starting a car dealership
Discussion
doosht said:
Sorry to crash the thread but i have a related question. How do you get on with the log book when buying a car? What i mean is that its usually a couple of weeks before the log book comes back but what if you want it sold in the meantime?
Also, as a trader does it still mean there is now 1 more keeper on the logbook?
I'm assuming that NI ones are the same as mainland ones here, as they're both issued by Swansea - theres a 'sold to the motor trade' yellow slip on the V5, the seller simply fills that in, sends it off, and gives the rest to the motor trader.Also, as a trader does it still mean there is now 1 more keeper on the logbook?
When a car goes into the trade the yellow section of the V5 is completed and sent to the DVLA the rest is retained by the trader to be completed when the car is sold on.
Another owner isn't added, it's just a way for the DVLA to be made aware that the car is no longer with the registered keeper, and any traffic offence fines can be related to the trader whose name is on the yellow slip. Also if the car is untaxed it doesn't need to have the SORN declaration done if it's in the hands of a trader.
Another owner isn't added, it's just a way for the DVLA to be made aware that the car is no longer with the registered keeper, and any traffic offence fines can be related to the trader whose name is on the yellow slip. Also if the car is untaxed it doesn't need to have the SORN declaration done if it's in the hands of a trader.
POORCARDEALER said:
smokey145 said:
So what are decent earnings for a trader?
wOULD DEPEND ENTIRELY on the supply of cars they are getting.15 years ago I know traders who were earning 300K a year, today I know traders who are earning 20K.
singlecoil said:
POORCARDEALER said:
smokey145 said:
So what are decent earnings for a trader?
wOULD DEPEND ENTIRELY on the supply of cars they are getting.15 years ago I know traders who were earning 300K a year, today I know traders who are earning 20K.
Its like saying 'what does a company director earn'? Some earn nothing, some earn hundreds of thousands, some earn millions.
Vang on the money pal, bang on the money. I've got my answer. One variable I'm not sure on is say the sales of vehicles per week to how big your pool of cars for sale is. 20 car premium plot (£10 to £25k cars) aim to make £1000 gross profit per car and sell a realistic 5 per week. £20k Gross profit per month. Take away overheads (staff costs, rents etc) I'd say on that level
About £100k? it
About £100k? it
singlecoil said:
Well, after the third time of asking he got an answer. Whether it will actually tell him anything remains to be seen. Still, I suppose if someone asks how long a piece of string is, providing them with a range is better than picking a number from the air
Edited by smokey145 on Saturday 12th November 17:39
Vang on the money pal, bang on the money. I've got my answer. One variable I'm not sure on is say the sales of vehicles per week to how big your pool of cars for sale is. 20 car premium plot (£10 to £25k cars) aim to make £1000 gross profit per car and sell a realistic 5 per week. £20k Gross profit per month. Take away overheads (staff costs, rents etc) I'd say on that level
About £100k? it
About £100k? it
singlecoil said:
Well, after the third time of asking he got an answer. Whether it will actually tell him anything remains to be seen. Still, I suppose if someone asks how long a piece of string is, providing them with a range is better than picking a number from the air
Edited by smokey145 on Saturday 12th November 17:39
smokey145 said:
Vang on the money pal, bang on the money. I've got my answer. One variable I'm not sure on is say the sales of vehicles per week to how big your pool of cars for sale is. 20 car premium plot (£10 to £25k cars) aim to make £1000 net profit per car and sell a realistic 5 per week. £20k Net profit per month. Take away overheads (staff costs, rents etc) I'd say on that level
About £100k? it
You will be doing phenominally well to average £1K profit per car.About £100k? it
singlecoil said:
Well, after the third time of asking he got an answer. Whether it will actually tell him anything remains to be seen. Still, I suppose if someone asks how long a piece of string is, providing them with a range is better than picking a number from the air
smokey145 said:
daemon said:
You will be doing phenominally well to average £1K profit per car.
Surely it's in that ball park?And I think what he is getting at it that no, it isn't in that ballpark. You might be able to buy it for £1000 less than what you sell it for, but it won't be pure profit, there will be a lot of expenses to come out of that.
singlecoil said:
smokey145 said:
daemon said:
You will be doing phenominally well to average £1K profit per car.
Surely it's in that ball park?And I think what he is getting at it that no, it isn't in that ballpark. You might be able to buy it for £1000 less than what you sell it for, but it won't be pure profit, there will be a lot of expenses to come out of that.
For talks sake, lets say you buy a car at £3,000. You're going to be doing very well to retail it at £4295.
Realistically, you're going to take £4K for it - or at least use that £295 to bolster up a trade in value.
You'll probably spend £200 on prep - service, valet, bumper scuffs, etc.
You then need to warrant the car in some capacity - whether self warrant or third party, so theres another £150 gone.
Assuming you're paying £2,000 a month for a site, and selling 20 cars a month, you'd need to allocate £100 of the profit to cover your site.
Also, say, an easy £50 per car on advertising.
Rates, electric, heating, say allocate another £100.
Thats us down to £400 profit.
VAT will be payable on the £1,000, so theres another £167 gone.
So we're down to £233....
I'd say once you're into the £7K+ cars then you've a better chance of getting more out of it. But then to have 20 £7K cars on your forecourt you need £140,000. Plus as we've said another 5 paid for but in prep, and another 5 sold but not paid for, so you can see how suddenly figures like £200K start popping up, and employing staff, etc, etc.
Edited by daemon on Saturday 12th November 19:53
Edited by daemon on Saturday 12th November 19:54
Chicarito said:
Sounds very optimistic, and also relies on having a few hundred grand invested in stock... you're not going to get to that level overnight.
This is the bit which interests me. We hear of people who start by selling a couple of cars from home and a few years later are running 100-car sites.To such folk: how did you expand? Making a grand car profit on each car is going to be a really sloooow way of getting to that super-site.
The big finance houses aren't going to provide car stocking finance to someone with three Corsas on their drive. How did you finance expansion?
Not if you are quoting from an iPhone it doesn't.
singlecoil said:
It works better if you put the post you are quoting first, and your comment afterwards
And I think what he is getting at it that no, it isn't in that ballpark. You might be able to buy it for £1000 less than what you sell it for, but it won't be pure profit, there will be a lot of expenses to come out of that.
And I think what he is getting at it that no, it isn't in that ballpark. You might be able to buy it for £1000 less than what you sell it for, but it won't be pure profit, there will be a lot of expenses to come out of that.
V8mate said:
This is the bit which interests me. We hear of people who start by selling a couple of cars from home and a few years later are running 100-car sites.
To such folk: how did you expand? Making a grand car profit on each car is going to be a really sloooow way of getting to that super-site.
Judging by the owners of various larger used operations around here... it seems to involve 'security' and drugs.To such folk: how did you expand? Making a grand car profit on each car is going to be a really sloooow way of getting to that super-site.
V8mate said:
Chicarito said:
Sounds very optimistic, and also relies on having a few hundred grand invested in stock... you're not going to get to that level overnight.
This is the bit which interests me. We hear of people who start by selling a couple of cars from home and a few years later are running 100-car sites.To such folk: how did you expand? Making a grand car profit on each car is going to be a really sloooow way of getting to that super-site.
The big finance houses aren't going to provide car stocking finance to someone with three Corsas on their drive. How did you finance expansion?
I dont think you could realistically roll up profits to that level - certainly not these days.
Gassing Station | Business | Top of Page | What's New | My Stuff