small car business buying and selling

[Chasingmytail]

We have the means, space, workshop, contacts it makes total sense in trying this. Also good for the boys as teaching them skills and learning about profit. Looking at also breaking cars and selling parts (applied for licence). CAT N, S and above.

Can I learn to spray on a short course somewhere? Only for small parts.
Vat implications - if any not planning on buying VAT cars though.
MOT and tax them on sale

Do I need trade plates? How can I drive these cars around for a week before sale to check them out - what about insurance etc.

ANything else I need to consider. My aim is to look for cars that are economic to run and edging towards the first time drivers market

Low key just 1 - 2 cars a week. Evening work.

 

[Y Fan Wen]

I suspect there is someone doing just that in this area. There is nearly always a vehicle for sale beside the farm entrance.

 

[capfits]

Plenty do it.
Plenty are more qualified or better positioned ie mechanics in franchises.
The first time market seems popular round here, puntos,fiesta,corsas 10year old cars.
Think at that volume you would have to register as a trader.

 

[bobk]

I did it for years , but jezz cars are complicated now

 

[atlas]

You will need a motor trade insurance especially if your doing repairs to cover for faulty workmanship if something happens to a car you have worked on .and it will also give public liability cover and road risks cover . You will need a motor trade policy if you want trade plates .

 

[startinghandle]

I don't want to put a spanner in the works but a long established family business in the motor trade stopped selling cars at one site as the boss told me in his own words there's no profit in used cars , it was converted to screwfix depot and the rent is very profitable with no comeback for the family, another garage owned by the same family is now supermarket but Peugeot main dealer is still going at different location

 

[Thick Farmer]

I used to do this. As said, there’s not much money in cars. I found the bottom end of the market was the best place to make money. You can always flog a cheap car as long as it’s got an mot.

 

[Sharpy]

I used to do this. As said, there’s not much money in cars. I found the bottom end of the market was the best place to make money. You can always flog a cheap car as long as it’s got an mot.

Plenty of folk with £800 to spend on something with some mot.

 

[spin cycle]

do you need to be a mechanic?....sell with insurance warranty...buy at auction preferably 'buy it now' as the seller is confident in the vehicle....i wish i'd bought a vw passet estate last winter.....137k miles full vw service history ....'buy it now' £1200......found it later advertised for £3800

 

[ewald]

Read some of the treads on PistonHeads about buying and selling secondhand cars - there is an increasing expectation from the public that a secondhand vehicle will be totally fault free, especially if bought from a trader. There also seems to be a growing number who will try it on in the hope of getting money back later.
A friend has been buying and selling a few cars a year, but is becoming very disenchanted about the whole business.

Buying right is the key - there are few bargains out there at the moment

 

[How much]

Dont be put off , there is market for it but probably not a living in it . Dong the work yourselves is the difference but if you cost out your time there wont but much if anything in it.

sourcing the cars is the real issue , competition for good second hand vehicles is high new dealers dont want old over 3 or 4 year used one , but all have traders and auctions they will uses , and will also all have favored buyers unless you are in that position the odds of you getting a vehicle with a niggling recurring fault are pretty high , usually electrical that may be the reason it was part exchanged in the first place. As mentioned above cars are now very complex and its the un seen faults not discs, pads and exhausts that are the downfall of them if you are great at sorting the eclectics as well as the mechanicals it may be your calling.

It also depends how you do it , 1 or 2 cars a week with minimum input would I think take allot of time and contacts to source the right vehicles and at that level and I suspect you would have to call it a business, with all that entails.

2 or 3 cars a month probably more achievable as part time evening hobby not a business and if you where selling them as a private individual you are in better position also, as no business premises ( consider that if you are trading from a farm at level that would attract attention you would be liable for business rates also) privately no vat no statuary rights for your buyers and no insurance implications for you self over and above basic car insurance .

trade plates are apparently very expensive to insure these days our local garage does not have them just motor policy they can access on line and add and take off reg no's them selves as when required

 

[itsalwaysme]

We have the means, space, workshop, contacts it makes total sense in trying this. Also good for the boys as teaching them skills and learning about profit. Looking at also breaking cars and selling parts (applied for licence). CAT N, S and above.

Can I learn to spray on a short course somewhere? Only for small parts.
Vat implications - if any not planning on buying VAT cars though.
MOT and tax them on sale

Do I need trade plates? How can I drive these cars around for a week before sale to check them out - what about insurance etc.

ANything else I need to consider. My aim is to look for cars that are economic to run and edging towards the first time drivers market

Low key just 1 - 2 cars a week. Evening work.

Did you take this any further or go ahead with it, just wondering how you were going about sourcing vehicles.