New Struggling Start-up

[LincsAutomotive 0]

Hello,

Will give you guys a brief overview.

We are a local repair garage in a small village in South Lincolnshire. We have recently bought a customers car and a few others from auctions. In view of selling cars as a secondary business, to run alongside our current one.

We have a VW Tiguan 2010, 70,000 miles, one owner. Ford Fiesta 2009, 51,000 miles, one owner. Neither of which required any work, and neither of which are selling. 

We also have a 2007 Corsa, 31,000 miles, with a busted engine (its oil light keeps coming on, and has no oil pressure). 2001 Corsa with a massive timing chain rattle, which looks like we may sell for spares.

We have laid out the money for these cars, but seem to be getting no interest. We are contemplating whether auctions are really the best way forward. But being new to the game, we do not know how to obtain vehicles any other way. We are currently advertising them on eBay and gumtree. We have a repairs website, but no sales website, as we are testing the waters.

I really want this to work out. This was my idea and at the moment its flopping.

Any advice is appreciated, about anything to do with this trade or our situation. Sorry for the long post.

Thanks for reading and any help.

Russ

 

[James Baggott 227]

Welcome to the forum. I've moved this topic to our FAQ section where requests for help and advice like this are best suited. Thanks. 

[justina3 518]

 

Firstly I would say the industry is very mixed some dealers are doing well some are not, ourselves this month has been the worst month on month for several years so might be just bad timing.

 

Have you viewed your car prices against what is available in your area are your prices keen? also I would have though the high value cars certainly in my area the big dealers are throwing very good finance deals at people so we tend to stick to the sub 4k bracket which people pay on card or cash ect but as in life what works for us wont work for everyone.

There are to many factors for anyone to give you a definite answer sadly, I would look at the basics such as pricing and where you advertise them first.

 

But do feel your pain hope it gets better for you soon.

 

 

[LincsAutomotive 0]

I'm sorry to hear you guys are struggling as well.

That was our plan to go for the sub 4k mark.

But the Tiguan seemed cheap for what it is.

Locally they're arn't many competitors, seeing as we are in a small village.

I haven't looked in the local towns, up the road.

Online we seem to be middle of the road.

But we will be making minimum profit if we go much lower.

 

[Gavin@Rousdon 137]

Advertise, advertise and advertise. Most people find and research their next car online before visiting a forecourt. You need your advert to stand out. Is the Tiguan a 2wd or a 4wd? I'm guessing its reatiling around the £10k mark so ebay and gumtree may not be the best places to advertise as it's better for the lower priced market. 

I'm afraid it's not as easy as just buying a few cars and sticking a price in the window anymore. The internet is king. As for buying stock is there no local dealers you can buy out of?

[LincsAutomotive 0]

Sorry, I realise this is a late response.

We have a major dealer in Stoneacre, who apparently put all their cars through the auction we use.

However, the auction house has scolded us 2 out of 3 times.

Leaving us scrambling for a gearbox and a replacement engine.

I'm struggling to figure out the best way to convince them to deal with us.

Its a mental barrier I realise. I just have to dive in.

But we have managed to sell cars. Just looking at the next one.

 

I hope it got better for you Justina3.

[Phil H 124]

It's very hard to get your foot in the door with these big dealer groups nowadays as most of them have an auction only policy. They find this easier as they send it to auction and forget about it. And they know it'll make it's money because the market is so heavily controlled by the auctions. You wouldn't mind if they genuinely submitted the highest bid, but what I hate about auctions is the arrogance of the auctioneer's when they continually trot you up and they get away with it because they control the stock and they know we need it. The way forward is buying from the public, you get to drive them, sound out the seller and even though they control this supply at the moment this is the easiest market to break into.

[LincsAutomotive 0]

It seems like a lot of people are falling out of love with the auctions.

I also feel that the public sellers are just aware of the real value of their cars. So you end up struggling for a decent price.

I think there are risks either option. But so far I am yet to get a car from the public at a decent price.

Or a price that can make a profit.

[Fixedgear 4]

As a garage, make all your service customers aware that you buy cars. As they know and trust you, they will hopefully be willing to let their car go, in a hassle free sale to you.

 

Should be a win win for you, as you know the car's history and don't need to go out and source them.

[Max Branning 149]

On 11/14/2016 at 4:12 PM, LincsAutomotive said:

Sorry, I realise this is a late response.

We have a major dealer in Stoneacre, who apparently put all their cars through the auction we use.

However, the auction house has scolded us 2 out of 3 times.

Leaving us scrambling for a gearbox and a replacement engine.

I'm struggling to figure out the best way to convince them to deal with us.

Its a mental barrier I realise. I just have to dive in.

But we have managed to sell cars. Just looking at the next one.

 

I hope it got better for you Justina3.

I am assuming that your local auction is Newark? Buying from auction can be a minefield but if you are a mechanic yourself you would have a slight advantage over many who are there. The fact you have bought a couple of lemons does not mean there is no money to be made.

Dont get tempted to buy something just because it seems cheap, this is a surefire way to end up with a lemon. Do your research before you go, check the stock list and pick out the cars you may be interested in BEFORE going. Do your research so that you go prepared and know exactly what you want to be paying. Then when at the auction concentrate on checking the car over as best you can bodywise and mechanically before sticking your hand in the air.