Max Branning

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Posts posted by Max Branning

  1. Posted

    20 hours ago, tradegirl said:

    You're right Max, end of year results are what matter, but there's a long time until the end of the year, and the last wage we took was the 16th May. Prior to that was the 5th of May. In 2014/2015 (and I know there's no sense looking back) we never had it this bad. We would sell 3 cars a day some weeks, and never less than a car a week as home traders, with fewer cars in stock and less money invested than we have now. I paid off £12k personal debts those first 2-3 years, and by 2016 I'd also saved £9k, as well as my holidays, etc.

    I don't need to look at end of year takings to know I'm not in the same position as then. So I'm just a little worried/wondering if this job is what will buy me my house, or if I should be working a plan B, because as it currently stands, I'm broke and only living to work and pay work bills.

    Having said that, I'm working on improving the business, making changes. Lord knows I have enough time on my hands. And if I'm worthy enough or cut out for it, I'll make it work and I'll be among those who do well enough in the high seasons, to be comfortable/unphased in the low seasons.

    Was you doing things differently before, ie different stock profile, cheaper prices, different advertising platforms ?

    Do you have a contingency fund for the bad times? this often gets overlooked but if you are 100% relying on the retail motor trade as an income then i think everyone should have one. Each person would probably come up with a different figure but personally i would want minimum 3 months living costs tucked away that only gets touched if i cannot draw a wage from the business on a downswing. When things pick up you can top up the contingency account and should do so regularly when you can to build it.

    This helps to take the weight off so you can concentrate on the day job and still pay the bills ( in the short term )

    Another option as a home trader is you have the luxury of being able to take on a job as well when things turn bad, still doing 2 or 3 on the side and building up a cash pile in the process.

     

     

    • Like 1

  2. Posted

    20 hours ago, tradegirl said:

    No Justin, for me if he/she is doing it, I can do it. What am I doing wrong? How could I improve? Is it my stock profile, is it my photos, prices, etc. That sort of thing. Whereas if the used car trade is heading to hell in a handbasket (I know it's not, but hypothetically speaking) I need a plan B.

    But of course I understand what you mean.

    And with my logic, does that mean that other traders who do everything they, but are still struggling, are doing something wrong? Probably not.

    And I'm also aware that my logic is skewed because true entrepreneurs have made money out of recessions and Great Depressions, so it shouldn't matter how well or badly anyone else is doing.

    I'm aware of this, but still...others doing well in my field helps me somehow.

    Its easy to have a wobble when its slow, same as its easy to get over excited when your flying.

    End of year results are what matter not a good or bad week.

    If you have the right stock, prepared well, advertised well, priced well...then all you can do is wait for the car to sell, and it will eventually, they always do.

    Cars wont go out of fashion , people don't like walking or public transport !

     

    • Like 1

  3. Posted

    On 2/14/2019 at 0:44 PM, Beechwood said:

    possible moral here, having taken a break from the trade myself,I  have never given up my trade policy had one since I was 21 and that was a long time ago, such a usefull thing to have, just a thought.

    You can only have a trade policy if you are actually involved in the motor trade. It is not a choice.

     

  4. Posted

    20 hours ago, Mark101 said:

    The unit next door is 4 times the size of mine - I am considering filling that with stock (hold 25 without having to move any cars to get one car out).  It is about £3,000 a month + £1,000 where I am now.

    Not sure whether to stay as I am, move into the bigger one or keep both and use one as a prep, workshop and take a spanner on or keep things light

    The landlord is happy for me to open a workshop despite them not liking motor trade, he says I keep the place spotless and I am unlike any other trader he has met/dealt with (and since banned motor trade) or of course, he could just be blowing smoke up my arse.

    The other option is, we sell all properties and cash in to one big pad and revert to trading from home but one like TV talks about (about £600-700k) with land, easily achievable where I live (before all the S Easters pipe up about property prices and how that wouldn't buy a 1 bed flat :lol:).

    I am committed to making this work, balls in etc - the past 2 months (I know it isn't really long enough to form a true picture) has made me realise how scaleable the business is.

     

    I wouldnt sell property to then build the car sales. I would hold the property assets tight as long as they cashflow well long term this will pay you more. If anything i would be trying to grow the car sales organically and keep investing in property as an end game.

    Each to their own though of course.

     

  10. Posted

    2 hours ago, Tony911 said:

    Akhtar we got a vw polo in px today it's done 136000 miles 1.4 petrol good history cam belt done MOT expires today and doubt it will need much to pass also bodywork has a few age related marks but at £500 it's yours. Spend £2-300 on it and surely you can get a wage out of it and trust me you won't get 1 from auction at that price. AutoTrader retail value coming up at £1875 and it's 5 door

    If i had a £1 for every time someone told me that i would be retired by now !

  13. Posted

    I include a full 12 months Mot on all cars sold, i really like it done either the day before or on the day the customer drives away, so i prefer to take a deposit then get Mot done before collection.

    I have lost out on 2 sales this month though by customers that simply cannot wait a day or 2 and want to drive away there and then.

    So i am thinking of now getting cars Mot'd when they come in to stock so they are in theory ready to drive away but what happens when they sit for 2 or 3 months or longer, i really am not happy sending a car out with only 9 months test even if the customer is !

    What do you chaps do ?

     

  15. Posted

    The more expensive the car the more prep required, this stands to reason.

    On a sub 3 grand car i would say fresh MOT, good valet and maybe a service is all that's necessary.

    3 grand plus and i would be looking at getting paintwork, alloys refurbed etc but at the end of the day it depends how much profit is in the car. 

    Do not prep the profit out of it !

    • Like 1

  16. Posted

    2 minutes ago, TheDarkSide said:

    You've encouraged me to sign up to reply Mikey - looks like you're about 5 miles round the corner from me!

    I disagree with comments about the location, you've found somewhere with no distractions in the background for your pics - and it's not like buyers round here don't know what the fens look like...

    As others have said, I'd look at your ads and pics and take out anything that you think might put someone off from picking up the phone - like you, I don't do finance or card payments but I don't make reference to it in my ads, I'd much rather have the chance to talk to someone and work round it rather than them never ring me at all...

    Thats true if you are aiming just to the local market but a London buyer may think differently. 

    Photoshopping would be worthwile especially the amount of time taken on video etc.

  17. Posted

    Your videos are good but in my opinion on old stock like this its the wrong type of video to be making. Your style of videos are the sort of thing i would expect a franchise to be doing.

    Personally i would do a full walk around video of the car and highlight the good and bad bits which inevitably a 10 year old car will have. 

    • Like 1

  19. Posted

    Had one in yesterday looking at a 12 plate done 118k, he didnt know the mileage at first but saw the car loved it, loved the price, as soon as he found out it had done more than 100k he nearly fell on the floor !

    This is a diesel btw so to me personally with decent history 118k is nothing on a nearly 9 year old car, just above average you could say.

    100k seems to still be the magic number with customers, anything over this and they feel its "high mileage" and not much life left. I feel more like 200k should be the magic number ?

  20. Posted

    The fact its white with black wheels and tinted windows would put me off straight away !

    Boy racer car sounds like ? Typical estate buyer might be put off ?

    If its got problems adjust your offer accordingly, any initial valuation is based on car being 100% yes ? Work out what you expect to spend on it and what you expect to retail it at. Then offer from there...

    If its not good enough for him then let him walk.

  21. Posted

    I use a couple of MOT stations and i have noticed with one place in particular they seem to be a bit picky with their advisories since the changes last year. For example silly things like "rear indicator lamps slightly discoloured" even when its not noticible - to me anyway !

    Has anybody else noticed this since the MOT changes last year or is it just me ?

     

     

     

  23. Posted

    45 minutes ago, Nick M.K. said:

    You are absolutely right Max but some people will not even know what Leverage means. Instead of trying to explain can I give another example from the property world: 

    In 2007 me and a friend had about £30K each. I used my £30K to buy outright a new apartment in Sofia, Bulgaria (where I am from)

    He used his £30K as a 10% deposit to get a mortgage on a £300K house in Sunbury On Thames, just outside London. 

    The property market in Bulgaria moved quite rapidly and the value of my apartment doubled for 6-7 years. The value of his house increased a fair bit but not quite 100%...

    In 2017 I sold that apartment for EUR 77K (around £72K). Made £42K gross. Great, everyone thought...

    That same year he sold the 5 bed house in Sunbury (he never did much work to it) for £710000. Made nearly 9 times as much as me out of this one deal. 

    Same investment (OK, he had a few years of mortgage payments but if rented out it would cover those), same risk (arguably mine was higher), same amount of work, same increase in asset value BUT multiple times better return. 

    That's leverage. You get cheap money from a bank, let them work for you, let the bank make their 3-4%, you make your 300-400%.

    Just one mistake above, my friend's house was £375K in 2007, not £300,000. 

    I totally agree in terms of property investment leverage will always make you more money, but it has to be done sensibly. After the crisis lenders tightened up which meant people needed skin in the game to operate, around 25%, previously you could literally build a portfolio with no money down which was a disaster waiting to happen.

    I see the stocking loans as similar as in you can acquire a high value stock with none of your own money invested, in the wrong hands this will head the same way, people overpaying, sitting on stock too long debts mount up and bang...

    Dont get me wrong i still think if done sensibly it is a good way to build the business but i would advise newbies to be cautious from jumping in and trying to run before they can walk.

     

    • Like 1

  24. Posted

    The leverage debate could go on all day. If used correctly and with eyes wide open then yes it can enable you to grow quicker and make more money....BUT....most people overestimate their ability to handle debt, everyone who starts in business thinks they will make money, the majority do not. 

    I would advise a new or newish say less than 2 years in the game avoid borrowing large sums and try and grow naturally if possible. 

    Leverage is a double edged sword, when things are going good then its great...but when things are bad it becomes EXTRA bad....

    This stocking loan bubble is bound to burst at some point...it reminds me a bit of the buy to let market early 00's when you could do same day remortgage etc to build a portfolio grow exponentially and have 50 houses in a few years......some of them people have done well but a lot are either bust or stuck in negative equity kept alive by low interest rates....

     

     

     

     

    • Like 2

  25. Posted

    3 hours ago, JKG said:

    You aren't wrong, It's a tough road, luckily I have a very understanding & supporting wife who continues to put up with me, thanks for your reply.

    I'm a website content manager (effectively the copy and paste guy) for my sisters company, she chucked me a lifeline to stop me becoming unemployed and so I could keep a roof over my kids head, for which I will always be grateful for and I have no plan to give it up yet, but it's not me and it certainly isn't what I want to be doing.

    I did consider getting a couple of cars, I've got the space to do it, the problem is I live next door to mr & mrs Nosey Parker who would shop me in a second, having never traded from home I don't know the legalities of it and having mr council bod turn up on my doorstep is not something I want the pleasure of at the moment.

    thanks for your reply

    Shop you for what ? Its not illegal to trade from home.

    As long as you are courteous of your neighbours and dont have cars littering the streets with sale boards in the windows then the council will have little interest in you.

    If you have the space to do it and i assume a little spare cash to get going then it makes sense to start buying and selling a few from home to get back in the swing of things...

    • Like 1