trade vet 702 Posted June 29, 2017 Hi Dean........Welcome to the Jungle !!!........Keep posting on here,you will get better advice than asking traders at your local auction.Noting your love of cars,mechanical knowledge etc.I would say go for high spec old stuff,Merc/BMW/Audi Coupes etc needing some work but with good history.You have to be prepared to travel long distances to find them.It is hard trading from home,but I know people who have also been successful selling older Volvo estates and Audi Avants etc.from their home.Best of Luck Share this post Link to post Share on other sites
Mat C 77 Posted June 29, 2017 7 minutes ago, Dlloyds said: 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. No probs, there's no quick gains - hard work, late nights quiet and lonely days and pennies for wages, but...... this time next year. Share this post Link to post Share on other sites
MattGM 12 Posted June 29, 2017 (edited) A while ago I posted a very similar thread on these forums, and now I've been doing it 'legit' for three months. I'd not been able to do it the way I have, had I not had a substantial investment to be able to do it with. As it stands I've sunk around 80k into my business, some of that was start up expenses, the majority is stock, and some is left in the bank under the business as a buffer for expenses. I've worked for many years in the motor trade, mainly as a mechanic, but also in sales (allbeit parts, not cars), and would say I have a feel for the industry. Both the capital investment, and the time in the industry have been crucial for me to be able to be where I am right now, I wouldn't have done it without either. I specialise in a specific product, and I know that product very well, it's that niche, and the fact that I repair, and to some extent restore my stock all in house that gives me my edge, personally. The common denominator in most, if not all business success stories, is an understanding of the market you're going into. With the best will in the world you could piss thousands away if you don't know what you're doing and don't understand the market. Have you thought about VAT implications? Remember the VAT threshold (83k) is measured on turnover, not profit. That equates to less than £7k per month turnover before you need to think about the margin scheme. Then there is the margin scheme, where you pay VAT on the difference between the price you pay for stock, and the price you sell it for, and it doesn't take into account any investment in that particular stock. It's quite conceivable that you could make a loss on a vehicle after repairs and other costs of sale are considered, and still have to pay margin VAT after. Silly made-up example, you buy an 07 plate Mondeo TDCi. You pay £700, but it's a tidy motor, nice low miles, decent spec, you're happy. You spend £100 tarting it up and putting a fresh ticket on it, and £50 advertising it online. It owes you £850, you put it up for sale at £1200. Your margin VAT if you sell at that is £83. Now imagine the same car turns out to need a set of injectors at £650 fitted. You've now made a loss of £300, but you've still got a VAT bill of £83. This is a prime reason why knowing vehicles, and knowing your market is crucial. Everyone will get caught out from time to time, and these are just some of the mistakes that people talk of that you have to learn from, but for a new starter they could be crippling ones. But if you've got the knowledge, got the confidence, and you're good with people (another big point), you can make a success of it if you apply yourself accordingly. Don't jump into anything, I spent ages just browsing this forum, and some others silenty, like some dirty stalker, just taking in all the information that was being posted before really making a contribution myself, and I've learnt more that way than any way else. And if you're still interested after some of the doom and gloom posted here then you know the idea isnt a flash in the pan 3 months in, and I'm turning over a profit, I'm not featured in any articles in the financial times don't get me wrong, but it's steady, AND it's improving, and most of all, I'm happy. It can be done. My only other tip for any starter is don't put all your funds into stock, leave some in the bank and don't rely on having to sell X amount of cars to pay bills every month. Cash is king, and you might have £10k worth of high end motors on your property, but if you can't pay the rent at the end of the month, you're broke. Best of luck, I genuinely hope it works, but please take a long hard look at what your model is going to be before taking the plunge. Edited June 29, 2017 by MattGM Share this post Link to post Share on other sites
MattGM 12 Posted June 29, 2017 4 minutes ago, tradex said: this reply should be a sticky...but we don't have stickies.....all of the those on my lot. Not sure if that's a good thing or bad Share this post Link to post Share on other sites
BHM 994 Posted June 29, 2017 7 hours ago, tradex said: Some good points there for the OP but... A chestnut it maybe, but you simply can't run a car sales from home in the proper and correct sense, to get A1 on a unit is hard enough, on a house it wouldn't happen surely? I would advise the OP to contact their council for their interpretation for legalities on this point. As eggs is eggs one of his neighbours will the moment he can't park his car where he used to or gets pissed off when 3 customers turn up at once and it looks like what it is. Most ( if not all) doorstep traders simply ignore this point, we all know a house in our neighbourhood that operates like this. The old 'chestnut' of "it's just storage" ain't gonna fool a council planning bod. Hi, storage isn't a defence as storage for business purposes would require planning permission IF it made the changes I outlined. Although in a planning sense, storage-only v. sales would be approached differently, as long as your business did not breach any of my points then anyone is fine. A trader using the public highway for visitors is a grey area & could be construed as grounds for local authority action. However, if the trader has adequate off-road parking on his property then it shouldn't be a problem. Basically, if you've a decent sized property & your stock & visitors park on your property and the stock isn't 'stickered up' this should be fine. Traders operating from a one car driveway with cars scattered around the area would definitely not be fine. 7 hours ago, tradex said: The matter of stock-in-trade being sold and prepared on the premises (cars) isn't within these changes. As a caveat I could be totally wrong but good practice would be to check before one commits. It depends upon what you mean by preparing cars. Washing a few cars per week is certainly fine as long as you've not materially changed your property in any way. I wouldn't condone major surgery on a knackered old Peugeot in the front garden but, to be honest, it would take a local planning authority years to deal with an idiot cutting up scrap in his front garden & making it look like the local breakers yard. Share this post Link to post Share on other sites
metcars 397 Posted June 29, 2017 *******sigh, again with this*********** The solution is for Car Dealer Magazine to do a "so you want to be a trader" type thing. When newbies arrive asking questions they can be pointed to the guide. It's been done before by other publications. If Car Dealer Magazine were really clever they could even charge for this as a series of publications and drag it out over 12 months @ £34.99. Plenty of guys on youtube doing this already? Existing forum members don't have to give away any "special secrets" on how they earned their first million. Just my opinon Share this post Link to post Share on other sites
have a word with the wife 299 Posted June 29, 2017 a VERY large company called autoquake went into administration 6 years ago. It was rumoured that another VERY large company would take them over due to there very large internet presence, they didnt. they bought instead into "carsite", another large company that had a big internet presence, this "company" that bought into them had pre-existing customers on there books who they had sold finance to, insurance to, and had millions of customers who had a discount card with them . it lasted a year the company? tesco. the reason all 3 failed ? they couldnt get stock. number one job is having the right stock. 17 minutes ago, metcars said: *******sigh, again with this*********** The solution is for Car Dealer Magazine to do a "so you want to be a trader" type thing. When newbies arrive asking questions they can be pointed to the guide. It's been done before by other publications. If Car Dealer Magazine were really clever they could even charge for this as a series of publications and drag it out over 12 months @ £34.99. Plenty of guys on youtube doing this already? Existing forum members don't have to give away any "special secrets" on how they earned their first million. Just my opinon just buy my book " four wheels to a fortune " available all good bookshops Share this post Link to post Share on other sites
It's me 615 Posted June 29, 2017 1 minute ago, have a word with the wife said: a VERY large company called autoquake went into administration 6 years ago. It was rumoured that another VERY large company would take them over due to there very large internet presence, they didnt. they bought instead into "carsite", another large company that had a big internet presence, this "company" that bought into them had pre-existing customers on there books who they had sold finance to, insurance to, and had millions of customers who had a discount card with them . it lasted a year the company? tesco. the reason all 3 failed ? they couldnt get stock. number one job is having the right stock. its easy getting stock its getting stock you can sell at a profit is the hard bit i always look at a car and work out a price sticker in the screen in my head and bid accordingly if i buy it i know im in profit this way well nearly but you know what i mean its so easy to bid too much at the block to impress mates the new tart on your arm etc Share this post Link to post Share on other sites
BHM 994 Posted June 29, 2017 5 minutes ago, s and b said: its easy getting stock its getting stock you can sell at a profit is the hard bit i always look at a car and work out a price sticker in the screen in my head and bid accordingly if i buy it i know im in profit this way well nearly but you know what i mean its so easy to bid too much at the block to impress mates the new tart on your arm etc Probably the best advice I've read. Share this post Link to post Share on other sites
trade vet 702 Posted June 29, 2017 18 minutes ago, have a word with the wife said: a VERY large company called autoquake went into administration 6 years ago. It was rumoured that another VERY large company would take them over due to there very large internet presence, they didnt. they bought instead into "carsite", another large company that had a big internet presence, this "company" that bought into them had pre-existing customers on there books who they had sold finance to, insurance to, and had millions of customers who had a discount card with them . it lasted a year the company? tesco. the reason all 3 failed ? they couldnt get stock. number one job is having the right stock. just buy my book " four wheels to a fortune " available all good bookshops We never found out how much Tesco blew,I did ask them at the time.I think I will try again ! Share this post Link to post Share on other sites
It's me 615 Posted June 29, 2017 6 minutes ago, trade vet said: We never found out how much Tesco blew,I did ask them at the time.I think I will try again ! they will just tell you to bogof Share this post Link to post Share on other sites
DBDlloyds 18 Posted June 30, 2017 Thanks Matt for the time you have taken to reply. Some great advice... Hi S & B, that's my plan, look at auction cars - look at a potential realistic sale price, take off my Advertising costs etc and build a profit in and only bid up to the nett price. My account is now open at the action so lets see how I go next week. I do not want to buy any cars for the sake of it. I hope this strategy works, it all depends on how accurate my calculations are I suppose. If i win every car then i have fooked up, on the other hand if i win nothing the same applies. As they say into the breach my friends.... Regards Dean Share this post Link to post Share on other sites
trade vet 702 Posted June 30, 2017 Dean,don't be put off,just do it and don't ask the council.Most of us have sold from the door,it is not illegal.A safer option you might consider for starting up is selling older mega mileage Passat diesels for under £2k.In my experience,when we have taken them in,you never get stuck with them.They are plentiful and don't cost much and the punters who buy them know what they are doing and don't mess you about. Share this post Link to post Share on other sites
DBDlloyds 18 Posted June 30, 2017 Thanks Trade Vet, There is quite a few go through the auction but I I have looked at them and moved on quickly due to the miles covered. Thanks for the advice. Share this post Link to post Share on other sites
trade vet 702 Posted June 30, 2017 20 minutes ago, Dlloyds said: Thanks Trade Vet, There is quite a few go through the auction but I I have looked at them and moved on quickly due to the miles covered. Thanks for the advice. Forget the auction,you have got to go and find them yourself and drive them.We have sold plenty 150-200k miles but these are swappers which we have inspected.Keep away from auctions until you are a good player or you will be skinned alive.! Share this post Link to post Share on other sites
CJ Underhill 34 Posted June 30, 2017 With regards to stock, it really is trial and error i think. Have a nosey round your local dealers, used car sales centres. What are they stocking? They will know what sells and what doesnt. Also think, if every sales place near you are stocking 3 year old clios/corsa's etc is it worth competing? can you?, what can you offer to get peoples business off them? Whilst you are looking there, keep an eye on what has moved and what hasn't. Are certain cars coming in and going straight out? or are a certain make, bodystyle etc sitting for sale for months? What works for one might not work for others. A place local to me does a great trade in Mini's, yet i have always struggled to shift them. Also, keep your eyes peeled when out and about. Whats in the local Tesco car park? Are they nearly new cars, old bangers etc? Get a feel of what your locals are driving. If you need a chat, just ask its a quite week and im lonely 1 Share this post Link to post Share on other sites
DBDlloyds 18 Posted June 30, 2017 Hi CJ Underhill, Thanks for this, yes I would love to have a chat.... My number is 07795 433882, If you send me your number i will give you a call. Cheersd Share this post Link to post Share on other sites
Mat C 77 Posted June 30, 2017 2 hours ago, CJ Underhill said: What works for one might not work for others. A place local to me does a great trade in Mini's, yet i have always struggled to shift them. Not near me are you???? Share this post Link to post Share on other sites
andymc1973 199 Posted June 30, 2017 please don't dive in at the auctions, you will lose the lot in 4 weeks Share this post Link to post Share on other sites
DBDlloyds 18 Posted June 30, 2017 Thanks Andy, I will take you guys advice... it seems the auction is a bridge to far.... Share this post Link to post Share on other sites
