NEWS: New bill in US Congress would allow for turnkey replicas

[Mark IV]

Originally Posted by twobjshelbys

I'm not criticizing the law, only the expectation that it will turn the Cobra space into a new business model. I'm sure there will be some players in this space, I'm just doubtful that any of the major Cobra Replica folks will either abandon their "kits" nor add a complete vehicle line to their lineups in favor of a fully supported line of turnkey cars.

Why? It comes down to a TAM (Total Available Market) tradeoff. The Cobra market is fairly saturated with a cost point that is well known. Completed vehicles will add huge to that price due to the infrastructure costs. And since TAM for commodity products very nearly obeys entropy rules (TAM can neither be created nor destroyed, ie a buyer for a new commodity subtracts one from one of the others), I can't see anyone trading a well known business model for an unknown one. In other words, a line of completed cobras is not going to be supplemental to the total number of Cobras built.

Other cars could be successful. Good luck.

Can't think of any line that I'd be interested in with the possible exception of the Lotus 7 (in Prisoner dress) but Hillbank already sells the Caterham.

Doesn't Dynacorn have most of the Ford products already under license (Mustang for sure, and I think old Bronco)?

It'll be interesting to see the price band of vehicles built under this new paradigm.

There IS a market for these. There are people who want instant gratification as well as a Federally certified car with a WMI VIN will be easier to finance both for a retail buyer and for a dealer floor plan. As the VIN will show in VIN programs, banks will now see some collateral value in the cars, see what happens when you go to a bank with your state assigned VIN.......

As the #1 volume Caterham dealer in the US I can assure you that when we have certified "turn key" cars, we will have buyers. The current registration system turns many buyers off. Being a "Custom" or "Composite" model designation as well as the process and time involved in registering is a deal killer to some prospects. Being able to saunter down to the DMV with an MSO and bill of sale and have the VIN come up on the DMV computer will make some people happy.