Starting out in the motor trade - robbo2005
I have been looking to do this for some time. I am looking at starting out for the first time trading from home.

I am looking for some help / advice. I think I have most things covered off. The only thing I have left is trade insurance. i have spoken to a number of companies that dispose of cars and they are looking for trade insurance as proof I am in the trade. I dont work in the motor trade and have had a few quotes but they all seem to be £2000 plus. Does anyone know of a good company that is fairly proced for starting out ! Does anyone know a policy where I can get a month by month policy rather than shelling out for a year if it doesnt work out !

I have a fair knowledge of buying cars at auction as I have purchased a fair few over the years.

Can anyone recomend a good company for motor trade insurance and any other tips to help me get this venture up and running.


Regards.
Starting out in the motor trade - Vansboy
If you REALLY want to get into 'The job', think loooooooooooooong n hard, first!!

As for insurance, try A Plan Luton - even if you're miles away - 01582 420101. Talk to Chris Doyle in their commercial department.

No connection, other than being a customer since having my first moped, yars ago & then becoming their very firstaccount, when they started a seperate commercial section.

VB
Starting out in the motor trade - Honestjohn
Try Norton Insurance Brokers, tel 0121 246 8080. I pay £783, third party, road risks only, vehicles valued up to £15k.

HJ

Starting out in the motor trade - autumnboy
The most important thing you must do above all unless you've already done it, is become a "Limited Company" to protect yourself and your home, if in an event someone tries to take you to the cleaners for what ever reason.

Good Luck
Starting out in the motor trade - AlastairW
The most important thing you must do above all unless you've
already done it, is become a "Limited Company" to protect yourself
and your home, if in an event someone tries to take
you to the cleaners for what ever reason.
Good Luck

Only become a Ltd co if you are sure you can handle the admin ie: tax returns for you and company, statutory accounts for companies house, records of dividends, PAYE etc. You will be lucky to get change out £1000 pa in professional fees.
You will need to do a tax return as a sole trader, but even an expensive accountant would do it for about £300 max, depending on your record keeping.
Best of luck all the same though.
Starting out in the motor trade - Aprilia
Only become a Ltd co if you are sure you can
handle the admin ie: tax returns for you and company, statutory
accounts for companies house, records of dividends, PAYE etc. You
will be lucky to get change out £1000 pa in professional
fees.
You will need to do a tax return as a sole
trader, but even an expensive accountant would do it for about
£300 max, depending on your record keeping.
Best of luck all the same though.


The benefits of Ltd status far outweigh the disadvantages - you are disociating your business from your home and personal finances, which is a very good thing IMHO.

I have always done my own accounts and CH return etc and find it a doddle. I don't trust accountants at all. If you can use Excel and do straightforward maths you'll have no problem. The IR have a useful helpline should you have any queries.
Starting out in the motor trade - Aprilia
Yes, I'll 'second' Norton Insurance, I've been with them about five years now and they always come up cheapest every year, plus they are quite helpful to talk to.
Starting out in the motor trade - king arthur
Try Roadrunner Insurance www.roadrunnerinsurance.co.uk they quoted me around £700 earlier this year with no NCB (as my NCB is used on a different policy). They do restrict you from driving prestige performance vehicles for private use though!
Starting out in the motor trade - robbo2005
Thanks for the help. Much appreciated.

I have already set up a Limited company and have registered and received a VAT number. I thought this was the best route and am sure I will be able to complete the returns myself initially.

I have opened a small business bank account and am looking at suppliers of cars as well as the usual car auctions.

I have researched the car price guides glasses and cap - before I choose which one - which one do you car traders prefer and why ?

Any ideas with providing warranties to potential customers ?

Regards
Starting out in the motor trade - blue_haddock
If you are dealing in older/cheaper vehicles i would say CAP is a better indication of lower end prices.
Starting out in the motor trade - Vansboy
& i would bin both of them!

& specialize in a particular model/brand that you KNOW what to pay for it & what you'll achieve selling it!

When we were at full steam, you'd come into my yard & have choice of just 3 car sized vans Escort, Astramax & Maestro & 2 panel vans, LDV 200 & 400. Offering the customer a selection of mileages & prices within a total of 40-50 vehicles within this mix was enough to confuse/convince them to buy from us !!

OK, easier said than done, but do only use the books as guides - NOT gospel!!

CAP is my choice though, if I had to!

VB

Starting out in the motor trade - Aprilia
I think Vansboy has it right.

There is so much variety these days it is easy to come unstuck if you try to deal in anything and everything that comes up. Specialisation (whether in service or sales) is the way forward for the little guy. For quite a few years I have traded (in a small way) mainly Mercedes - I know the cars inside out and back-to-front now and rarely make any mistakes (although I am going to avoid CDI's, I think.....). I also trade the odd BMW if it happens to look a bargain. Recently I have bought/sold a few Japanese import sportscars - mainly because they are in steady demand and seem to be reliable.
What you don't want to do is sell troublesome cars. There is so much consumer protection these days that one real dog will cost you a lot of your profit on your other sales. Small-medium Jap cars are usually good to sell and don't come back. Avoid anything French or Italian and anything with K-series engine.
Starting out in the motor trade - Villaman
Try Tradex on 020 7001 9200.
 

Ask Honest John

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