Car Trading - Startup

[carents]

Hello Guys,

After reading the success story of chriscar regarding his motor trading business. I would like to give it a try as part time.

Few things which are bothering me:

1. I am unable to get traders insurance from anyone. My situation being that I got my license in June (being new in UK).

2. I assume that when traders buy cars from private/auctions, they do not transfer it in their name, and just fill out some green portion in V5C. And use trade plates while keeping the vehicle.

3. My other question is when these cars are on trade plates. Can they be used for personal purpose?

Thanks.

 

[KeithGreen]

Hi there. I can't really help you but if I reply at least it will get you back to the top of the list.

My thoughts are:
1. If you can't get traders insurance at all then I guess you can't start up at all. Would somebody like the FSB be able to help or the Motor Retail Trade Association (or whatever they're called)
2. That would be my guess but others on here will know for certain.
3. I don't know - again I guess others on here will know for certain.

 

[SamStones]

Without sounding rude: You've read that someone else has had success in this sector so you thought you'd give it a go ? - Do you have any experience in this sector? or mechanics / sales / business in general? You'll need one hell of a lot more than having read someone else's success story! (If you want that, then just read up on a guy called zuckerberg and go start a social networking site

As others have said: If you can't get insurance you're pretty much dead in the water, investigate this more to start off with. I'm sure there must be some car trader forums somewhere?

 

[roydmoorian]

When you advertise a car be honest - I have just driven 500 miles with a colleague with the intention of buying an car with a glowing description and described as 2 weeks MOT test left.

When we got there the MOT ran out in february and so could not get it taxed today so we could drive it back.

Also whilst the vehicle did in fact drive very well there was an obvious fault with the engine which probably would have resulted in a MOT fail.

 

[Mick B]

Remember,as a "Trader" you will have to give a guarantee with the vehicle,so every one you sell will have to be 100% and remain so for (i think) 3 months minimum and if any problems with the engine,gearbox,clutch,electrics etc come up in that time,you will have to make them good!.Plus it seems over the past 2-3 years the profit in older,used motors has dropped quite a bit - look at the amount of small car dealers that had been around for years and have now gone -so unless you're doing a large volume you won't be making bundles.Give Martin at Oakland Insurance a try for a Traders policy,i've been with him for a lot of years and if he can help he will,his number is 01403 888193.

 

[carents]

SamStones: If this world had taken suggestions with you, then the whole world would only had 1 car dealer, 1 car manufacture, 1 grocery store, 1 electricity provider etc. Startup doesn't really have to be unique. You can do the same thing but differently.

roydmoorian: I think to get experience, I would stick to BCA cars. But it all depends how I get along with the insurance issue. Might go for a partnership. Couldn't you drive that car on trade plate?

 

[SamStones]

SamStones: If this world had taken suggestions with you, then the whole world would only had 1 car dealer, 1 car manufacture, 1 grocery store, 1 electricity provider etc. Startup doesn't really have to be unique. You can do the same thing but differently.

You've missed my point... just because you can drive a car doesn't mean you can be a successful car dealer. You need to have a real passion for whatever you're doing. To quote this weeks dragons den "Passion doesn't create profit" , (but it certainly is part of the recipe!)

 

[carents]

You've missed my point... just because you can drive a car doesn't mean you can be a successful car dealer. You need to have a real passion for whatever you're doing. To quote this weeks dragons den "Passion doesn't create profit" , (but it certainly is part of the recipe!)

Obviously I have interest/know-how of cars, that's why I wanted to give it a try in part-time.

I have also been looking for software opportunities, which is my main bread earner. So my ideas for part-time work are not limited to used cars trading.

 

[TheGuru2010]

Which insurance underwriters have you tried so far. You also stated you are new to the UK, is your lic a transfer from EU or have you sat a new test?

You can always get insurance, its just if you have enough money !

 

[carents]

Which insurance underwriters have you tried so far. You also stated you are new to the UK, is your lic a transfer from EU or have you sat a new test?

You can always get insurance, its just if you have enough money !

I can see you are related to insurance. My situation:

- Came to UK 8 months ago, from outside EU.
- Got full license 3 months ago in first attempt, with 1 minor mistake of hesitation.
- Have been driving car (outside UK/EU) for last 9 years.

I can get insurance (read: costly) for personal car, but nobody is really ready to give me motor trade insurance, everybody wants the license to be at least an year old.

 

[Chris Ashdown]

You can be a car trader with nothing but a car to sell, you do not need to have a display area, insurance or trade plates just advertise in local paper and get them to come to your street to see the car or any other place

Just register self employed with HMRC and sell all cars "sold as seen", thousands do it this way

Skill is noing what a car is worth both buying and selling and most people will want to part exchange or have on HP

I doubt you will make a fortune and getting bigger will cost a lot of dosh

PS I dont think you can use trade plates outside your business so going home from work would probably be a no no, test drives and moving to different garages for say exhaust or tyres would be OK

 

[TheGuru2010]

I can see you are related to insurance. My situation:

- Came to UK 8 months ago, from outside EU.
- Got full license 3 months ago in first attempt, with 1 minor mistake of hesitation.
- Have been driving car (outside UK/EU) for last 9 years.

I can get insurance (read: costly) for personal car, but nobody is really ready to give me motor trade insurance, everybody wants the license to be at least an year old.

I dont think there is alot you can do, had it have been a transfer of a EU license you may have stood a chance.

I have tried our underwriters & its a decline across the board.

I would give this one a miss if i was you.

 

[Inspiredtoact]

Hello Guys,

After reading the success story of chriscar regarding his motor trading business. I would like to give it a try as part time.

Few things which are bothering me:

1. I am unable to get traders insurance from anyone. My situation being that I got my license in June (being new in UK).

2. I assume that when traders buy cars from private/auctions, they do not transfer it in their name, and just fill out some green portion in V5C. And use trade plates while keeping the vehicle.

3. My other question is when these cars are on trade plates. Can they be used for personal purpose?

Thanks.

1.Try companies like Tradex, the lower end of the motor trade insurance providers, though i have heard some horror stories about them. never used them myself.

2. When you buy a car in the UK there is a yellow section ( section 9 ) on the V5 logbook which you can fill in if your a trader, this wont register it to you so it wont add another owner.

3. Trade plates are expensive and cover you to drive vehicles without MOT or Roadtax. using tradeplates for personal use is illegal and not advised. people do use them but when they get caught by the police they tend to have them revoked.

 

[TheGuru2010]

1.Try companies like Tradex, the lower end of the motor trade insurance providers, though i have heard some horror stories about them. never used them myself.

2. When you buy a car in the UK there is a yellow section ( section 9 ) on the V5 logbook which you can fill in if your a trader, this wont register it to you so it wont add another owner.

3. Trade plates are expensive and cover you to drive vehicles without MOT or Roadtax. using tradeplates for personal use is illegal and not advised. people do use them but when they get caught by the police they tend to have them revoked.

Just a heads up, Tradex wont insure unless you have had license for 12 months plus

 

[Inspiredtoact]

Just a heads up, Tradex wont insure unless you have had license for 12 months plus

Thanks didnt know that when i had a garage and was getting quotes, everyone i spoke to advised me against them

 

[mungry]

You're not going to get Trade Plates without being a registered Motor Trader. You're not going to be able to trade as a Motor Trader without company insurance . . .

. . . unless of course, you mean selling on the side from your house.

 

[carents]

What if I just buy a car from Auction (for personal use) and sell it off later, lets say 3-4 months. How does the insurance work? Because they might have given me quote for 12months. Does anyone has experience with this?

For trading, I think I would have to completely drop the idea, or find a partner with good driving history in UK.

 

[Inspiredtoact]

They will either amend it to the new car you replace it with, or MAY give you a refund check the Terms and Conditions, there are some insurers out there that specilaise in short term insurance

 

[Patrick1]

which country did you say you came from? I have started doing car export business to African countries, maybe we can exchange some ideas..

 

[MrCloser]

I get the idea that the motor traders are struggling a lot at the moment, perhaps not such a good moneymaker right now.

Maybe turning over about 4 cars a year but as private sales and keeping under the radar in terms of declaring it as a business would be a start.

The market seems to be a lot of demand for small and cheap on fuel cars,
finding an exporter market that wants big RHD prestige cars and working as an agent might be an idea if you know your cars. If you find one let me know!

 

[carents]

MrCloser, Patrick1.

I totally dropped the idea of going into motor trade atleast for the first year of my license.

Car exporting could be a good business. But I never though about it, too many risks involved. I have seen prestige cars getting scrapped on the port.

Let me know if I could be of help in anything else.

Thanks.

 

[turnips]

I can see you are related to insurance. My situation:

- Came to UK 8 months ago, from outside EU.
- Got full license 3 months ago in first attempt, with 1 minor mistake of hesitation.
- Have been driving car (outside UK/EU) for last 9 years.

I can get insurance (read: costly) for personal car, but nobody is really ready to give me motor trade insurance, everybody wants the license to be at least an year old.

Take a look at a specialist car insurer like Acorn Insurance as they look at each individual case on it's own circumstances. None of the typical insurance companies will go near you as you don't fit their risk profile.

And good luck with it!! Much respect for giving it a go!!

 

[carents]

Take a look at a specialist car insurer like Acorn Insurance as they look at each individual case on it's own circumstances. None of the typical insurance companies will go near you as you don't fit their risk profile.

And good luck with it!! Much respect for giving it a go!!

They turned out to be typical too. No luck.