I would like to start a vehicle recovery business

[Dangarwe]

Hello
I'm thinking of starting a vehicle recovery business, I say business but really starting with one vehicle and myself. I am willing to put in the hours however I need advice on starting up, insurances required, where/how to get work (key) do I need any special operators licence? Pricing and any information as to whether it is a lucrative business. I'd ideally like to hear from experienced people who have or have had hands on experience.
I have been doing house removals for the last two years but the game is too competitive being undercut by uninsured operators.

 

[Paul Norman]

I would suggest that a website is not your first spend.

You will need an operator's licence if the vehicle you are using is over a certain weight. You will need to ensure you have all the correct insurances in place on both the business and the vehicle.

Then...to get business! There is a LOT of word of mouth in the vehicle recovery game, with insurance companies, and police, and garages, directing a big chunk of the business. My first marketing move would be to get on the phone and start making appointments. It will be a dull slog, with many rejections, but I cannot imagine any of the significant providers of work helping you without having sat in a meeting with you.

Some recovery businesses top up their work with vehicle movement work - car deliveries, moving stock between dealers etc.

I wish you the best with the business.

 

[Ian J]

I would suggest that a website is not your first spend.

I wholeheartedly agree

 

[Dangarwe]

Thank you gentlemen for your input I have now started making calls and setting up meetings, I have a good feeling about this. Anybody else with hands experience please help with your input.

 

[JohnJP]

Hello

I wouldn't normally post on this sort of discussion, but my son works in the motor trade so I get regular stories told to me about what happens out there.

I'd also think about looking at talking to local smaller independant garages that don't have a recovery service or need client vehicles bring back in when they have broken down. Most larger dealerships will be sorted but smaller indepedants are probably your target. If you call round (actually go in) during their quiet periods and explain what you proposing to offer, once you get passed the salesman you might gleam valuable information. I'd do that before you invest in anything as part of your intial start-up research, you'd be amazed how helpful people will be if you talk to them.

Johnjp

 

[IanG]

Now a useful post from me.

Finding work is a challenge but I'd echo John's post about canvassing local dealers. Its cheap and should yield some work if you speak to the correct people.

I'd also consider researching auction/disposal facilities, there are a great many in the UK and the most successful vehicle movers will be working from all of them to try and maximise the amount of time you're laden and being paid. So its not merely about finding someone close to home who wants a car moving, going there in a day and returning empty later on. That can be profitable but the hourly wage won't be fantastic by the time you've covered your costs. To that end, you should decide whether you are willing to spend nights away in order to be more efficient with your coverage of the work.

That will probably affect your choice of vehicle. As will the raft of legislation which you're bound by when you start running a bit heavier. Bear in mind that a 3.5t beavertail car transporter will weigh in at around 2.2t unladen, possibly more if you find a sleeper, so you're immediately down to be right on the limit with a Focus on the back.

If you don't want to turn down work, you'll need to cross the 3.5t threshold which is a world of pain - tacho although required is not the worst news in terms of expense. O licence is the killer. You need money in the bank to show that you're able to maintain the vehicle, records of having done so, named operating centre where you store it, advert in the paper every time you want to make a change to your licence and hope no one objects, etc. etc.

I assume if you've been in removals a while then you'll be aware of some of the above. I would think if you spend at time in vehicle movements you'll also become aware of the same issues in that sector in respect of people who haven't fully covered their obligations obtaining work a bit cheaper than you can do it.

If you're changing your load to avoid being undercut, give that one some thought.

 

[Jeffrey O.]

Great insight provide IanG
I'm looking to replicate this business module in a different country and input is amazing along with all the other inputs.

 

[Mitch3473]

A second hand dealer on our site has a partner who has a transporter, they use it for moving cars for the local main dealers, their own cars and taking cars to the scrappers. Plenty of scope I would imagine.