house workshops. Our workshops include everything from painting, car servicing, bodywork, tyre changes, mechanical and electrical work as well.



Q: Do you offer any warranty to your customers? If yes, what is the km & time duration? Is it a bumper-to-bumper warranty? Or is it just on the engine & gearbox?

A: We do provide warranty which ranges from 6 months / 5000 km in case of sportscars on the engine & transmission, to 6 months / 15000 km in case of sedans and SUVs on the engine & transmission.

Q: How do you deal with the general public walking into your showrooms to look at these cars?

A: In Big Boy Toyz, everyone is welcome. We don’t believe in taking an appointment to see all the cars parked inside our showrooms.



Q: What's the BBT test-drive policy?

A: First, the customer needs to pay a 10% token amount either in form of a cheque or RTGS, then he / she can take a test drive for 2 - 3 km. Depending on the customer’s feedback, either the car is sold or the money is refunded.

Q: Do all luxury car customers test-drive before buying? You had earlier stated that many of these deals just happen on the phone. What percentage of customers buy an expensive car without seeing it in person?

A: Most of our clients don't even see the car in person (just photos / video), the cars are directly delivered to them. And it's increasing day by day. In terms of percentage, we would say it will be close to 55-60%.

Q: What is your buyback policy?

A: At BBT, we guarantee a 25% buyback for all our customers, wherein one can either exchange the car or unlike other brands, also sell the car outright. We will buyback the car within the first 12 months of purchase, and if its driven less than 5,000 km for supercars and less than 15,000 km for luxury cars / SUVs. Suppose the car was for 1 crore - 25% = 75,00,000/- is our buyback price.

Q: Is it possible to finance a used supercar in India? Say, a 5-year old Ferrari? Or a 6-year old Rolls Royce?

A: Yes, definitely!

Q: Is it possible to insure old exotics in India? Say, a 11-year old Lamborghini Gallardo?

A: Yes, possible. However, very few opt for it as the premium is too high.

Q: How has the GST regime affected the used luxury car business?

A: Yes, the GST system has affected the used luxury car business. Firstly, one already pays GST as a first-time buyer of the product and at times of resale, GST is to be paid again. Secondly, the taxation rate has gone up multifold. Would state that a 12% GST rate would be really beneficial from the business and consumer's perspective.



Q: Do you buy all the cars in your stock? Or are they also sold on a consignment basis, where the car is still the property of its owner?

A: All cars under our roof are bought by us. We have bought from practically all manufacturers in India and because of our bulk buying, we tend to get a price advantage which is passed on to our customers.

Q: What are the differences in selling a superbike and a supercar, especially under one roof?

A: Supercars start somewhere around 70 lakhs in the pre-owned segment whereas for the bikes it's easily accessible <30 lakhs. Hence, the price range plays a very important role here. Secondly, bike buyers usually require a lot of accessories and are ready to pay to modify their bikes. Lastly, selling bikes is easier as the bikers’ community is well connected leading to more buyers easily (from the network).

Q: Many times, we have seen manufacturers giving you their new car stock. How does that work? And how are you able to sell their cars when their own dealers cannot? Do these cars come with a factory warranty?

A: Yes, we have bought from practically all manufacturers in India and because of our bulk buying, we tend to get a price advantage. Factory warranty completely depends on the deal we have with that particular brand.

Q: How frequently do you lose money on a car?

A: 5% of the cars incur us a loss which adds up to a huge amount (GTO adds = because of the big ticket size). However, that is a part of the business. There have been times when we incurred a loss of 70 - 90 lakhs on a single car!!! Though it is a rare case, the repercussions are high.

Q: Are you open to buying and selling modified supercars as well? If yes, what’s the limit? Wraps? Aftermarket exhausts? What if a customer has added an after-market turbo or supercharger?

A: Yes we do buy such cars, but we normally remove the wrap and let the exhaust and turbochargers be there fitted in the cars. While selling, we update our customers about the aftermarket products on these cars.

Q: Do you have an age limit or mileage limit for your inventory? What if a car does not meet the age or mileage limit, but is a rare car like a classic Ferrari?

A: We prefer not to deal in cars more than 4 years or 35000 km driven. Exceptions are of course there. Further, in the case of classic cars or sports cars, they can obviously be older as well.

Q: Since you have imported cars before, would you still do that for a customer looking for a specific vehicle? Or do you just recommend a customer to pick from something readily available in India, and avoid the hassles of importing?

A: We always recommend something which is available here in India, since we don’t import cars anymore.

Q: Are grey market imports popular anymore? Or have cars imported through the official channels completely taken over. After all, every high-end brand now has an official presence in India.

A: Grey market imports scarcely exist other than the exceptional cases wherein one has sentimental value attached to a particular model. Practically speaking, the grey market imports are costlier than official channels and hence aren't viable or preferred.

Q: Do tell us the difference between selling a supercar like a Ferrari 458 and selling a luxury car like a Rolls-Royce Ghost.

A: Both have a different niche. In a country like India, it's easier to sell a Rolls Royce than a Ferrari just because of the day-to-day practicality and the road condition (Related Thread).

Both customers have one thing in common - "attention to detail". Since they are investing a major chunk of their money on these exotics, people do a thorough in-depth analysis on the condition.

Q: From your eyes, how has the supercar market evolved over the past 10-20 years?

A: If you see 10 years back, one could actually count the number of supercars in the country as they were limited. Buying a supercar was a setback a decade ago as one had to wait for the seller to sell his supercar (restricted availability). Now, one can easily step into a Lamborghini or a Ferrari showroom and buy one. Pre-owned / new supercars are now easily accessible for the buyers.

Q: How open are buyers to consider a supercar over a luxury car? After all, the former is extremely impractical compared to the latter.

A: The bottom line is that passion dictates love for a certain type. However, the customer base for both types are extremely different. A supercar usually has a customer base in the age group 18-35, meanwhile, luxury cars are preferred by 35+ aged customers.

Q: We are guessing that 1 – 2 crore customers love to be pampered. Do give us a few examples / instances of how you or your team have gone out of the way for customers?

A: We have facilitated a car delivery at 2 am! Our unboxing deliveries (check this video) are popular for surprises / gifts. We have also pulled off "a destination delivery".

Q: In the new car market, buyers are now preferring SUVs over other body styles. Have you observed a similar pattern in luxury cars?

A: Yes, a similar trend can be observed in the pre-used luxury market as well which is mostly because of the comfort, practicality and convenience they provide.

[GTO]

Thread moved out from the Assembly Line. Thanks for sharing!

Here is the link to our first interview in this series (Petrolhead interview of the month | Priyank Fatehpuria, MD of multiple car dealerships), in case you missed it. Also in the pipeline is an interview with one of India's most prominent supercar owners.

Originally Posted by ChiragM

A: In Big Boy Toyz, everyone is welcome. We don’t believe in taking an appointment to see all the cars parked inside our showrooms.

These guys certainly mean it. Here is BHPian Maverick1977's boy at the Mumbai outlet (link to full post (Big Boy Toyz (BBT) opens showroom at Andheri, Mumbai)). Future BHPian's day was made .

Lamborghini (SVJ for 5.75 crores)

[V.Narayan]

Very insightful interview. Even better than the first one in the series. Interesting observation of Jaguar being the most troublesome. I would love to own a Rolls Royce except I don't have the panache, or pizzazz or {pardon the expression} the guts to carry it off. Buy an RR, use it for a year and then return it back with a 75% refund. :-)

Must appreciate what the founder and owner has achieved. Not an easy business at all. I wonder about that huge investment in inventory. I guess the gross margin will need to be in the 60% to 80% range to pay for the inventory holding cost and the investment/cost of real estate and still make a decent return on equity.

[Big Smoke]

A new BBT Showroom is coming up in Kolkata to cater to the East India region.
It has almost been finalised to be set up in Newtown. The current covid situation and widespread lockdowns is holding up the project. I've already been contacted by a couple of guys who basically called to search for property for the showroom. I've re-confirmed the news with them, as well as my used car dealer friend.

On the other hand, I've always been interested in knowing the entire story of Mr. Ahuja, right from the first day of his career. The first car he sold was a Fiat Palio. I am really interested to know how he managed to scale up his operations to such a massive level. If Team-BHP could add some insights to the interview, I would really be delighted.

Originally Posted by GTO

Also in the pipeline is an interview with one of India's most prominent supercar owners.

Let me guess, is it the Poonawallas or Mr. Boopesh Reddy?

[CEF_Beasts]

An informative and knowledgeable interview from the best in the business! Although the risks are extremely high in something like this, the rewards + meeting different supercar owners + access to such cars is just something else, especially for car lovers!

Originally Posted by ChiragM

Lamborghini(SVJ for 5.75 crores).

For reference this particular Aventador with lots of options ticked was bought originally for ₹8.75Cr!!

[turbo]

Originally Posted by Big Smoke

Let me guess, is it the Poonawallas or Mr. Boopesh Reddy?

I'd guess that southern movie star, who also recently got an old defender, and got into a controversy with the number-plate font and style. Also has thread on his garage, IIRC.

[Big Smoke]

Originally Posted by turbo

I'd guess that southern movie star, who also recently got an old defender, and got into a controversy with the number-plate font and style. Also has thread on his garage, IIRC.

You mean Dulquer Salmaan, I see. Interesting.

[Jeroen]

Excellent interview. I have visited their showroom in Gurgaon in the past a couple of time.

I was surprised to hear so many of their customers don’t even show up in the showroom!

I have only once bought a car unseen from the Internet. After painstaking research and talking to the owner on the phone multiple times and having it inspected by a specialist.

Even then; I had to use my left hand/arm to push my right hand down on the mouse button to click “buy now”!! And it wasn’t all that an expensive car to start with!

I must be too much of a car enthousiast, or not wealthy enough! Most likely the latter.

Jeroen

[Turbanator]

Originally Posted by V.Narayan

Interesting observation of Jaguar being the most troublesome.

Some facts never change

Buy an RR, use it for a year and then return it back with a 75% refund.

Sorry, no refunds. You can get the amount adjusted towards your new purchase. All this time, you will probably have to keep the car in the name of the original owner (most likely, as heard from knowns). Everybody is happy, Car stays as first or second owner despite multiple ownerships. Have seen some cars that come back much earlier, like the blue 911, BBT got from Jaipur, sold and then it came back after few months, sold to another guy.

Not an easy business at all.

Absolutely not. They negotiate very hard at time of buying. Usually, if you have to sell, you will get at least 20-30% lower prices than the market, have experienced firsthand. They will clean the cars, remove minor scratches/ swirls etc. and make them presentable. Usually they will price 10-20 % higher than the market price. So the overall margin can be 20-30% depending on the purchase and demand of that car.

I guess the gross margin will need to be in the 60% to 80% range to pay for the inventory holding cost and the investment/cost of real estate and still make a decent return on equity

That will be huge and not possible even with BBT standards. They buy cheaper because of contacts and probably will take the risk by keeping the cars for few days. So, if any seller is in a hurry, they will pick. Mostly, high net individuals, who will either not wait to show to multiple people or because of the circumstances, need immediate sales.

Originally Posted by Jeroen

I have only once bought a car unseen from the Internet
I must be too much of a car enthousiast, or not wealthy enough! Most likely the latter.

They have got this ecosystem of repeat customers who don't mind paying 25% every year. So, even if they are getting something expensive or faulty, they simply return after a while and pick something else. Till the time, these people keep coming back, they will be OK. But, even if they don't come, they will have new customers. So, the business models just cater to the requirements of a unique set of customers. Not saying that everyone does but most guys will pick a car just on trust will fall in this category.

[carthick1000]

Originally Posted by Big Smoke

You mean Dalquer Salman, I see. Interesting.

I think he would be very glad to be interviewed on team-bhp. Dulquer, if you are reading, share your contact at share@team-bhp.com

https://www.youtube.com/watch?v=a4o7OL5lmtM

~01:23 Team-bhp is on last 3 tabs opened in his phone

[no_fear]

Originally Posted by Turbanator

All this time, you will probably have to keep the car in the name of the original owner (most likely, as heard from knowns). Everybody is happy, Car stays as first or second owner despite multiple ownerships.

This trick will never go away. And BBT is not the only one doing this. The other high end used car dealers in town are all resorting to the same stuff. This exact technique was discussed plenty in the used superbike sales thread.

[SmartCat]

Q: You once stated that selling a 7 Series is easier than selling a 3 Series. Why do you say that?

A: For us, selling a 7 Series is easier than a 3 Series as our audience are more into buying 50+ lakh than <50 lakh priced ones. Our holding period is 10 to 12 days so that’s when demand for 7 Series is higher compared to 3 Series (GTO adds that many industry players have told him the 7-Series buyer is less fussy than a 3-Series buyer

This is a stunning revelation:

- 7 series is easier than to sell than 3 series.
- Inventory turnover ratio is just 10 to 12 days.

That's probably because customers who walk-in are pre-funneled. They already are in the mood to purchase 1 Cr+ car because of BBT brand. But that's not the case with a typical pre-owned premium car dealer who has an inventory of 3 series/5 series/7 series. For such a dealer, 3 series is likely to be fast-moving while 7 series is likely to sit on the inventory for many months.

[Jeroen]

Originally Posted by SmartCat

For such a dealer, 3 series is likely to be fast-moving while 7 series is likely to sit on the inventory for many months.

I am not quite sure how it works for BMW dealers in Europe. But there was a time where dealers had to order say a 6-series, for every 10 3-series they ordered.

This was in the time when BMW had fewer models and the 3 series was selling like hot cakes. It meant that each dealer got stuck with 6-series in their inventories. Often ending up having to sell it with huge discounts!

Jeroen

[CrAzY dRiVeR]

Excellent interview.

Totally loving this series! What makes it more special is that we are not chasing the more popular names in the industry who have been interviewed multiple times. I'd still like to read a Pratap Bose interview though!

Originally Posted by carthick1000

I think he would be very glad to be interviewed on team-bhp. Dulquer, if you are reading, share your contact at [email]share@team-bhp.com

He is a Team Bhp member as well, but his privacy is totally his decision.

[HBK]

Originally Posted by GTO

[b]

These guys certainly mean it. Here is BHPian Maverick1977's boy at the Mumbai outlet (link to full post (Big Boy Toyz (BBT) opens showroom at Andheri, Mumbai)). Future BHPian's day was made .

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Back in 2018, When i was studying in Delhi,i used to live near one of their Showrooms. It was in Sultanpur.Being a car enthusiast, I used to visit it quite often but always stayed on the outside never tried to enter into the showroom. Normally it would be me alongwith 2-3 friends and none of us never dared to ask the security guard to let us into the showroom. Always thought he wouldn't allow us because none of us is gonna buy any car.
But now after reading this article i think maybe should have tried once.