Acceptable rates for car sales plot / yard

[Jimbo 11]

Hi guys trying to pitch this right on the financials as we are looking at getting a new rental on a yard for our business

we will be looking to keep 10-15 cars in stock once we move. 

Locations we've highlighted are good for access although not highly visible from the main road so not really going to get tonnes of passing trade. 

May i ask roughly what you think acceptable rates for a pitch hosting 10-15 cars?

do any of you pay per sale for your agreements on the rates? If so can i ask roughly how much per car sale (£50-£100 etc)

or is it mainly just a flat rate per month?

thanks in advance massively helpful

[Max Branning 149]

Depends where in the country you operate. 

A unit in south east big enough for 10 cars may well cost £2000 + a month where as the same size space in the north may cost £500.

 

[Jimbo 11]

Good point. We are in the south east

 

i guess its a storeage plot but a sales plot all rolled in to one. Just not roadside visibility but brilliant location and plenty of space and nice settings

[trade vet 702]

Hi Jimbo

Are you not better off looking for an established pitch or even sites or premises which were previously a car pitch.I don't think a 10-15 car invisible compound is worth any more than £150 per week unless it is very close to where you live.If you talk to warranty reps,these guys often know who wants out etc.You could probably get a descent pitch for £500 p/w which would get you sales from day one......Just do not sign a lease.!

[grant8064 219]

3 hours ago, Jimbo said:

Good point. We are in the south east

 

 

There was a site in an East Sussex seaside town on an A road recently up - Small two desk office and space for 10 -12 cars. £1700 monthly rent + the usual bills but fortunately didn't quite hit rate-able value which I thought was priced right for the area.

The added cost of a forecourt brings better customers and more business IMO.

Units in the South East are simply too expensive considering they have no frontage.

6 minutes ago, grant8064 said:

There was a site in an East Sussex seaside town on an A road recently up - Small two desk office and space for 10 -12 cars. £1700 monthly rent + the usual bills but fortunately didn't quite hit rate-able value which I thought was priced right for the area.

The added cost of a forecourt brings better customers and more business IMO.

Units in the South East are simply too expensive considering they have no frontage.

Also a lot of people renting out a plot of land/yard around these parts won't allow sales so something to check on obviously.

[Jimbo 11]

Thanks guys

so the one we had looked at is close to a main A road but not quite visible due to the main road barriers. 

I can use it as a showground/plot and it will probably host 10-15 cars. 

I can use an outbuilding as an office if need be to finalise paperwork

it is in nice woodland/lake setting and it just has a nice feel

its just an expense i dont currently have so trying to work out if the outlay (£tbc) is worthwhile or to remain a trader from home with low overheads but potentially not the best forecourt!

[Max Branning 149]

If trading from home is working and you are making money then why not just carry on as you are for now?

Dont be fooled into thinking that operating from a pitch suddenly makes you a "proper" trader. It can really hurt when you have a £1000-£2000 a month to find for rent, yes you will turn over more money by holding more stock but your net profit may well be no better off than as a small outfit from home. And that is all that really matters.

[It's me 615]

1 hour ago, Max Branning said:

If trading from home is working and you are making money then why not just carry on as you are for now?

Dont be fooled into thinking that operating from a pitch suddenly makes you a "proper" trader. It can really hurt when you have a £1000-£2000 a month to find for rent, yes you will turn over more money by holding more stock but your net profit may well be no better off than as a small outfit from home. And that is all that really matters.

and chasing your bum off to fill the place

kiss_____ keep it simple if its working

dont fix what aint broke

[M.J 35]

My advice would be stay trading from home until you are turning over too many to handle at home, until that time comes maximise your current low outgoings.

The positive of having a pitch is more vehicles (which is not always a good thing) and no customers traipsing through your family home, using the toilet, etc (which was my main reason for moving to a pitch)

But the negative of having a pitch is that you are forced to keep it turning over which means added pressure and HAVING to buy stock rather than buying the right stock for you at the right price in your own time. 

[BHM 994]

Jimbo, think long and hard. Get a few quiet weeks of sales added to a few knackered cars and then find it's rent time again (I'm assuming most rent) & you'll feel the pinch. Also you won't run a pitch single handedly so you got wages to consider. It's a big jump going from a one man band to going into a unit & becoming an employer on top of what other contributors have said.

[Jimbo 11]

Thanks a lot guys

 

i am pitching my proposal on a £x amount  per car sold as the rent = no sales no big drama. I know a couple people with suitable land that "might" be interested in just gaining some money for their land but they arent greedy. 

It would be appointment only so dont need to be there full time unless wanted. 

 

***************

What are good things to use to "tart up" a basic piece of land into a nice car show ground?? Flags, banners etc? Where do u guys get these things?

 

does it matter if the pitch is not visible from the main road?

 

***************

im at the stage where 2-3 cars is max from home but sometimes i might be able to get say 5-6 hence looking whether to expand and really try and make a good go of how far we can grow

[Max Branning 149]

The problem with doing this is even if you are able to find someone who owns a plot of land who is willing to do it on this basis, then you have absolutely no security for your business.

For example Mr land owner says "sure fill it with cars mate and just chuck me £50 a car sold"

Now you go out and stick 10/15/20 cars on the pitch, business starts ticking along nicely and then Mr land owner changes his mind and says he wants his land back ! Where does this leave you ?

If you are going to do it properly from premises then you really need some security by way of a lease agreement, it is possible to get a flexible lease arrangement with most landlords especially on industrial units if you need flexibility.

As said earlier though unless trading from home is causing a nightmare with lack of space / problems with neighbours / wife threatening to leave you etc etc then i would stay as you are and earn as much as possible while you have low overheads.

Selling 2 or 3 cars a month from home may well make you as much net profit as doing 10 a month from a pitch.

 

[trade vet 702]

1 hour ago, Max Branning said:

The problem with doing this is even if you are able to find someone who owns a plot of land who is willing to do it on this basis, then you have absolutely no security for your business.

For example Mr land owner says "sure fill it with cars mate and just chuck me £50 a car sold"

Now you go out and stick 10/15/20 cars on the pitch, business starts ticking along nicely and then Mr land owner changes his mind and says he wants his land back ! Where does this leave you ?

If you are going to do it properly from premises then you really need some security by way of a lease agreement, it is possible to get a flexible lease arrangement with most landlords especially on industrial units if you need flexibility.

As said earlier though unless trading from home is causing a nightmare with lack of space / problems with neighbours / wife threatening to leave you etc etc then i would stay as you are and earn as much as possible while you have low overheads.

Selling 2 or 3 cars a month from home may well make you as much net profit as doing 10 a month from a pitch.

 

I agree with Max,Jimbo needs some sort of security of tenure.However by signing leases and licences you could be swimming in 'shark infested waters'.These things can rebound back years later after you have moved on,because another tenant has failed to pay.A similar situation happened to us long ago,so years later on another site we trusted the council with a rental licence agreement.Because we were there a longtime this licence automatically became a lease and moving on created similar problems,so Jimbo beware !

[Jimbo 11]

Thanks guys duely noted

 

issue im having today is trade insurance wont cover the plot as its gated from the road but not all around the plot as its part of a farm so one side is open to the woodland

is it possible to get this type of plot covered without needed steering locks and wheel clamps to pass the underwritters

[have a word with the wife 299]

On 13/09/2017 at 3:53 PM, Jimbo said:

Thanks guys duely noted

 

issue im having today is trade insurance wont cover the plot as its gated from the road but not all around the plot as its part of a farm so one side is open to the woodland

is it possible to get this type of plot covered without needed steering locks and wheel clamps to pass the underwritters

fence it off yourself ? water on site ? customer toilets on site ? electric [ recharge jump pack ] ? could probably decorate the place for around £2k, banners flags BALLOONS cctv ? good padlocks are £75, its one you need to really think about deeply 

[Jimbo 11]

On 17/09/2017 at 9:56 PM, have a word with the wife said:

fence it off yourself ? water on site ? customer toilets on site ? electric [ recharge jump pack ] ? could probably decorate the place for around £2k, banners flags BALLOONS cctv ? good padlocks are £75, its one you need to really think about deeply 

Hi thanks. It has a lovely lake nearby so dont want to fence off really. 

Has toilets and out buildings for paperwork. 

I have jump leads and my car if need to jump start. 

Just looking into banners flags and signs. Bit of a minefield !!

 

im 95% decided to give it a go now and get 8-12 cars bought to make it look nice

[Max Branning 149]

I take it this ground has permission for retail use ? If not the council will close you down fairly swiftly !

[Jimbo 11]

Yes, Cheers guys

Edited September 23, 2017 by Jimbo

[metcars 397]

On 13/09/2017 at 1:56 PM, Max Branning said:

The problem with doing this is even if you are able to find someone who owns a plot of land who is willing to do it on this basis, then you have absolutely no security for your business.

For example Mr land owner says "sure fill it with cars mate and just chuck me £50 a car sold"

Now you go out and stick 10/15/20 cars on the pitch, business starts ticking along nicely and then Mr land owner changes his mind and says he wants his land back ! Where does this leave you ?

If you are going to do it properly from premises then you really need some security by way of a lease agreement, it is possible to get a flexible lease arrangement with most landlords especially on industrial units if you need flexibility.

As said earlier though unless trading from home is causing a nightmare with lack of space / problems with neighbours / wife threatening to leave you etc etc then i would stay as you are and earn as much as possible while you have low overheads.

Selling 2 or 3 cars a month from home may well make you as much net profit as doing 10 a month from a pitch.

 

This.