Unknown 1 Posted January 8, 2018 Hi Folks, after being a long term reader of the forum, I've joined and am now after a bit of advice myself. I've been in the trade Circa 4/5 years now, so I'm not New to the game. But every now and again, a bit of advice goes a long way... Basically, a year & a half ago I went self-employed in Car Brokering, (An Estate Agent equivalent for Cars etc.). I'm doing ok with it, it pays the bills. But recently I've been pondering about expanding into Used Cars / Vans. Particularly Vans as I have past experience with them. I'm based in N.Ireland so I know they tend to do quiet well as a lot of trade comes from the Republic of Ireland (Cheaper tax rates & Euro to Sterling Value etc). But as you know, this is a V expensive game to get into and financially it isn't viable for me to drop X amount of £ into it yet. So basically what I'm asking is, what is the best way in your opinion to go about this expansion? - Stocking Facility? (Have been in talks with BCA about their Partner Finance already. Not 100% sold). - Try attract outside investment? Sorry about the Novel extract, but I'm curious to what your advice is and how you guys got started... Cheers... Share this post Link to post Share on other sites
Max Branning 149 Posted January 8, 2018 You need to be prepared to invest a few quid in the business yourself. I doubt the stocking loan companies would take you on if you have no trading history / premises. Do you not have any funds at all to get it going ? just to buy 1 or 2 to get the ball rolling? Bank loans / overdraft facility may be your next bet once you get a few sales under your belt. Share this post Link to post Share on other sites
Unknown 1 Posted January 8, 2018 Thanks for the reply... Sorry, what I meant to say was that I cant drop 30/40k in it just yet. At the moment, I only have about 15k (Self-investment) worth of stock circulating (3/4 cars a time). Its not much of a business to be honest. But because i'm so limited on stock it really isn't turning quick enough to justify at the moment. Because my business at present is only a commission based company, there isn't enough turnover from that (& definitely not with the sale of cars) for the Bank to consider me. BCA are the only company that are considering working with me, but I'm not 100% sure. BCA Fees are quite hefty alone, but adding the Partner Finance Fees + Delivery to N.Ireland just eats away at the margin. Share this post Link to post Share on other sites
trade vet 704 Posted January 8, 2018 Hi there I think you would be better off by using your £15k and buying one or two and see how it goes.I know people who sell vans and work from home.They might have some arrangement to park them up somewhere which costs very little.I would forget about taking on debt at the moment,stick to what you are currently doing and try and do 2 vans per month.................I have to say,I have always got it wrong with vans,either the wrong type of side loading door or if it is a mini bus it’s got to be 9 not 12 seat etc and these van punters don’t like paying VAT.I remember buying a virtually new £10k Mitsubishi pick up at the door,It had all the toys,I thought I had nicked it.Six months later,we still had it because it had been a ‘grey import’,It did not have a heater,it had been built for the Malaysian market ! 1 Share this post Link to post Share on other sites
Unknown 1 Posted January 8, 2018 Hey there, thanks for the reply... yeah, to be honest that was my thinking. But since starting I just can't shift enough metal to justify it. Maybe I might just give it another while to see how the next few months turn out. Funny, Your not the first to say that, sometimes Vans and the punters they attract can be a hard nut to crack. But my background is in a Main Dealer Transit Centre so I kinda know my bearings.... I Think. Well better you than me for I'd reckon that wouldn't have been the easiest to shift. But hey, if it's too good to be true and all that... Share this post Link to post Share on other sites
Rory RSC 596 Posted January 9, 2018 Can you take out a couple of interest free credit cards / overdraft or personal loan ? Should be able to raise a good few quid that way without the stocking finance issues. Have you spoken to a company called nextgear? Stocking finance is good if you are shifting cars quickly but it is very important to have a keen eye on the cost per deal. Share this post Link to post Share on other sites
Mojo121 229 Posted January 9, 2018 Buy cheaper cars? Alot of us only started with 10-15k... I have to say that the cheaper market is a hell of a lot more crowded now though and you will be a busy fool for a while Share this post Link to post Share on other sites
justina3 518 Posted January 9, 2018 Keen is good borrowing isnt so good, some of the best business models i have seen myself are ones that have no overheads / borrowings. Share this post Link to post Share on other sites
Unknown 1 Posted January 9, 2018 @Rory RSC Yeah I've looked into the Interest Free Credit Cards / Personal Loan Route but for whatever reason a lot of Banks / Companies aren't willing to work with me?! Credit check etc is relatively good. Though I've been told its to to with 'credit experience' as I'm only 20. So No point arguing suppose. NextGear is another company I have looked at actually but at my stage of trading, they look to be a bit expensive? Well what i can work out anyway... @Mojo121 The cheaper car market has definitely been saturated, but the more I think of it, at my stage, it's the only logical option. Until I get the ball properly rolling anyway... Thanks for the advice Share this post Link to post Share on other sites
trade vet 704 Posted January 9, 2018 53 minutes ago, Unknown said: @Rory RSC Yeah I've looked into the Interest Free Credit Cards / Personal Loan Route but for whatever reason a lot of Banks / Companies aren't willing to work with me?! Credit check etc is relatively good. Though I've been told its to to with 'credit experience' as I'm only 20. So No point arguing suppose. NextGear is another company I have looked at actually but at my stage of trading, they look to be a bit expensive? Well what i can work out anyway... @Mojo121 The cheaper car market has definitely been saturated, but the more I think of it, at my stage, it's the only logical option. Until I get the ball properly rolling anyway... Thanks for the advice You are 20 !,forget it.Go back to working at a van retailer.Like most of us,work 7 days a week learning about all aspects of the business,save up at least £50k.Do this for another 5 years,find a like minded colleague with £50k as a partner,you should then be taken seriously and you will be ready to have a go. Good Luck. Share this post Link to post Share on other sites
Arfur Dealy 823 Posted January 9, 2018 1 hour ago, Unknown said: @Rory RSC Yeah I've looked into the Interest Free Credit Cards / Personal Loan Route but for whatever reason a lot of Banks / Companies aren't willing to work with me?! Credit check etc is relatively good. Though I've been told its to to with 'credit experience' as I'm only 20. So No point arguing suppose. NextGear is another company I have looked at actually but at my stage of trading, they look to be a bit expensive? Well what i can work out anyway... @Mojo121 The cheaper car market has definitely been saturated, but the more I think of it, at my stage, it's the only logical option. Until I get the ball properly rolling anyway... Thanks for the advice Your 20 with 15k, the world is your oyster Don't take on any debt, be wise with your money and choosy. Share this post Link to post Share on other sites
LISL 7 Posted January 9, 2018 At 20 mate, you won't even get trade insurance for a new business, let alone PL or road risk. You are young but gain experience at an indy, selling/appraising/buying/prepping; it'll stand you in good stead to run your own shop. And in that time, you may realise that you're happier just working for someone rather than going out on your own. Hope this helps and don't want to put a dampener on your plans, just my tuppence. Rish Share this post Link to post Share on other sites
JKG 16 Posted January 9, 2018 Just thought I'd chime in with my advice. Don't do it at 20, I started at 21, managed to get myself a nice lump of credit, 7 years on and I'm no longer in the motor trade but I'm still throwing lumps of meat to keep the wolves from my door, all because I thought I new it all and had guaranteed success. It was and still is my dream career and I learnt a lot but was it worth it? I don't think so, I wish I'd worked hard for somebody else At the end of the day the choice is your's and you may well make a great success of it but I wish I'd listened to the people around me who told me to wait. Good luck with whatever you choose to do. 1 Share this post Link to post Share on other sites
Unknown 1 Posted January 9, 2018 I started in an indy circa 5 years ago when I left school. Then moved into the Vans around 3 years ago, worked my way up to moving into a Managerial role for the Company Branch. I was eventually made redundant as the company has since closed (Which kick started me going into self-employment in the first place). So I do feel that, whilst I'm young, I do have a certain amount of experience in the game. Though Maybe it is time for me to take a step back & think of my next move. Thanks for the input anyway guys... Always good to hear other peoples views (especially with your combined experience). Cheers 1 Share this post Link to post Share on other sites
AutoJacob 34 Posted January 10, 2018 I would take everyone's advice and make your own decision. I'm 20 just shy of turning 21 and I have made a good few quid so far doing cars priced at sub £1500. There's money in the bread and butter market, every industry is as saturated as ours so don't be fooled into thinking it will be any easier in ten years time. At 20 your overheads will be massive like mine but don't let it put you off, I'm not planning to put myself in debt and borrow £10 - £20K based on a whim that I "may" do reasonably well, everything is self financed. Think about all cars before you buy them, take calculated risks and be prepared to take a hit sometimes. Don't buy expensive stock if you can't afford it, it's better to have volume than higher price tags in this day and age. I am a fresh face to the motor trade although my partner has experience. Share this post Link to post Share on other sites
BHM 994 Posted January 10, 2018 Tbh £4000ish family cars want f***ing off, there’s no money in them from the door cos most of the punters can’t afford to buy them so want credit from a shiney showroom. You can fully stock up on your £15K, make a couple of quid on some, lose a couple on others & occasionally ring the bell - especially with a nice trade-in or two. I believe you make your money when you buy. Ultimately you can talk & type as much as you like but there’s only one way to get experience. Anyhow good luck whatever you decide, but for God’s sake don’t expect to make a fortune overnight. Share this post Link to post Share on other sites
whitestone679231 113 Posted January 10, 2018 I wish to fcuk I was 20 with £15k to spend,,,, the world is your oyster, don't get saddled with debt n commitments just yet,,, blow the lot on 2 years worth of travelling, see the world while you can cus when you are 25 with kids mortgage commitments etc you will wish you had then, Share this post Link to post Share on other sites
