Planning to trade cars part time to start with

[Raj M 0]

Hi all,

 

I am new to this forum. I find this to be a great place for me to start with, and I am really looking forward to getting some really good advice and tips from you guys on how I could start as a part time car trader and then go on to do it on full time basis. Should I be buying cars from the auction houses ( though not straightway, but after visiting few times and get to understand what's going on in there), or buy cars from private sellers etc.

whatelse are the requirements, apart from the below???

- Motor trade insurance

- Private license plate 

- permission from the council if starting from my drive away 

- BCA,Mannheim trade card

Lastly" I am an Automobile engineer, who knows about cars,I am also proficient in car tuning, remapping, Diagnostics.

Any advice and suggestions would be greatly appreciated.

[NOACROSS 414]

Hi. Download the ‘Ultimate guide to being a car dealer’ guide at the top of this page. Ten quid well spent. 

Then there’s literally dozens of threads on this subject and you need to spend a few days reading them. 

[Raj M 0]

Hi,

Thanks for the suggestion, I’ll certainly have a look.

Cheers

[Blenheim Car Sales 111]

Obviously you are going to declare to inland revenue and VAT as well of course, so your margins are squeezed like the rest of us with these costs

[Raj M 0]

I am under the impression with limited company, the dividends/profit you make could be reinvested? Can’t you?

Thanks for the advice though.

Edited January 8, 2019 by Raj M

[EPV 631]

4 hours ago, Raj M said:

I am under the impression with limited company, the dividends/profit you make could be reinvested? Can’t you?

Thanks for the advice though.

Of course you can do that. You can leave all your profits in the business and not pay income tax. You'll have no money though and still have to pay 20% corporation tax and VAT though.

[Raj M 0]

Got you, thanks