Lucas

That is true.

That's what I am thinking, too. I actually didn't know car sales can be in the industrial unit and home-based before! As an end user, I thought car dealers should be found on the roadside until I come to this forum. So, maybe some other end users like me also only know the roadside dealer. That also convinced me to take the roadside pitch.

Thank you met. Good idea. Will do some research up north later.

Thank you tradex. Yes, it's too far, so I will have to hire at least one salesman on-site.

Okay. After several days struggling. As the first decision of 2019. I will go for the roadside pitch. Far away from home, but bigger, and at least people can see it and know there is a car trader exist. Happy New Year.

Thank you, Dave. Very good remind. Yes, the previous business registered 5 years ago, still legally active but totally out of business already. A young man owner. He got 4.8 rates from the 20+ reviews in AT. Total asset before the business close down was about 120K for 30-40 cars. So, the average stock sales price point at 4K in my understanding. One thing almost certain is that the previous owner must have a thousand times more experience than me in the car business. That said, I will certainly fail if I do the something. So, for this site, market research deeper is required. Furthermore. One of the competitors close by, he has 110-120 cars in stock, total asset approximately 750K. About 46% inventory bought by financing, plus 200K overdue debt, so the real asset net worth is about 160K only. That guy is a very experienced pro, I think he did a very good job by using 160K only to stock up 110-120 cars at the average sales price point at 7K. So, this shows clearly it's impossible I could compete with him in any way I think. Sorry mates. I might be wrong to express my non-experienced view here. Thus, this is the reason why I keep asking questions here. I need to learn more about the business. Thanks.

Yes, you are right. This is a concern. My understanding is that not so much walk-in business. The pass-through traffic just drives through to somewhere. So, maybe not really useful. The previous business moved (looks like failed) could also most likely because of their operation. As I see several competitors nearby doing still fine and long-standing for decades. Good idea! As most likely the customers will drive through this site while they are going to some of another competitor.

No preferred yet since I really have no experience whatsoever in the car sales location thing. I just express my common sense feel that could be a good site for a pro. I could be wrong since one pro just left the site. Furthermore, it's 50 minutes from home. Not easy. The site 1, however also good. Because of it just 15 minutes from home, it's a good size, all indoor, many car repairs, service and mot stations close by. It also could be a very good site if it's operated by an experienced pro.

Thank you Screenman. I don't know if it's suitable or not to tell the location here. It's a private deal, not on the property agent network. It's about 50 minutes drive from my hometown. It's in a small town but quite high traffic location. I think it has average 8-10K cars pass through every day. The site, however, it had a car trader before. Then he moved recently. There are many competitors surround the target area, too. Some of the competitors seem to stand there for 10-20+ years already. The competitor's price points are various from 2K to 40K, stock levels from 30+ to 120+ cars. And all their stocks are on AT of courses as I mentioned before. This is all I can come up with this site. I think it could be a good site if it run by an experienced trader.

Thank you for your input. Please forget the money. I don't want to show off the money thing even I did a post about 200K looking for a business partnership at the very first time I get to this forum. That was a stupid mistake. Please forget about it. I keep posting the questions here just because I found people here are really helpful. I always got good advice and knowledge from the comments. They taught me a lot. I have to clear again that the only purpose for all my posts(except the very first one was looking for a partner) is for learning only. I am not looking for any other benefits. Not intended to show off or trying to prove anything. It just not necessary. Regarding your question for me. I do have some basic things done like registered a company, VAT registered, got a trade plate, etc. Then, now I am trying to rent a premise. Yes, not sold anything yet. Not even have a thing on the market yet. But it's all right. I don't think I have to sell a lot or must have a lot of experience before to set up a business, even though basic knowledge and common sense required. It just a choice. However, I do agree my way is the riskiest way though. So, I won't encourage others to do my way as well. As you can imagine that I am a new player. Things are going very slow, and the mistake made all the time. So, I am not really looking for a good result. Not saying to make good money, not saying to make it a success. My expectation is low since I know that I am not good at it. No big deal, just keep going and learning. Thank you. Thank you for the comment.

Thank you Jack.

Thank you for your input. I also think of this way earlier last month. Then I sadly found out all the roadside car dealers in that area have all their stock listed on AT. Some have 30+ cars, some 60+ cars, and some have 120+ cars. They still paying a lot to AT. Looks like they're not saving any advertisement fees. Really, until now, I can't find any dealer in my target area who is not realised on AT. This is good news, but also bad news. Despite the fact that AT rule the used car buy and sell market. But roadside, somehow still attracted me. That is why I have to ask this question here to get more opinions. Thanks.

Mates, I have to confess that there is no way I could be an expert in any part of the car business even though give me a couple years. Believe or not, even though let me run it at home for a couple years, I will still not as good as anyone of you today in any part of the car business. I will not become a good salesman, a good machinic, a good buyer, or a good inspector. That already proved in my previous small businesses. I just can't do anything better than the member in my companies who has expertise in their job. So, there is really not necessary to required me to become an expert before to set up a business. I really appreciated your concern and remind. Thank you very much. Thank you. I know you have a good heart.

Thank you tradegiirl. I will probably handle the buying and accounting at the beginning. Hopefully can found one handle anything else. It's hard. Buy just try.

Thank you, mates. At least got two answers and one advise for the original question already. Not too bad. A happy day.

Thank you Boring Dave. Got it. Everything is in place already. Solicitor, Ltd, and business bank accounts.

Thank you Justlooking. I am trying to make it asap. But things are going very slow. The agent working slow. The landlords need more time to consider my offer since I am new to the business, and they are still in holiday. Both of them required at least 6 months security deposit. I can't complaint as this is look like a normal practice.

Thank you. That could be the result. I always assumed and prepared for the worst results when I do business.

Only one mate actually answered the question! Other are questioning me. That's fun.

Thank you! It's £35K annual inclusive. I think it needs 100+ cars to break even. Nothing wrong with starting small. It just that I consider doing 5 cars at home is not a business. I could be most certainly wrong at some point by doing it bigger than my poor skill. But risk is every where, we have to take the risk sometimes. Thank you for the answer. Good points!

Why not? All the businesses are risky. I am not saying I believe that I will get return on my investment. I just trying my luck. Thank you. And, sorry mates. I think this is the first time I ask this question for picking one location out of two options. Despite, I may asked some similar questions regarding location before. People might think whatever I asked are stupid questions. Most of you think I should not even get into the car business at all based on the facts that etc.etc. So, maybe this make people feel like: what? Lucas, you still asking such stupid questions? I told you not to do that business million times already. You just don't listen! I do listening. I have to say: Yes, you guys are right. I shouldn't do it because that is not a good fit. I totally understand you guys want to save me. I really appretiated. Thank you! But decision made. I can't always regret or change my mind. So, I will just do it.

Thanks. Your suggestion is absolutely a right and good idea. However, I decided to setup a site regardless how many cars (or even no any cars) I sold beforehand. The fact is that I am not a good salesman (not even qualified!). So, I know I will never do as good as any one of you by myself (not even close!). So, the plan is to build a business model as I always did in my other businesses. I will hire someone to run it. Yes, it is diffrercult. But I do want to try my luck. I appreciated for any input.

I can't see the benefit to take both as they are far away from each other. So, I am thinking to take only one of them.

There are two locations. Let's say the rents are almost the same. In this case, which one will you pick: Location 1: A 3,500 sqft industrial unit with two parking space in front. 15 minutes drive from home. Location 2: A roadside site with forecourt (fit 7 to 10 cars) + small office + backyard (fit 30 cars). 50 minutes drive from home. Which one will you pick? Why?