Yet another newbie, and insurance question

[CCC 31]

Hi,

Another newbie here, I've posted before but not done any introductions. As I've got a question to ask the forums advice on, I thought it polite to do a brief intro first.

Since I was a kid, I've liked the idea of working with cars, but never had the funds/time to give it a go (and too risk averse to borrow loads of cash to start out).

i've bought and sold quite a few cars in my time, and there was a period a few years ago when buying and selling the occasional modern classic kept my head above water but I've never done it as a business until the start of this year. 

Having sold my previous company which I build up over a decade, I finally had some time on my hands and some money to invest in stock, so when a friend who's worked in the trade most his life (for main dealers) approached me about working together it sounded like a good opportunity.

From reading this forum a lot recently I think we've learnt many of the lessons that first timers do, and as we approach our second year trading we're a bit older but a lot wiser.

A few of our mistakes have been:

Buying stock when we felt we needed stock, rather than waiting for the right car to come along at the right price

Underestimating the likelihood of older cars needing unforeseen repairs beyond the one's we've been aware off when buying

Having too many cars in prep at one time and none available to buy

Overpricing good stock initially rather than trying to get a quick turnaround on it

Overpaying for cars at auction (primarily fees)

Focussing on cars with too low a price point on the basis this should help stock turn

 

I'm sure I could add another dozen or more to this, but the long and the short of it is we've probably overpaid for stock as we've not left enough fat in the margin for unforeseen items. Going forwards a bit of a less is more approach and trying to buy when the price is right rather than because a car fits our target stock profile.

This forum has been great for education and also for realising that some of the problems we've seen aren't unique to us (e.g. high auction prices relative to retails). Also good to know we're not alone in getting a good car stick for few weeks, then get a shedload of inquiries the day after it sells.

Our insurance renewal is due up soon and we're wondering if anyone has any recommendations? We used Bollington as a broker and I can't remember who the actual policy is with but we had expected a slight drop on renewal as we're no longer a new policy holder but this doesn't seem to have happened. Last year we struggled with options as cars were stored on our drives, or at a local farm (open yard), but we've now got covered storage at a different farm, though we still need cover at home too as moving cars in/out storage when viewing/doing prep can be a headache, and i like the idea of actually using them a bit to spot issues before we sell them on as it's often the small stuff (e.g. passenger door locks) that catch you out.

Any advice is much appreciated.
 

 

[DBDlloyds 18]

Welcome,

I too have just entered my second year of trading and have experienced all of the above. I decided to stay with Bollington’s insurance for a second year although like you my premium increased.

where are you guys based ?

regards Dean.

[CCC 31]

Just outside MK.

Thanks, good to know we're not alone in our mistakes (or is that "learnings" nowadays) and insurance costs too.

Edited November 13, 2018 by CCC

[EPV 631]

Mine is due for renewal this month too so i’d also be interested in the replies. 

OP, welcome. 

[NOACROSS 414]

I’ve always gone through Alan & Thomas (a broker) for last twenty years or so.  Really handy and helpful when you’ve got an issue. With a site it’s very useful.  This year they put me on with LV but before that was AXA. 

[justina3 518]

Mine went up as well which annoyed me no claims sir yes 26 years umm ok and it still goes up, what has changed the most over the last few years is in the olden days you could ring around loads of brokers and let them scrap it out, however this year i was told that my underwriter coversure will only quote two brokers and its up to them to decide how much of there margin to give away.

How these people make a living on there margins i never know. 

 

[grant8064 219]

Hi CCC,

We started four years ago and in the beginning it was a bit of a nightmare finding cover. We've been using exec insurance from day one and they've been helpful and quick to answer any questions we have. Our contact at Exec is Mark Pope, nice guy that knows what he's doing so that would be my recommendation.

[RJEauto 18]

We use a local broker - FR Ball. Through them I believe our policy is with Axa. When we started I tried Bollington for a quote as well as the local broker and the local company came up close to £1000 cheaper. Definitely shop around for the best price!

-Kelly-

[David Ayers 171]

I have just renewed through Astonlark

Saved about 20%

Although some of that was due to my IMDA membership.

 

Charles Brown 
New Business Account Handler 
Motor Trade Team 

T: 01732 755569 
M: 07974 253066 
E: charles.brown@astonlark.com 
W: www.astonlark.com 
 

Edited November 13, 2018 by David Ayers

[Nick M.K. 574]

Yep, Aston Lark, I've always dealt with Jem Emirali, he is very clued up, call him a call directly, you can say that Nick from ND Trading gave you the number: 

07775 023559

 

[Dave2302 387]

I've been with Bollingtons ever since I moved to NW Scotland, been great over the years, but I expect my Sales / Workshop percentages are different to most on here

Oh and zero crime postcode

[MrC 142]

Mines due soon, because Im modifying vehicles it can be a bit of a nightmare. 

[CCC 31]

Thanks all.