Selling your home is pretty normal when you’re moving into another one. But selling your home to buy 20 Teslas? That’s unconventional, to say the least.
So, what would you do if you suddenly had a large sum of money sitting in your bank account after selling your house? Buy another home, invest it, or take a completely different gamble?
One British car dealer chose the last option. After selling his home, he had planned to use the money to buy a garage for his business.
When that deal fell through, he was left with a significant amount of cash and a decision to make: put the money toward another house or invest it in his dealership.
He chose Teslas.
Why He Sold His House
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At the time, he was living in one of his rental properties, a modest three-bedroom terraced house. Although he had previously lived in a nicer home, he said he began questioning whether buying another expensive property was really the best use of his money.
He spent most of his time working at the dealership and his partner also encouraged him to make the business a pleasant place to spend his days, since so much of his life revolved around it.
That changed the calculation. Instead of putting the money into another house, he decided to put it into inventory.
His plan was simple: buy as many Teslas as possible and build the dealership around them.
A Plan Written Down on Paper
The decision was backed by specific targets.
In August, before the new financial year began, he wrote down his goals. He wanted to sell 300 vehicles, generate around $6.1 million in revenue and hopefully make about $1.1 million in profit.
The targets came after what he described as the worst year of his roughly decade-long career as a car dealer.
He said the previous financial year had produced only around $27,000 in profit.
This time, he wanted to take a more focused approach. Rather than constantly changing direction, he planned to concentrate on Teslas and move other vehicles quickly.
For the dealership, named The Lovely Car Company, its first month provided plenty of encouragement, as it sold 35 vehicles in September, followed by 29 the next month, while November produced another 22.
December Was a Bump in the Road
Then came December. Only 11 vehicles were sold that month, which was by far the lowest sales month of the financial year, with the dealer pointing to uncertainty around changes to electric vehicle taxes and government policy as contributing factors.
For a business increasingly dependent on electric vehicles, the slowdown could have been a warning sign. Instead, he decided to stay with the strategy. The weaker December figures made him question whether focusing so heavily on Teslas was the right move.
He considered buying more traditional vehicles, but he ultimately resisted the temptation.
Back on Track
January brought 20 sales, with Teslas accounting for most of them. By February, he said roughly 90% of the dealership’s sales were Teslas.
The strategy was becoming increasingly focused, and the timing soon proved favorable.
As fuel prices increased, the dealer noticed stronger interest in electric vehicles. At the same time, prices at vehicle auctions began climbing, making it more difficult to acquire stock at attractive prices.
The dealership responded by concentrating on what he described as a sweet spot in the used Tesla market: vehicles priced below $27,000.The goal was to avoid overpaying at auction and pricing the cars beyond what customers were willing to spend.
The company sold 26 vehicles in March, followed by 27 in April, 27 in May, and another 27 in June. July reached 29 sales before August ended with 20.
In the End: 302 Cars Sold in One Year
By the end of the financial year, the original target had been reached and slightly exceeded. The goal was 300 vehicles, and the dealership sold 302.
A reminder that his revenue target was approximately $6.1 million, but his actual revenue reached around $6.8 million.
Of those 302 vehicles, 213 were Teslas, meaning the manufacturer accounted for roughly 71% of the dealership’s total sales for the year.
For the dealer, the results validated his decision to stay focused rather than repeatedly changing his strategy whenever market conditions became difficult.
What About Expensive Tesla Repairs?
There was still one major concern hanging over the strategy: repairs. Selling hundreds of used electric vehicles can expose a dealership to potentially expensive problems, particularly when major components fail.
The dealer said the dealership sold 213 Teslas during the year and experienced two significant warranty issues.
One involved a heating system problem that required several components to be replaced. He said the total repair cost came to about $1,170, including tax. The second case involved a customer whose Tesla developed a coolant issue.
Tesla reportedly quoted approximately $4,700 for a replacement heat pump. Rather than pay that amount, the dealership found an independent Tesla specialist and sourced a used heat pump for roughly $600. With labor included, the dealer expected the final cost to come in below $1,350.
For the dealership, the experience highlighted the value of knowing the vehicles and having access to specialist repair options.
The Bigger Picture
After reflecting back on the year, the dealer believes the biggest factor behind the results was not simply choosing Tesla. It was committing to a plan and refusing to abandon it every time conditions changed.
The dealership sold 302 vehicles and generated around $6.8 million, exceeding two of its main objectives. The results also changed his view of selling Teslas.
A year later, he says the decision transformed his business and his profit margins.