taking the leap from door stepper to a unit..

[D7neo 5]

I don't really know what I want to hear, maybe just a bit of advise or experience of someone who has recently gone from door step trader to a unit.

I have been trading a little over a year, mainly LCV's and minibuses (generally 8-12k value) but would like to introduce car sales abit more. I am FCA registered and started to register with a few finance companies.

As I continue and with the benefit of being able to offer finance, I want somewhere I can ideally be meeting people away from my home, with an office that we can sit down in and go through to the finance etc.

I trade part time and work full time in construction. So it is very much an evening and weekends business for the time being.

 There isn't much in the way locally to rent, except bog standard 2-3000 sqft units. I would ideally like more of a 'lot' than a unit but there simply isn't anything. All my vehicles are self funded and I don't take a penny profit out of the business. I'll be honest, I am 'scared' of taking on somewhere and having the monthly bill and being desperate to be selling to cover the rent etc. 

How have others gone about it when the time as come?

 

[Mark101 536]

3 minutes ago, D7neo said:

I don't really know what I want to hear, maybe just a bit of advise or experience of someone who has recently gone from door step trader to a unit.

I have been trading a little over a year, mainly LCV's and minibuses (generally 8-12k value) but would like to introduce car sales abit more. I am FCA registered and started to register with a few finance companies.

As I continue and with the benefit of being able to offer finance, I want somewhere I can ideally be meeting people away from my home, with an office that we can sit down in and go through to the finance etc.

I trade part time and work full time in construction. So it is very much an evening and weekends business for the time being.

 There isn't much in the way locally to rent, except bog standard 2-3000 sqft units. I would ideally like more of a 'lot' than a unit but there simply isn't anything. All my vehicles are self funded and I don't take a penny profit out of the business. I'll be honest, I am 'scared' of taking on somewhere and having the monthly bill and being desperate to be selling to cover the rent etc. 

How have others gone about it when the time as come?

 

We're in a similar place, except I am F/T.

I gave my pitch up years ago (and had a long break).  The ex's kill you.  In May and June, I earned a fantastic wage (stayed with business, not drawn down) but July and August so far would barely cover the cost of any premises.

I certainly wouldn't be looking for premises on a P/T basis, no way.

Having said that, I do keep my eyes peeled for a small cheap and chearful (but presentable) unit as my driveway looks ridiculous - 12 on the front as we speak.

[MattR 177]

I think if you have a pitch, people expect you to be there, thats my experience with having one. A lock up unit would be more appropriate. Just be aware of costs - its not just rent, its business rates, insurance, utilities and normally a contract for a minimum 12 months. So I would guess that could be £1500 per month if you need something big enough to hold a dozen vehicles.

[trade vet 704]

Some people might say just stick to what you are doing.I would say firstly try and share some car sales pitch where vans and minibuses don’t conflict.You could add 7 seater Estates aswell.Go on Companies House website and see the financials of pitches operating  in your area and you may change your mind.If you can’t do that,just post a few on here and I will have a look.

[EPV 631]

I’d love to find a unit to take fifteen cars but to do so would cost me £3k a month and some. 

Obviously i’m on the outskirts of London so gold is probably cheaper per m2 than land round here. 

My next step is a storage compound and a portakabin. 

Also ask yourself how much finance penetration you’re likely to get on your stock profile. If it’s very low then what’s the point. Just get them to sort the finance paperwork out before they even come to see the car. I think if someone doesn’t want to commit to a finance prop before they’ve seen the car are they actually buyers. 

Pitch punters are different of course. 

[D7neo 5]

thank you all for your input.

I think you have just confirmed what I thought. There is a unit coming up close by, around 2200sq ft. It's 8k per annum rent, business rate relief, but with services you're still talking 10k a year. I think I'll put 10k into my own house, extend my garage for an office and re-do the driveways. Give it 12 months and see how I am next year.

Finance wise, everything is pretty much 6k upwards and thats where I would like to stay even with cars, so I would imagine finance would be popular, but time will tell.

Thanks again,

Dane

[MOTORS 25]

Don't forget to look in to planning permission for change of use before spending money on extending your garage and driveway. I trade from home and all was well until I added a small conservatory in 2013 to use as an office and started getting busy. The council visited and stopped me trading until I had full planning permission for change of use. Luckliy I got planning (although there were a few local objectors) and could continue trading from home. Then the rating office came round and assessed business rates, It was a joke really as they charged me £450 annual rates but will small business rate relief it reduced to zero. Because part of the land was now business related the council lowered the residential rate band which reduced our house by £550 per year.

[D7neo 5]

46 minutes ago, MOTORS said:

Don't forget to look in to planning permission for change of use before spending money on extending your garage and driveway. I trade from home and all was well until I added a small conservatory in 2013 to use as an office and started getting busy. The council visited and stopped me trading until I had full planning permission for change of use. Luckliy I got planning (although there were a few local objectors) and could continue trading from home. Then the rating office came round and assessed business rates, It was a joke really as they charged me £450 annual rates but will small business rate relief it reduced to zero. Because part of the land was now business related the council lowered the residential rate band which reduced our house by £550 per year.

Thanks for that, I'll look in to it.

If thats the case, I have got a 8m x 4m living room I dont use so that can be the new office and it can lower my council tax! hopefully be a win win.

[Arfur Dealy 823]

On 8/11/2018 at 0:15 PM, D7neo said:

I'll be honest, I am 'scared' of taking on somewhere and having the monthly bill and being desperate to be selling to cover the rent etc. 

How have others gone about it when the time as come?

 

Simply don't do it, there's no need, don't do anything in business you don't feel comfortable with  If you don't want the commitment, it'll be a constant worry..... I was a door stepper for years, I'm fairly experienced in the matter... You can't run a site part time, you have to commit full time. If you sell online you can use a unit for storage and collection B2 use, these units are generally chdeaper as they are for distrobution and collection only, not retail (selling online) is a way to get around it. However, not a lot of landlords like car dealers..... If you want to grow and sell cars do some dabbling first, one at a time.. Don't do something you are not happy with  Your business is your baby, you grow it how you wish...

BTW... FFS, my spell checker has disappepepred...... lol 

[Del Boy 76]

8 hours ago, MOTORS said:

Don't forget to look in to planning permission for change of use before spending money on extending your garage and driveway. I trade from home and all was well until I added a small conservatory in 2013 to use as an office and started getting busy. The council visited and stopped me trading until I had full planning permission for change of use. Luckliy I got planning (although there were a few local objectors) and could continue trading from home. Then the rating office came round and assessed business rates, It was a joke really as they charged me £450 annual rates but will small business rate relief it reduced to zero. Because part of the land was now business related the council lowered the residential rate band which reduced our house by £550 per year.

I think this is the first case I’ve heard of where planning has been approved? 

[have a word with the wife 299]

On 11/08/2018 at 0:15 PM, D7neo said:

I don't really know what I want to hear, maybe just a bit of advise or experience of someone who has recently gone from door step trader to a unit.

I have been trading a little over a year, mainly LCV's and minibuses (generally 8-12k value) but would like to introduce car sales abit more. I am FCA registered and started to register with a few finance companies.

As I continue and with the benefit of being able to offer finance, I want somewhere I can ideally be meeting people away from my home, with an office that we can sit down in and go through to the finance etc.

I trade part time and work full time in construction. So it is very much an evening and weekends business for the time being.

 There isn't much in the way locally to rent, except bog standard 2-3000 sqft units. I would ideally like more of a 'lot' than a unit but there simply isn't anything. All my vehicles are self funded and I don't take a penny profit out of the business. I'll be honest, I am 'scared' of taking on somewhere and having the monthly bill and being desperate to be selling to cover the rent etc. 

how have others gone about it when the time as come?

 

you do a business plan !

[D7neo 5]

18 hours ago, Arfur Dealy said:

Simply don't do it, there's no need, don't do anything in business you don't feel comfortable with  If you don't want the commitment, it'll be a constant worry..... I was a door stepper for years, I'm fairly experienced in the matter... You can't run a site part time, you have to commit full time. If you sell online you can use a unit for storage and collection B2 use, these units are generally chdeaper as they are for distrobution and collection only, not retail (selling online) is a way to get around it. However, not a lot of landlords like car dealers..... If you want to grow and sell cars do some dabbling first, one at a time.. Don't do something you are not happy with  Your business is your baby, you grow it how you wish...

BTW... FFS, my spell checker has disappepepred...... lol 

thanks for the input. I am going to give it at least another 12 months to see how things go then make a decision from there. I would like to go at it full time, but like you say, I don't want to rush it.