Another new Trader

[Chaplin 1]

Hi guys,

First of all this forum is great. I have learnt loads from you and hope to one day be able to give that back to newbies like myself.

I didn't want to post until I was up and running so have waited until now.

A bit about me, I have always liked messing with anything mechanical and getting my hands dirty. Have also always wanted my own motor business. I currently work in Civil Engineering and have a 2 hour each way commute into London every day. One of the main reasons for doing this was so I could spend more time with family etc. although I don't mind long hours and hard work if it's going towards building something up for myself.

Anyway, I would like eventually to have an industrial unit where I sell cars that are advertised online. Don't want a pitch and all the overheads. I would also like to expand that into doing servicing, Aircon, locksmithing etc. Things which I would usually send out as well as some longer term restos of modern classic and the like.. That's a long way down the line however and at the moment I am trading from home until I have built up enough cash to move into premises.

I am doing it all legit, have MT insurance and a set of Lawgistics pads for PDI, Invoice and Test Drive plus trade plates. I've only sold 2 so far but done ok. Been buying spares or repair on ebay. One was Corsa that needed a new windscreen & MOT and the other a convertible beetle with a roof that wouldn't work. Plan on doing a bit less of the fixing up as it takes longer to turn them around. It's all being done on evenings and weekends around the job so a lot of time waiting for parts or until saturday for MOT etc.

I have an auction centre round the corner and have spent the last couple of months sitting through and marking down sold prices in the catalogue then comparing them to the going price on AutoTrader etc. so getting a good grasp of prices. 

Anyway, just thought i'd say hello and thanks for the info on here. I know home traders starting out are hated by some but I can assure you all I am doing it legit and have plans for the future.

Regards

 

[Chaplin 1]

I know, and I haven't listed half of it.

 

like I say, its a long term plan

[trade vet 702]

You should be OK,you sound sensible.As long as you can cope with the initial setbacks as it will be hard in your first 6 months.Plenty of good guys on here to help.

[Chaplin 1]

I am not taking a penny out of the business and putting it all back in so hopefully will be able to deal with the inevitable setbacks when they happen.

I have had my first in fact with the beetle. Got it very cheap as spares repair with no working roof, drivers window mechansim gone and a few other gremlins. Thought I would be in for a good profit but turns out it was Cat D. I know, I should be checking but it was a deal I found and made there and then so thought it would be ok. As it happened I have sold it and made a bit of profit as it was quite an easy fix (also thanks to the weather).

I am about to look into a trade account with HPI. Is it worth doing whilst starting small? Getting individual checks could soon mount up. what does a trade account give you?

[D7neo 5]

I read your introduction then thinking it was a biography of myself. Civil engineer, sick of the commute, hoping to do it full time in future, wanting an industrial unit to work out of.. relatively new myself but if there is anything I can answer then ask away.

[Chaplin 1]

Thanks, the one thing I really need to look into is VAT.

I am obviously way below the threshold at the moment but is there any benefit in registering early in terms of expanses and claiming back VAT on part, repairs etc?

[D7neo 5]

8 minutes ago, Chaplin said:

Thanks, the one thing I really need to look into is VAT.

I am obviously way below the threshold at the moment but is there any benefit in registering early in terms of expanses and claiming back VAT on part, repairs etc?

I have been VAT registered from the start as I mainly do vans. I'm not sure how it really works on cars, its something I need to figure out. I know you need to vat registered if you want to offer finance as you grow but I suppose thats down to the value of the cars you are aiming for...

[Nick M.K. 574]

8 minutes ago, Chaplin said:

I am obviously way below the threshold at the moment but is there any benefit in registering early in terms of expanses and claiming back VAT on part, repairs etc?

Good question this, from a new trader. 

An obvious benefit is that the VAT Man can not come and say that you waited too long to register and try and back-charge you. 

If you like to add value and get VAT invoices for everything that you do to your cars (repairs, bodywork, parts, wheels, tyres, advertising etc) AND your margins aren't huge you might as well register now. If however you don't have a lot of costs to claim back there is not much point in paying 20% of your margin while you are allowed not to pay it for another few weeks / months. 

[Arfur Dealy 823]

2 hours ago, Chaplin said:

Hi guys,

First of all this forum is great. I have learnt loads from you and hope to one day be able to give that back to newbies like myself.

I didn't want to post until I was up and running so have waited until now.

A bit about me, I have always liked messing with anything mechanical and getting my hands dirty. Have also always wanted my own motor business. I currently work in Civil Engineering and have a 2 hour each way commute into London every day. One of the main reasons for doing this was so I could spend more time with family etc. although I don't mind long hours and hard work if it's going towards building something up for myself.

Anyway, I would like eventually to have an industrial unit where I sell cars that are advertised online. Don't want a pitch and all the overheads. I would also like to expand that into doing servicing, Aircon, locksmithing etc. Things which I would usually send out as well as some longer term restos of modern classic and the like.. That's a long way down the line however and at the moment I am trading from home until I have built up enough cash to move into premises.

I am doing it all legit, have MT insurance and a set of Lawgistics pads for PDI, Invoice and Test Drive plus trade plates. I've only sold 2 so far but done ok. Been buying spares or repair on ebay. One was Corsa that needed a new windscreen & MOT and the other a convertible beetle with a roof that wouldn't work. Plan on doing a bit less of the fixing up as it takes longer to turn them around. It's all being done on evenings and weekends around the job so a lot of time waiting for parts or until saturday for MOT etc.

I have an auction centre round the corner and have spent the last couple of months sitting through and marking down sold prices in the catalogue then comparing them to the going price on AutoTrader etc. so getting a good grasp of prices. 

Anyway, just thought i'd say hello and thanks for the info on here. I know home traders starting out are hated by some but I can assure you all I am doing it legit and have plans for the future.

Regards

 

Hated ?? No one hates a newbie here. If however they just happen to be a moronic, nappy wearing, annoying idiot then they told so... 

Welcome Chaplin, follow your heart.  

 

[Mark101 536]

Welcome and I must say what an articulate and sensible chap you sound - I wish you well.

You need to HPI everything but that can be as little as a couple of quid with a subscription.

Good luck.

[EPV 631]

You’re doing it all right, from the beginning so that’s a good start. Definitely look to get yourself a couple of straight cars at a premium to work on your presentation, sales skills, people skills and so on, take a small margin out of each and gain some confidence. Then, look for a niche you like and buy in a few bits to add value to, stuff people overlook cos they can’t be bothered to take the grief or time and nick a few and start making proper money. 

[Chaplin 1]

Thanks guys, going to leave VAT until I have to and have the signup forms from HPI today so will get that subscription.

I'd really like to get into the modern classics scene later, probably as a side thing rather than 100% but for now it's just about building the bank and learning the ropes.

 

 

[Arfur Dealy 823]

18 minutes ago, Chaplin said:

Thanks guys, going to leave VAT until I have to and have the signup forms from HPI today so will get that subscription.

I'd really like to get into the modern classics scene later, probably as a side thing rather than 100% but for now it's just about building the bank and learning the ropes.

 

 

Modern classics, I’ve just bought a 20 year old E55 which was much better than the eBay description... Well surprised 

[justlooking 48]

When you’re relying on selling cars as your sole source of income you won’t want a modern classic, as:

- they typically need work.

- they attract billy know it all customers that think they’re worth what they used to be when prices bottomed out in 2007.

regarding HPI, we use motor trade check instead. Google them. Much cheaper and offer the same checks.

good luck and keep asking questions 

[Chaplin 1]

Will check out motor trade check

If I did get into classics it would be as a sideline once the general sales was more than self sufficient. Its a long way down the line.

 

 

[Mikey360 68]

I've tried my hardest to stick to my plan of buying "desirable" cars  (ie m sports, s lines, type r's ets) and its really tough to get the right buyers, feel like they're sticking round longer just because they're not run of the mill stuff. Saying that, when people do eventually turn up to buy them, they're always impressed with the other stock I have which puts a huge smile on my face! 

Stick to your guns on buying the modern classics and maybe have a few quick sellers just to keep it floating! 

[EPV 631]

5 minutes ago, Mikey360 said:

I've tried my hardest to stick to my plan of buying "desirable" cars  (ie m sports, s lines, type r's ets) and its really tough to get the right buyers, feel like they're sticking round longer just because they're not run of the mill stuff. Saying that, when people do eventually turn up to buy them, they're always impressed with the other stock I have which puts a huge smile on my face! 

Stick to your guns on buying the modern classics and maybe have a few quick sellers just to keep it floating! 

It’s weird at times mate, i’ve sold SE’s quicker than S-Lines and had people crawling all over a Sport and taken 45 days to sell an MSport. Not always easy!

[Mikey360 68]

Just now, EPV said:

It’s weird at times mate, i’ve sold SE’s quicker than S-Lines and had people crawling all over a Sport and taken 45 days to sell an MSport. Not always easy!

Completely agree with you, I know most of the time it just means a trim package or some bigger alloys, but you'd think people would prefer that??

I've got a Blue Type S GT that's been sat for a few weeks now, such a shame as its a cracking car! Had a high mileage 2010 CRV SE a few months back that sold in 3 days, absolutely bizarre!

[EPV 631]

6 minutes ago, Mikey360 said:

Completely agree with you, I know most of the time it just means a trim package or some bigger alloys, but you'd think people would prefer that??

I've got a Blue Type S GT that's been sat for a few weeks now, such a shame as its a cracking car! Had a high mileage 2010 CRV SE a few months back that sold in 3 days, absolutely bizarre!

Weeks? Jesus mate a few weeks is nothing, I wouldn’t even worry about a car that is less than 30 days old 

[Mikey360 68]

Just now, EPV said:

Weeks? Jesus mate a few weeks is nothing, I wouldn’t even worry about a car that is less than 30 days old 

I know I know, 4 weeks its becomes a problem for me, just a bit bummed the phone hasn't been ringing! (Putting it down to hot weather and football)

I'm the kinda person who always chooses 24hr postage when ordering online, bloody hate the waiting game!

[EPV 631]

Look at it like this. Punters are like fish, they shoal. There are big wide open gaps between shoals. Sometimes the shoals aren’t even looking for your type of bait. But all you can do is make sure your bait is seen, before anyone else’s. It looks better than anyone else’s and the angler offering the bait looks like he is trustworthy and he wouldn’t present good looking bait that is actually shit and when the right shoal comes along they’ll have no reason to feed anywhere else. 

[Mikey360 68]

Just now, EPV said:

Look at it like this. Punters are like fish, they shoal. There are big wide open gaps between shoals. Sometimes the shoals aren’t even looking for your type of bait. But all you can do is make sure your bait is seen, before anyone else’s. It looks better than anyone else’s and the angler offering the bait looks like he is trustworthy and he wouldn’t present good looking bait that is actually shit and when the right shoal comes along they’ll have no reason to feed anywhere else. 

Now that's a great analogy EPV!

[Mark101 536]

1 hour ago, EPV said:

Look at it like this. Punters are like fish, they shoal. There are big wide open gaps between shoals. Sometimes the shoals aren’t even looking for your type of bait. But all you can do is make sure your bait is seen, before anyone else’s. It looks better than anyone else’s and the angler offering the bait looks like he is trustworthy and he wouldn’t present good looking bait that is actually shit and when the right shoal comes along they’ll have no reason to feed anywhere else. 

Have you been fishing recently, I am sure you have written that analogy twice already? 

 

[EPV 631]

1 hour ago, Mark101 said:

Have you been fishing recently, I am sure you have written that analogy twice already? 

 

I am yet to break into full Eric Cantona seagull analogy (google it) so consider yourself lucky. 

I could replace “fish” and “shoals” with “flies” and “shit” I suppose...

[Rory RSC 596]

11 hours ago, EPV said:

Look at it like this. Punters are like fish, they shoal. There are big wide open gaps between shoals. Sometimes the shoals aren’t even looking for your type of bait. But all you can do is make sure your bait is seen, before anyone else’s. It looks better than anyone else’s and the angler offering the bait looks like he is trustworthy and he wouldn’t present good looking bait that is actually shit and when the right shoal comes along they’ll have no reason to feed anywhere else. 

Taught me something with that one like it