Taking over a small garage

[justlooking 48]

can you not benefit from business rates relief as you're a new and small business?

[trade vet 702]

7 minutes ago, justlooking said:

can you not benefit from business rates relief as you're a new and small business?

I agree.So when he gives us the location,we should be able to establish whether his business rates quotation is correct.

[justlooking 48]

14 minutes ago, trade vet said:

I agree.So when he gives us the location,we should be able to establish whether his business rates quotation is correct.

Lucas, is it in or near Shepperton? 

What makes you want to open a garage, do you have an interest in cars or is this purely to make money (something which you seem to do well without dabbling in a completely new sector)

[Lucas 9]

24 minutes ago, justlooking said:

can you not benefit from business rates relief as you're a new and small business?

Good point. But it looks like a new business doesn't have any benefits for relief. But if the property's rateable value less than £15K will qualify for relief. The problem is that I also in the process of renting another unit at the same time to store the cars. This may make me not qualify for the relief. I have to discuss with the local council.

[Arfur Dealy 823]

1 minute ago, Lucas said:

Good point. But it looks like a new business doesn't have any benefits for relief. But if the property's rateable value less than £15K will qualify for relief. The problem is that I also in the process of renting another unit at the same time to store the cars. This may make me not qualify for the relief. I have to discuss with the local council.

Rent relief is only available on your first commercial property, its non negotiable.

[Lucas 9]

20 minutes ago, trade vet said:

I agree.So when he gives us the location,we should be able to establish whether his business rates quotation is correct.

The current rateable value is £5,300 only. I think it's considered low already. I think the property size figure should be 1,400 sqft as the mezzanine and office also count. Even though only the ground floor 800 sqft makes sense to me.

1 minute ago, Arfur Dealy said:

Rent relief is only available on your first commercial property, its non negotiable.

Thank you AD. Your experiences are very valuable! I hope I could get the relief on this one since the garage premise most likely will settle faster than the storage unit.

[Arfur Dealy 823]

3 minutes ago, Lucas said:

 

Thank you AD. Your experiences are very valuable! I hope I could get the relief on this one since the garage premise most likely will settle faster than the storage unit.

https://www.gov.uk/apply-for-business-rate-relief/small-business-rate-relief

 

[David Ayers 171]

16 minutes ago, Arfur Dealy said:

Rent relief is only available on your first commercial property, its non negotiable.

1 Ltd company for the garage and 1 for car sales.

Wouldn’t this be the way forward?

[Arfur Dealy 823]

1 minute ago, David Ayers said:

1 Ltd company for the garage and 1 for car sales.

Wouldn’t this be the way forward?

Yeah posibly, I'm not that au fait on the finer details......

Could it be construde as manipulation ? I would pose the question to the council, they will have a definetive reply....

[Dave2302 387]

I think the rates is the least of his problems, now here's a fresh Idea !!

With his electronic skills and obviously wanting to get in the Motor sector, and a bonus being Chinese, why not import Diagnostic Equipment, fettle out all the bugs and sell it, there isn't that many selling fully sorted machines, I know, I tried a few, and they were a good product but lacked quality control etc.

That will be a booming industry over the next few years, it's already taking off now !!

[trade vet 702]

6 minutes ago, Dave2302 said:

I think the rates is the least of his problems, now here's a fresh Idea !!

With his electronic skills and obviously wanting to get in the Motor sector, and a bonus being Chinese, why not import Diagnostic Equipment, fettle out all the bugs and sell it, there isn't that many selling fully sorted machines, I know, I tried a few, and they were a good product but lacked quality control etc.

That will be a booming industry over the next few years, it's already taking off now !!

Intellectual property rights,counterfeit goods etc,get caught using a Chinese rip off code reader or whatever and you are in trouble.I don’t think supplying these to the trade from a business premises is a good idea.

[Dave2302 387]

18 minutes ago, trade vet said:

get caught using a Chinese rip off code reader or whatever and you are in trouble.

I don't think that is the case, I do know of one diagnostic firm who allow Customers to visit and view the goods, very good products with excellent after sales, I know, I have a couple of their Machines.  I think there is some law involved that Mfrs must make their software available, the problem these days is that unless you use genuine machines you cannot access say MB / Ford / BMW etc Servers and the latest ECU update files are not available on Database.

So you must pay for server access, that is why I bought new MB Star this year, my old knock of was fine, in fact I still use it on older MB's because the latest 2018 s/w on the genuine machine has no more HHT Emulator, also the genuine one does not have Developer Mode, which my home built system does, and that works on Cars up to 2014 MY, so I can take off Speed limiters, turn off traction control completely, etc etc which the MB Dealers are not allowed to do !!

Of course I only do this for Race Track use  

[have a word with the wife 299]

2 hours ago, David Ayers said:

1 Ltd company for the garage and 1 for car sales.

Wouldn’t this be the way forward?

yes.

and as for lucas, sorry i am out 

[Lucas 9]

Thanks. You guys are amazing!

I do have two companies registered already. Maybe I could use the second company to ren the storage unit. That storage unit ratable value £13K, so it' less than the £15K threshold. 

3 hours ago, justlooking said:

Lucas, is it in or near Shepperton? 

What makes you want to open a garage, do you have an interest in cars or is this purely to make money (something which you seem to do well without dabbling in a completely new sector)

I just naturally think the garage is part of the car business. It's like a repair department in the dealership. I just feel there will be so many small repair jobs ahead. So I try to set up one beforehand. This could be a mistake, but I have to try.

Edited December 18, 2018 by Lucas

[AutoJacob 34]

Just give up while you've still got your cash, you obviously have no idea mate or have anybody around you who does so I wouldn't waste your time.. you may as well go and have a good weekend in Vegas with your £200K.

Sorry to be the bearer of bad news but this is the cold hard truth and as a thread earlier last week pointed out this is not a thriving industry and it's feast or famine, mostly famine.

Edited December 18, 2018 by AutoJacob

[Lucas 9]

4 hours ago, Dave2302 said:

I think the rates is the least of his problems, now here's a fresh Idea !!

With his electronic skills and obviously wanting to get in the Motor sector, and a bonus being Chinese, why not import Diagnostic Equipment, fettle out all the bugs and sell it, there isn't that many selling fully sorted machines, I know, I tried a few, and they were a good product but lacked quality control etc.

That will be a booming industry over the next few years, it's already taking off now !!

This is actually a good idea! But the problem is that the sales price of the high quality fully sorted machine would be almost the same as the other several existing machines altogether.  Because high tech product development cost is very high. It takes tear and blood.

31 minutes ago, AutoJacob said:

Just give up while you've still got your cash, you obviously have no idea mate or have anybody around you who does so I wouldn't waste your time.. you may as well go and have a good weekend in Vegas with your £200K.

Sorry to be the bearer of bad news but this is the cold hard truth and as a thread earlier last week pointed out this is not a thriving industry and it's feast or famine, mostly famine.

Thank you AutoJacob. Thank you for your remind. I will be careful.

Edited December 18, 2018 by Lucas

[Lucas 9]

Just found the garage lease agreement in my email inbox. Is it a normal practice for the landlord to ask for the security deposit as the equivalent of 12 months rent?

Edited December 18, 2018 by Lucas

[Mojo121 229]

6 minutes ago, Lucas said:

Just found the garage lease agreement in my email inbox. Is it a normal practice for the landlord to ask for the security deposit as the equivalent of 12 months rent?

He wants a year's rent upfront or as deposit? 

Edited December 18, 2018 by Mojo121

[Lucas 9]

14 minutes ago, Mojo121 said:

He wants a year's rent upfront? 

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

Edited December 18, 2018 by Lucas

[ExCouncilJobsworth 27]

Lucas are you new to cars?

If you are I would defo stay away from a long term lease. You will be tied in.

You much rather getting a rolling lease for like a year. Yes Mr Landlord may kick you out after a year but you could renogitate a deal or move elsewhere. Main priority is running the business.

It seems pricey as it is.

It's easy to waste money in this game as it is with buying wrong stock let alone rents and leases.

 

[Lucas 9]

Thank you ExCouncilJobsworth. Yes, I am brand new to cars. I will listen to your advice. Will try to get a rolling lease.

Edited December 18, 2018 by Lucas

[ExCouncilJobsworth 27]

4 hours ago, Lucas said:

Thank you ExCouncilJobsworth. Yes, I am brand new to cars. I will listen to your advice. Will try to get a rolling lease.

Have you sold any?

No no no. My advice is trade from home first.

I sell from home. 

It is very hard you will end up buying tat in your first year and potentially lose lots of money. 

I sell whatever I can. 

I have been stuck with a stock of 3 at home and haven't bought anymore. Auction prices are ridiculous and have been since Oct. 

I was made redundant at a council and was given a small payout which I have used some of it towards this venture. I do the adhoc council work here and there as the cars trade is difficult to do full time.

If you have this £200k lying about. First of all pay your house off. If you have already done this you might be better to either 1) buy tatty properties and do them up and sell them or 2) buy 1 or 2 properties and rent them out.

Property renovation is hard but if you can do the interior DIY yourself it helps. 

Buying to rent will atleast secure your money in a property or two and you can live off some rent! Might not be a big margin but at least your money is secure.

The reason car trade is hard is because there are many factors you need to look at; mileage, age, colour, service history, location, potential expensive faults, common faults etc

For example: a red Nissan Sunny might sell well in County Durham but you might have to pay someone to take it off you in Luton! 

[Dave2302 387]

8 hours ago, Lucas said:

Just found the garage lease agreement in my email inbox. Is it a normal practice for the landlord to ask for the security deposit as the equivalent of 12 months rent?

Yes, especially as you have no proven track record.

[RHC 0]

8 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.

12m Deposit is hefty. The norm is 3 months or possibly 6 months. As others have said be very wary of signing a 10 year lease as it will tie you in. Are there any break clauses in the contract? In case you don’t know, a break clause allows you to break the lease at agreed times. We’ve historically had a 5 year lease with a break clause at 18m and 3 years. Normally you have to give 3m notice if you intend to invoke the break clause. 

[Mojo121 229]

9 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.

Ridiculous and fuck signing up for 10 years on anything.