introduction/ Business Bank Account

[Stig 0]

Hi guys, I have been following this excellent vital information filled forum for a while and have obtained lots of help and relevant information from this forum.

Finally i have taken the plunge and joined the forum and thought i would introduce myself.

I am in the process of starting a used car dealership. Since graduating from university over the past year i have worked as Business consultant however i dont enjoy it all. Whilst studying at university i worked part time for a used car dealer and thouroughly enjoyed it, i have a firm grasp on the ins and outs of running such a business. So forth i have decided to give it a try my self whilst continuing to work part time.

I have a solid business plan with investment ready and i have arranged relavant insurance, auction accounts etc. Really the last step i need to take before i buy my first stock is to open a business bank account. Now i have done quite extensive research and most banks offer free banking for startups, however i still cant make a decision as to which bank to go for as all the banks have drastic reviews online.

I was hoping someone could please point me in the right direction as to which bank to go for? which bank is best suited to this industry?

Furthermore any help or advice to aid with my start up would be much appreciated.

Thanks in advance, and congrats on such a great informative forum

[Edward Roots 1]

Unfortunately I have no advice to offer, but I can wish you the best of luck. It would be interesting if you could do a weekly update with the progress of starting up alone. Like yourself I graduated from University a little over a year ago, and have worked in various motor trade jobs before during and after my studies. Out of interest what stock profile of vehicles are you looking to retail?  

[Jack Regan 116]

Yeh , good luck your going to need it, car job ain't what it used to be .

[Wheelerdealer1 91]

Another newbie, so what are you going to do that's different to the rest ? Genuine question. Also where did you see the profit in this business compared to a diff type of new business? Or are you doing it mainly out of passion ?

[Max Branning 149]

Hi guys, I have been following this excellent vital information filled forum for a while and have obtained lots of help and relevant information from this forum.

Finally i have taken the plunge and joined the forum and thought i would introduce myself.

I am in the process of starting a used car dealership. Since graduating from university over the past year i have worked as Business consultant however i dont enjoy it all. Whilst studying at university i worked part time for a used car dealer and thouroughly enjoyed it, i have a firm grasp on the ins and outs of running such a business. So forth i have decided to give it a try my self whilst continuing to work part time.

I have a solid business plan with investment ready and i have arranged relavant insurance, auction accounts etc. Really the last step i need to take before i buy my first stock is to open a business bank account. Now i have done quite extensive research and most banks offer free banking for startups, however i still cant make a decision as to which bank to go for as all the banks have drastic reviews online.

I was hoping someone could please point me in the right direction as to which bank to go for? which bank is best suited to this industry?

Furthermore any help or advice to aid with my start up would be much appreciated.

Thanks in advance, and congrats on such a great informative forum

Car trading is a tough business to be in these days, and will certainly get tougher over the next few years - the new sale of goods act is just one example of more obstacles in our way.

If i was starting out from scratch i would certainly look for something else to be honest as the margins are just are not there any more.

Most small traders with less than 20 cars are probably making no more than 30k a year after expenses and i would say many are making not much more than half of that if they are being truthful.

When you consider the time and money you have to invest to this business the returns look pretty poor.

That being said if it is your passion and you enjoy dealing with cars then good luck to you, just go in with your eyes wide open.

[James Baggott 227]

You'll obviously need that vital part of the trade, Car Dealer Magazine, to read every month... Best of luck and welcome to the forum

[Rory RSC 596]

A lot of traders can be very off putting and not helpful for newbies. I received lots of 'the trades not what it used to be' when starting out a few years ago. New dealers like myself don't care its not what it used to be. We were not there to see it so don't know any different. Embrace technology, price competitively, prep well and pick desirable cars that turn quickly. The dealer from the north east at the car auction last night driving a Ferrari 458 seems to be doing well. The M4 and countless X5's and new range rovers would suggest similar. 

 

In 3 years I have gone from literally having 3 starter cars (Corsa, Clio, Fiesta) to holding over 30 cars in stock and can be retailing over 40 cars a month. This is with myself and a business partner, a valeter/driver and now a full time mechanic. It can be done. I work 7 days a week and am putting in 90-100 hours a week to make it happen. 

Regards your banking I would suggest simply a local branch as its useful being able to nip in and drop cash off when customers pay with cash and then whoever offers the longest free period.  

Best of luck and I hope it goes well for you.

 

[Max Branning 149]

A lot of traders can be very off putting and not helpful for newbies. I received lots of 'the trades not what it used to be' when starting out a few years ago. New dealers like myself don't care its not what it used to be. We were not there to see it so don't know any different. Embrace technology, price competitively, prep well and pick desirable cars that turn quickly. The dealer from the north east at the car auction last night driving a Ferrari 458 seems to be doing well. The M4 and countless X5's and new range rovers would suggest similar. 

 

In 3 years I have gone from literally having 3 starter cars (Corsa, Clio, Fiesta) to holding over 30 cars in stock and can be retailing over 40 cars a month. This is with myself and a business partner, a valeter/driver and now a full time mechanic. It can be done. I work 7 days a week and am putting in 90-100 hours a week to make it happen. 

Regards your banking I would suggest simply a local branch as its useful being able to nip in and drop cash off when customers pay with cash and then whoever offers the longest free period.  

Best of luck and I hope it goes well for you.

 

40 cars a month is incredible with only 30 cars in stock you must be selling at very low margins? And sourcing cars at that pace must be a nightmare. 

I am not saying starting in car trading is not possible and yes money can be made but realistically it is a lot of work and hours and cash invested for really small returns as i said go in with your eyes wide open.

 

[Rory RSC 596]

Thing is margins are not that low I pick stock that sells. An example in this month alone I have had 2 Mondeo estates fairly run of the mill both retailed for between 6-7k. I don't want to go to much into specifics on how much I do in each car but whilst we price keenly we do not give cars away. Both cars sold within 48 hours of hitting the market.

Sourcing cars is absolutely my biggest headache and I am at the sales 2 or three times a week myself, online buying when I cant get away. I tend to do the buying for the business and then we drive the cars back and make a couple of trips back and forth to get them back. Next day they are advertised and on sale. My speed from purchase to advertising is very quick. My business partner, mechanic and valeter/driver + friends who help bring cars back are all a really great team and share our vision.

[Stig 0]

Hi guys thanks for your replies, sorry for the delayed response as i have been away.

I am pursuing this purely for the passion i could potentially make significant income at my currenty role but i miss the car trade. At the moment i have a small amount of capital so i am looking to start with 3/4 small cheap cars Fiesta Corsa,etc.

Whilst conducting market research which consisited of visiting the various independant dealers where i live, most have adviced me to stay away asthere is no money to be made anymore however they are still running, many i spoke to whilst i was working years ago stated they would shut down but are still running so i cant fathom why more dealer are cropping up left right centre when there is no money to be made?

I may just start part time and see how it goes before i plunge in getting involved full time.

What do you guys think? Any advice or help is much appreciated

 

[Rory RSC 596]

Those car choices are not the best.

personal experience is that small first car buyers are so picky and have all the time in the world to hunt around.

 

1.6 Ford Focus petrols will always sell. Family cars.  Petrol rav4s are unlikely to give you much headache, people need them not want them this time of year. Or at least they think they do. They book low easy to pull a margin out of them. 

 

Anyhing else just just to with what works you will have seen what sells at your place you have worked.

[Stig 0]

Thanks cant wait to get started now.

Would you recommend offering my own warrenty or using a third party company?

[Daylight 28]

I'd say don't be disheartened by the doom and gloom squad but at the same time, don't think it'll be a walk in the park. Cars are like women, very unpredictable. Your contacts are your most valuable asset, get a good mechanic, paint guy, dent man etc as they can be the difference between a profit or not. The rest you'll learn the hard way i'm afraid, some cars you just don't touch, you'll probably find that out the expensive way!

Good luck and as said above, keep us posted!

[Stig 0]

will keep you all posted as to how i progress

 

many thanks all