Money2536

I've been paying a bunch of money each month to be a forum sponsor, so I figure I should make one last ditch effort for you all to enter the giveaway. I'm going to explain the nuts and bolts below, but essentially you buy some stuff from me, and 'm then going to use a random number generator to pick a winner of my 2011 RS. https://www.obsessedgarage.com/pages...t3-rs-giveaway

We just finished telling the story of the car that I'm pretty proud of making. Please give it a watch.


I bought this car with the idea that I'd get it dialed in and roll the dice on doing a "giveaway" on it. I know you all see these all over the internet. The first I remember seeing was BMW CCA doing a car raffle for the membership. They were able to call it a raffle due it being a closed group of member only entrants. Then it became more popular for YouTubers to do it and call it a giveaway. I scoffed at the idea of selling out like that. That was... until I started doing the math. I make videos about cars, but I have a tendency to only want to buy really nice ones that I then proceed to spend way too much money on while getting them to my standard. Then when I'm done with said car, I end up selling it for $50,000 less than I have in it. I've done that more times than I care to put a number on. There are still a number of cars that I'd love to experience and can't fathom how much I'd lose doing it my way, so I started to open up to the idea of raffling off cars.

My friend Adam LZ did one and shared with me how he went about it. There was a 1M that my buddy was selling, that I was really considering. I generally hate turbo'd cars, so I was pretty sure I wouldn't want an N54 long-term. But...I really wanted to experience the car. I put pen to paper knowing very well that I would overspend on getting the car set up OE+ the way I like. The car would be $100,000+ when I was done, and it wouldn't be worth any more that what I paid for it at $50,000. I figured others really like the 1M too, so what's the worst that could happen if I tried to raffle it off? These were my requisites to do this:

1. I'm building the car for me, so I'm not cutting corners. Every car I've done, I go into it assuming I'm going to keep it. A line has to be drawn, but that line is drawn were I would have normally chosen for a car I was going to keep.
2. I need to sell a bunch of tchotchkes with high profit margin, but I at the very least want them to be legit.
3. I'm only going to do cars that I really like.

I think I ended up spending $120,000 on that first 1M, and netted about $35,000 profit at the end of it. The concept worked. I found a bunch of new followers, made a bunch of great videos, had a blast doing it, got to experience the car and check the box, and made a few bucks at the end of it. I ended up doing the 1M, F10 M5, '99 Civic Si, E92 M3, and the last one was an M2 CS. The M2 ended up making a couple of hundred grand net, so I thought maybe we could do something big. That's when I bought the decent, but needed some work for me to get it to my standard, 997.2 GT3 RS.



If you haven't seen the whole journey it's here: https://rennlist.com/forums/997-gt2-...s-journal.html

People are always asking how this is done, so I figured I'd share it here. First, you need to find an attorney with some expertise in this. My attorney https://sarafhawkins.com/ has an expertise in modern digital social media issues and specializes in online lottery rules. These things fall into the gambling legal category.

1. You must have rules written posted on the site.
2. You need to post bond in NY and FL based on the value of the prize.
3. You have to accept free entry via note card filled out a specific way.
4. You have to have a proven random selection process to chose winner.
5. Winner gets a 1099 issued for the value of the car.
6. Winner can be in any of the 50 states or Canada except Quebec.
7. We pick a time frame. This one is June 1 - July 31st. Hopefully that gives me enough time to cover the cost of the car. If it doesn't, I still have to give the car away. There is no backing out.

I set this one up that every mail in entry gets 1, and every $1 spent gets an entry. If you buy a Hytorc tool for $5000, you get 5000 entries. As of right now, if you bought one, you'd have a 1 in 116 chance to win.

Here are the expense numbers. It costs about $2500 for the attorney and bonding cost about $7500 for this car. I'm missing that in the spreadsheet below. You can see I paid $260,000 for the car. I was able to use my 991.2 RS sale as trade-in value, so I didn't have any sales tax on this. I've chosen to value it at $260,000 despite my expenses to take some of the tax burden away from the winner. For those that aren't too aware of how the tax code works in US, you get the 1099 for $260,000, add that to you gross income, work toward your Adjust Gross Income, and tax owed will be calculated. So...the winner is likely going to owe about $90,000 in tax.

I'm fully aware that the winner will more than like need to sell it. Another option for them would be to get a title loan on it and get a $300,000 RS for $90,000. Lot's of giveaways include cash to pay the tax, but I think that's dumb. You'd then need to pay tax on the $90,000. Then tax on that cash and tax on that cash. It makes no sense to me, so I don't do that.



Now, the conventional wisdom would say, "Hey Matt, why don't you open up the whole store to the giveaway?" It doesn't work to sell my normal products, most of which don't have enough margin to make the math work, and giveaway a $300,000 car. I have to sell things that I wouldn't normally sell and still hope that my regular sales continue. This needs to be an additional revenue source. The good news for me and the future of me doing another expensive, sought after car is high due to us doing pretty well with it. As of June 23rd, the numbers are looking great. I've almost covered the cost of the car. I'd really like to try and roll the dice again next summer and do a 458 Speciale! I think that would slay and open OG up a whole new audience that probably doesn't know what we do.

Anyway, thanks to those of you that have followed along. I hope to be back into another 997 RS someday in the future.

Matt

homesauce

Hey Matt, thanks for sharing and being transparent about this. I found the write up very informative.

I’ve been supporting your business since the early days and my garage has been largely inspired by your vision.

I appreciated that you even did a FaceTime chat to give me advice on my garage. Super happy to see you so fulfilled and the business really taking off.

Metaphysician

Great video - not just the production quality (your team's best yet) but the message about the journey and being "present." Your model worked - I bought some giveaway eligible items as well as some pressure washer setup parts. Best of luck to all of us!

my first 911

Anybody on here win this thing? I'm still waiting for a call, lol!

Bxstr

I believe a guy in Cinci won. Hopefully he comes on here to share his experience.

RAudi Driver

1234567890

ngng

All that spreadsheet tells me is the only winner is Suncoast lol

RAudi Driver

EMpunker

Pretty cool opportunity for someone who'd otherwise never own one of these cars, even if they have to turn around and sell it.

RAudi Driver

Listened to the podcast and didn't realize how much money is made on an auction.

Michaelalex17

@Money2536 I realize the 997.2 GT3 and the 991.2 GT3 and 718 Cayman GT4 are all very different cars but I am currently cross-shopping all of them. I know the 991 got an electric rack and people complain the feel isn’t as good. My question that I can’t get an answer to anywhere is actually about steering weight. How would you compare the steering weight of those 3 cars? You’re the only person I know who has or has had all of them and would love to get your feedback. And how do these compare to the steering weights of the e90 m3 and f80 m3 (my current two car garage).

seis-speed

FYI - There are active posters on here that have owned/own every generation of Porsche GT cars & have BMW collections as well. I do not think your answer will be limited to Matt.

997.2 GT3 will feel heavier like an E90
GT4 / 991.2 will feel lighter like an F80

Hope that helps, good luck!

Michaelalex17

Good to know and thank you that is helpful, more specifically then is the gt4/991.2 like the F80 in comfort, sport, or sport + in terms of steering weight?