Vehicle recovery business - advice needed

[Samuel Parchment]

Hi

I am intrested in starting up a recovery service. just myself and a recovery truck. i have read about posts on here already from someone asking the same question, i have got some invaluable information from there.
However i just wanted to know if anyone can help provide more info. i am looking to purchase my truck for about £8k which would be a 3.5ton, allowing me to use it on a car license. I understand the hours that would need to be commited to this.

Will spend several hundred on advertising. with the bulk of it coming from visiting small independent local garages offering to be there recovery service. As i feel this is where the bulk of the business will come from. if so what sort of whats would you charge?

Secondly what other areas are good way of generating income? i am looking at - small dealerships, car events, auction houses, and clubs.

I havent started the business yet and am just looking at the potential it has against startup / running costs (I imagine insurance would cost a smal fortune).

Any ideas / advice is welcome

PS - No i have not given up on the day job. I just want to dream bigger than 9-5.

 

[estwig]

I'm with Green Flag, as opposed to the AA or RAC, they sub the work out to guys like you, don't suppose they pay much, but it's there.

My mate has his vintage Lotus taken to race tracks and events, get in with local car enthusiast clubs, offer a discount and sell it on reliability and looking after the car.

 

[Samuel Parchment]

Thanks that’s a really useful reply. What’s needed to get into places like GreenFlag and do you need to be a mechanic or is just being a recovery service ok?

The car enthusiast part is great.
I’m not rushing into anything just yet but at the same time feel this could be a exciting and profitable venture. Given time and effort.

 

[Noah]

which would be a 3.5ton

I may be missing something, but 3.5t GVW only gives you carrying capacity of 1.5t max, being very generous. If "recovery" means carrying disabled vehicle you'll be quite restricted. Could tow, I suppose - but what if vehicle is not towable?

 

[Gordon - Commercial Finance]

Are you buying the recovery truck cash or on finance?

Another way to get business in might be getting a good relationship with finance companies who might want to repossess assets, or court enforcement agencies who might seize cars to collect debts.

 

[Samuel Parchment]

Looking to purchase the truck outright rather than finance it. But that’s a good shout with finance repossessions/ enforcement agencies!
It can’t hurt to give them an offer that’s for sure!

 

[billmccallum1957]

from https://www.greenflag.com/business-partners

Network Enquiries
If you are interested in joining our network of breakdown specialists, please contact Gillian Brockett on:

01651 834 435 or email [email protected]

 

[AutoLink]

Really wouldn’t even consider it. The market is flooded with new start ups. 5 in my area in the last month. Prices are below running cost. As someone else has already stated you are limited to what you can carry and the police love to pull over single car transporters easy money for them.
To make a basic basic wage you would need a £60/70k turnover even then to be honest you would be better off working part time at the local supermarket. Most of the new start ups charge £25 for a local job you would need a lot of work to get a wage from this . Couldn’t see that you could do more than 4 jobs in a day just due to the time it takes to carry out the work.

 

[Gordon - Commercial Finance]

the police love to pull over single car transporters easy money for them

How are the police making money from pulling over single car transporters?

 

[AutoLink]

Via fines

overweight by 5–10% = £100 fine; vehicle overweight by 10–15% = £200 fine; vehicle overweight by 15–30% = £300 fine

 

[alan1302]

Via fines

overweight by 5–10% = £100 fine; vehicle overweight by 10–15% = £200 fine; vehicle overweight by 15–30% = £300 fine

Seems easy fines to not get caught with then...just don't go overweight

 

[Gingerbreadmen]

Local authorities tender out untaxed and end of life vehicle contracts for companies to tender for. Ring your local council and ask for the procurement department enquire which portal they use for tendering. (Have a look at Yortender(dot)co(dot)uk for the Yorkshire tenders for example) There is one available for Hull City Council as we speak. See link https://procontract.due-north.com/A...b64545&p=1c381835-7581-e611-8114-000c29c9ba21

I seen one recently for a council that required 4x4 capability as often cars are burnt out in the local hills and not very accessible via road.

 

[Noah]

Seems easy fines to not get caught with then...just don't go overweight

Item weights not exactly consistent, driver weight varies, fuel load (and other consumables - even tyres!) varies, not practical to weigh every single item every single time, and business is trying to get maximum value from vehicle capacity so reasonably loads as heavy as possible.

The only way (ha!) to be sure of vehicle weight is to load it and drive it onto calibrated & inspected scales every time - not practical.

 

[Financial-Modeller]

Green Flag-type car recovery feels like a space that is highly fragmented, largely unregulated, and ultimately chasing the lowest cost provider, which is not necessarily an attractive environment to launch a new business into.

If you are keen on the recovery model, perhaps consider recovering motorbikes, HGVs, PSVs, Agricultural vehicles, or other specialist type of vehicle, where you can provide good service, and receive a fair price for doing so. Obviously, you may need more specialised kit than a 3.5t flat-bed truck.

If you want to stick with cars, perhaps consider offering to recover damaged cars at track days if you are near a track.

 

[Dimo]

Quite a few folk operate a medium-to-long distance car delivery service, prices from £250 upwards depending on distance. Several advertise on Ebay. Not so easy to fit around a regular day job though.

 

[Deleted member 59730]

Depends where you are. I knew a garage in Cornwall who were on call for AA and RAC recovery. He made nothing on the recovery but would send the driver off, usually to London or Birmingham with a stash of cash. By the time the driver reached the big city he would have bought a car for the driver to bring on the return. S/H cars are much cheaper in London than Cornwall and that is how he made a profit of a few hundred on each trip.

 

[Noah]

Depends where you are. I knew a garage in Cornwall who were on call for AA and RAC recovery. He made nothing on the recovery but would send the driver off, usually to London or Birmingham with a stash of cash. By the time the driver reached the big city he would have bought a car for the driver to bring on the return. S/H cars are much cheaper in London than Cornwall and that is how he made a profit of a few hundred on each trip.

Now THAT is entrepreneurial! Not necessarily a huge money-maker, but lateral thinking to generate income in otherwise wasted resources.