A few questions from a Newbie

[Bagheera 2]

Hi guys,

First post here - I'm hoping to start selling a few cars on the side as I enjoy car maintenance and wanted something as a hobby and to earn a bit doing it.  I already have a full time income and have run a business for the last 10 years so have some experience but none in the motor trade.

I've quite a few questions and have started reading through threads on the forum, I've also got the 'so you want to be a car trader' and read through most of that.  Just wanted to ask a couple of questions that have arisen from what I've read.

It mentions planning permission for working from home; is this absolutely needed?  My aim will be to sell one car a month on average.  

I've also been on manheim and registered as general public.  I notice that on some of the vehicle inspection reports that everything is ticked as good and then they'll be 'X Engine Noise'.  Is this common for cars sold there that have higher mileages or is it indicative of a fault?

Could anyone recommend the best site with easiest access to trade prices etc?

I'm sure I'll have many more questions but will keep reading and pop up when I do.  Thanks in advance for any help.

[EPV 631]

Welcome and good luck.

No planning permission required as you are not changing the use of the building. Keep your neighbours sweet or keep your activity on the QT and you'll have less grief long term.

You'll come to accept that inspections are rarely worth jack shit. I have bought vehicles with a sea of green ticks on the sheet and had a DMF issue and I've bought a car that had a misfire and a 200 mile road trip magically cured the problem, never to be seen again. I expect most traders would prefer they didn't charge us £40 to have some half baked div prod about with a car and then carry out some guesswork on a bit of paper.

As for access to trade prices, I assume you mean guide prices, these will be listed on the auction catalogue.

Given this will be a sideline for you, you may wish to attend auctions, find something that needs a bit of TLC, that is putting off other bidders and do the work yourself.

 

[It's me 611]

1 hour ago, Bagheera said:

Hi guys,

First post here - I'm hoping to start selling a few cars on the side as I enjoy car maintenance and wanted something as a hobby and to earn a bit doing it.  I already have a full time income and have run a business for the last 10 years so have some experience but none in the motor trade.

 have started reading through threads on the forum, I've also got the 'so you want to be a car trader' 

 

I've also been on manheim and registered as general public.  

Could anyone recommend the best site with easiest access to trade prices etc?

I'm sure I'll have many more questions but will keep reading and pop up when I do.

im out

next...................

[Dave2302 387]

2 hours ago, jason doyle motor sales said:

im out

next...................

I was never in, and now I'm also out  

[EPV 631]

Of course everyone on here just started a car sales business out of the blue with a stock of 20 and went full time from day one...

[Bagheera 2]

2 hours ago, EPV said:

Welcome and good luck.

No planning permission required as you are not changing the use of the building. Keep your neighbours sweet or keep your activity on the QT and you'll have less grief long term.

You'll come to accept that inspections are rarely worth jack shit. I have bought vehicles with a sea of green ticks on the sheet and had a DMF issue and I've bought a car that had a misfire and a 200 mile road trip magically cured the problem, never to be seen again. I expect most traders would prefer they didn't charge us £40 to have some half baked div prod about with a car and then carry out some guesswork on a bit of paper.

As for access to trade prices, I assume you mean guide prices, these will be listed on the auction catalogue.

Given this will be a sideline for you, you may wish to attend auctions, find something that needs a bit of TLC, that is putting off other bidders and do the work yourself.

 

Thanks for taking the time to reply. 

I've got an auction place near me (open to everyone) and have been once.  I'm going to keep an eye on their stock and wait for vehicles/engines that I know a fair bit about (mainly Ford's), and then see what prices they sell for and what I could potentially get for them. I'll have a look for the auction catalogue too, I did see it pop up somewhere when i was on Manheim.

[MrV 66]

Run bagheera run

[Arfur Dealy 823]

1 hour ago, MrV said:

Run bagheera run

[MattR 177]

More realistic than Jaime! 

Bagheera, get yourself to the auctions and find the 'problem car' which isnt too much of a problem to you with the knowledge. Ignore the auction mechanical reports, they're Boll*x.

No planning permission required. Stand your ground on this when the inevitable nosy neighbour makes his presence felt. 

[Bagheera 2]

3 hours ago, MattR said:

More realistic than Jaime! 

Bagheera, get yourself to the auctions and find the 'problem car' which isnt too much of a problem to you with the knowledge. Ignore the auction mechanical reports, they're Boll*x.

No planning permission required. Stand your ground on this when the inevitable nosy neighbour makes his presence felt. 

Thanks for the reply.  

I've been on my local auctioneers site & picked a good few cars of interest.  Looked up they're retail value and as a guide to trade price got a valuation from We buy any car although I don't know how accurate that would be, some of the cars it was valuing only £500 less than retail which won't be enough mark up once fees, mot, service are factored in + any repairs.  I'm going to head down there and see what they sell for and see what the margins are.  My fully comp Motor trader Insurance has come in around £1400 or £1200 TPO which I didn't think was too bad.  I don't know what others are paying but seemed reasonable enough.  I think that was for up to 4 cars at one time.

Just in regards to trade plates, the application want the company house registration.  I'm going to avoid Ltd and just do it sole trader for the first year.  How practical is it to operate without trade plates?   Can you get trade plates without being ltd?

I did see Jaime's post, and to be honest am very surprised at the hostility, and frankly arrogance that seems to be here from some towards new/part time traders. It's a shame.  We all have to start somewhere, it was true for me 10 years ago in business and for everyone here, whatever profession you're in.  I think a lot of people forget that.

[sellect2 19]

Buying with any margin is the real skill. 

By the way there’s VAT to pay out of the margin and the you HMRC tax bill- I really hope you’ve not forgotten them. 

I feel what gets to the guys and gals on here is the newbies who want all the info but appear to not be paying their dues  

 

[Tony911 79]

42 minutes ago, Bagheera said:

Thanks for the reply.  

I've been on my local auctioneers site & picked a good few cars of interest.  Looked up they're retail value and as a guide to trade price got a valuation from We buy any car although I don't know how accurate that would be, some of the cars it was valuing only £500 less than retail which won't be enough mark up once fees, mot, service are factored in + any repairs.  I'm going to head down there and see what they sell for and see what the margins are.  My fully comp Motor trader Insurance has come in around £1400 or £1200 TPO which I didn't think was too bad.  I don't know what others are paying but seemed reasonable enough.  I think that was for up to 4 cars at one time.

Just in regards to trade plates, the application want the company house registration.  I'm going to avoid Ltd and just do it sole trader for the first year.  How practical is it to operate without trade plates?   Can you get trade plates without being ltd?

I did see Jaime's post, and to be honest am very surprised at the hostility, and frankly arrogance that seems to be here from some towards new/part time traders. It's a shame.  We all have to start somewhere, it was true for me 10 years ago in business and for everyone here, whatever profession you're in.  I think a lot of people forget that.

Looks like you have done your homework and will be fine just don't get into bidding wars have a limit and stop as you get more knowledge of the auction house you will realise how it works. Trade plates is a must and you are a sole trader so nothing wrong with that. You seem to appreciate the advice given and take it on board unlike others. Good luck

[Arfur Dealy 823]

1 hour ago, Bagheera said:

I did see Jaime's post, and to be honest am very surprised at the hostility, and frankly arrogance that seems to be here from some towards new/part time traders. It's a shame.  We all have to start somewhere, it was true for me 10 years ago in business and for everyone here, whatever profession you're in.  I think a lot of people forget that.

Hostility, arrogance ? 

My blood is really starting to boil.........

[NOACROSS 414]

Hostility? Arrogance? Really? Wow. Some people read what they will...

[Bagheera 2]

1 hour ago, sellect2 said:

Buying with any margin is the real skill. 

By the way there’s VAT to pay out of the margin and the you HMRC tax bill- I really hope you’ve not forgotten them. 

I feel what gets to the guys and gals on here is the newbies who want all the info but appear to not be paying their dues  

 

I'll be really interested to see the margins when I go down there.  Thanks for the heads up on those.  Initially, I will only trade maybe 1 car per month, so should avoid any need for VAT registration, if it's average 5k per vehicle should still come under the threshold with a bit of room to spare.  

 

56 minutes ago, Tony911 said:

Looks like you have done your homework and will be fine just don't get into bidding wars have a limit and stop as you get more knowledge of the auction house you will realise how it works. Trade plates is a must and you are a sole trader so nothing wrong with that. You seem to appreciate the advice given and take it on board unlike others. Good luck

Thanks.  I don't know if I mis read the application but I got the impression they wouldn't issue them unless you were LTD. 

[Tony911 79]

Last I knew you don't need to be Ltd.

[TangoVictor32 90]

3 hours ago, Arfur Dealy said:

Hostility, arrogance ? 

My blood is really starting to boil.........

He does have a point. 

A lot of newbie threads do get that treatment and he did say he has read a lot on the forum...

Also your old  profile pic was better.

Newbie - few rules:

Dont expect the margins to be the same week in week out. Some weeks they will be a lot higher other weeks they will be lower.

Be prepared to take a risk.

Do your own homework dont plagiarise