Becoming a trader check list

[Jimnibob 0]

Hi,

I am sure this has been asked many times, but can anyone please advise what things I need to have in place to become a motor trader other than finances and a strong business plan. I am thinking of the practical things and have identified the following, but is there anything else;

• Business address
• Motor trade insurance
• Public liability insurance
• Motor trade plate licence(s)
• Business stationary
• Website
• Terms & Conditions of Sale
• VAT registered
• Declare business to HMRC
• Vehicle warranty provider option
• Membership to professional association such as Federation of Small Businesses

Is there anything else I need or need to consider?

Thanks

[Ken 10]

Leave VAT registration as long as possible. But other than that, I think all bases are covered

[SC Derby 259]

In an ideal world leave VAT reg but a lot of Motortrade websites want VAT # in order to allow access.

[Jimnibob 0]

Cheers for taking the time to respond.

What documentation do I need to supply a buyer. Obviously a sales invoice, but does it require specific wording/declaration or is anything else other than a sales invoice.

Have been looking at the example forms on the RMI website

Thanks

[It's me 615]

hi

welcome to themadhouse

be careful with any leases that need signing and remember most are 3 years and rolling

consider going limited (take professional advice)

willingness to work 25 hours a day

experiance

tow rope

thick skin

be prepared to be obstracised as a second hand car dealer by friends and family but find lots of new mates down the pub

an enjoyment to do the job

consider joining lawgistics rather than federation of small business

[Jimnibob 0]

hi

welcome to themadhouse

be careful with any leases that need signing and remember most are 3 years and rolling

consider going limited (take professional advice)

willingness to work 25 hours a day

experiance

tow rope

thick skin

be prepared to be obstracised as a second hand car dealer by friends and family but find lots of new mates down the pub

an enjoyment to do the job

consider joining lawgistics rather than federation of small business

Thanks S and B

What are the benefits of lawgistics over FSB?

[Rory RSC 596]

2 mot stations 

2 paint shops 

good mechanic 

good source of vehicles 

1 good auto electrician 

diagnostic kit even a basic code reader

thick skin 

 

[It's me 615]

lawgistics are dedicated to our job fsb is for anyone and to be honest is not best suited to motor trade in my opinion

visit lawgistics website for full and good info i do NOT work for them by the way but if they are reading i like my malt

[Jimnibob 0]

Thank you all

[SC Derby 259]

Jump Pack (especially starting in winter lol)

[umesh 336]

Come on guys .... All you guys who've been in the the trade for so long forgot the main one ..

"Sheep skin coat "

Good luck with the venture Jimnibob - welcome to another world , 'motortrade' ! great to see so many throwing ideas in , create a database if you don't have a system in place - spread sheet type for mailshots/ customer contacts etc 

Lawgistics as already been said with their standard  stationery will be legal 

It will be amazing what else you think of as you go along .. we're all here to help - just shout ! 

[sparky 274]

Hi,

I am sure this has been asked many times, but can anyone please advise what things I need to have in place to become a motor trader other than finances and a strong business plan. I am thinking of the practical things and have identified the following, but is there anything else;

• Business address
• Motor trade insurance
• Public liability insurance
• Motor trade plate licence(s)
• Business stationary
• Website
• Terms & Conditions of Sale
• VAT registered
• Declare business to HMRC
• Vehicle warranty provider option
• Membership to professional association such as Federation of Small Businesses

Is there anything else I need or need to consider?

Thanks

Balloons. Balloons sell cars.

[Jimnibob 0]

Promotional staff. Knew I had forget something 

[Tom 164]

Balloons. Balloons sell cars.

bunting sells cars also 

[Phil H 124]

sweets or toys on your desk to entertain the kids whilst you get down to the knitty gritty with the parents

[Steve92 80]

The ability to drive a car on petrol fumes.

[j4ck100 12]

The ability to drive a car on petrol fumes.

love it. took an e class 82 miles with petrol light on today. miracle.

Heart attack pills for when someone offers you a price thousands below your advertised price

[Steve92 80]

I collected a Cayman yesterday and the owner said you will need to fill it up, it had just under a quarter of a tank, enough to get me to the moon. Watch z4's though, they are quite accurate, it said it was empty and spluttered to a stop just as we rolled it into the lock up.

[Cornish Guy 45]

Crystal Ball for consultation purposes.

[GreenGiant 287]

Heart attack pills for when someone offers you a price thousands below your advertised price

Anti-depression pills for when you tell the punter how much they're getting for their swapper and they say 'Blimey - that's more than I was expecting...!'

[Rory RSC 596]

This was taken from pistonheads and was something I saved a while back after starting out trading. I think this chap covers most things. 

 

An understanding girlfriend
Rent of a yard
Autotrader bill 
Ebay motors bill
HPI Account  - You can offer driveaway insurance through this aswell as value any PX's with cap or glasses - This is an essential
Trade insurance
trade plates
Buisness insurance
staff - You will need people to help move cars about for you
2 x mot stations to use
2 x paint shops to use
2 x auto electricians to use
2x repair garages to use
A diesel specialist
a good scrap yard your friendly with
Merchant services 
Your own transporter 
CCTV Equipment
Overflow space - Cars take up a lot of space 
FCA license 

trade acounts with bca, manheim,  sma, aston barclay Its easier to sell well prices cars just now than it is to buy them.
A good accountant.
a good selection of tools
A snap on booster pack, nothing else cuts it for me.
Your own diagnostic and battery recharging equipement
A complaints procedure
a warranty company who will actually pay out.
Friends to help you
A decent internet provider as autotrader dealer edit needs it.
A firm but fair attitude, the public with try take the piss out of you at any opportunity 

 

[It's me 615]

confirm your mobile phone works where you intend doing business from,18 months ago orange turned the volume down on their gigglewatt thingy so i had to go to oh my 2

[Jimnibob 0]

This might sound a bit of a stupid question, but in terms of providing the customer with a sales receipt is the one supplied by the RMI all that I need to give the customer when selling them a vehicle (other than the obvious stuff like the V5c part and service log book and MOT etc)

 

This is a link to the RMI sales receipt/invoice - http://imgur.com/GB7oEEz

 

[thecarenthusiast 2]

Hi chaps, I noticed a couple people posted above to leave VAT registration for long as possible - any reason why?

 

Thanks

[Phil H 124]

because you have to pay margin vat which is 20% if the difference between the purchase and sales price excluding any refurb so say you buy it for £1000 sell it for £2000 that's £166.67 to the vat man, then you've got say £200 buyers fee and say £200 refurb so for every £1000 you think you've made it's really just over £400.