Brand New Trader

[DBDlloyds 18]

Hi All,

Just a note to introduce myself. My name is Dean and I am just about to start in the world of buying and selling cars. I have my trade plates, traders insurance and am ready to go. This is going to be my full time occupation. 

This is a career I have been talking about doing this for a number of years and now it is a reality. My background has always been in sales for larger companies. I have an inherent love for cars and motorcycles and have a basic mechanical capability. 

I realise it is going to be tough, but am as ready as i can be... I think, ha ha.

I will be working from home and stocking around 5 / 6 cars. I am thinking that I should be looking at the new driver market to start with. I really don't want to run before I can walk. I have been to the auctions a lot recently just watching and trying to work out the price the cars would sell for and a potential margin on line before I go. I then get back home and review the prices achieved, some I am there or there abouts, some cars are making a lot more than expected.

I have been looking at Fiat 500s but they seem to be very desirable so making a margin out of the car after auction fees etc would be a struggle.

I would very much appreciate any advice on cars to cut my teeth on as I want this to be my career from now to retirement. I am 49 years old and have spent many unhappy years working in the corporate world.

I would like to play an active part on this forum as time goes by, I have really enjoyed some of the topics and how happy you guys are to help and advise others....

Anyway, enough rambling,

Have a good day all,

Regards Dean.

 

 

 

[umesh 336]

Welcome on board Dean , And welcome to the roller coaster motor trade! 

Great forum - other forums are about   @TCDForum and most people are here to help each other  ! 

Look forward to your participation 

Umesh 

 

[DBDlloyds 18]

Thanks Umesh....

[Mojo121 229]

I wish you all the luck in the world. Just going off what you've said I think you're going to have a tough time of it. We all have to start somewhere though.

[DBDlloyds 18]

Thanks for your reply.... any tips to help me on the way, just concerned that my comments are making you think I will have a tough time of it, ha ha. I know there is a massive amount to learn and I am very keen to do that. Any advice would be very gratefully received.

Regards Dean.

[Mojo121 229]

You need a good cheap mechanic in place; how much can you get a wheel bearing changed for? How much will they charge you to do a set of brake pads? For me it's £45 and £40 respectively. 

Personally, while I stock them, I find new driver cars a pain in the backside. Not so much the cars but the customers. The buyers are relatively clueless/ noncommittal and the parents are unrealistic - I mean, it's their kids, I get it. They're hard work is my point.

When selling from home the margins are tighter not to mention the inherent drop in confidence from buyers... unless you have a house like Tom Hartley. With 5-6 cars in stock, at the level you're talking about, I can't see your margins being much above £300-£400 a unit. Even if you sell 6 a month that's £1,800 a month. Minus off costs and the reality of making a living surely looks difficult? 

[DBDlloyds 18]

Hi Mojo,

Thanks very much for your comments. I totally get what you are saying and thank you for your honesty. I realise money is going to be tight for a while but I am committed to making this work. I am hoping I get to understand the business and expand in the future but being a total novice I obviously cant invest in storage etc. 

I don't want to take up your time but maybe I need to look at other markets away from the learner/new driver cars. Please would it be possible to give me a couple of cars to start to look at,. i.e Focus Astras etc...

Many thanks Dean.

[Rory RSC 596]

What business is someone going to start and instantly going to be making a lot of money? Really basic starting a business stuff is it not. A lot more sense to find your feet trading from home rather than signing up for a 3 year lease. Keep costs down.

 Sacrifice, live lean, live tight, struggle a bit, fail, make mistakes, learn from mistakes, learn what works, start to make a go of it and then enjoy and start to see rewards down the line. That may be 3/4/5 years of struggle and graft though. 

Good luck.

[CJ Underhill 34]

I had a dabble at the first time drivers market. It was tough. As Mojo says, in that market, customers are very unrealistic. They tend to want an as new car, with full history and ultra reliabilty for £1,000. Never going to happen. Also you need think, 17/18 year olds are very social media friendly. Have you looked at your local facebook buying and selling page? They tend to be full of 1st time cars being offered for peanuts, can you compete with that?

What area are you working in? What are your potential customers like? Where i am located, its quite a well off area. Alot of the kids go to private school, and mummy & daddy are keeping up with jones's. I found alot of them were buying the kids nearly new cars, or opting for the new Corsa/Clio on £100 a month finance deals.

I'd say think outside the box. Do your research on your area & find your market. Are you in a congested city? maybe go for little city cars. Maybe you are in a well off country side? maybe appeal to the stay at home mums and go for some chelsea tractors? If you are in an area where alot of people commute to work, look at prestigue saloons and hatch backs.

Other markets to look at, maybe stick to ultra low mileage cars, low running cost cars or even just what i call "odd ball cars", the stuff you arent going to find at every car supermarket or dealership

[DBDlloyds 18]

Thanks Rory RSC, great feedback...

Hi CJ Underhill, I am near Chelmsford in Essex, so quite an affluent area. Good advice. I think it will be a case of gleaning as much info as possible about the market locally and hopefully build my business around that. I am so pleased i posted as i have had some good sound advice. I just thought the new driver market was the one... i live and learn.

 

Thanks again Rory & CJ.

[justina3 518]

"I have an inherent love for cars "

 

that will fade quickly. 

 

But good luck

[sparky 274]

26 minutes ago, justina3 said:

"I have an inherent love for cars "

 

that will fade quickly. 

 

But good luck

Very much this.

If your in Essex then someone like BIG cars has to be your inspiration.

I think your mad but good luck all the same.

 

[DBDlloyds 18]

Thanks all, I am getting the feeling i have made a BAD career choice.

[FDA 0]

Hi Dean,

I have enjoyed reading this thread as I am in a similar boat, I currently work in a Main Dealer Sales position and am keen to set up a 2 person Partnership for Sales/Service/Repairs/Valeting. I have done the whole sales from home in the past and it was hard but rewarding, enjoyable and I made a good living (all be it very stressful). My biggest concerns regarding the venture is keeping the wolf from the door whilst I find my feet and am I being a bit naïve in thinking that I can pick up service and repair customer? My partner is not experienced in the Motor trade but is experienced in running a business and is possibly the hardest working person on the planet.! Also he owns premises that will be spot on All be it a little bit rural but with the growing Ecommerce influence into car purchasing I think this is getting less or a problem, and finally the dreaded CRA2015 does worry me a bit, as I have read numerous grippes on here. 

But I am a firm believer that ' it is better to try and fail then never try at all'

 

[DBDlloyds 18]

Hi FDA,

Thanks for your response. Good luck with your venture, I am sure as you will be covering all aspects of the job you will make a success of it. 

Just remember people will travel for good service. I have 6 garages in my home town but choose to travel 15 miles for mechanical work to be done on my personal cars....

From the response on here this morning I do question my decision if I am honest, but it is great to get to the point feedback rather than go into it thinking it is easy...

I am determined to go ahead and see where the journey takes me. 

Best of luck, where are you located ?

[BHM 994]

1 hour ago, tradex said:

You are trading from home so you will need permission from council.

I keep seeing this hoary old chestnut trotted out time & time again. No offence, but this opinion is years out of date.

The planning regulations were changed in 2014 to clearly reflect the changes in people's working practices (I.e. Self employed & home workers). The government's planning portal is clear on this.

Obviously this is a substantially abridged version but the salient points for this discussion are;

1) your home is still primarily a home.

2) your business activities don't drastically increase traffic (pedestrian or motorised). I'll add that few visitors per week is NOT a drastic traffic increase before any idiot suggests otherwise.

3) your business activities don't disturb neighbours at unsociable hours.

4) the home building, outbuildings & curtlidge has not been physically changed in any way. This can catch people out - if you erect 1 shelf in your home to support your business then that could render you liable to apply for mixed us as a dwelling/business. Likewise a garden shed is ok, but a garden shed erected for your business means you may need change of use.

5) you cannot actively advertise at the premises (I.e. idiots filling their front garden with bunting, price boards & windy men with flailing arms) 

ANYHOW, BEST OF LUCK TO DLLOYDS. YOU'LL NEED IT IN THIS GAME BUT IF YOU'RE STILL MAKING A LIVING IN 24 MONTHS TIME YOU'VE CRACKED IT IN WHATEVER MARKET YOU CHOOSE TO BE IN.

Edited June 29, 2017 by BHM

[DBDlloyds 18]

Thanks BHM

[FDA 0]

Hi Dean,

I am located in Staffordshire. Previously I was a one trick pony, I bought and sold cars and that was it. But plan to broaden

horizons with repairs, financing, valeting and will probably go down the route of a recovery truck also. When I was on my own I struggled with the problem of fetching/delivering cars and so reliant on favours. I am doing as much research as I can at the moment as the premises I mentioned are leased out at present so am now in a position to jump in until the lease ends. I keep my eye on whats said on hear daily and keep my eyes on the trade sources I previously used but am open to suggestions on peoples option of the best stock sourcing.  

[It's me 615]

dont buy off traders

they will leg you

[justina3 518]

49 minutes ago, s and b said:

dont buy off traders

they will leg you

thats traders talk for = bend you over backwards, shaft you, dump you some right lemons, off load the crap no one else wants and make you think there hot news, the list does go on but i am sure you get the picture.

 

[BHM 994]

1 hour ago, s and b said:

dont buy off traders

they will leg you

Haha, you soon learn once you've bought a couple from 'friendly' traders.

[DBDlloyds 18]

Thanks for the great advice,S & B & BHM and your for your clarification Justina ha ha... I will take that on board. 

[Mat C 77]

3 hours ago, justina3 said:

"I have an inherent love for cars "

 

that will fade quickly. 

 

But good luck

Love this.

[Mat C 77]

I started Sept 15. Lost my job and took the plunge.

On my own, at home, a few ££££ and went from there. However I have worked in the industry for 20 years, selling, business manager, sales manager, GM, so i'd like to think i've learnt a bit. 2 years on I now work with my partner, we have a 15 car unit and are selling 12/15 cars a month. FCA registered, warranties, sell supagard, brilliant website ( check it out done by cardealer5 www.superminiuk.com ), Award finalists and looking to expand next year ino servicing too. It can be done.

My advice

- Don't p1ss off your neighbours, ( i did in the end, washing cars every day, customers parking sometimes in ridiculous places etc..... ) 

- Learn from your mistakes ( there'll be plenty )

- Don't take stuff personally

- Prep properly and If it breaks, fix it, don't fudge it

- Treat every £ as your own, but don't be afraid to take a ( Calculated ) risk. I used to drive cars to a local forecourt past 2 others to fill the tyres as it was free and not cost me 50p. But i bet I saved £50 overall! 

-Embrace the CRA and Look after your customers, they are your lifeblood, deal with problems quickly and fairly. Customer service is my number 1 priority

- Have a sounding board - My Mrs was mine, Every time I had a wobble, I called her, she talked me through it and made me think rationally. I now have her working with me so my phone bills are lower !!

- Enjoy the freedom, don't deny yourself a day off every now and again or god forbid, a holiday. Life's for living.

- Seek advice, its free, there's people in this world with years and years of experience, lots on this forum too. Good people will be willing to help, share and encourage. Remember, people love nothing more than talking about themselves, take advice and use it when necessary. 

- Be lucky - I am the luckiest guy in the world, acknowledge this and you'll get luckier, I swear it works...

If you need anything, give us a shout...

[DBDlloyds 18]

Mat C, this is just the post I needed,

Thanks very much for taking the time to put it together. I am not in this for the quick gains... although that would be nice. I really to want to make this work. I have always prided myself on making my customers feel special in other businesses and hope this will put me in good stead when times are tough.

Regards Dean.