Sourcing cars in the motor trader

[veevee]

sasha320 said:

veevee said:

I'd say nearly all the deals are going to be here, below the radar of the big players, and too expensive or specialist for the smaller/more traditional traders and dealers. Make most of the money when you buy the car, but you'd need to know what you're doing.

I'm listening, but a 100k miles 996 is an example of your point but does not really prove it.

As mentioned in an earlier post, wouldn't the risk increase on deals like this? Such that you'd have to set aside an amount for when you come across the inevitable lemon sooner?

However thanks for your perspective and you're right that my understanding is a long way off mature!

The car wasn't my example, I'm also not a motor trader, although I am 'a' trader.

I was just pointing out that there is a sweet spot below the big players and above the amateur and smaller traders which can work out, but you really need to know your stuff. Knowledge might tell you that actually there's a decent market for 100k 996s (I don't know if there is!), which 99% of other people would discount.

Just my 2p!

[nct001]

veevee said:

sasha320 said:

veevee said:

I'd say nearly all the deals are going to be here, below the radar of the big players, and too expensive or specialist for the smaller/more traditional traders and dealers. Make most of the money when you buy the car, but you'd need to know what you're doing.

I'm listening, but a 100k miles 996 is an example of your point but does not really prove it.

As mentioned in an earlier post, wouldn't the risk increase on deals like this? Such that you'd have to set aside an amount for when you come across the inevitable lemon sooner?

However thanks for your perspective and you're right that my understanding is a long way off mature!

The car wasn't my example, I'm also not a motor trader, although I am 'a' trader.

I was just pointing out that there is a sweet spot below the big players and above the amateur and smaller traders which can work out, but you really need to know your stuff. Knowledge might tell you that actually there's a decent market for 100k 996s (I don't know if there is!), which 99% of other people would discount.

Just my 2p!

Wise words re sweet spot in pricing - a cap average it's a no brainier how can you actually lose money????


My 1999 911 came from Bca bought online - bought for £7300 three years ago still worth that now - cheaper to run than an mx5.

I hate to break it to op but the specialists no names but work it out started with dross like this dressed it up with marketing and made money from there...

Change your mindset to that of a trader that is there's a bum for every seat, risk reward ratio and ease of sale.



I showed you an entry level car low investment high return low risk, I used to earn £70k a year as a group used buyer (not for Sytner but nearly) for advise like this!

[sasha320]

nct001 said:

Wise words re sweet spot in pricing - a cap average it's a no brainier how can you actually lose money????


My 1999 911 came from Bca bought online - bought for £7300 three years ago still worth that now - cheaper to run than an mx5.

I hate to break it to op but the specialists no names but work it out started with dross like this dressed it up with marketing and made money from there...

Change your mindset to that of a trader that is there's a bum for every seat, risk reward ratio and ease of sale.



I showed you an entry level car low investment high return low risk, I used to earn £70k a year as a group used buyer (not for Sytner but nearly) for advise like this!

Fair enough, I guess I fell into a 'want it now' perspective.

[POORCARDEALER]

nct001 said:

veevee said:

sasha320 said:

veevee said:

I'd say nearly all the deals are going to be here, below the radar of the big players, and too expensive or specialist for the smaller/more traditional traders and dealers. Make most of the money when you buy the car, but you'd need to know what you're doing.

I'm listening, but a 100k miles 996 is an example of your point but does not really prove it.

As mentioned in an earlier post, wouldn't the risk increase on deals like this? Such that you'd have to set aside an amount for when you come across the inevitable lemon sooner?

However thanks for your perspective and you're right that my understanding is a long way off mature!

The car wasn't my example, I'm also not a motor trader, although I am 'a' trader.

I was just pointing out that there is a sweet spot below the big players and above the amateur and smaller traders which can work out, but you really need to know your stuff. Knowledge might tell you that actually there's a decent market for 100k 996s (I don't know if there is!), which 99% of other people would discount.

Just my 2p!

I hate to break it to op but the specialists no names but work it out started with dross like this dressed it up with marketing and made money from there...

Yes they did, but the consumer laws and whing rates were nothing like they are now.

It can be done, but "its all in the buying" IMO

[gogsboy]

nct001 said:

It's not that hard and it's not that prices in the trade are too high it's your understanding of the market is too weak, but that will come with experience.

I just logged into bca in one minute I found an early 911 which will be if no interest to ninety per cent of specialists and will be sold on price. It's from Sytner and has 12 stamps in book.


There's £2500 margin in the car.

If it needs any parts I know where to source for low money in oe spec and any cosmetic prep it would need I could do myself / in house.

You can take a horse to water.... Get out there and buy some cars!!!

OP don't hang yourself with BCA/WBAC, check out the blue card fees.

This car would appear to have came from Joe Bloggs via WBAC, like the flood of them nowadays since the more recent business deal.

There is never a guaranteed margin just because Glass or CAP say so either.

More often than not, the harder they are to buy, the easier they are to sell.

[Oi_Oi_Savaloy]

Do any of the traders buy from copart or suchlike? The non-recorded stuff I mean.

I'm on copart for two v specific things (a saab 9-5) and I'm looking for damaged agricultural sprayers for a friend of mine.

I enjoy looking through the site and I've watched some of the auctions (60 seconds per auction usually!) on line.

Just wondering if the trade use them or is just another site that's expensive once you factor in the costs.

[fridaypassion]

In my field people only buy from copart and sell cars on still requiring repair. No margin in fixing up and flogging.

[Ken Figenus]

cashmax said:

Well, in short, the main dealers have it sown up. They get decent margins from the finance and they create a dependency from the end users. The aim is too get punters into a deal with a guaranteed residual value and a big bubble on the end to keep the payments down.

This means that the punter is coming straight back through the door at the end of the term to do it all over again with another car. The main dealer gets -

Locked in punters that he knows are coming back and when
All the servicing maintenance costs
The volume bonus on the new vehicles
A pipeline of used stock he knows is coming back in
The opportunity to pull a car back early with a tempting deal if he has a punter willing to pay big money for it

In essence the sale of the asset itself becomes almost irrelevant.

Thanks for sharing that - no wonder dealers don't like me then! Have always found it far better value to sort my own funds.

The notion that anyone would pay BMW 10.9% APR on a PCP where they actually limit the size of your deposit (as they prefer you to have more debt) is barmy! Went to a broker for a recent purchase almost halving BMW's rate and permitting my chunky deposit. Will switch that to a 3.2% APR loan in 6 months as that becomes available and pay a £150 penalty to do so. This again halves the interest rate and means its an unsecured loan - I own the car, not them.

Why do people pay so much interest for cars that are on a secured loan given today's base rate? Do they lose all perspective in a showroom or is it to do with credit rating etc?

[rich12]

Sadly people either look at cost to change or what they can afford monthly.

It's very rare now to get customers who actually understand APR and interest etc. They usually just work out what they can afford monthly and if it is in budget, they will buy it.

[_Nathan_]

http://www.derbytradecars.co.uk/warranty.php

Slightly off topic, but how can they get away with it ?

Standard 3 Month Warranty said:

Only main components covered

Engine
Cooling
Suspension
Gearbox
Steering
Drivelines

*£500 MAX Payout

[nct001]

gogsboy said:

nct001 said:

It's not that hard and it's not that prices in the trade are too high it's your understanding of the market is too weak, but that will come with experience.

I just logged into bca in one minute I found an early 911 which will be if no interest to ninety per cent of specialists and will be sold on price. It's from Sytner and has 12 stamps in book.


There's £2500 margin in the car.

If it needs any parts I know where to source for low money in oe spec and any cosmetic prep it would need I could do myself / in house.

You can take a horse to water.... Get out there and buy some cars!!!

OP don't hang yourself with BCA/WBAC, check out the blue card fees.

This car would appear to have came from Joe Bloggs via WBAC, like the flood of them nowadays since the more recent business deal.

There is never a guaranteed margin just because Glass or CAP say so either.

More often than not, the harder they are to buy, the easier they are to sell.

It's from Sytner Porsche North London!!!

Lot number is Syt !!!

Not we buy any car.


BCA sell 10k vehicles a week clearly it is where the trade buys!

[thepeoplespal]

From what I can see You haven't considered stocking finance for your cars, or do you have a stack of money for purchasing these cars.

The real money is made, when people come back to you to change the car, so you buy and sell the car again. When people come to you to sell, you can be fussy on the quality of the car you accept and its level of service history, or alternatively you sell the car on commission, offering to bank the money safely, offer insured test drives and also advertise on the sellers behalf, so relatively little risk to you, but the car has to be top quality to preserve your reputation. On the whole the warranty providers will let you down when it is needed most, so if you want to preserve any sort of reputation you will need to be able to fix these out of your own pocket or even on occasions take the car back if the problem can't be rectified. Ideally you want to have enough money set aside to pay for anything that arises.

[fridaypassion]

Stock financing isn't straight forward you need to be pretty established. I'm with next gear who required at least 8 cars on stock and 12 months profitable accounts and A rated insurance. As a startup I'm not sure you can hit the ground running with it. They have some tie ins with manhiem so you can load auction purchases onto the plan but it's very expensive lending. I rarely use my facility dm since we have become more established.