It's hard to get a bank to finance a replica because these cars aren't like a Honda or a Ford; there generally isn't an agreed on value for these cars out there...the Kelly Blue Book for replicas doesn't exist.How many people finance their dream car is to take out a mortgage. And with rates as low as they are, that's not always a bad thing.
Insuring the cars isn't all that difficult, there are a few companies out there that will insure the completed car, and if you're one of those fine upstanding citizens with no tickets, blemishes or cheese on your driving record you can usually get your existing insurance company to cover the car.
On the other hand, building cars for other people is a crap shoot. You don't know how that person is going to drive the car. You don't know for sure if all of the parts are going to be completely free from defects. If a part fails on a car that you built, you're going to get sued into oblivion. If the driver screws up while driving and crashes, you're going to get sued into obilvion. If the buyer doesn't like something, you're going to get sued into oblivion. You're going to need some really, really, really good insurance to make sure that you're not paying for something for the rest of your life.
In my opinion, building a kit car for use by others as a business is not at all a safe proposition. If you build cars for yourself then later sell them, that's completely different thing.
There's a reason that kit car companies generally manufacture only kits, and not build them. Many manufacturers have 'authorized builders' who they can refer you to, but those 'builders' aren't connected to the company. Lone Star is one of the only companies I know that builds their kits in house. They also allow customers to build their cars at their facility. I have no idea why Lone Star would want to expose themselves that way. I wouldn't do it. Even if I believe beyond the shadow of a doubt that my kit is the BEST one on the market, I will not take responsibility for someone building a car and not torquing down a suspension bolt right, or using a cheaper halfshaft than I recommend, or not mounting something that could fail if not installed properly. I will not take responsibility for how someone drives their car. I will not take responsibility for tire choice. There are just too many variables that are involved with building a car - too many things that (individually) don't mean much, but when strung together - can go wrong.
With few notable exceptions, kit cars are generally replicas of high-performance cars. High performance cars can kill you. Replicas that aren't built right, designed right, assembled right, or driven right can kill you. People will believe that their replica is as good as the original (sometimes the replicas are better than the original!), and will drive them like that. Those people can die if they make a mistake taking a curve, or miss a critical shift, or missing a brake pedal.
I'm not trying to talk you out of building replicas, but I'm making sure you're aware that there are many things that are out of your control that could go wrong. And, as the builder, you'll get blamed. The one thing you need to make sure of is that you use the best quality materials, you don't cut corners, and you get some seriously kick-ass insurance. And incorporate.
Good luck, and I'd love to see some of your work!
Your pal,
Meat.
(26 views)
starting a turnkey company
Posted - February 07 2003 : 10:45:09 PM
