cheap trade insurance for part time dealer
Discussion
Was your quote from tradewise or similar? These companies get you legal but its not "insurance" in the sense that you will be able to make a claim. That said you do have to start somewhere and keeping your overheads low whilst still been legal is a good way to start. You just have to be mindful that you dont have stock cover which should be on your mind with Audis and BMWs on the drive at home. Ultra nickable cars.
I would pick a niche and stick to it. You will be able to to sell 15 to 20k cars no problem. If you live in a decent area and demonstrate very good product knowledge and have a personality people will buy into you can do this. People have free access to finance these days outside of a plate glass window dealership. Its not the barrier a lot may think.
I would go for slightly older cars maybe 4-5-6 year old. These will be easier to buy. Pick a little area of the market and stick rigidly to it. This way you will build that product knowledge and learn to come up with cheap/diy fixes and spot common issues.
It can be done. 3 years ago I had a cross your fingers tradewise policy to get me going. Now we have cover with a proper broker and 300 grands worth of cars on site at any one time and 5000 square foot of floor space.
Just work harder than the next bloke. Be quick to buy cars. Price realistically. Dont listen to people that say you cant do it. You can try without loosing your house over it. Good luck but bare in mind the motor trade is HARD HARD HARD. Loads of people have had a go but to keep up the workrate even with 2-3 cars and another job going it will not be easy.
I would pick a niche and stick to it. You will be able to to sell 15 to 20k cars no problem. If you live in a decent area and demonstrate very good product knowledge and have a personality people will buy into you can do this. People have free access to finance these days outside of a plate glass window dealership. Its not the barrier a lot may think.
I would go for slightly older cars maybe 4-5-6 year old. These will be easier to buy. Pick a little area of the market and stick rigidly to it. This way you will build that product knowledge and learn to come up with cheap/diy fixes and spot common issues.
It can be done. 3 years ago I had a cross your fingers tradewise policy to get me going. Now we have cover with a proper broker and 300 grands worth of cars on site at any one time and 5000 square foot of floor space.
Just work harder than the next bloke. Be quick to buy cars. Price realistically. Dont listen to people that say you cant do it. You can try without loosing your house over it. Good luck but bare in mind the motor trade is HARD HARD HARD. Loads of people have had a go but to keep up the workrate even with 2-3 cars and another job going it will not be easy.
insurance_jon said:
thanks for the recommendation, but we stopped writing new business for PT traders or traders without premises a couple of years ago.
To echo the comments above, I've found the really cheap trading from home policies don't generally cover stock at home (although the Covea one does). complete minefield so I would ask the broker some very direct questions if you cant work it out yourself. Also make sure the brokers terms of business are on an advised basis, rather than unadvised.
happy to give any quotes an impartial once over for PHer's if needed
Far be it from me to argue with Broker of the Year but there are quite a few more options in addition to Covea. To echo the comments above, I've found the really cheap trading from home policies don't generally cover stock at home (although the Covea one does). complete minefield so I would ask the broker some very direct questions if you cant work it out yourself. Also make sure the brokers terms of business are on an advised basis, rather than unadvised.
happy to give any quotes an impartial once over for PHer's if needed
One man bad/small traders (whether buy and sell or mechanics) are now pretty well served.
fridaypassion said:
Was your quote from tradewise or similar? These companies get you legal but its not "insurance" in the sense that you will be able to make a claim. That said you do have to start somewhere and keeping your overheads low whilst still been legal is a good way to start. You just have to be mindful that you dont have stock cover which should be on your mind with Audis and BMWs on the drive at home. Ultra nickable cars.
I would pick a niche and stick to it. You will be able to to sell 15 to 20k cars no problem. If you live in a decent area and demonstrate very good product knowledge and have a personality people will buy into you can do this. People have free access to finance these days outside of a plate glass window dealership. Its not the barrier a lot may think.
I would go for slightly older cars maybe 4-5-6 year old. These will be easier to buy. Pick a little area of the market and stick rigidly to it. This way you will build that product knowledge and learn to come up with cheap/diy fixes and spot common issues.
It can be done. 3 years ago I had a cross your fingers tradewise policy to get me going. Now we have cover with a proper broker and 300 grands worth of cars on site at any one time and 5000 square foot of floor space.
Just work harder than the next bloke. Be quick to buy cars. Price realistically. Dont listen to people that say you cant do it. You can try without loosing your house over it. Good luck but bare in mind the motor trade is HARD HARD HARD. Loads of people have had a go but to keep up the workrate even with 2-3 cars and another job going it will not be easy.
the quote is from autonet insurance (google that for details). I have taken onboard the advice to find a niche and I think I have found one that I am going to work. There are less cars of this sort on Autotrader, less competition and pricing is less efficient. I agree about what you say on the insurance, I just need something to get me started I am not looking for a top line policy. Car crime in my area is very low and tbh I can take the financial hit if necessary if the policy didnt pay out or pays out a little short. I agree about finance, these days people can go on moneysupermarket or gocompare and get a personal loan in a couple of minutes.I would pick a niche and stick to it. You will be able to to sell 15 to 20k cars no problem. If you live in a decent area and demonstrate very good product knowledge and have a personality people will buy into you can do this. People have free access to finance these days outside of a plate glass window dealership. Its not the barrier a lot may think.
I would go for slightly older cars maybe 4-5-6 year old. These will be easier to buy. Pick a little area of the market and stick rigidly to it. This way you will build that product knowledge and learn to come up with cheap/diy fixes and spot common issues.
It can be done. 3 years ago I had a cross your fingers tradewise policy to get me going. Now we have cover with a proper broker and 300 grands worth of cars on site at any one time and 5000 square foot of floor space.
Just work harder than the next bloke. Be quick to buy cars. Price realistically. Dont listen to people that say you cant do it. You can try without loosing your house over it. Good luck but bare in mind the motor trade is HARD HARD HARD. Loads of people have had a go but to keep up the workrate even with 2-3 cars and another job going it will not be easy.
the way I see it is my 'edge' is I dont have to pay for premises(Lot/showroom), business rates, staff wages, utility bills and other assorted overheads. In the niche I am looking at I will avoid auctions for sourcing. I am hoping to buy from dealers, typically midlands/north/scotland and get around 5% to 10% of their price enabling me to mark up a little and remarket down South. I just have to exploit my strengths which are very low overheads, better to go for a specialised market that is in demand imo. As others have previously said the larger franchised dealers can work their edge best to try and compete. I have also sorted out a mailing address for £30pm at a local business park 2 miles down from my house, i think this will come across better than selling from a driveway.
Edited by legendtrader on Thursday 1st September 10:45
legendtrader said:
fridaypassion said:
Was your quote from tradewise or similar? These companies get you legal but its not "insurance" in the sense that you will be able to make a claim. That said you do have to start somewhere and keeping your overheads low whilst still been legal is a good way to start. You just have to be mindful that you dont have stock cover which should be on your mind with Audis and BMWs on the drive at home. Ultra nickable cars.
I would pick a niche and stick to it. You will be able to to sell 15 to 20k cars no problem. If you live in a decent area and demonstrate very good product knowledge and have a personality people will buy into you can do this. People have free access to finance these days outside of a plate glass window dealership. Its not the barrier a lot may think.
I would go for slightly older cars maybe 4-5-6 year old. These will be easier to buy. Pick a little area of the market and stick rigidly to it. This way you will build that product knowledge and learn to come up with cheap/diy fixes and spot common issues.
It can be done. 3 years ago I had a cross your fingers tradewise policy to get me going. Now we have cover with a proper broker and 300 grands worth of cars on site at any one time and 5000 square foot of floor space.
Just work harder than the next bloke. Be quick to buy cars. Price realistically. Dont listen to people that say you cant do it. You can try without loosing your house over it. Good luck but bare in mind the motor trade is HARD HARD HARD. Loads of people have had a go but to keep up the workrate even with 2-3 cars and another job going it will not be easy.
the quote is from autonet insurance (google that for details). I have taken onboard the advice to find a niche and I think I have found one that I am going to work. There are less cars of this sort on Autotrader, less competition and pricing is less efficient. I agree about what you say on the insurance, I just need something to get me started I am not looking for a top line policy. Car crime in my area is very low and tbh I can take the financial hit if necessary if the policy didnt pay out or pays out a little short. I agree about finance, these days people can go on moneysupermarket or gocompare and get a personal loan in a couple of minutes.I would pick a niche and stick to it. You will be able to to sell 15 to 20k cars no problem. If you live in a decent area and demonstrate very good product knowledge and have a personality people will buy into you can do this. People have free access to finance these days outside of a plate glass window dealership. Its not the barrier a lot may think.
I would go for slightly older cars maybe 4-5-6 year old. These will be easier to buy. Pick a little area of the market and stick rigidly to it. This way you will build that product knowledge and learn to come up with cheap/diy fixes and spot common issues.
It can be done. 3 years ago I had a cross your fingers tradewise policy to get me going. Now we have cover with a proper broker and 300 grands worth of cars on site at any one time and 5000 square foot of floor space.
Just work harder than the next bloke. Be quick to buy cars. Price realistically. Dont listen to people that say you cant do it. You can try without loosing your house over it. Good luck but bare in mind the motor trade is HARD HARD HARD. Loads of people have had a go but to keep up the workrate even with 2-3 cars and another job going it will not be easy.
the way I see it is my 'edge' is I dont have to pay for premises(Lot/showroom), business rates, staff wages, utility bills and other assorted overheads. In the niche I am looking at I will avoid auctions for sourcing. I am hoping to buy from dealers, typically midlands/north/scotland and get around 5% to 10% of their price enabling me to mark up a little and remarket down South. I just have to exploit my strengths which are very low overheads, better to go for a specialised market that is in demand imo. As others have previously said the larger franchised dealers can work their edge best to try and compete.
"its all in the buying" is something you will see pretty quickly, buy the right stock at the right money and its not particually difficult, you will make mistakes along the way, some will cost you...if you buy from any big dealer groups, be VERY careful about things that will be sent in the post, ie logbooks and service history, they often dont arrive and stop you selling the car for weeks, or in the case of service history mean what youve paid them very good money for a car with little or no history leaving you in the lurch.
Get some trade plates if you can, use your "cheapie" insurance until you become established enough to move to a more mainstream company.
Dont let Autotrader talk you into spending thousands a month with them, you end up paying them more than you pay yourself if you are not careful.
Find a GOOD garage to do your prep work, they will save you a huge amount of time, hassle and money.
Finally, under promise and over deliver, dont leave any grey areas when selling the car as they will bite you on the arse.
Edit: If you need any advice feel free to give me a shout...there are also some very experienced motor traders on here who will give you good advice.
Edited by POORCARDEALER on Thursday 1st September 10:56
POORCARDEALER said:
Good luck with your venture.
"its all in the buying" is something you will see pretty quickly, buy the right stock at the right money and its not particually difficult, you will make mistakes along the way, some will cost you...if you buy from any big dealer groups, be VERY careful about things that will be sent in the post, ie logbooks and service history, they often dont arrive and stop you selling the car for weeks, or in the case of service history mean what youve paid them very good money for a car with little or no history leaving you in the lurch.
Get some trade plates if you can, use your "cheapie" insurance until you become established enough to move to a more mainstream company.
Dont let Autotrader talk you into spending thousands a month with them, you end up paying them more than you pay yourself if you are not careful.
Find a GOOD garage to do your prep work, they will save you a huge amount of time, hassle and money.
Finally, under promise and over deliver, dont leave any grey areas when selling the car as they will bite you on the arse.
Edit: If you need any advice feel free to give me a shout...there are also some very experienced motor traders on here who will give you good advice.
good tip about making sure to get all the documents upfront. That could really mess things up."its all in the buying" is something you will see pretty quickly, buy the right stock at the right money and its not particually difficult, you will make mistakes along the way, some will cost you...if you buy from any big dealer groups, be VERY careful about things that will be sent in the post, ie logbooks and service history, they often dont arrive and stop you selling the car for weeks, or in the case of service history mean what youve paid them very good money for a car with little or no history leaving you in the lurch.
Get some trade plates if you can, use your "cheapie" insurance until you become established enough to move to a more mainstream company.
Dont let Autotrader talk you into spending thousands a month with them, you end up paying them more than you pay yourself if you are not careful.
Find a GOOD garage to do your prep work, they will save you a huge amount of time, hassle and money.
Finally, under promise and over deliver, dont leave any grey areas when selling the car as they will bite you on the arse.
Edit: If you need any advice feel free to give me a shout...there are also some very experienced motor traders on here who will give you good advice.
Edited by POORCARDEALER on Thursday 1st September 10:56
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