New Starter Advice (Not your average get rich quick novice)

[jsr 2]

 

Hi Guys,

I'm Looking into getting into the trade part time for now then hoping to expand (Yes I hear you, no part time in the trade) buying and selling from home two to three cars a month..etc

I know it’s not easy and if I’m not careful I can lose more then I make.

This is my plan so far

 

Set up LTD 

Trade insurance & trade plates 

Register at a few auction houses but also source privately and use sites like dealer auction.

Register for VAT once hit the threshold  

I don't get wrong side of CRA - every car will be sold with 12 months MOT, serviced if required & PDI checked (using lawgistics sheet)    

****This is where I need some advice****

Not sure if to supply 3 months or 6 months warranty as standard and which warranty company to use.

I was very keen Warranty Wise but in the T&C it states wear and tear is not covered for first 30 days or 1000 miles (which ever latest *not first) also if claims rejected customer is liable for recovery charges on breakdown etc. I don't want customers chasing me for recovery costs. From reading reviews it sounds like there great for small bits but not big jobs. Also there was a review I came across from a dealer stating they declined a repair as the dealer had not sold enough warranty even though there’s no set amount.

What’s your experience of warranty wise or another company you can recommend?  

I would like to look into self-funded admin warranties from lawgistics but feel I need to focus on getting the business running first.

[andymc1973 199]

you need to be vat registered for dealer auction

[Mojo121 229]

Try WarrantyFirst. Not sure what their stance is on trading from home though.

Prep and release the car's properly and 90% of claims never happen. We all know when we're selling a potential boomerang.

[trade vet 702]

Hi there,your prep so far and expectations appear very good.Most of us have sold from home at some stage.I would say even though you will be part time,get a website ( inc. your photo,embellished CV,plenty of bulls....t),I like to get ideas from US websites-they have great wording.Warranties- you are right,these companies let you down,they can upset customers and  be expensive.Do your own,we have fo 21years - it works.You will need plenty of advice,just keep posting on here. Good Luck !

[Arfur Dealy 823]

Hi, welcome, my advise would be to not bother with warranty companies, you are far better off managing your own warranty booklet scheme, use (lawgistics) they are fantastic. Put away £150 per car into a pot to cover any issues, ok you will be hit occasionally but end the end of the year their should be a nice wedge left for a holiday. The secret is prep well, sell the car on the basis of that prep and cover your ass on everything. Best of luck

[It's me 615]

buy what sells

consider specialising so you get to know your product better

dont buy dogs

dont buy work

give service but don't be soft because it gets used against you

do your own warranty

get to know a good reliable mechanic

get to know an mot garage that knows your a trader so you get a trade rate but more importantly assess the car for safety rather than looking for work (they are out there)

keep your nose clean

 

good luck weve all worked from home at sometime

[jsr 2]

Hi,

Thank you all for your advice some very good points raised & very reassuring that I'm on the right path.

I will 100% look into the self funded warranties as I think there worth while in the long run.

I think in this day and age a website is must, lots of clear quality photos and a short video of each car. I going to come up with some uniformed branding across website, adverts, number plate covers (for when photographing stock), documents so everything looks all consistent & professional.     

[MattGM 12]

Hi JSR.

Good luck in your venture. I'm a new starter too having recently gone from part time trading from home with a full time job, to full time self employed with a unit and small forecourt area. Massive step for me, but if you don't try you'll never know.

My advice to anyone trying this for the first time, is spend some time in the automotive industry first, get to know about cars, get to know about customers, pick up some good contacts, and get a 'feel' for the trade. It doesn't HAVE to be selling cars, I come from a mechanical background, but know the industry, and it'll set you up for a smoother start if you take it further.

Regarding warranties, my position is slightly different as I specialise in particular vehicles, and having that familiarity with them allows me to spot the problems they suffer with well in advance, however with experience the same rule can apply more broadly too. I stick 6 months self funded on my cars, and put £150 aside from each sale into a warranty savings account, that follows advice I'd previously read on this forum. I feel it's best for me, personally.

All cars can and do go wrong ofcourse, but experience will soon highlight which ones are the headaches, and you buy them and sell them accordingly, or don't bother with them all together. PSA 1.6 diesel turbos, Vauxhall small block timing chains, LR Discovery 3 / RR Sport air suspension, Audi TFSI timing chains to name a few.