This is something I have considered for a long time, I would love to sell cars as a sideline intially, but possibly look into doing it full time if things pick up.
I have done some research into the topic and by the looks of things used car dealers generally get stock from the following
1) Car auctions - the obvious place!
2) Fleet disposals - these can either be from an auction or direct from the leasing company, e.g. masterlease
3) Trade ins to main dealers - this requires you to get into the loop of the local dealers so they offer you their part exchanges.
I gather that I will also need to register as a trader and get trade plates/insurance
I know a bit about used car trading, but not much, I could however go and work in a main car dealer as a trainee, and build up knowlege and experience from them, and possibly get some contacts in the business, and then move onto my own work?
Anyone done this before?
Thanks!
|
|
www.honestjohn.co.uk/forum/post/index.htm?v=e&t=12...2
|
ideally you want to work with someone on a bomb site
this will give you lots more contacts
show you the real story
will be a source of better made tea (alledgedly)
and
will show you that buying /selling cars in GB2007 isnt worth the hassle anymore
|
Research the market sector you want to be in and stick to it.
Don't go above it or below it (price and age wise) or you will get more grief than its worth.
Every car you sell can come back at any time and be your problem even though the problem wasnt there when you sold it.
An awful lot of peple ( quite afew on this site I might add) think that they can buy a car, treat it how they like, drive as many miles as they like, and then expect a full refund if something goes wrong. Whilst you can usually avoid that the aggro that gets involved costs time or money.
At top end of market, you will sell less so make your margins higher (don't price cut because it will bite you!)
Lower end and all you will find are tyre kickers with no money.
In the middle is "best " but be warned its not comfortable!
I am ready now for the onslaught of people saying that its only because traders are out to rip buyers off etc !! I agree some may be, but most aren't !
|
|
|
|
|
I had exactly the same passion for part-time trading a couple of years ago when I bought a then 6 year old Renault Clio from a BCA auction. Bodywork was great, only done 36k with a nearly full service history. I took out trade insurance so I was correctly covered and liaised with a national warranty supplier who supplied me with the pricing and the necessary paperwork. There was plently of MOT left but I put it through a test to assist with the sale. When I first advertised the car I waited for the phone to ring - it didn't. I checked before advertising that I was competitively price which it was. I couldn't understand why nobody was showing any interest. I then took a step back and saw that there wasn't many white, base model clio's without electric windows/sunroof/power steering for sale. Clearly not in demand and had the car for some months before it was eventually sold. Needless to say I lost many hundreds of pounds on the car (not including other related expenses - insurance, servicing, maintenance etc). One lesson I learned from this is model selection is indeed very important. I did not trade last year due to the above financial loss but still havent lost the desire. I too am thinking of having a proper go now. As per previous postings it's far from easy to have this as an income initially. But if you have the passion and the desire then just do it! Do your best and I hope you are a sucess!
|
Interesting story and I'm sorry it didn't work out for you.
The only people who make money on cars these days are the types who charge forecourt prices, sell over priced finance packages, those who sell a lot of cars on low mark ups and of course those who are willing to bend the rules a little, particularly concerning the odometer reading.
|
|
Stonefish - I agree 100%. As you quite rightly state the mark-up on some of the vehicles is massive. Because of this I, like many others, wanted a piece of this. This is where the hard learning came in. It's not as straight forward as buying a vehicle, cleaning it and then selling on. There is so much more involved. I still think there is room for traders from home and that in my case was able to be much more involved in the cars I had due to low stock level. With this I was much more confident and appreciated that the cars had to be spot on before I could sell them. Yoda 121 - if you are aiming to sell a good quality product, without cutting corners then I'm sure over time you will be able to build up a good quality business and have some fun along the way too. Good luck
|
Thanks ryk. Basically if your starting out as a trader you can follow two paths. You can do it legitimately. This means registering for VAT and obtaining trade insurance for certain. If you are declaring yourself as trade you need to offer warranties and put a 'T' at the end of your ads.
Probably opening an account with the main auction houses, subscribing to HPI or experian, getting trade plates etc.
Possibly having to register as a trader with the local authority (not normally).
Conclusion: Hassle, potentially rewarding
The alternative is operating in the 'twilight zone'. Others will have their own terminology. Harder to find people like this but they are not uncommon.
Traders who will likely have the trade insurance but none other of the above. This means buying cars in false names, registering cars in false names, keeping your cars in the friendly landlords carpark or similar, using untraceable mobiles and multiple landlines, using false ID's, using a mileage correction outfit , buying blank service books on ebay, scanning garage stamps.. no VAT, no Tax....etc etc etc.
Conclusion: Risky, potentially highly rewarding
|
|
|
|
![2020 Jaguar I-Pace 294kW EV400 S 90kWh 5dr Auto [11kW Charger]](http://images.honestjohn.co.uk/imagecache/url/crop/90x60/https/assets.heycar.co.uk/t_default-export/f_auto/application_assets/vehicles/pictures/e7598979674632b808ffdc6fc77defe9/5d50ec053e5e8bc703211dc9fc527199.jpg)
