Part-time Trader

[Jaime 1]

Hello guys,

Me and my friend have been selling cars for 4 years approximately at a main dealership. We are fed-up of not reaping the full benefits, for example selling a car and only getting a percentage. Hence why we want to start a business up ourselves. In regards to setting up, we will have to go part-time because if we quit our jobs and went all in to setting up ourselves this would cause huge financial strain. We've always bought the odd car by scrounging through Shpock/Facebook/Gumtree and then sold it for a tasty return but it is such a headache as you are trying to get private sellers to sell to you for near enough trade money.

We want to get our trade plates/trade insurance asap. So that we can buy our cars and drive them home without having to worry about getting caught by the police.

Our vision is to have our own forecourt eventually with a small garage to carry out repairs/MOT's/servicing and a recovery business too. Understandably it is going to be a slow process but I am determined to get this done so I don't have to work for someone.

My question is, what would we need? I understand that we need the following but would like to know if there is anything else...

- Trade insurance/trade plates

- Register as a sole trader or would we register as a partnership?

- Facebook/Shpock/Gumtree advertising

- Trade account setup with the auctions to bid on cars 

- Which warranty company would you recommend to go through?

Anything else? I may have more questions for you all but we will see how we go.

I look forward to hearing from you all and your help is most appreciated.

[Tony911 79]

If you can't afford to do it full time no point in starting up as part time traders because that's all you will ever be part time traders better off getting a ice cream van. It's a full time job in other words

[Jaime 1]

Thanks for your help Tony911. What would stop me from doing it part-time then? What stops me from buying a car and then selling it? Then repeating this process again... Please ellaborate.

[Tony911 79]

Try it and tell me how you get on. Whats the margins?

[Jaime 1]

The odd car we scrounged around for on Facebook/Shpock/Gumtree - we got margins of £300 - £600 profit. We never made a loss and never struggled.

"Try it and tell me how you get on" --- I am going to try it but part-time first hence my post above but obviously I would like some questions answered for guidance as I want everything to be straight & legal.

[MrV 66]

Car dealer magazine published a great "how to" which is certainly worth reading 

[Darkbluecars 10]

One of the problems with part time trading with a tiny amount of stock is the fact that things can grind to a halt when you get a car that just won't sale. If you've got 10 vehicles and one sticks it's a pain but doesn't drag the business down. When you've got two cars and they won't sale what do you do? It's a genuine question you'll have to resolve otherwise you could be doing nothing for two months. 

[Lazz 16]

I think you need at least a dozen cars as there is alway some that stick, you buy some and do alright out of some, make a little on sum, break even on some to get rid because you get fed up looking at them, and then there is always one that sticks and you can't shift it for love or money and then when you have just about gave up on it three customers come out the woodwork and all want to buy it on the same day.

And then there always is the one that you pay all the money for it and more only to find its knackered but you have no choice but to put it right because if you don't you will never sell it otherwise and see your money again.

[Jaime 1]

I understand all these bits and pieces that you are telling me. 

As I said, its part-time to start up and grow slowly.

I've asked what do I need to be a legal part-time car trader.

[awc1000 93]

1 hour ago, Jaime said:

The odd car we scrounged around for on Facebook/Shpock/Gumtree - we got margins of £300 - £600 profit. We never made a loss and never struggled.

"Try it and tell me how you get on" --- I am going to try it but part-time first hence my post above but obviously I would like some questions answered for guidance as I want everything to be straight & legal.

I would advise you too stay put at your franchise or find a job at a better one, if you are serious about starting out whilst keeping your current job then you already don't have time for this job,

regarding staying legal - your already using your tax allowance in your job so any profit on the side you will be paying tax on plus vat eventually plus your overheads - bank on retaining 60% of the profit if lucky, don't sound so appealing now does it.....

the franchise you work at who you say you are fed up with only earning a percentage of every deal will be posting annual profit results of around 2-3% of turnover just like the majority do, i'm guessing your on circa 10% a deal commission plus a basic sallary plus a company car so heho your not doing too bad ...

with respect - if your asking the questions you have asked and quoted what you think is a margin then this job probably isn't for you....yet, what you should be doing is working out how to buy the franchise's p/ex cars that you work at, many ways of doing this you just havnt worked it out yet.

[It's me 615]

2 hours ago, Jaime said:

Hello guys,

Me and my friend have been selling cars for 4 years approximately at a main dealership. We are fed-up of not reaping the full benefits, for example selling a car and only getting a percentage. Hence why we want to start a business up ourselves. In regards to setting up, we will have to go part-time because if we quit our jobs and went all in to setting up ourselves this would cause huge financial strain. We've always bought the odd car by scrounging through Shpock/Facebook/Gumtree and then sold it for a tasty return but it is such a headache as you are trying to get private sellers to sell to you for near enough trade money.

We want to get our trade plates/trade insurance asap. So that we can buy our cars and drive them home without having to worry about getting caught by the police.

Our vision is to have our own forecourt eventually with a small garage to carry out repairs/MOT's/servicing and a recovery business too. Understandably it is going to be a slow process but I am determined to get this done so I don't have to work for someone.

My question is, what would we need? I understand that we need the following but would like to know if there is anything else...

- Trade insurance/trade plates   ...............yes both of these

- Register as a sole trader or would we register as a partnership?............i suggest sole trader so tax liabilities are minimised

- Facebook/Shpock/Gumtree advertising........hate all them why not use proper sales mediums

- Trade account setup with the auctions to bid on cars ........yes

- Which warranty company would you recommend to go through?self warrant

Anything else? I may have more questions for you all but we will see how we go.........be upfront with customers,explain you are selling without the middleman but paying taxes,genuine customers like real people

I look forward to hearing from you all and your help is most appreciated...i like your approach and hope you do good 

 

[Jaime 1]

F*** me Jason Doyle, your the only person who has given what I expected. This moody lot are very negative. I understand there are negatives which I would like to understand and overcome. 

So if I register as a sole trader, I reduce my tax liabilities? Please elaborate... 

Proper sales mediums? Please elaborate again sorry.

Self warrant.. as in putting money aside yourself and getting the problem sorted yourself with connections in the trade?

I look forward to hearing from you.

[Lazz 16]

Register with Hmrc and and start doing self assessment if your going sole trader 

[It's me 615]

10 minutes ago, Jaime said:

F*** me Jason Doyle, your the only person who has given what I expected. This moody lot are very negative. I understand there are negatives which I would like to understand and overcome. 

So if I register as a sole trader, I reduce my tax liabilities? Please elaborate... you are a sole trader if you sole trade,why pay taxes twice

Proper sales mediums? Please elaborate again sorry....anything autotrader local cats league window ebay

Self warrant.. as in putting money aside yourself and getting the problem sorted yourself with connections in the trade?,,...pdi properly/new mot/ fix anything broken/,stand by your product self warrant add it into your price people appreciate honesty even in todays world

I look forward to hearing from you..ok?

 

[Jaime 1]

Ah yes, AutoTrader, Pistonheads, Ebay. Ofcourse lol.

How would it work when me and my friend are both going to be doing this together? I haven't got a clue about this area sorry.

Yes full PDI, new MOT, make sure it's all straight, this is normal preparation of a car though.  I mean what does self-warrant actually mean?

Cheers.

[awc1000 93]

37 minutes ago, Jaime said:

F*** me Jason Doyle, your the only person who has given what I expected. This moody lot are very negative. I understand there are negatives which I would like to understand and overcome. 

So if I register as a sole trader, I reduce my tax liabilities? Please elaborate... 

Proper sales mediums? Please elaborate again sorry.

Self warrant.. as in putting money aside yourself and getting the problem sorted yourself with connections in the trade?

I look forward to hearing from you.

with respect fella we do get a bit moody on here when people ask questions like "what do i need" and "what does self warrant mean" , especially after someone has mentioned they have four years experience in a franchise, can you enlighten us on which franchise you work for and why your not happy there?

on a serious note most of the answers you are looking for for can be found on gov,co,uk regarding setting up a business and your liabilitys, just factor in vat as used cars come under used goods margin rules, but i'm guessing but you already know that bit by working in franchising.

[Jaime 1]

I know 4 years is not alot of experience but I think it's enough to understand what goes on. I work for SKODA and as I said, I want to work for myself instead of working for someone who reaps the benefits of the full profit margins. I also find it very interesting too. I really want to provide customers with top customer service and deal with them how I want to deal with them with no restrictions.

I know VAT comes out of the profit but that is when I am VAT registered not part-time. I just want to know about things related to part-time as I am taking this at one step at a time.

If you dont want to help then just skip this thread, all I want is guidance.

[EPV 631]

6 hours ago, Jaime said:

I know 4 years is not alot of experience but I think it's enough to understand what goes on. I work for SKODA and as I said, I want to work for myself instead of working for someone who reaps the benefits of the full profit margins. I also find it very interesting too. I really want to provide customers with top customer service and deal with them how I want to deal with them with no restrictions.

I know VAT comes out of the profit but that is when I am VAT registered not part-time. I just want to know about things related to part-time as I am taking this at one step at a time.

If you dont want to help then just skip this thread, all I want is guidance.

“Poor me, nobody wants to give me free advice”

Now I know you’re probably not thinking like that but that’s how you’re starting to come over mate. 

I have found the best way to get the most out of this forum is to try and figure shit out for myself and if I really can’t find the answer, help will be given. As said above, there are dozens of “new traders” a year on this forum and many never return. 

Self warrant. You warrant yourSELF.  There’s a thread literally next door to this one about this very subject. Talk of keeping a pot by and paying for WARRANTy claims yourSELF?

Think of it as a rite of passage, you have to wade through the salty old fuckers who have been worn down by the industry before you get to the enthusiastic ones who are still happy to talk about the job on here after having a day at it. Or they are so busy running a successful firm they have little time to help. 

Without this forum i’d be at least a year behind my own personal progress, it’s genuinely a gold mine. There’s a guide on “how to” at the top of this forum that covers the basics like what you’ll need. 

Good luck with it. Find out as much as you can by spending a week reading this forum’s last 100 threads. That’s what I did when I started 18 months ago and I didn’t have any experience in the trade at all. Zero. You have 4 years. Then when you have attempted something and half fucked it up (you will) ask on here and you’ll get help. 

[Blenheim Car Sales 111]

What is it you have learned  in your 4  years  in franchise ??? you have done your apprenticeship you are now ready for the big leagues you should know all the questions you are asking its just simple regular stuff

 

Part time ..........................  good luck with making that work i dont personally see how its possible unless its on such a small scale where its not worthwhile

[Jaime 1]

EPV. I understand everything you say. I just hate toxicity. Just dont bother coming onto this thread or bother typing out a message if your just going to be like a bitter old man.

I'm sure we all needed help when we first started and that's what I'm here for.

I haven't just come on here after a day of thinking about car-trading. I've been looking and scanning through, I read the same stuff over and over but there is nothing better than speaking to actual people who do what you want to do.

Thanks for your input anyway. Really appreciate it.

[have a word with the wife 299]

tip, this is a 24 hour job, you and your friend need to be aware of this, your phone will ring at nine at night, will your friend answer it ? just because you offer a warranty doesnt mean you can hide behind it, you also have to be strong, you mention =

7 hours ago, Jaime said:

I really want to provide customers with top customer service and deal with them how I want to deal with them with no restrictions.

and this is where you may fail, what restrictions do you have at the present ? because if you let the customer take control then you will fail 

[NOACROSS 414]

Part time can be OK for learning (and taking a bath) and can add a bit of dough to your pocket if you're lucky.  You COULD build a business up doing this long term, especially if there's two of you but it'll be very long and tough.

My advice is, go with your gut but I think you'll find you're better off where you are with a regular wage, benefits, holidays, sick pay, pension etc.  Most start ups will fail and others will go backwards for a few years at least.  Some will hit the ground running, but they will have taken the risks and gone all in.

This game is MUCH harder than you'll ever imagine. It is nothing like working for a main dealer.

Good advice above, and the main one I can see is 'get on and do it and make the mistakes yourself'.

Good luck to you if you want to try and, at least part time, you won't be betting the ranch on it all.

I think when you're on here a bit down the road having started trying/selling/making and pointing out your successes and failures, you'll get plenty of help and guidance.

[SouthernTrader 20]

Morning Jaime,

I started off like you selling cars as well as working my 9-5 job, until eventually I didn’t have enough hours in the day for both and my cars were making me a good wage so I left my job.

There is so much on this Forum, like EPV says it’s a gold mine 

Some brief advice from being in your position would be:

Its going to take a long time doing it part time to build up your pot - longer than you think. You’ll make mistakes, get come backs, buy the wrong car etc. Just try and learn from these.

You will need to work 7 days a week and most evenings. Logistically fitting it in around a 9-5 with sourcing, buying, collecting parts, taking cars to MOT and valet, then viewings you’ll find time is always against you

Sourcing good, trade price stock is hard work. Can you get some PXs from your job? This would be a great potential option 

You’ll need a good mechanic you can trust. 

I work alone and wouldn’t work in a partnership but that’s just my preference. 

In terms of legalities all that information is freely available from a Google search so I won’t get into that. 

Anyway that’s my experience/opinion 

Good Luck

 

[Tony911 79]

1 hour ago, EPV said:

“Poor me, nobody wants to give me free advice”

Now I know you’re probably not thinking like that but that’s how you’re starting to come over mate. 

I have found the best way to get the most out of this forum is to try and figure shit out for myself and if I really can’t find the answer, help will be given. As said above, there are dozens of “new traders” a year on this forum and many never return. 

Self warrant. You warrant yourSELF.  There’s a thread literally next door to this one about this very subject. Talk of keeping a pot by and paying for WARRANTy claims yourSELF?

Think of it as a rite of passage, you have to wade through the salty old fuckers who have been worn down by the industry before you get to the enthusiastic ones who are still happy to talk about the job on here after having a day at it. Or they are so busy running a successful firm they have little time to help. 

Without this forum i’d be at least a year behind my own personal progress, it’s genuinely a gold mine. There’s a guide on “how to” at the top of this forum that covers the basics like what you’ll need. 

Good luck with it. Find out as much as you can by spending a week reading this forum’s last 100 threads. That’s what I did when I started 18 months ago and I didn’t have any experience in the trade at all. Zero. You have 4 years. Then when you have attempted something and half fucked it up (you will) ask on here and you’ll get help. 

 

43 minutes ago, Jaime said:

EPV. I understand everything you say. I just hate toxicity. Just dont bother coming onto this thread or bother typing out a message if your just going to be like a bitter old man.

I'm sure we all needed help when we first started and that's what I'm here for.

I haven't just come on here after a day of thinking about car-trading. I've been looking and scanning through, I read the same stuff over and over but there is nothing better than speaking to actual people who do what you want to do.

Thanks for your input anyway. Really appreciate it.

Epv just gave you some of the best advice and instead of taking it all in you have basically told him to f##k right off. Wrong attitude in this job and life pal you won't get far. Take the advice you are given if you don't understand it stay in your own lane. Good luck 

[Arfur Dealy 823]

26 minutes ago, Tony911 said:

 

Epv just gave you some of the best advice and instead of taking it all in you have basically told him to f##k right off. Wrong attitude in this job and life pal you won't get far. Take the advice you are given if you don't understand it stay in your own lane. Good luck 

It doesn't make you want to help a newbie when they haven't hardly done any research or show some kind of initiative. We are adults HERE, this isn't a forum for schooling newbies who can't be arsed to work things out for themselves.... and then when some of these newbies get given some sound advice, they throw it back with attitude.

EPV, has gotton off his arse and has made it happen for himself, he's made his own successful business work for him. These are the type of newbies I like to help.  You can't be mothered / mollycoddled into learning this trade - it has to come from within. AD