Originally Posted by cboy
By OptsMan's own admission, what the company was doing was selling and getting down payments on cars they didn't have and couldn't deliver in a timely fashion. As he says in post 618
"The factory could only produce 50 kits a month and we were selling over 200 a month..."
It doesn't take a geneous to figure out that even with the minimum down payment of $1,000, the company was raking in quite a haul. For example, after one month of operating in this fashion they would be 150 cars behind schedule and would have pocketed $150,000 in down payments on cars they simply had not and could not produce. By the end of their second month of operation, they would be twice as far in hole for unproduced cars, but now $300,000 in the black with pocketed down payments.
Keep that up for just one YEAR and you would be 1800 cars behind in production (a three year backlog at the rate of production stipulated by OpsMan) but $1.8 million in the black in collected down payments.
And if the stories told by customers are true, $1,000 down payments were just the tip of the iceberg. Many claim to have be required to fork over HALF the cost of their kits in order to insure production.
That's quite an interesting business model.
Again, That was 12 years ago, customer were paid back, How many companys go under and leave their customers hanging, we did the right thing, cant you come up with anything recent? Cause there isnt anything