Most Expensive Car Dealership In U.s. History

[gaijin]

Luxury battle looming

Most expensive U.S. car dealership faces world's largest Mercedes dealership.

By JOHN GITTELSOHN

The Orange County Register

NEWPORT BEACH – A $65 million new Lexus dealership, believed to be the most expensive car dealership in U.S. history, is under construction down the street from Fletcher Jones Motorcars, the nation's largest dealer of Mercedes-Benz.

It might look like car wars, but a looming battle between the two luxury dealers will be waged in a style fitting their marquis brands. General Motors and Ford may lure customers by slashing prices, but Lexus and Mercedes are drawing clients to the corner of Jamboree Road and MacArthur Boulevard by offering premier service.

"When you pull in, we want you to feel like you're at a five-star hotel," said A.J. D'Amato, co-owner of the Newport Lexus, which is on track to open in mid-2006.

Visitors to Fletcher Jones now pull up in lines where uniformed valets take their keys. At Newport Lexus, a "service concierge" will greet and direct arrivals to the proper department.

The Lexus lounge will feature a Wolfgang Puck Café in response to Fletcher Jones's Starbucks, where regular coffee is free, but clients must pay for cappuccinos or espressos.

The Mercedes customers can now amuse themselves on a four-hole putting green. Parents can park their kids in a playroom equipped with a TV for videogames. Call in advance and a childcare worker will be there too. Clients can get their shoes shined or their nails manicured.

For entertainment, "guests" at the new Lexus dealership will be able to watch one of two dozen plasma-screen TVs. Or they can curl up on a leather sofa warmed by a year-round crackling fireplace. An in-house boutique will "be like Tommy Bahama meets St. John Knits," D'Amato said.

There is talk of a hair salon and day spa offering massages and facials, although D'Amato said, "My wife thinks that's going too far."

For "guests" in a hurry, D'Amato promises to provide a free loan car within 10 minutes of their arrival. Both dealers will provide "preferred" clients - people who buy cars there - free car washes, free shuttle rides to John Wayne Airport and free parking while you're away.

Garth Blumenthal, general manager of Fletcher Jones, said he welcomes Lexus to the neighborhood. The ultimate winner will be the consumer.

"Both dealerships will have to try harder," he said.

The corner of Jamboree and MacArthur is not the only place in Orange County where luxury dealers offer luxurious amenities. In Santa Ana, Crevier BMW has a Diedrich Coffee shop, free loaners and shuttles to John Wayne. Already the nation's No. 1 BMW dealer in total revenues, Crevier is building a new $31.5 million showroom at its dealership in the Santa Ana Auto Mall, scheduled to open in 2007, where guests will entertain themselves with iPod stations and individual televisions at every seat. A Rudy's Barbershop will offer haircuts.

"We feel service separates us from the competition," said Rob McGee, Crevier's director of marketing and technology.

When it comes to location, Crevier cannot compete with the neighborhood where Newport Lexus will face Fletcher Jones, a straight shot down the San Joaquin Hills (73) Toll Road from ZIP code 92657, aka Newport Coast, which topped Orange County with an average household income of $290,000, according to 2002 tax returns, the most recent available.

"It's an outstanding location to sell cars," said George Peterson, president of Auto Pacific, a Tustin auto industry market analyst. "It puts Lexus in the heart of Orange County's luxury car market."

Mercedes typically gets more per vehicle. Data collected by Wards Automotive show Fletcher Jones fetched an average $60,132 per new car sold in 2004 compared to $42,423 per new vehicle at Tustin Lexus, which is owned by the same company as the new Newport Lexus.

D'Amato aims to sell 5,000 vehicles in the first year at Newport Lexus, which will hold 1,200 cars and SUVs on site.

The new location could help Lexus catch up with Mercedes in Orange County. In the first three quarters of 2005, data on Orange County compiled by R.L. Polk & Co. reported new registration of 6,638 Lexus cars and SUVs compared to 7,817 Mercedes cars and SUVs.

It's uncertain whether Lexus, which stakes its reputation on reliability, can bring in as much revenue on service. Instead, the Japanese carmaker is counting on good service to build customer loyalty.

"Everyone fixates on sales, but most of your interaction is going to be during service, especially while a car is under warranty, which can last for years," said Charlie Vogelheim of J.D. Power & Associates, the auto rating company. "A putting green isn't going to make or break a store. But it's something that's going to interest you."

Premium service benefits Fletcher Jones' bottom line in many ways. In 1994, the dealer earned 15 percent of its $496 million in revenue from its service, body shop, parts and accessories, such as sales of Mercedes clothing and sunglasses, according to Wards data. Among the nation's 100 largest dealers, the average was 12 percent.

Service is the main reason Ben Bazargani, an Irvine real estate developer, said he has bought nine Mercedes over the years from Fletcher Jones.

"Everything is exceptional," said Bazargani, 65, who enjoyed a coffee and shoeshine while his 2006 CLK 320 was being washed Friday morning. "It's a pleasant atmosphere. I meet friends and get a look at new models."

Blumenthal said Fletcher Jones is preparing to launch a special upper tier of service for customers who have bought 10 or more cars at the dealer, which opened in 1991.

"It's not enough just to sell Mercedes-Benz," Blumenthal said. "You have to brand your company and differentiate yourself from the competition."

__________________

[91L3xus]

Well where's the fun in that?

It renders family vacations pointless, but only if your traveling plans involve golfing, spa treatments, and shopping. And rental cars. And babysitters. And haircuts.

Father: "Pack your bags, kids, we're going to get the car serviced."

Kids: "Yay!!!"

:whistles:

And who needs a fire to keep warm by in the middle of Orange County?

[indiasfinest]

LOL!!! thats halarious but i would love to have a car dealership like that, just no so big, because customer service would suck at such a big dealership, since you get less attention and all

[nc211]

What about the hookers? Where are the hookers? Oh...wait....that's the Bently dealership...my bad.

[indiasfinest]

LOL!

[SW03ES]

because customer service would suck at such a big dealership, since you get less attention and all

Only if its poorly run. Some of the highest ranked dealers in the country are also the largest, Longo Lexus comes to mind.

[Lexus GS430 Guzzler]

Hate to be bad mouthing, but these guys deserve this:

Lexus of Newport Beach sucks. They're too busy walking around with their pinkies in the air, and acting like pompous tards than serving customers.

I'm not alone in feeling this - I've heard this a lot. Horrible service. Their car prices suck, and they've been deceitful about where their inventory come from. Hate Hate Hate.

Dealership wise, it's a nice looking dealership - I'll give them that. A nice looking coffee bar that happens to close early. Overpriced items in a little mini-store. And horrible service.

http://us.lexusownersclub.com/forums/index...mp;#entry335410

[Captain Meeks]

:( I would have to run and test drive a Merc...for the Starbucks...before getting my LS serviced...lmao ;) ....In Orange County...? Does the four hole course have a caddy...if not that is just uncivilized...lmmfao :whistles:

[smooth1]

So this place is up and running? take some pis when your there and post em here!

[dcfish]

Next there will be a Lexus Dealer at Disneyworld................

[Captain Meeks]

...Maybe they can make one of the rides the new LF-A roadster coaster.... :whistles: ..I would ride it...lol

[SOMEONE ELSE'S GOT MY NAME]

...Maybe they can make one of the rides the new LF-A roadster coaster....:whistles: ..I would ride it...lol

Holy ancient threads! :P

Our So Cal home is 20-ish minutes away from the New Port Beach Lexus dealership and the Flecher Jones boys. Not too many years ago the lovely folks of NPB (including FJ mercedes) sponsered an international airport in "our" backyard (meaning the surrounding cities of Laguna Beach, Laguna Hills, Irvine, Lake Forest, Mission Viejo, Laguna Niguel, Laguna Woods, and Aliso Viejo). Big Money NPB did NOT win that war. But the hard feelings remain. None of our surrounding cities has any impovrished areas ... by a long shot. We simply out spent them, and leagally out manuvered them. It took years of legal manuvering and spending. That said, I'd push our Lexus home before doing business with anyone in NPB. Well, actually, I'd call triple 'A' :P

But driving down Pacific Coast Highway (pch) we've seen the dealership. No big deal. Like most all older cities, NPB has its skuzzy areas too, as well as over-priced ones. That's one of the nice things about living in NPB's surrounding cities ... newer planned community/cities. New cities literally plan bad areas out of existence. You don't have to drive too far down PCH before you get away from the hoyty-toytie areas, near the NPB Lexus dealership, or FJ Mercedes ... or the Ferarri delership ... or the Lambo dealership, etc. But a huge chunck of the NPB Lexus dealership is just the cost of being where it is. NPB land in that area, even in these depressed times is horribly expensive. With the devaluation since that article came out? I'll bet NPB Lexus is really hurting.

Our Lexus replaced a big'ol land barge Range Rover. 13mpg. Oh boy. Unreliability, and over-priced too. What a combo. The Range Rover dealerships around here have all the fancy junk too (both NPB as well as the one in Mission Viejo). It just comes with the territory of being in a pricy area. Anyway, the Lexus Dealerships (NPB as well as others) GM dealers, Chrysler, etc ... they're ALL hurting now. When the Markets open tomorrow, it'll be quite a ride ... and the overpriced Dealerships of NPB? We'll see. But seeing how the economy has changed since Lexus made its plans to break ground (over three years back) ... you only know Lexus wouldn't have gone to all the expense if they could have had a crystal ball showing October 2008.

[Captain Meeks]

...Maybe they can make one of the rides the new LF-A roadster coaster....:whistles: ..I would ride it...lol

Holy ancient threads! :P

Our So Cal home is 20-ish minutes away from the New Port Beach Lexus dealership and the Flecher Jones boys. Not too many years ago the lovely folks of NPB (including FJ mercedes) sponsered an international airport in "our" backyard (meaning the surrounding cities of Laguna Beach, Laguna Hills, Irvine, Lake Forest, Mission Viejo, Laguna Niguel, Laguna Woods, and Aliso Viejo). Big Money NPB did NOT win that war. But the hard feelings remain. None of our surrounding cities has any impovrished areas ... by a long shot. We simply out spent them, and leagally out manuvered them. It took years of legal manuvering and spending. That said, I'd push our Lexus home before doing business with anyone in NPB. Well, actually, I'd call triple 'A' :P

But driving down Pacific Coast Highway (pch) we've seen the dealership. No big deal. Like most all older cities, NPB has its skuzzy areas too, as well as over-priced ones. That's one of the nice things about living in NPB's surrounding cities ... newer planned community/cities. New cities literally plan bad areas out of existence. You don't have to drive too far down PCH before you get away from the hoyty-toytie areas, near the NPB Lexus dealership, or FJ Mercedes ... or the Ferarri delership ... or the Lambo dealership, etc. But a huge chunck of the NPB Lexus dealership is just the cost of being where it is. NPB land in that area, even in these depressed times is horribly expensive. With the devaluation since that article came out? I'll bet NPB Lexus is really hurting.

Our Lexus replaced a big'ol land barge Range Rover. 13mpg. Oh boy. Unreliability, and over-priced too. What a combo. The Range Rover dealerships around here have all the fancy junk too (both NPB as well as the one in Mission Viejo). It just comes with the territory of being in a pricy area. Anyway, the Lexus Dealerships (NPB as well as others) GM dealers, Chrysler, etc ... they're ALL hurting now. When the Markets open tomorrow, it'll be quite a ride ... and the overpriced Dealerships of NPB? We'll see. But seeing how the economy has changed since Lexus made its plans to break ground (over three years back) ... you only know Lexus wouldn't have gone to all the expense if they could have had a crystal ball showing October 2008.

No joke there...I watched my stocks the other day and had to say 10 hail mary's...and I'm not Catholic...lol... oh well.. we will see.. I dont have any real short term investments so I will continue to ride it out.. but have just shut four companies down in the past few years I do feel the climate change.. If I would have had a crystal ball I would have bought stock in the company that made them... because that seems to be the only one that can make money for the time being..lol.. good insite though.. enjoyed your statement/right on the money

[SW03ES]

Seriously, I bet they wish they'd have held off on the project now lol

[Lexus GS430 Guzzler]

So, I met someone who is connected to one of the co-owners of Newport Lexus.

I've been informed that they haven't bought new inventory in 6months the last time they were updated. Their Lexus customer satisfaction numbers are also low.

[lenore]

Good thing it is a franchise, other wise your local dealership would be paying for it in increased prices.....

[eatingupblacktop]

In Japan they have restaurants, grocery shopping, spas, and daycare in their complexes. Since their market for car sales is shrinking every year, they're creating other revenue streams out of necessity.

[nc211]

I know these two dealerships, and know the area pretty well. Our HQ is in Newport Beach, by Fashion Island, and I've spent several weeks out there over the past few years. A few things I'll always remember about NPB: (1) A TV commercial for FJ MB, that had two 15 year old girls walking through the dealership, saying "when I turn 16, I'm getting that one" as she pointed to the $150,000+ SUV. (2) After three weeks out there back in 2006, I found myself walking through the Ritz Carlton parking lot one day, and said to myself "yellow is so ugly on that Ferrari". A split second later, I said to myself "reality check, time to go home now". (3) Walking out of Circuit City at Fashion Island, I noticed a Bently coupe, brown, and noticed it didn't have a sunroof. (4) A local weekend car show at the Star Bucks parking lot in Laguna Beach...need I say more. (5) The 19 year old kid who drove the shuttle van from the hotel to the air port, talking about his dad's new Ferrari, Lambo, and his own 911 Turbo. When I asked him what he was studying in school "assuming he was in college", he said "school is for those who don't have money already". When I asked him why he was working at the hotel as a velet, he said "honestly, there are some seriously hot !Removed! around here that hook up over here". When I asked what his dad did for a living, he said "hedge fund manager". I'd love to see that kid now. (6) and finally.... "metro-sexual". I'm sorry if I offend any of the guys on here from there, if the following applies to you. But, grown men don't get their eyebrows waxed, hair colored, nails polished, laser hair zap their beards, use beauty cream, and for god sakes, get some pants that actually fit! FYI: tight pants went out with Poison, Ratt, Boy George. What's with this new fashion statement where a pair of suit pants look like they're two sizes too small, and suit jackets that look like they're going to bust the buttons when closed? Jeezzz...

[jcrome04]

Hahahahah you're 100% right about metro's.

I guess at least they can borrow their girlfriends jeans.... or boyfriends.... :whistles: lol.

I'm so tired of seeing guys wear skinny jeans :chairshot: :chairshot: :chairshot:

[Randy&Bonnie]

..

[nc211]

I know these two dealerships, and know the area pretty well. Our HQ is in Newport Beach, by Fashion Island, and I've spent several weeks out there over the past few years. A few things I'll always remember about NPB: (1) A TV commercial for FJ MB, that had two 15 year old girls walking through the dealership, saying "when I turn 16, I'm getting that one" as she pointed to the $150,000+ SUV. (2) After three weeks out there back in 2006, I found myself walking through the Ritz Carlton parking lot one day, and said to myself "yellow is so ugly on that Ferrari". A split second later, I said to myself "reality check, time to go home now". (3) Walking out of Circuit City at Fashion Island, I noticed a Bently coupe, brown, and noticed it didn't have a sunroof. (4) A local weekend car show at the Star Bucks parking lot in Laguna Beach...need I say more. (5) The 19 year old kid who drove the shuttle van from the hotel to the air port, talking about his dad's new Ferrari, Lambo, and his own 911 Turbo. When I asked him what he was studying in school "assuming he was in college", he said "school is for those who don't have money already". When I asked him why he was working at the hotel as a velet, he said "honestly, there are some seriously hot !Removed! around here that hook up over here". When I asked what his dad did for a living, he said "hedge fund manager". I'd love to see that kid now. (6) and finally.... "metro-sexual". I'm sorry if I offend any of the guys on here from there, if the following applies to you. But, grown men don't get their eyebrows waxed, hair colored, nails polished, laser hair zap their beards, use beauty cream, and for god sakes, get some pants that actually fit! FYI: tight pants went out with Poison, Ratt, Boy George. What's with this new fashion statement where a pair of suit pants look like they're two sizes too small, and suit jackets that look like they're going to bust the buttons when closed? Jeezzz...

Newport Beach... that brings back some great memories!! When I lived there, there was a $70K Mercedes driving around and it's license plate read: NwprtVW

Hahaha! My boss, who spent 10 years in Newport Beach, has a beautiful 320E sedan, 01' I believe. He calls it the "Newport Camry".

When I had my 95' LS400 and would pick him up in the morning from the mechanic's shop, I asked him what he would call a car twice as old, twice as many miles, just as nice, twice as reliable....he said....Taxi!