New to the trade

[Tempest 0]

Hi all,

Having worked in the motor trade as a tech for a few years I recently re-located back to my roots in Nottinghamshire.

On my return my Father and I have taken up a unit that I have started doing basic matenance work from and offering my services to the VW/Audi community (this is my specialisation).

After a few discussions we have looked at perhaps changing the focus of the business more towards buying and selling.

We are thinking of catering for higher end Audi (S and RS models) given my quite extensive experience and I am looking for some thoughts and feed back.

 

I'm interested to know what kind of profit margin a dealer should expect (or aims to achieve) on selling a vehicle of this type in the £10-20k market?

I also wonder if there is anyone here who like to buy non-runners in this kind of stock, to repair and then sell on, if so, how well does it work out for you?

Is there any one else here who aims for a similar trading style in Audi, or maybe other brands such as Mercedes or BMW?

 

I currently have a 2003 C5 RS6 that I've repaired, which is almost ready to sell as my first sale. I've also just bought a C6 2007 V10 S6, which looks to need timing chains (biiiiggg Job).

 

I have lots of experience selling personal items, including cars, on eBay, do many traders find eBay a good market place, or are the likes of Autotrader, Piston heads etc better for the kind of market I am looking at?

 

Thanks in advance for any replies and I look forward to talking to you all in the future.

 

Troy.

[NOACROSS 414]

Hi Troy- just my personal opinion (formed over 30 plus years) German cars are dreadful and cause me nothing but trouble and the customer's expectations are too high. 

I think you're asking for a metaphorical kicking at best and at least it'll be a very painful and steep learning curve for you.  I'd honestly stick to repairing the junk.  That's where the money is and you've got a very enviable skill where you will not be short of work.

A friend of mine has a similar skill to you and runs a very successful MOT/repair garage.  Him and his dad buy the odd heavy crazy thing, like a Ferrari etc needing a clutch or an engine rebuild etc and they manage to make a tidy sum as they don't factor in their labour. YOU WILL NEED A BIG MARGIN.

They only do the odd one here and there when the opportunity to buy (usually a customer's car) comes along.  However, they do get comebacks but are a big enough operation to deal with them.

As far as advertising goes, many on here will tell you Autotrader.  Whilst I AM NOT one of them, I think if you're only selling the odd couple then that would be the place.  We do OK on ebay (Motors Pro not auction) at any value.  Pistonheads no.

 

Good luck with it though.

Edited June 20, 2018 by NOACROSS

[Tempest 0]

Thanks for the input NoAcross,

For me, all I know is German cars! Moving to another brand would be a challenge for me I feel. 

The dilema I face at the moment is that I have to build a business and I need to choose soon in order to focus. Add that to the fact I am a bit fed up with repairing customers cars for a similar reason to what you mentioned above - they expect too much, want it done asap etc.

 

I’m not looking to have most of my stock as non runner repair jobs, maybe the odd few. 

What sort of margins do you look for in normal trading of good quality cars? 

[NOACROSS 414]

It's not so much having your stock as repairs or non-runners- its the fact they WILL crap themselves as regular as a new-born, and this is the issue you will have to live with.

Every little niggle or rattle is the end of the world in that market.  It is a crap product.  Believe me. If you're fed up with 'paying' customers hassling you- imagine the added stress when it's you that's on the hook for the cost and they're not only angry about having to wait, but also that you sold them the junk in the first place. ;0)

As you know I'm sure- those more performance-skewed things are complicated and temperamental and the sort of idiots who buy and drive them, won't go easy on them when driving over the sleeping policemen and traffic calming chicanes back to their council houses or mock-tudor estates/Barret Home.

What are you going to do about PXs?  It's not guaranteed that the PX will be a German Car.

This job is one of those where from the outside, it looks like we're all having it off and the grass is greener.  It's not.

Margin wise- it depends on outlay for me, and you have to think about the VAT as you'll hit the threshold very quickly in that world.  My mate takes a ten grand mark up on some stuff, but you can spend half of that easy in prep.  

Cheaper cars-there's no way near that margin obviously, but have a look at some free price guides to see the difference between trade and retail and make your own mind up. However you're lucky sometimes if you come out with a monkey 'net'. There's a free Autotrader one, a free Hpi one etc.

If you can keep the repair business going then that is your safety net at least and it may help you sell some cars.  I would just do a couple at the most if I were you.  See how you go.

Edited June 20, 2018 by NOACROSS

[Tempest 0]

Thank you for the thoughts. 

I appreciate that a large proportion of the buyers are probably going to be a pita in some way, but I’m prepared for that. 

It’s mainly that I’m bored repairing cars for customers and want to do something different. 

I am already vat registered and will continue to trade that way. My father is from the accountancy world, so that’s all taken care of. 

You know I hadn’t paid much thought to part ex, but was thinking of advertising in the form of wanted ads for the kind of stock I want. 

I would be interested to know what kind of stock you trade and the kind of price range you work in? 

 

Troy. 

[NOACROSS 414]

Usually about 40-50 in stock. We have a main road site  

I’ve tried heavier stuff in the past and have  a couple around the 30k mark usually, but I’d go broke if that’s all I stocked. Plus I’d lose what’s left of my hair if I did  

Best business for me anyway always is at the the 5-10 grand range-although I try to have something for everybody from about three grand. Best sellers seem to consistently be in the 3-5 grand range and then the 7-10  

I happily resurrect and re-sell the PX’s where sensible also. 

Low miles and good spec wherever possible and absolutely no diesels or German cars if I can help it too, and they get hit hard if such come in PX. 

Good luck with it. Everyone on here will be happy to help if you need any advice. 

Edited June 20, 2018 by NOACROSS

[Tempest 0]

Again, thank you for the responses.

I can’t say it’s want I wanted to hear but it’s not the end of the world!

As the business is new in all respects my choices are pretty open and I won’t loose out too much by trying either or a mixture of both paths. 

I’ll see how I get on.

Troy. 

[BHM 994]

Troy, I imagine specialising in the repair of German Wonder Wagons is a good business to be in because they’re far from reliable when older.

However from a selling point of view the horrible “Champagne taste, lemonade money” punters are c***s. However as a retailer at least when they do go wrong you’ll save on labour costs. Your biggest problem if selling the top end stuff will be dealing with dreamers - you’ll soon get a few lessons in the mentality of the general public & learn to sort the wheat from the chaff.

I sell most cars through eBay (motorspro). Gumtree & Facebook isn’t my cup of tea but is ideal if you want to attract penniless scum & like exchanging messages with idiots - I’m too old to entertain cretins but I’ve seen the standard of communication shown to me at the block by plastic traders. I guess Autotrader would do your operation proud (I don’t use it personally) BUT I’m fairly confident anyone looking for cars on AT does so also on eBay & vice versa.