James Zammit admits that he loves to sit and look at the Ferrari in his garage, comparing its sleek lines to a piece of art that deserves to be admired. It would not be that much of a problem, except for the fact that he is supposed to be selling it – along with some 450 used cars that his company Zammit Holdings now stocks.
His love of cars dated back to the days when, still a teenager, he hung around in his father’s 14-car showroom in Żebbuġ, a business he was entrusted with as soon as he was old enough so that his father could concentrate on his preferred property development business.
The showroom was never going to be enough for either his passion or his ambition, and his father helped him by building a five-storey showroom in Żebbuġ to give him a head start – just in time to benefit from the freedom of trade that EU membership would bring. But even this frustrated him.
“I am well aware of the jokes about ‘used car salesmen’,” he grinned. “But this is why we always wanted to do something different. So, for example, we were the first to offer after-sales service and a warranty – and even a replacement car if there is a problem, all of which are unique in Malta. And the purpose-built showroom is on a par with those of new car importers.”
This level of customer service made them stand apart from his peers, but Mr Zammit knew this would not be enough to fuel the growth he knew was possible, so he set about boosting the flow of cars by striking a deal with two leading new car importers, taking off their hands the used cars they were saddled with through part-exchange deals.
“I really believe in collaborating with other operators. I don’t see them as rivals but as businesses which should seek win/win situations, as in this case,” Mr Zammit said.
The stock of cars grew: instead of relying on local second-hand cars, he started importing used cars from the UK – and eventually from Japan. But he still felt that there was another big difference for customers between buying new cars and used ones: the financing.
He wanted to offer financing over a period of time through bills of exchange. The banks greeted his idea with polite derision at first but he refused to give up and eventually managed to raise several millions.
I really believe in collaborating with other operators. I don’t see them as rivals but as businesses which should seek win/ win situations
“It was very difficult as when you deal in large volumes, the amount of financing is challenging – especially when you are young. But we proved ourselves, using retained profits until the banks sat up and took notice,” he said.
And in line with his belief in collaboration, he now also offers financing options to eight other second-hand car sellers, through an MFSA licence he got in 2013.
“My ultimate dream was the luxury and exotic cars – which do not depreciate but actually gain value! I started off by buying the odd one here and there. But I was finding it hard to compete with Premier Cars in Burmarrad who had been in business selling sports and exotic cars since the 1960s. It made more sense to set up a joint venture and they were very interested by my ability to finance purchases,” he explained.
The joint venture was set up three years ago, and rapidly extended its presence with more showrooms in Gżira, Żebbuġ and Naxxar – and more stock.
As the business grew, so did the need for more storage space, as he believes in having a critical mass of cars to ensure that clients find what they need. They invested in 10,000 square metres of covered storage and are now able to stock around €7 million worth of cars – with more and more luxury cars, a niche that has always been his passion.
And then came the next step: they rebranded the showrooms as Cars Unlimited, a name which aptly captures his childhood dream.
“I wanted to dispel the image of a dealer with only a few cars!” he said.
To sustain the spiralling financing needs, Zammit Holdings had a private placement bond of €6 million through Calamatta Cuschieri last November, which was fully subscribed.
“It was very gratifying that so many Maltese understood our business model. We now need to grow again so the time will come when we need to consider more financing,” he admitted. “I’m sure that this will be a market changer, particularly vis-à-vis new car dealers and their franchised models. I am sure they will be working side by side with us.”
At the luxury end of the market, there is admittedly a limited amount of buyers – but there is an even more limited supply of cars, and the business grew as he managed to satisfy more and more clients, forging more and more contacts with suppliers.
As more of these rare cars end up in his hands, Cars Unlimited started attracting attention from foreign buyers from all around the world – leading to the sale of cars abroad – and they now represent some 10 per cent of all his sales.
“Some of the cars are so rare that as soon as I buy them – from either auctions, dealers or individuals – I get a call from a prospective buyer and sell it on without it even having the chance to bring it to Malta!” he smiled.
This is how he ended up with the Ferrari 458 Speciale and Lamborghinis, which he describes as “exotic”, well beyond just being “luxury” cars. He is now excited by the idea of growing his international business for these rare cars, knowing that a good online presence effectively makes the world his oyster.
But, in the meantime, it has to be said that he does not seem to be trying terribly hard to sell the Ferrari.
“Erm,” he paused. “I’m waiting for the price to be right. But in the meantime, yes, I do love to be able to sit in it and start it up every now and then. It is 4,495cc of roar…”