Garage Expenses

[JXB 0]

Hi all,

Bit of a vague question here...

Do you dealers try and work to a certain percentage of outgoing's assigned to garages for vehicle repairs?

I know some will take all of this in house to keep costs down but it just isn't an option in my case and I feel like costs are miles above where they should be.

Now, I appreciate this will fluctuate dependent on the kind of stock you're buying but just looking for a rough idea.

Cheers,

J.

[Casper 272]

It always pay to shop around but cheapest isn't always best remember that many garages will offer good discount if you offer them plenty work also many do a cheap trade mot 

also sometimes if you speak to the garage owner with your price concerns they will work with you it happened to me with a parts suppliers who was supplying a local garage and myself it so happens the garage was doing the work for me and getting the parts cheaper than I could and I was buying more volume from the company I mentioned it to the manager of the parts supplier who said it couldn't be the case as I was on the highest discount possible but suddenly the same parts starts coming in much cheaper 

[David Horgan 564]

Hi J

You cant put a percentage on repairs , if it needs fixing it needs fixing really .

A car that's got to have exhaust , CV boots , New tyres and Discs all round has to have them fitted , another car that doesn't will be cheaper , swings and roundabouts isn't it .

Older cheap stock are the worst as new parts are same price for old cars as they are for newer ones , old cars you earn less than newer cars . Simple economics and some good luck sometimes .

The experience is what's required ; 

When looking at purchasing stock all parts required need to be costed in your head before laying out the readies to buy the car . LOT Of people don't J , if its a px be firm as say to them , this car needs £500 so its value is X 

Regards Garages and prices , well they have to earn a profit and its the labour thats eats into your profits if you cant do the work yourself , to be honest we are in house with all repairs and I don't half think we are lucky , we repair cars for other traders and the bills are eye watering sometimes , makes us think wow how on earth can you make a buck on that now .

Edited January 9, 2020 by David Horgan

[Arfur Dealy 823]

I look at my prep costs as an average, some cars are less and some are more, so basically your profit is all down to the buying, when you retail back and know your true costs then you know what to purchase. I have accounts with all the local suppliers and the garage which I use put the parts onto my account, they do all my running around for me, I simply pay them their labour cost...

[MarkTVS 209]

David out of interest is your workshop a separate entity? If so do you mind me asking what you bill yourself per hour?

[trade vet 702]

1 hour ago, Arfur Dealy said:

I look at my prep costs as an average, some cars are less and some are more, so basically your profit is all down to the buying, when you retail back and know your true costs then you know what to purchase. I have accounts with all the local suppliers and the garage which I use put the parts onto my account, they do all my running around for me, I simply pay them their labour cost...

You have them well trained AD,not only do they refund your deals,they earn nothing from the parts.Never heard of a Not for Profit garage sub contractor.Incidently have you done your WAV yet.

[trade vet 702]

1 hour ago, David Horgan said:

Hi J

You cant put a percentage on repairs , if it needs fixing it needs fixing really .

A car that's got to have exhaust , CV boots , New tyres and Discs all round has to have them fitted , another car that doesn't will be cheaper , swings and roundabouts isn't it .

Older cheap stock are the worst as new parts are same price for old cars as they are for newer ones , old cars you earn less than newer cars . Simple economics and some good luck sometimes .

The experience is what's required ; 

When looking at purchasing stock all parts required need to be costed in your head before laying out the readies to buy the car . LOT Of people don't J , if its a px be firm as say to them , this car needs £500 so its value is X 

Regards Garages and prices , well they have to earn a profit and its the labour thats eats into your profits if you cant do the work yourself , to be honest we are in house with all repairs and I don't half think we are lucky , we repair cars for other traders and the bills are eye watering sometimes , makes us think wow how on earth can you make a buck on that now .

I agree,I tried operating using sub contractors last year.Not only do they mess you about with their excuses,it was hard to get a MOT through with minor work for under £300.By the time you factor in paintwork,valeting, advertising, VAT and the rest it now probably costs most traders on average about £1200 to sell a car.

[Arfur Dealy 823]

31 minutes ago, trade vet said:

You have them well trained AD,not only do they refund your deals,they earn nothing from the parts.Never heard of a Not for Profit garage sub contractor.Incidently have you done your WAV yet.

I'm their neighbour and their biggest customer so we have a very good working relationship. Yes, the WAV went today, nearly doubled my money on that one 

[trade vet 702]

11 minutes ago, Arfur Dealy said:

I'm their neighbour and their biggest customer so we have a very good working relationship. Yes, the WAV went today, nearly doubled my money on that one 

I thought your WAV would ring the bell.They are good news if you can get them.There is well established WAV dealer near us  ( The Automotive Group ) who adapt WAV’s and trade from an old industrial unit.I think they have about 50 staff yet they net over £1m per year,it is incredible.

[BHM 994]

3 hours ago, JXB said:

Hi all,

Bit of a vague question here...

Do you dealers try and work to a certain percentage of outgoing's assigned to garages for vehicle repairs?

I know some will take all of this in house to keep costs down but it just isn't an option in my case and I feel like costs are miles above where they should be.

Now, I appreciate this will fluctuate dependent on the kind of stock you're buying but just looking for a rough idea.

Cheers,

J.

What sort of cars & price range are you in? Reading this I assume your business is a small concern?

From my one man band point of view it’s mainly in the buying (+ also whether or not you’re badly caught out!)

At the end of the day though, if the discs & pads (and a thousand other things) are Donald Ducked you need to spend the money. It’s as simple as that. How much money you spend ‘out of house’ varies greatly. In this game as a one man band you need a tame mechanic, or a small garage, who doesn’t mind trade work, and possibly if they also like a bit of cash (for one of their inevitably cash paid employees) you can buy your own parts without a mark-up. Mind you, I do envy those small businesses with an in-house workshop.

[Casper 272]

Guy i know from the auctions only now deals in wav and says he's doing well he. Previously managed a car sales company and also owned his own at one point but has over the last few years went in that direction .. 

Edited January 9, 2020 by Casper

[MarkTVS 209]

I just can’t sell wavs quickly they always seem to sit for about 2 months! 

[BHM 994]

4 hours ago, MarkTVS said:

I just can’t sell wavs quickly they always seem to sit for about 2 months! 

+1. Reasonably profit when they go but it’s a niche market.

[Ek cars 17]

I prefer left hand hookers on UK plates