Car sales advice

[JBS 1]

Hi all, 

First post on the forum. Currently an independent garage looking to expand into sales, looking for some advice. Aware of most of the requirements as being in the industry, however things such as offering finance and common things that are often overlooked would be helpful.

cheers

[Grantlfc81 88]

Hi jbs -

things to consider 

- getting FCA approved to offer finance. What price, mileage and age will you be selling?

- warranty company 

- advertising autotrader, Facebook, eBay and car gurus 

- website

[JBS 1]

Looking at cars upto 6 years old in the price range of 5 to 30k depending. Most of our current clients have good clean examples which so hopefully help further sales. 
 

As for warranties is there anyone you personally recommend. 

[trade vet 697]

Hi JBS....I am assuming you have read the CDM guide to car sales.There are some good guys who can advise you on here but it may help if you can tell us about your current business.Also,where will you source stock,where will it be displayed,how many,who will be selling it and looking after it.I wouldn’t worry about offering finance for the moment.Not trying to put you off but the grass may not be greener adding car sales.I hope you don’t mind me suggesting that you don’t want to get sucked into sales,do plenty of business but find overall that you are worse off than before you started.I have seen that happen because car sales is very time consuming and expensive. All the best.

 

 

[JBS 1]

Currently set-up is workshop with 2 full time and one part time with the possibility of going full time. Planning on sourcing stock from private sales focusing on clean examples. There is an auction in our town but haven’t really considered that as an option. There is a possibility to sell stock from some of our existing customers cars as we see a lot of new cars on a daily basis. Currently have space for upto 5 cars without disrupting our current business with the possibility of an additional unit to house more stock. 

[trade vet 697]

28 minutes ago, JBS said:

Currently set-up is workshop with 2 full time and one part time with the possibility of going full time. Planning on sourcing stock from private sales focusing on clean examples. There is an auction in our town but haven’t really considered that as an option. There is a possibility to sell stock from some of our existing customers cars as we see a lot of new cars on a daily basis. Currently have space for upto 5 cars without disrupting our current business with the possibility of an additional unit to house more stock. 

That sounds sensible to me.5 cars and do 3 or 4 per month.Regarding warranties,just do your own and throw them in for free providing they return for servicing.If customers live out of the area ,Autoguard are an efficient warranty provider at £150 ish for 12 to18 months agreements.

[JBS 1]

That was what I was thinking in the case that they live nearby I foot the warranty fully aware of the risks involved with that and in the case that the customer is not nearby offer a suitable warranty from a provider. Is there anything else I should be considering? 

[JBS 1]

Was having a look at the trade licence and it asks how many licences you are applying for. What exactly does it mean by this I though the licence covered your business overall for all cars under it or is a per car basis. 

[New year revolutions...... 197]

You have to be careful that selling cars isn't seen as a route you take to fail cars customers bring in for servicing/mot, it's also important to remember a sale easily takes an hour so who will be designated to do this job..? Its also important to remember that as you repair cars customers expect they can turn up and have a bulb replaced immediately because they bought the car off you

Lots to consider,personally I wouldn't do it unless your business is failing

[Grantlfc81 88]

On 12/26/2019 at 1:37 PM, JBS said:

Looking at cars upto 6 years old in the price range of 5 to 30k depending. Most of our current clients have good clean examples which so hopefully help further sales. 
 

As for warranties is there anyone you personally recommend. 

Well you deffo need finance for those types of cars.  There are firms that will do the fca for you for around £300 

wenhabe just signed up with auto guard and seem decent so far for warranties.

 

Edited December 27, 2019 by Grantlfc81

[Mark101 536]

15 hours ago, Grantlfc81 said:

There are firms that will do the fca for you for around £300 

I know someone who can do the whole FCA setup for you. I think they charge £250 (no VAT) including registration charges. PM me for details of my contact.

[justina3 518]

On 12/26/2019 at 3:23 PM, JBS said:

Currently set-up is workshop with 2 full time and one part time with the possibility of going full time. Planning on sourcing stock from private sales focusing on clean examples. There is an auction in our town but haven’t really considered that as an option. There is a possibility to sell stock from some of our existing customers cars as we see a lot of new cars on a daily basis. Currently have space for upto 5 cars without disrupting our current business with the possibility of an additional unit to house more stock. 

Devils advocate here, i wouldnt bother you already have from what the sounds of it a ticket to print money, ask anyone on here car sales is no longer that, i would put my money into investing into new tech training courses for your staff on stuff your workshop doesnt cover then charge what ever you want, google car sales within a 30 mile radius and then say same search for canbus expert or automatic gear box experts the results i bet will raise an eye brow or two.

Lastly i have found over the years if you have a good business and take your eye off the ball which buying cars is almost a full time job on its own you main business will suffer so you will end up with twice the work load but no where near twice the profit.

A busy fool is still a fool.

 

Happy new year. 

[BHM 994]

14 minutes ago, justina3 said:

buying cars is almost a full time job on its own you main business will suffer so you will end up with twice the work load but no where near twice the profit.

A busy fool is still a fool.

How many repair garages have sold one or two motors for good profit then think it’s easily upscaled? It’s not.

Apparently JBS is thinking of sourcing ALL of this good stock on the doorstep - that shows a little naïvety in my opinion. 
 

On 12/26/2019 at 4:14 PM, JBS said:

Is there anything else I should be considering? 

PUNTERS . Repairing cars & telling customers “That’s what it’ll cost, do you want it doing? Yes or No?” is VERY different from flogging cars to overly optimistic punters. 

Apart from that, welcome & good luck.

[JBS 1]

Thanks for all the input. Finance is something I will require at the price point I am aiming at. As for training that is ongoing and always will be just the way modern motoring is. For sourcing stock I’m fully aware that won’t be easy and by no means will there be a handful of cars on my doorstep. I only said that as I have been approached a few times about selling cars on behalf of customers, just my garage looks more like a showroom than your standard backstreet outfit. Repairs will still remain the main focus of my business. Lots to consider and will give it more thought over the new year. 

[Blenheim Car Sales 111]

6 hours ago, Mark101 said:

I know someone who can do the whole FCA setup for you. I think they charge £250 (no VAT) including registration charges. PM me for details of my contact.

i will do it for £200  i have  a spare hour over the Christmas period