starting out selling cars any information would be greatly appreciated

[cvs 1]

Me and my friend is in process of opening a wee yard to sell used cars ranging from around £500 to 5k. Am looking to do things right and register for a VAT number so I can buy my stock from trade centres and online trade auctions. I am a bit confused on what way the VAT works 1 person is telling me 1 thing and the next person an other. Do I pay VAT the total price of the sale or is it only the profit I pay VAT on. Am looking to offer warranty on the cars I sell do I only have to offer 3 months engine and gearbox warranty? Also am I better going through a car warranty company or fixing the cars myself if anything was to go wrong with a customer's car? Another we question some people might be a bit hesitated to answer buy where's the best places to draw my stock from?

Any other information would be greatly appreciated regards, Paul

 

[jimreidvehicle 255]

Hi Paul,

more than happy to help, we offer a Free Motortrade Mentoring system if you would like more details just give me a shout at jim@jimreidvehiclesales.co.uk

we would love to see you do the right thing and succeed in this competitive marketplace, there is lots of help available!

Jim

[Rory RSC 596]

Where in the country are you Paul? That will alter your selection of auctions available. 

used cars will fall under the vat margin scheme. 

This means you pay vat on the margin between what you buy the car for and what you sell the car for. Not your profit. 

Legally you do not have to offer warranty on cars you sell. It helps aid confidence.

[Reggaj 12]

Good luck paul, il hopefully be starting out in the next few months too all things going to plan.. Brian 

[sparky 274]

Just out of interest, I'd just like to ask cvs and Reggaj why they they are starting out in the used car market?

[Reggaj 12]

iv been involved in the motor trade for the last 20 years on and off, the last few years I've been getting busier with sales and doing well from it. Hopefully  be increasing stock in the next few months and concentrating more on sales. Currently still got a full time job so it's a bit hectic.