New Startup - Few Questions ?

[32-BOY 1]

Hi guys i have been reading on this forum for some time now and have few questions of my own, there is a lot to cover so i hope you read it all. 

 

Im looking it to setting up my own car sales with possibly a partner on board, just a bit on my background im 24 and have been working for a family business in takeaway for last 8 years now its been sold and im looking in to venture something a bit different. I have experience in selling food but not cars as such i have probably sold about 10 cars and 4 bikes in my life but they all have been family owned so its been personal sales not trade. 

 

Now from what i understand these days i will need a little bit more than £500 to start a car sales so my idea is togo to couple of car auctions such as manheim and buy one car try to sell it and then buy another and try to sell it, the only problem with that is that im still going to be operating from home and its does not look 100% professional.

So this is where my business partner would come in he owns few petrol stations locally and has unused space and a lot of it, so i have spoken to him and he is willing to go 50/50 on the business he will supply me with space to fit around 50 cars if needed and office space but i would have to deal with everything else. I wouldn't have to pay no rent as he is making a comfortable living off the stations. Now the question's what sort of money would we need to be doing this properly, im talking about maybe 5-10 cars in stock from financial point of view he is willing to put in up to around £30k in to it and i would have to match that, but in the beginning we are thinking small1-3 cars and then 5-10 once the first few have sold . I understand that you wont be able to give me exact figure, but what im after is not a cost of stock because that will vary as to make and millage but what im after is cost of actual business running costs and what do i require to run a car business?

: Trade insurance (im 24 but will be 25 in 3 months) business partner is 32

: Trade plates 

: Card reader eventually 

: Car warranty company eventually 

:Car finance company eventually 

:Hpi check company 

: Cost of selling platfroms such as AT but from what i have read they are very expensive.

Also what sort of places can you acquire stock? I have been to few BCA auctions and after seeing the prices and fees added up there is no profit i do understand that you have to pay your way and purchase few cars in order to reach the status to get lower fees but still very expensive compared to places like Manheim. Are there any sites online that have auctions or stock that is available to buy?

 

Any help / pointers i much appreciated. 

 

Cheers 

 

Jake  

[James Baggott 227]

Firstly welcome. Secondly a bit off house keeping. I see you posted this again in the  main forum. Please don't do that. This Faq section is for new starters like yourselves. Many of the dealers on the forum get asked advice a lot and we were asked to move them to a section of their own. It's up to them if they want to come here and help. If you want to get involved in the main forum feel free to post replies etc but asking for advice, as detailed as you have above, won't go down well with our members. We welcome all new starters but suggest you get involved first and make yourself part of the community before asking for chapter and verse on running a business. Best of luck with your venture. 

[Rory RSC 596]

Are cars not going to break straight away? You will need a warranty process from day 1.

Are you not going to need to take card payments straight away? Cash is potentially ok selling cars up to £1000 - £1500 any more and people want to pay on card.

We take barely any cash through our business hardly anyone pays that way. 

[32-BOY 1]

Thanks. No problem thanks for clearing that up, thats ok i will just try to gather information from other threads on the forum and try to figure things out that way.