Starting up used car sales - reggajj

Hi all first post on here, I was involved in a car accident a few months ago and im slowly but surely getting back to full fitness. Unfortunetely i had to give up the job i was doing due to the injuries sustained. Anyway im looking to start up trading in the next few months and just looking for some advice from any traders on here.I'll be trading from home having just secured a decent unit on a farm to store, prep cars etc. I'm a qualified mechanic so i know my way around cars although iv been off the tools for a few years. Can anyone recommend a decent trade insurance company? Any idea on website cost( Autotrader). Just really looking for general feedback from the guys that are doing this.

Cheers Brian

Just realised i posted in legal section. Mods can you move to general please

Edited by reggajj on 17/12/2012 at 15:11

Starting up used car sales - bathtub tom

How many replies telling you not to will it take for you to give up the idea?

I reckon you'll get at least a dozen here.

Edited by bathtub tom on 17/12/2012 at 15:28

Starting up used car sales - reggajj

Helpfull tub cheers, are you a trader?

Starting up used car sales - Collos25

Autotrader is a good place to start will give you an idea about costs have you thought about grants that are available for new business start ups.

Don,t forget if you are doing the job fully legit then there are numerous licences and permits that you will require and if you prep cars then you must have all the extract fans and all the gubbins that goes with it.Its not so easy as you first think most people I know or knew who trade do so on a trade only basis they buy cars from main agents in threes and fours polish them mot them and sell them back into the trade or through auctions dealing with Joe public has to be one of the most soul destroying jobs ever.

Starting up used car sales - bathtub tom

Helpfull tub cheers, are you a trader?

No, a realist.

One more thing, If you're not put off, get your spelling sorted. Nothing puts me off a used car more than a poorly spelt, bad grammatical advert. It's quite simple to put it through a spellcheck first. A Citreon for sale tells me its preparation's as poor as its advert.

Edited by bathtub tom on 17/12/2012 at 17:39

Starting up used car sales - RT

Not just for you Brian - but for everyone, if you do use a spellchecker then FFS make sure it's set to UK English - not US English as that infuriates even more than misspelt words.

Starting up used car sales - reggajj

troll, is that spelt correctly?

Starting up used car sales - RT

troll, is that spelt correctly?

My point entirely! "Misspelt" is UK English - "Misspelled" is US English.

Back to the original question - check with your local authority to find what level/number of car sales/year is the boundary between a private individual and a trader - it'll be easier to get established at the lower sales level and only expand when you've got a really good feel for what sells in your area.

Starting up used car sales - tony g
Hi Brian ,
Sorry to say your response from this forum has been among the worst I've seen .Come on guys Brian is asking for help and advice not this mealy mouthed ill informed crap.

Anyway on a more positive note I've been car trading for about thirty years ,so maybe I can help .

First trade insurance ,you need insurance plus accompanied test drive cover .Cost varies depending on the length of NCD and your postcode .i have full NCD but a poor post code .Im currently paying just over £1000 .A net search for trade insurance will find lots of brokers willing to quote .

Trade plates are a must ,you don't need to provide insurance details .Apply to the DVLA .The cost is about £180 ,including one years road tax .

Advertising is the most expensive part of car dealing , Autotrader is pretty much the only effective place to advertise ,but the cost is very high .A website for 7 cars is just over £500 a month .Its cheaper to advertise cars individually when you first start .£42 for three weeks including the magazine .It averages about £250 a month doing it weekly .

As others have said the car trade is tough at the moment ,but it will get better .Cars wear out and have to be replaced ,2013 seems likely to be better than 2012 which has been dreadful .

The easiest cars to sell are bangers ,but they're not especially profitable ,net about £200 .cars up to £5000 retail , generate a profit of about £700 .

If you need any more info ,do get in touch ,

Regards

Tony g

Edited by tony g on 17/12/2012 at 22:06

Starting up used car sales - unthrottled

Tony,

How does SoGA affect you? The wording is so vague that it appears to cover the range from virtually worthless, to a virtual carte blanche 6 month guarantee on a £500 banger. The truth must lie between the extremes. How do you deal with chancers whom you suspect have simply inflicted damage to a purchased car through negligence or misuse?

Starting up used car sales - tony g
Hi unthrottled ,
It's never been an issue for me ,I sort the cars out before I offer them for sale ,ie change the oil and filter ,fix anything that's not working ,put a new mot on every car before I sell it.

I tell every buyer that I give a three month warranty on the engine and gearbox on the car and that's all .Buyers seem to accept that as reasonable .i don't promise more than that and always insist the buyers test drive the car for three or four miles before we negotiate a price .

I understand that buyers could pursue me through the court and I would loose if I ever went to court under soga. No buyer has ever pursued me for other repairs .
I don't think the majority of buyers would want the hassle of taking me to court particularly when they agreed to buy the car with my three month warranty . Although it means nothing in law .

My biggest concern is that the cars are safe when they leave me ,that's partly why every car I sell has a new mot , it also encourages buyers .
Starting up used car sales - bathtub tom

tony g.

You've convinced me I want to buy my next car from you when my KIA Pride bites the dust.

Do you do trade-in?

Starting up used car sales - tony g
Hi bt,
I definitely do part exchange ,because it would be difficult to sell a car without taking a part exchange ,and because I make a profit when I sell the part exchange .Its a curious thing that retail buyers often don't realise that the part exchange value of a car is a trade price ,it allows dealers to make a profit on the px when they sell it .

Now your Kia ,we both know your never going to part with that good little runabout ,it would be like selling one of your children .When it finally gives up the ghost ,what about parking it in the garden and filling it with flowers ,that way you've got a great garden feature full of happy memories .

On that subject , do forum members have any suggestions, not sensible ones, what to do with a car at the end of its life .

Tony g
Starting up used car sales - Avant

Moved to Motoring.

Welcome to the forum, Reggajj, and particular thanks to Tony G for constructive advice - whuich is the main point of a forum like this.

Starting up used car sales - pd

tonyg give good advice and I'd echo his comments on SoGA requirements.

I do much the same thing, depending on the value of the car, namely advise the customer that if they have a major problem with it actually functioning as a car then to bring it back but I won't cover niggles (I usually give the example of a sticking back electric window) on a car of tha age or price range. Obviously, if it is a considerably more expensive car then that wouldn't be reasonable but on sub £4-5k stuff and particularly sub-2k it is.

If you do get a problem car (and you will) be reasonable with the customer and hope they will be too. If you get a really awakward one who decides a £1500 car must be perfect just offer them a refund - most end up refusing realising they won't find anything better.

In the last 5 years I've only had one real big problem car/customer. The car broke down about 3 weeks after purchase and they took it to a local garage who charged £800 to fix it. About 3 weeks after that they contacted me out of the blue demanding I pay £800. I spoke to the garage concerned and I wasn't at all sure they'd found the fault but I told the customer I would pay them although I wasn't convinced they knew what they were doing and in the circumstances if they accepted the payment it would be full and final settlement on the car with no further comeback.

They took the money then about a month later it broke down again with the same fault which the garage had not diagnosed so that was £800 down the drain. I refused to pay on the basis of what we had agreed and that I wasn't responsible for the inaccurate diagnosis by a 3rd party.

The moral is that if you get a troublesome car get it back and if necessary give a loan car. Don't be nice to the customer if they are some way away and let them use another garage as then it gets into a mess if they don't know what they are doing. Take responsibility for your own workmanship but not others!

Starting up used car sales - reggajj

Thank you Avant, Tony G, great advice thank you, the kind of reply i was looking for. No doubt you will hear from me soon. What sort of numbers are you doing if you dont mind me asking? To start with i'll be looking at 5-7 units to purchase for initial stock, with retail prices between £1000-£3500 a mixed bag really to start with until i get the feel for what moves in my area. My mate runs a workshop so he will be doing my MOT's and any repairs if its a fail on the test. Cars will be prepped to a good standard, as i have previously run a sales workshop for a major dealer up here retailing between(60-90) units a week who didn't want to spend money prepairing them to what i would believe good standard.

Starting up used car sales - tony g
If you stock up to 7 cars ,you can expect to sell about 50 cars a year .Your average net profit will be about £500 a car .

On that basis I would advertise cars individually ,it will be cheaper than a website from autotrader ,your costs will be about £250 a month ,compared to £500 for a website .In addition you have to give two months notice to close a website .

You need to put a landline phone number into your add ,as well as a mobile and an e mail contact .Its tempting to just use a mobile ,but it tends to frighten off potential buyers if you do .Your e mail address should also be in the name of your business .

Which part of the country will you be operating from ?

Regards

Tony g
Starting up used car sales - reggajj

Great cheers Tony, i will be operating from West of Scotland so i'll be within easy reach of a few auctions up here, i will be buying auction stock supplied from main dealers.

Starting up used car sales - tony g
Hi , before you buy from auction ,check out the likely selling price on autotrader of any cars you think about buying .

The price of cars at auction over the last few years leaves little room for profit ,particularly when you add the ridiculous buyers fees that auctions now charge .Specialist online only auctions are more viable , in addition check prices of cars on e bay .ive bought a lot of cars from e bay recently ,you often find that e bay sellers are willing to sell at trade prices .

You probably know ,but an HPI and VOSA mileage check is a must before you buy a car .Vosa checks are free ,autotrader do a full HPI check for £25 for 5 checks .Print out both checks and show them to any potential buyers ,it will encourage them to buy .

Regards

Tony
Starting up used car sales - barney100

Funny thing about us disliking American spelling is that much of it originates from old English which remained in use by emigrants to the US and fell out of use here. 'I guess' is a prime example. I know I should get out more but I find this sort of thing interesting.

Starting up used car sales - RT

Funny thing about us disliking American spelling is that much of it originates from old English which remained in use by emigrants to the US and fell out of use here. 'I guess' is a prime example. I know I should get out more but I find this sort of thing interesting.

But for their size and number (and that war we had), we could regard US English as just another dialect of "normal" UK English - Wikipedia lists loads of dialects en.wikipedia.org/wiki/List_of_dialects_of_the_Engl...e

Starting up used car sales - reggajj

Thanks again Tony, will let you know how i get on.

Starting up used car sales - tony g
RT . A different forum required ,perhaps we could start one .
All things tedious ?
Dull beyond belief ?
Guardian readers ?
Pedantic as a preference

Edited by tony g on 19/12/2012 at 21:25

Starting up used car sales - RT
RT . A different forum required ,perhaps we could start one . All things tedious ? Dull beyond belief ? Guardian readers ? Pedantic as a preference

I generally only respond to others' postings - do you wish to censor which posts can be responded to and which can't ?

While I feel sure from your other posts that you have far more experience to offer direct advice to the OP some of the tangential advice, like mine, might just be useful.

By the way, I don't do newspapers and am impossible to categorise - right or wrong I give my view - but then that's the limit of forums.

Starting up used car sales - tony g
(I generally only respond to others' postings) .Never had an original idea ?

(tangential advice,) swallowed a dictionary .Whats the point in using words like this .Does it make you feel important ?

(By the way, I don't do newspapers and am impossible to categorise ) Delusions of grandeur .
Starting up used car sales - RT
(I generally only respond to others' postings) .Never had an original idea ? (tangential advice,) swallowed a dictionary .Whats the point in using words like this .Does it make you feel important ? (By the way, I don't do newspapers and am impossible to categorise ) Delusions of grandeur .

Have a happy New Year - sounds like you need one.