I have just received my "Home Trader" supplement to Car Mechanics and interesting reading it made too. Lots of sensible tips for people thinking of starting up in the motor trade.
It seems a reasonable living can be made if you are reasonably astute, especially when buying in. Work your own hours, be your own boss etc.
But, but, but - why is there always a but?
What about the neighbours? Do you really want the bloke next door dragging non-runners in, to what may possibly be a shared drive? Of the areas I know where this goes on, property values must go down.
A few miles from where I live, just on the Middlesex side of Walton Bridge, there are a couple of home traders operating, with cars parked in the road or in lay-bys. A number of people told me they had complained - to no avail. The council were not interested and the trader/s ignored them and then one night someone went round several of the cars and smashed the side and rear windows!
No, it wasn't me and I don't condone it, but I understand a few of the local residents were a little happier. What do you think?
Regards Don drbe
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What I think is, you don't really want to be upsetting the neighbours, and parking loads of cars up the street taking up parking spaces is anti-social. So get yourself a lock-up garage or two.
I don't do anything to annoy my neighbours and they've sometimes been interested in buying cars off me!
Home Trader is a handy little supplement, it would be nice to see Kelsey Publishing go further with it.
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Typical of the commoners that live on the wrong side of the bridge.......
Signed
Mr Angry
Walton on Thames
Surrey Side of Walton bridge
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I don't know if you read Autoexpress but they have an interesting project ongoing where they are trying to trade up from a £100 banger up to a Porsche (if I remember). So far they are up to a grand (despite having an old 5 Series nicked!)
It sounds like easy money if one is astute enough. But I'm not sure how one goes about insuring these cars? I got quoted a ridiculous figure for an old Golf I was interested in despite having max no claims etc. Any ideas?
Baz
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You might want to read the house deeds/local council rules about running a business from home too: If the neighbours take exception, it's a thing they'll look at.
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Don't forget the VAT because they wil not forget you,and they love it when anybody gets bubbled to them.
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A few miles from where I live, just on the Middlesex side of Walton Bridge, there are a couple of home traders operating, with cars parked in the road or in lay-bys. A number of people told me they had complained - to no avail. The council were not interested and the trader/s ignored them and then one night someone went round several of the cars and smashed the side and rear windows! >>
I have always wondered about these traders (I think there are 3)- when driving North between the Texaco, Esso, and Charlton village - that how is it that no one has put a stop to their blatant trading on the public road? I hope the residents and others who care will succeed in putting a stop to these street-traders in Shepperton.
Like Renault-Family & HJ, I live south of the bridge (in the leafier surrounds of Ashley/Burwood/St.G.Hill). Recently, some street-trader had been parking cars for sale on Hersham Road. These activities were reported as unsafe, dangerous, illegal, and/or unsightly to the Police, Walton-Society councillors, and the Council. Within 1 day of filing written complaints, the siad trader has stopped his activities in the area! Of course some of you may know, Hersham Road is used by the likes of M.Aspel, C.Richard, G.Hurst, M.Clifford, S.Penk, M.Hucknall, plus many "Bigshots of the City", etc. Could that have anythingg to do with the rapid response here?
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The 'bottom end' (i.e. below about £3k) is not much fun these days. I know of a few traders that have pulled out - a friend of mine is pondering packing it up at the moment. The problem is that modern cars carry so much liability in terms of expensive things going wrong that can negate much of the profit - e.g. electronics, catalyst etc. and unlike the 'old days' most traders cannot 'patch it up' and sell it on, the faults require expensive professional repair. Consumer protection is now very strong and you could quickly find yourself in the small claims court. Then there is tax, VAT, insurance etc. to take into account.
My friend recently sold a BMW 5-series. A month later the car overheated and the head cracked. The buyer started court action and my friend had to basically 'write off' the car.
If you pose as a private seller then maybe you can make a profit - but their are obvious legal pitfalls.......
Personally I think there are easier ways of making a living.
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.. and an awful lot of used cars are below £3K nowadays ..
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[i]Don't forget the VAT because they wil not forget you[/i]
You can ignore VAT until your turnover reaches (or is anticipated to reach) £56,000 in a tax year.
It's income tax you need to declare on your profits however small.
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If you turn over less than £56,000 how are you going to make a living?
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If I was starting out, I certainly wouldn't rush to get VAT registered until the business was on it's feet. I think £56k leaves plenty of scope to try the business and see if it can be profitable, especially if they are £1-3k cars that most home traders seem to specialise in.
CAP indicates a margin of around £1k even at the bottom end of the market. 20 cars in around £2k and out just shy of £3k will gross him £15-20k and (just) stay below the threshold.
This assumes astute buying and few errors along the way.
He won't need VAT registration to get trade plates, so my thoughts were to hold off until that £56k loomed, that was all.
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The VAT threshold is on *turnover*, not profit. If you are planning to live off you income as a trader then you need to turnover at least £100k in order to generate enough profit to make it worth your while, so VAT will be an issue.
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*VAT threshold is on *turnover*, not profit*
Never said anything different! Also the £56k is obligatory, you can voluntarily register for VAT at any level below that.
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Starvation wages if you think you can earn on less than £56,000 turnover.Ever heard of \'spares&repairs\'insurance, advertising, delivery&collection, valeting, etc,etc.
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