Hello! Newbie searching for best practice when sourcing stock

[Cartraderlincs 0]

Afternoon Folks,

 

Long time lurker, but my first post here to you all. Hello!

 

Im fresh into the motor trade after a 10+ year absence from a similar role. This time though im on my own and trying to build up experience aswell as reliable sources of stock as so much has changed.

 

Im at the cheaper end of the market, 2-5K currently, and I have to say anything I have sold has went quite smoothly to date which has been helpful. My biggest issue has been finding reliable supplies of stock (waiting for the 'you and us both mate!' lol).

 

So far I have found the 'cheapest' avenue to be private sellers, not getting perhaps the best quality in terms of stock as owners appear to be more transient these days with their purchases, and care tends not to be the order of the day when it comes to regular upkeep of their vehicles. However, it allows me to be fairly choosey about what I buy.

 

Private sellers are fine for the odd car each week, but I would like to have 3-5 cars per week running through my hands. I have already hit all the major expenses in terms of trade insurance, trade plates, a secure storage site etc so it makes sense to up the numbers. I think the most I have had so far has been 3 in one week, and I struggled finding them to be honest.

 

Im selling mostly on ebay, so prices are low but there is still money to be made with my business model if I buy right. I attended a couple of recent BCA auction days in an attempt to find stock and found 90% of the cars making CAP clean, and some even making CAP retail, which shocked me as these were fairly run of the mill (abet clean, JCT600 sale) with the odd nice Mercedes or Audi. Once fees are added none of the cars I was interested in would make me any money.

 

Back in the day we sold our part-x stock to independent traders, but so much of that kind of stock now seems to end up back in auction. Having said that, I still get the impression that some main dealers offer their stock to trade buyers first before sending to auction whatever is left, but it is getting through the door with them that is the issue.

 

Im new to the country after moving several years ago with another career, so all the dealers here are new to me. Im also long out of things so quite rusty at everything but willing to start as a new boy and learn the ropes all over and not afraid to be told im doing it wrong.

 

So with this in mind, can I ask your opinions of what the best approach to these main dealers to buy their stock would be? Should I make for the Sales Manager straight away and handover a business card in person or should I make initial enquiries via phone/email to admin departments to ask who handles part exchange disposals?

 

Is there better options out there for stock sourcing?

 

Should I bite the bullet on the BCA auction cars and make very little on the first dozen or so trades until I get moved up the account card level and the fees become cheaper? Or are the cars that go under the UKCGR trade sections making less money than those from main dealer disposals?

 

Like I said, green behind the ears here but willing to take some advice from anyone offering. 

 

And I do appreciate any responses and your time in responding :-)

 

Cheers,

 

Noel -

 

[umesh 336]

Hi Noel, 

Welcome back to the trade! 

WOW Lots of things have changed , a tough market you're aiming for , as you saying buying these cars is difficult , I don't use auctions but I have so many people telling me the same story as you, the prices these cars fetch no profit left. 

A Lot of main dealers these days have an auction policy and some that do trade directly probably have established relationships with other traders, saying that I'd personally pop in and make yourself known - That is if you can manage to get to speak to the sales manager/ DP/ GM Who ever is in charge of disposals. - Probably a smaller / owner driver Main dealer as opposed to a big group or Plc.  

Good luck - keep us posted of your progress 

[Cartraderlincs 0]

Hi Umesh,

 

Thanks for the warm welcome.

 

I realise that 2-5k is a tough market but I do desire to progress to higher value vehicles - put simply I am still finding my feet and I am also unsure if my business model can sustain higher priced cars being offered outside of a full retail environment. I suppose time will tell and it will be a case of dipping my toes in the water as and when the right vehicles come up.

 

I have attended a few smaller independent auctions local to me but again prices are very strong. More concerning though is that the regular trade buyers seem to have the deals on the decent cars sown up before the auction starts - I had hoped the days of this nonsense were behind us as auctions argue that they are more user friendly for normal folk to buy from, but alas it appears not. One car in particular was offered to the hall at CAP clean (which I felt was very high for a Saab 9-5 saloon), received a hand in the air from underneath the rostrum and that was the only bid invited by the auctioneer - sold within 10 seconds from offer to hammer down.

 

Like you suggest I think its going to be a case of boots on the ground and knocking doors.

 

I will keep you up to date with how things go - cheers!

[SC Derby 259]

There a lot of websites that the trade use to dispose their stock.

 

Dealer Auction

Full Auction

Sytner Online 

Auction4Cars

 

Possibly more that I have not listed

 

Also HPI Bid has recently started although I've not looked into this.

 

The advantage of this, personally, is that you can almost do two jobs at once. Be in the office to deal with customer and also buy your stock. No standing at freezing cold auctions all day!!

[Phil H 124]

Welcome back to the trade, as they say once it's in your blood it never goes. Try small independent van dealers as most of these won't retail cars and get a lot of cheaper cars offered in px against vans, or a friend of mine advertises in the local rag, simple ad stating cars wanted up to £3000 it costs him about £40 a week and he gets on average 2 or 3 every week mainly older customers who are still frightened about using the net, and they are all on your doorstep. Good luck let us know how you get on  

[Cartraderlincs 0]

Thanks Guys,

 

RCSales - still as yet not VAT registered although this is happening but just not as quickly as I would like. Thats the biggest stumbling block with all of those sites, although the motorpoint site doesnt list it as essential so just waiting to hear back from them. Thanks for the suggestions though as they are something I think I would really benefit from using.

 

Phil H - Good idea that bud, I do place wanted ads on Facebook currently, but if I am honest 99% of the responses are offering scrap that I am not interested in buying and they are simply looking rid of. The local paper idea is worth a months trial to see how it goes and I have a few small van dealers close to me so again worth going to them about handling their part x stock.

[SC Derby 259]

Have you done the VAT registration yourself? I'm sure I got my VAT number through in about 48 hours last time.

[Cartraderlincs 0]

No RC, should have probably done it myself. Was quoted 30-45 days by an accountant so thought it best to let him get on with it.

On a brighter note today I got access to HPi bid - im in two minds though, are any of you guys using it to source stock and how are you finding it?

Cheers,

Noel --