Hi Guys,
Looks a great forum hopefully you can help me with a few questions about going full time as a motor trader.
Been trading part time from home now for about 3 years and traded typically 2-3 cars a month. I`m finding that good cars at BCA (gold card)are fetching about £100/£150 above CAP clean which for a part timer like me is killing the bottom line so i`m considering going full time with a pitch may to hopefully increase my sales.
I`m looking for a pitch in the West Midlands area that will suit around 10 cars. I`m looking to sell cars in the £2000/ £4000 price range. Need another 6 cars at the moment so i`m working on a £25000 cash injection to fund the business during start up. Here are the costs as i see them can you see if they look about right and let me know if there is anything i have missed thanks. My biggest fears are the pitch lease/rent and car depreciation. With a 10 car pitch would you expect passing by/footfall sales to cover the cost of rent alone over year one or is that being a bit optimistic? I`m looking to increase sales to around 10-12 per month as well
Thanks in advance for your time.
Pitch - Rent/Rates £250 per week
Loan £20000 over 10 years £100 pw
Advertising £80 pw
Insurances £40 pw
Misc - fuel, telephones, electric, stationary, £50 p/w
So i make it around £520 at least p/w or £52 per car p/w to cover costs does this sound about right?
Once again thanks