Taking over a small garage

[Rory RSC 596]

Firstly just don't even think about taking on a workshop. Just don't do it. Its the right thing in the future if you sell any cars but very much the wrong thing for you right now. 

Secondly if you must insist you need break clause.

 

What does it say about maintenance and repair of commercial property.

Seriously do not sign a commercial agreement without a full understanding and a solicitor checking through it. I lost a lot of money with a commercial lease when I was younger and thought I knew everything. Big financial hit soon makes you learn.


Also 2 other questions - You have  been in business a while what has been your biggest financial loss to date and biggest lesson so far in business.

What llanguages can you speak? Can you speak Cantonese?

[Lucas 9]

So should I reply to the landlord to ask for rolling or 3 years lease. And the security deposit for 2 months?

[NOACROSS 414]

Lucas- do not do it.  You're asking for a kick in the unmentionables.  Heed the above advice FFS.

One year lease at the most with only one to three months upfront.  And get a solicitor to look over the paperwork as Rory says.

[Dave2302 387]

10 years is ok if there are decent strategic Break Points. I think Lucas' problem, (well one of them ), is that he has no track record in this country, hence 12 month depo req'd

[DPF 18]

100% Agreed with Excounciljobsworth investing in properties sounds more secure. 200k don’t last long if you are new in car business. Have you sold any cars yet ?

[Dave2302 387]

Absolutely agree /\ /\ /\ 

When I first started in the Auto box game all there was was C3 Fords GM 180's and the odd yank TH350 / 400 in Jensens etc

That was vey good to me over the years, but I got out 12 years ago, writing was on the wall !!

I don't need to work now, I'm only doing what I do now because 1) It keeps me outta the Pub all day long, 2) I love Cars and like a challenge, (new Technology), 3) I am providing a service to my local Community, 4) It supports and gives perks for my continually growing Car collection 

If I was 16 years old now, knowing what I know now, NO WAY would I get involved in the Motor Trade as it is now, so if I was Lucas, in this current time, I would put my money into IT !! 

[justina3 518]

1 hour ago, Mojo121 said:

Ridiculous and fuck signing up for 10 years on anything.

Dont think its ridiculous from the landlords side of the coin, if someone came to rent one of my properties and appeared totally clueless i would push for as much as i could as well. 

Even the one condition you ask about is very vague, "which is to be held" it doesnt mention to be held where in the landlords back pocket in a goverment backed deposit scheme ?  

I would be instructing a solicitor to go over this other than asking a random bunch of people on an open internet forum.

[Dave2302 387]

/\ /\ /\ +1

[Lucas 9]

1 hour ago, Rory RSC said:

Firstly just don't even think about taking on a workshop. Just don't do it. Its the right thing in the future if you sell any cars but very much the wrong thing for you right now. 

Secondly if you must insist you need break clause.

 

What does it say about maintenance and repair of commercial property.

Seriously do not sign a commercial agreement without a full understanding and a solicitor checking through it. I lost a lot of money with a commercial lease when I was younger and thought I knew everything. Big financial hit soon makes you learn.


Also 2 other questions - You have  been in business a while what has been your biggest financial loss to date and biggest lesson so far in business.

What llanguages can you speak? Can you speak Cantonese?

Thank you Rory. It has a break clause at the end of the fifth year subject to serving a 6 months notice. This is a full repairing and insuring lease, all on me. I do have a solicitor but looks like no need to let her review this now. I have to set a new term for the landlord to see what he said. 

Answer the other 2 questions: I never really calculate it. I lose a lot in some of the other businesses. Such as having a huge inventory, hiring more than enough employees, spending huge amount ads fees, etc, etc. It just too many times! It just runs out paper if I try to write down all of them.

Cantonese is my first language. I can also speak Mandarin.

 

 

1 hour ago, NOACROSS said:

Lucas- do not do it.  You're asking for a kick in the unmentionables.  Heed the above advice FFS.

One year lease at the most with only one to three months upfront.  And get a solicitor to look over the paperwork as Rory says.

Okay, now I know. I won't sign this lease. Will try to negotiate the new terms. Otherwise, I will walk away and search another one.

Edited December 19, 2018 by Lucas

[Trident 24]

11 hours ago, Lucas said:

Yes. Screenshot attached. I feel a little confused with this term. Sounds not fair. It's a 10 years lease by the way.

10 YEAR LEASE...!!!! REALLY.... At this stage in your motor trade career? you should be looking at 3 years max. No, 12 months rent is not a reasonable deposit, we had a six year lease and paid 1.5 months rent as a deposit... i'm assuming your running round with your pants around your ankles atm ( google 'pulled my pants down' if your not sure of that phrase)

[DPF 18]

16 minutes ago, Trident said:

10 YEAR LEASE...!!!! REALLY.... At this stage in your motor trade career? you should be looking at 3 years max. No, 12 months rent is not a reasonable deposit, we had a six year lease and paid 1.5 months rent as a deposit... i'm assuming your running round with your pants around your ankles atm ( google 'pulled my pants down' if your not sure of that phrase)

^^^+1

[MrV 66]

Lucas please actually answer these questions, have you sold the 3 cars you bought or are they even prepped and advertised? 

If you were here asking for advice on how to sell cars fair enough but you're here asking for advice on how to run a garage!!! Does that not ring any alarm bells to you or are you that good at business it doesn't actually matter if you've never even bought and sold a car, let alone open and successfully run an already struggling garage? 

Why is the garage struggling now? How will you make it a success? 

[Mojo121 229]

4 hours ago, justina3 said:

Dont think its ridiculous from the landlords side of the coin, if someone came to rent one of my properties and appeared totally clueless i would push for as much as i could as well. 

I’m with you on the landlord’s side... you’d have to think someone was pretty green to even propose a £21,000 deposit and 10 year lease surely?

£21k would be nice to pocket after 6 months when they’ve given up!

[Dave2302 387]

9 minutes ago, Mojo121 said:

I’m with you on the landlord’s side... you’d have to think someone was pretty green to even propose a £21,000 deposit and 10 year lease surely?

£21k would be nice to pocket after 6 months when they’ve given up!

Exactly, no track record = landlord is gonna err on the side of caution and that means big deposit, big contract.

I'll bet you any of us here who have been in business in UK for many years would get 1 months Depo and 3yr lease with break clauses and right to renew !!

In fact I'd go even further than that, any of us who have been in business successfully for years will actually be freehold by now, = minimum overheads

[Lucas 9]

1 hour ago, MrV said:

Lucas please actually answer these questions, have you sold the 3 cars you bought or are they even prepped and advertised? 

If you were here asking for advice on how to sell cars fair enough but you're here asking for advice on how to run a garage!!! Does that not ring any alarm bells to you or are you that good at business it doesn't actually matter if you've never even bought and sold a car, let alone open and successfully run an already struggling garage? 

Why is the garage struggling now? How will you make it a success? 

1

MrV, thank you for your advice. The 3 cars now become 4 cars as I just have one more delivered this morning. They are prepped (except the new arrival one) but they are all not on the market, no advertised yet. So not sold at all.

I am here to post what I am doing, just because I really have no experience in the field. For a garage setup, I just naturally feel this is part of car sales business. I want this garage just because I want a car repair department in my company to service my cars well and quick in the near future. Not because I want to run a garage to make money. I am not good at business obviously. In fact, I do all these, just exactly because I am not good at business. Every move is clumsy and folly as you can see. So, I never thought I can successfully run a garage.

Nothing really struggling. I just never rent a commercial property here, so asking for advice. I have no idea how to make it a success. Or, maybe I don't have to make it a success, I just simply, naturally feel that I need to prepare a place for my car repairs.

 

 

Dear Mates, I am so sorry for my so many stupid questions and answers! Forgive me if I said anything wrong or annoying!

Edited December 19, 2018 by Lucas

[MattR 177]

Entertaining as this is on a quiet december afternoon, I really do hope to have more to do in January than look at what some clown on a keyboard wants to write about 'setting up a business' seliing cars and getting a workshop

[Lucas 9]

5 minutes ago, MattR said:

Entertaining as this is on a quiet december afternoon, I really do hope to have more to do in January than look at what some clown on a keyboard wants to write about 'setting up a business' seliing cars and getting a workshop

Sorry mate.

[Mojo121 229]

22 minutes ago, MattR said:

Entertaining as this is on a quiet december afternoon, I really do hope to have more to do in January than look at what some clown on a keyboard wants to write about 'setting up a business' seliing cars and getting a workshop

LOL

 

17 minutes ago, Lucas said:

Sorry mate.

You seem a smart guy, I mean, the patents and inventions etc. Surely you can think of a more innovative and familiar business to start? I, like the other guys on here, are just trying to stop you from losing alot of money. It's a personal thing obviously but I hope you have a good amount of money!

[Lucas 9]

Thank you very much! I really appreciate that.

People in this forum have been saving my money several times already. I should host a party, big meal and drinks to show my thank you someday if possible.

[ExCouncilJobsworth 27]

I might be wrong but either you're sarcastic and taking the piss on here or you're naive / limited IQ

It's like me saying i want to open a restaurant yet i cannot flip burgers at McDonald's?! 

[Lucas 9]

1 minute ago, ExCouncilJobsworth said:

I might be wrong but either you're sarcastic and taking the piss on here or you're naive / limited IQ

It's like me saying i want to open a restaurant yet i cannot flip burgers at McDonald's?! 

I am sorry to let you feel that way! Sorry for my very limited language skills and poor communication skills to caused the misunderstanding. Sorry.

I can't say I am limited IQ. I think I just leak of experience in this industry and the UK because I am new here. I just need to get through the learning curve. Thanks.

[Lucas 9]

Regarding the restaurant thing. I used to own a Mexican restaurant. It's selling average 400+ meals a day. But I can't ever make myself a decent burrito, I can't even call out all the dressing and ingredient name. 

I did contact McDonald UK office and submitted an application to open a McDonald for real. But I finally give up the application because of the training and the opening processes takes too long time, and a 20 years commitment required. And, the margin actually very low as you can see their meal's prices are low. The true is that not all the McDonald's making money.

Sorry, for my poor input! Forgive me if I say anything let people feel offended or feel false. I want nothing from here but learning only. This forum give me almost all the knowledge about car business I need. Thank you very much.

Edited December 19, 2018 by Lucas

[NOACROSS 414]

I do think you’re too nice Lucas. I know it’s your custom (and to some point it should be the same over here). However, you need to be tough in business. 

Tell him to FOff if you want. Tell me to. I don’t mind. Stop apologising all the time! :0) 

We know you’re green and you have had some great advice which will, I’m sure continue. 

You are going to catch a major cold the way you are going. 

I can understand you having a go at the car sales, as you can learn as you go (without taking too much of beating) but why aren’t any of the junk advertised still?

(I loved the comment above about just going to Vegas. I had thought of similar advice involving a certain Dutch town..)

[Lucas 9]

Thank you NOACROSS.

Edited December 19, 2018 by Lucas

[Lucas 9]

1 hour ago, NOACROSS said:

but why aren’t any of the junk advertised still?

 

This school term just over today. I am planning to go somewhere for about 10 days with my family. So, I am afraid I won't be able to arrange any view if customer call. I will advertise the cars after the holiday. 

The attachments are one of the writing I am going to use for the Red XF. Please take a look and give me advise. Thank you very much.

Edited December 19, 2018 by Lucas