The sales force at O’Gara Coach Co. has seen its share of exotics: $350,000 Lamborghini Murcielagos, Rolls-Royce Phantoms and even some garden variety Ferraris.
Then there’s the Bugatti Veyron 16.4 a $1.3 million over-the-top new offering from Volkswagen Group that’s not an exaggeration to say is in a class by itself.
The 1,000-horsepower coupe can launch itself, and two passengers, from zero to 60 and back to zero again in less than five seconds, making it far and away the fastest production car on Earth.
With a top speed of 253 miles per hour, it’s also launched out the dealership’s door faster than an Italian can say presto!
“We’ve never seen anything close to the buzz generated by the Veyron, in performance and in demand,” said Ehren Bragg, president of the dealership in Beverly Hills. “There’s no negotiation on the price, no haggling, no bargaining, nothing.”
The 10 Veyrons that have been allocated to the dealership so far this year including the blue, two-tone display car that is the showroom’s star attraction have already been sold and there’s a two-year waiting list for more.
But while the supercar’s million dollar price tag is far above the average $200,000 sticker price of the dealership’s other exotics, it’s not as though O’Gara is taking it all to the bank.
Indeed, with Volkswagen setting the price of the sports car artificially low the company reportedly spent more than half a billion dollars developing the car after buying the Italian nameplate in 1998 the dealership’s cut is a third of what it normally gets.
“It sells for $1.3 million, and that’s it,” said Bragg, who figures he easily could sell the car for $2 million. “We’re not making that much money off this car.”
It turns out the dealership is a victim at least in a relative sense of Volkswagen Group’s desire to raise its stature as a car maker above its namesake brand and the very terrestrial Passat.
Over the past several years, the German automaker, which also manufactures Audis, has snatched up an assortment of luxury nameplates, including the Bentleys and Lamborghinis that also are in O’Gara’s showrooms. But it sees the Veyron as a way of establishing the Bugatti as the superbrand of all exotics.
“We’re trying to establish a foundation for Bugatti here and investing in the future of the brand,” Bragg said.
Still, VW wants the cars on the road, not in museums the car maker has pledged to manufacture 70 Veyrons this year and has capped the price tag accordingly, though some analysts believe Volkswagen will lose up to $5 million per car.
Even so, the dealership is not exactly regretting it is one of only six nationwide selling the car. (Actually, the cars never pass through its property. Instead, it acts as a “finder” and refers prospective buyers directly to VW’s factory in France.)
Consider Tim Lappen, a partner with Jeffer, Mangels, Butler & Marmaro LLP, who himself owns exotic cars, including a Ferrari. While he didn’t purchase a Veyron, he did assist one of his clients a billionaire businessman he won’t name in getting one from the dealership.
“This is a technological marvel,” said Lappen, who has driven the car and enjoyed stepping on the gas pedal to experience G forces that can top Earth’s gravity and drill both driver and passenger into their seat.
“I really don’t see how the performance of this car could be surpassed. You would have to wear a space suit or something to protect your internal organs.”
That’s the kind of visceral reaction that O’Gara is counting on to build a buzz for the car and by extension the dealership. “There’s a ripple effect with a car like the Veyron,” Bragg said. “The same person who bought the Buggatti would also buy a Bentley or a Rolls-Royce, and I hope when they decide to do so they’ll come to me.”
