D1991 0 Posted April 28, 2017 Hi new to this forum I used to trade cars from home few years ago and have sold everything from a micra to a Range Rover I'm looking to start a medium used car sales dealership with no finance and Looking to stick around 10-20 cars priced from 1000£ to 10000£ just curious how many cars do you stock and how much is your rent ? And how much do you pay for your trade insurance I paid 1800£ few years ago they are asking 3500£ now I've done my homework and have run a medium sized business before but I bleed cars I know it's not all roses but I'm willing to put in the work thank you for all the replies will appreciate it. Share this post Link to post Share on other sites
justina3 518 Posted April 28, 2017 How much your rent is would be down to the size of your pitch, so unless you get that info its not going to give you much idea i would have thought. Trade insurance has gone through the roof over the last few years mostly down to it being abused, so i would expect a massive hike (so my broker tells me not my words) Share this post Link to post Share on other sites
It's me 615 Posted April 28, 2017 i take size 9 boots if that helps 1 Share this post Link to post Share on other sites
betginge 73 Posted April 28, 2017 it doesn't matter if your pitch is £500per month or £2000 per month, its all the other costs on top like staff, rates, insurance, consumables, warranty payments etc that add up. I know guys selling 20 cars a month and not even breaking even some months, and others selling 5-8 a month and live like kings. Share this post Link to post Share on other sites
D1991 0 Posted May 1, 2017 Thank you for replies and I was wondering for the chaps that are located on the outskirts of major towns etc does it matter ? I live in west london and because of rent etc I found a place in high Wycombe enough space for 9 cars 1200£ a month rent it will only be me and my father as a joint venture he will be at base I'll be sourcing the cars Share this post Link to post Share on other sites
It's me 615 Posted May 1, 2017 looks tight are you not going to specialise? Share this post Link to post Share on other sites
D1991 0 Posted May 1, 2017 No will be a mixture of cars as I won't be offering finance max 7000£ as anything after that you need to be offering finance to shift quickly Share this post Link to post Share on other sites
betginge 73 Posted May 1, 2017 Just my opinion £1200 for 9 cars on a pitch is eye watering I know rents are expensive down south but jesus. I have a 40 car site with 3000 sqft building and do not pay that much. If you selling cars up to 7k I would get a finance licence, Just does not make any sense why you would cut off all the customers who want to buy on finance. 9 cars is workable for one man paying the rent you will be paying but for two people to make a living from would be hard. Share this post Link to post Share on other sites
Mojo121 229 Posted May 1, 2017 (edited) Just my two cents but 9 is a depressingly low number. What if you have 1 or 2 that aren't ready for sale? Or part ex's? They then take up space and you're down on stock with less likely hood of selling and less flexibility. I find it's a numbers game sometimes, the more you have the greater flexibility you have and selling ancient stock cheap doesn't hurt as much. In terms of premises we held out and made sure we got an established site with footfall. When the phone aren't ringing you'd be surprised how many times someone's wandered on and bought something. Which is really uplifting too. We have upto 30 spaces (we're never full though), there's two of us and we make a living. Edited May 1, 2017 by Mojo121 More spaces than I said! Share this post Link to post Share on other sites
D1991 0 Posted May 1, 2017 How much is your rent ? I'm in west london and it's really expensive my idea location would be a light industrial unit 20-25 cars 15 grand rent no luck finding it yet Share this post Link to post Share on other sites
Mojo121 229 Posted May 2, 2017 It's £1000 a month. I guess we're really lucky. Share this post Link to post Share on other sites
grant8064 219 Posted May 2, 2017 14 hours ago, betginge said: I know rents are expensive down south but jesus. I'm in the East Sussex and yep...rent and rates are a huge expense. It's depressing frankly. I run a 40 - 45 car site and often think how much lower my costs would be if the site was in the Midlands or somewhere. Can't move though...I go crazy if i'm not near the sea and am really lucky to be living here. Gotta enjoy where you live and work or else what's the point?! Share this post Link to post Share on other sites
D1991 0 Posted May 5, 2017 You are right mate I have a fairly big drive way can stock 4 cars for free so don't think it's worth it and as the op say if few of the cars won't sell you are done , I have 3 cars they are really not moving at all 2001 micra se+ auto 1200£ yaris 04 manual 1175 yaris auto 2100£ 54 reg these are cars that I would of sold in hours few years ago but 1 week no calls lol Share this post Link to post Share on other sites
trade vet 704 Posted May 6, 2017 get a small unit,rent / rates £20k,stock no more than 20 ,specialise in one type of vehicle ( cuts Auto Trader rip off costs),only need to advertise 1 car.Insurance is what it is. The bottom line is if you work hard ,( very hard)employ 2 staff,comply with VAT and PAYE regs etc. you will make a reasonable living,but you wont make any money.Those days are gone ! Share this post Link to post Share on other sites
