Motor Trade Advice

[Jonathan Smith23]

Hi, my name is Jonathan, I'm looking for some advice regarding entering the motor trade.

When I was 21 I set up a small car dealership (childhood obsession).

Sadly due to the cost of insurance at that age (4k with Tradex) and me being very Naive I didn't last very long, I had no contacts, and the one dealer I did find just gave me all his crap, and my dream quickly went down the toilet.

So, I am just about to turn 25, and have just sold the business I've been building for the last 3 years (non motor trade related) which some may say is a mistake but my passion is still with cars and I'm hoping that now I have a much wiser head on my shoulders and more business sense I can make a better go of it.

I don't want to jump in to this again without getting all the advice I possibly can, hence why I'm here.

I have some premises lined up, warranty company, Insurance, and also a repair garage at trade rates to sort servicing e.t.c.

What I'm really looking for is some trade contacts who can send a few cars my way or point me in the right direction at least.

I have an account with BCA but their fee's are excessive and most of the advice I've read about them isn't good.

I don't expect to get rich, nor do I really want to, I just want to feed the wife and kids and do the job I have a passion in

I know at 24/25 years old I'm still young, but please don't judge me on my age (my wife tells me I'm a boring old man) which I take as a compliment but in all honesty I am a professional, hard working individual.

so any positive advice would be very much appreciated.

Kind Regards.

 

[TMGG]

Have sent you a PM

 

[Paul Norman]

It is worth seeing if some of your local main dealers will let you bid on their part exchanges. You are not going to get offered the cream - that will stay on their forecourts, but you will potentially get a few nice pieces.

 

[Jonathan Smith23]

I have visited a couple locally, but they gave me the impression that unless you have a friend on the inside they prefer to send them off to auction in bulk, they probably aren't all like that, I will have to visit a few more.

 

[Paul Norman]

Most of the larger groups do prefer the auction route - and it works for them, too. But there are always a couple of exceptions if you knock on enough doors.

 

[14Steve14]

Many motor traders start by buying at auctions, and reselling once the vehicle is clean and tidy. Ex lease vehicles are common at many auctions. Any money made is put towards better vehicles and reselling those. Its a really cut throat sort of business and many people think they can do it. It will cost many thousands to even fill a small forecourt with bangers, and even more for quality cars. Many fail as its hard work. Think hard before trying this especially if you have little or no experience. If you have previously worked as a salesman in a car dealership to get experience you will have made contacts. Speak to those and see what you can get them to do to help you get started.

How about putting an advert in your local paper saying that you will buy cars for cash. You may get some. It may get you started. Look through the small ads in papers local to you, and see whats going cheap and buy these types of vehicles, do then up, make them look nice and sell for a profit.

Best of luck with your venture but it will be a hard road with little or no insider knowledge.

 

[Paul Norman]

When I was young (yes, I was once), at the age of 20, I was likewise extremely into cars.

I went along to the local Ford dealership, and asked to see a manager. I explained my enthusiasm for cars, admitted to my lack of knowledge and experience, and asked if they every took on people to train.

The person I spoke to was slightly taken aback, but actually offered me a junior job on the spot.

I then, after considerable training, had a long career in the Motor Trade, finishing as a director in a major PLC.

I wonder if such an action today would have such a brilliant outcome.

 

[Simon.P]

You need to get in with the salesmen

 

[carents]

Have bought/sold a few couple of years ago for hobby. Some were a hit, one or two were lemons. But bank balance was positive at the end of all. I personally believe that selling a car is not a problem, it's the buying; finding the right one, with right options, with right mileage, and after all right cost is the most difficult bit in motor trading.

And I still wonder, how the hell these traders source cars! (BCA doesn't work unless you are a big player, and I wasn't).

 

[Simon.P]

a pal of mine swears by cars around the £1500 mark as most people can get their hands on this type of money. one owners, full history, brand new mot. usually does one a month and usually makes a few hundred for the sake of collecting (he will go anywhere on the train and drive back) and then free advert on gumtree.

 

[Patrick @ BIG in the UK]

a pal of mine swears by cars around the £1500 mark as most people can get their hands on this type of money. one owners, full history, brand new mot. usually does one a month and usually makes a few hundred for the sake of collecting (he will go anywhere on the train and drive back) and then free advert on gumtree.

Nice little pocket-money earner right there.

 

[Simon.P]

Nice little pocket-money earner right there.

yep. he didnt bother to wash or hoover the last one - all ready to go.
I think the overheads were £45 train ticket (6am start, 3pm return) £25 fuel, about 2 hours in photos, creating the advert and a few phone calls etc, and the first person who arranged to see it (another hour looking at it and doing the deal). Profit £305. He claims that area is a massive influence on price and he doesnt mind travelling to get something he knows is worth a few hundred more where we are.

 

[dharmapatel]

I'm thinking of doing this part-time as hobby and have 2 questions:

1. I have in impression that most trader insurance will cover the personal car also, but will they cover cars that are acquired for trading (as a trader) and use as personal vehicle (social, domestic etc) for few months?

2. Again on the same lines, I suppose we should not be using trade discs for this purpose. I don't mind paying road tax if I'm using for personal use, but can I tax the vehicle if it's acquired as a trader?

Many Thanks in advance.