Sale or return vehicles

[AutoJacob 34]

Good afternoon guys

I'm wanting to hear your opinions on sale or return vehicles, we're taking on a new 60 car sales pitch and we usually only stock 10 - 15 cars.

This pitch is very cheap and is being used as a second location as we are struggling with storage at the moment.

Are sale or return vehicles for another trader generally good news or bad?

Cheers

[SC Derby 259]

You'll be the one that has to give the full whack back to the customer should anyone exercise their legal right to reject.

[Arfur Dealy 823]

Your agreement needs to be fair so that you aren't "CRA" screwed if there are problems. I'm not sure if Lawgistics do an invoice for selling of "third party" vehicles.... You really need to know the legalities.  

[SC Derby 259]

I'd hate that though. Customer comes in to look at a few cars, and say they are interested in two of your stock. 

If you buy car A sir then yes you get your warranty legal rights but if you buy car B well I'm selling that on behalf of someone else and theres no comebacks or warranty.....

Not a conversation I'd ever want to be having to be honest.

[Arfur Dealy 823]

1 minute ago, SC Derby said:

I'd hate that though. Customer comes in to look at a few cars, and say they are interested in two of your stock. 

If you buy car A sir then yes you get your warranty legal rights but if you buy car B well I'm selling that on behalf of someone else and theres no comebacks or warranty.....

Not a conversation I'd ever want to be having to be honest.

Agreed, that's why we don't sell other dealers cars.... Far too much risk and not enough reward. 

[justina3 518]

It all comes down to who your dealing with i have done with a few times over the years and out of say 6 people i have dealt with one was on my level and a pleasure to deal with the other 5 i can just about bring myself to say hello to when i pass them in the block.

 

[NOACROSS 414]

Have a read here as we discussed this a while back and might give you some info:

 

 

[BHM 994]

I think everyone has gone off on a tangent, surely sale or return vehicles would be exactly that - if he sells them he buys them in as his stock and if he doesn't he returns them whence they came. Any customers wouldn't know the difference as they would be purchasing from AutoJacob.

However if he's planning on filling up with these sale/return cars and selling them clearly advertised as "other people's cars" I can't see him having much luck. Also, as these sale/return cars will be from another trader, if AutoJacob made a sale this way then the retail customer would be able to exercise his consumer rights with said trader which I suspect said trader wouldn't be prepared to honour.

The only sensible way I see this working is by agreeing a purchase price with the other trader, selling what you can as a normal retail sale, putting these sales through your books in the correct fashion and returning what you don't sell.

2 hours ago, AutoJacob said:

Are sale or return vehicles for another trader generally good news or bad?

9 times out of 10 shite. Most of the time you're buying someone else's turds unless they're a higher-end trader moving on run of the mill stock.

[Mojo121 229]

We've always been very selective about who we deal with in this trade. The large majority are not to be trusted. 

What exactly is being proposed? Along the lines BHM suggests is not as risky as it fills the site without outlay.

[It's me 613]

the detail is in the paperwork both ends

im not an izal fan mind

[Mark101 536]

I have done it both ways - "loaned" cars of SOR and "received" cars on SOR

It's great (in my experience).

Agree the purchase price and as far as anyone is concerned the car is yours (along with all come backs etc) - you simply pay the agreed price to the vendor when you sell or return the vehicle should either party wish but, YOU handle any future responsibilities.

Free stock

This is the ONLY way it will work and it is a great way to exploit one anothers capacity.

Edited May 2, 2018 by Mark101

[AutoJacob 34]

1 hour ago, BHM said:

I think everyone has gone off on a tangent, surely sale or return vehicles would be exactly that - if he sells them he buys them in as his stock and if he doesn't he returns them whence they came. Any customers wouldn't know the difference as they would be purchasing from AutoJacob.

However if he's planning on filling up with these sale/return cars and selling them clearly advertised as "other people's cars" I can't see him having much luck. Also, as these sale/return cars will be from another trader, if AutoJacob made a sale this way then the retail customer would be able to exercise his consumer rights with said trader which I suspect said trader wouldn't be prepared to honour.

The only sensible way I see this working is by agreeing a purchase price with the other trader, selling what you can as a normal retail sale, putting these sales through your books in the correct fashion and returning what you don't sell.

9 times out of 10 shite. Most of the time you're buying someone else's turds unless they're a higher-end trader moving on run of the mill stock.

In a nut shell we want to use someone else's part exchanges / run of the mill stock to fill up our forecourt, as you said what we sell we will purchase as any other, anything that doesn't sell and clearly won't sell we will hand back.

One of the reasons is that we don't have the finances to buy an additional 30 / 40 cars to fill the pitch up so SOR is ideal.

Thanks for your opinions guys.

[Mark101 536]

11 minutes ago, AutoJacob said:

In a nut shell we want to use someone else's part exchanges / run of the mill stock to fill up our forecourt, as you said what we sell we will purchase as any other, anything that doesn't sell and clearly won't sell we will hand back.

One of the reasons is that we don't have the finances to buy an additional 30 / 40 cars to fill the pitch up so SOR is ideal.

Thanks for your opinions guys.

Where are you based?  I might be able to offer some stock SOR if you're local to me?

[trade vet 697]

If you have taken on a 60 car pitch and you can only afford to put 25 on,you said it is cheap so just go with that and build it up.SOR stuff can be a nightmare and you will just fall out with the suppliers.Every SOR Car  has to be correctly recorded in your stock book whether you sell it or return it,miss out one or two and HMRC spots them and you are in deep shit.

[grant8064 219]

Just make sure you remember to trust nobody and have a stupidly massive wedge in them because you'll end up owning them when the gearbox goes pop no matter what a trader promises you. In my mind it's only worth doing if you're happy to have someone else sticking their oar in every five minutes telling you how to run your own business.

[AutoJacob 34]

34 minutes ago, grant8064 said:

Just make sure you remember to trust nobody and have a stupidly massive wedge in them because you'll end up owning them when the gearbox goes pop no matter what a trader promises you. In my mind it's only worth doing if you're happy to have someone else sticking their oar in every five minutes telling you how to run your own business.

This is why we are just taking this on as an additional site..  if it all goes pear shaped we can just bite the bullet and part ways with said trader / landlord.

£250 per month for a 60 car pitch on a road side, a independent mechanic operates from the garage so it's only an outdoor pitch with a porta cabin.

[justlooking 48]

49 minutes ago, AutoJacob said:

This is why we are just taking this on as an additional site..  if it all goes pear shaped we can just bite the bullet and part ways with said trader / landlord.

£250 per month for a 60 car pitch on a road side, a independent mechanic operates from the garage so it's only an outdoor pitch with a porta cabin.

what the jeepers?! where are you in the country! sounds great

[AutoJacob 34]

6 hours ago, justlooking said:

what the jeepers?! where are you in the country! sounds great

North West, near Warrington. Yeah I think it's a great opportunity, the previous trader has moved to a big warehouse on the road side and want someone to take it over who can sell their stock as well.

[justina3 518]

1 hour ago, AutoJacob said:

North West, near Warrington. Yeah I think it's a great opportunity, the previous trader has moved to a big warehouse on the road side and want someone to take it over who can sell their stock as well.

Ok sounds great, but theres always a but in life i know, how is this deal put together a contract or a beer mat ? if you have 25 cars and he puts on the rest he is on a win win he gets rent and you sell his cars, but when your funds allow and the split becomes 50 to you and 10 to him he is now on not such a good deal does the contract or agreement allow him then to treble your rent or demand he still has the same amount of cars on display in which case you will only ever be allowed to retail 25 cars. 

I know some would say for £250 a month do it anyway, but you will be surprised you will soon be running a 60 car site which is a whole different can of worms just think of the extra cleaning you will have to do to ensure the site looks nice, the extra advertising ? who pays that my mind goes on and on with whats if's.

 

[Mark101 536]

I sort of agree with Justina3

Sounds almost too good to be true.

It is almost (and I do mean almost) akin to being an employee, someone gives you a site and some cars to sell - isn't that a salesperson for a dealership?  Except, they would guarantee you a salary, provide a co. car, pension, not charge you any rent to sell their cars and give you commission on each sale with no come backs.

The only added value is that you can sell your own cars as well.

Edited May 3, 2018 by Mark101

[AutoJacob 34]

30 minutes ago, Mark101 said:

I sort of agree with Justina3

Sounds almost too good to be true.

It is almost (and I do mean almost) akin to being an employee, someone gives you a site and some cars to sell - isn't that a salesperson for a dealership?  Except, they would guarantee you a salary, provide a co. car, pension, not charge you any rent to sell their cars and give you commission on each sale with no come backs.

The only added value is that you can sell your own cars as well.

If it turns out like this I will just walk away with my stock but I've known them for about a year (don't trust them but then again who can you trust in this trade).

[twerp 69]

Really depends on the stock profile and if he ends up expecting you to prep too.

 

[trade vet 697]

3 hours ago, AutoJacob said:

If it turns out like this I will just walk away with my stock but I've known them for about a year (don't trust them but then again who can you trust in this trade).

Don’t trust them,in which case don’t deal with them........I am with Justin on this one......Heard this SOR  story recently from an old Trader about his friend ,a hard working honest guy who ran a garage repair business for years.He also sold one or two vans which he advertised and displayed outside the garage.A trader customer gave him a van to sell SOR,some time later he returns it to the Trader as he could not sell it.He subsequently had a VAT inspection and the inspector wanted to know about this van as it was not entered in his stock book.He explained  what happened and who supplied the van.However the trader who supplied the van denied all knowledge of owning it ( must have paid cash for it and not declared it )....HMRC persued the garage guy ( he must have had assets) and assessed him for a lot of money and he has had to close down and is now in ill health.

[chrishowie 14]

At £250 a month I'd personally take it on for storage and I'm in Lymm - Warrington LOL

[It's me 613]

cars coming into stock this last 5 years + have steadily declined in quality,it used to be basic things like tyres and blowy exhausts ,now its engine management lights no pads on the metal discs that were advised 2 years ago and the interiors are pig styes (sorry pigs i know you are clean) so taking all that into account and knowing traders wont spend a penny unless they really have to there is no way i would take on someone elses cast offs

 

just saying.................