Selling supercars, classics and high-prestige as a business

[KingRichard]

I've just spoken to a guy that dropped into conversation that he worked for Jack Barclay in London. This has rekindled my interest in a project I was toying with a few months ago. I'd been thinking of starting a car dealership, or a brokerage as a sideline to my private hire business.

Is it possible to sell cars to buyers on commission (either buyer or vendor)? I've lots of experience with running agency sales (Estate Agency, Executive Recruitment and Financial Services).

Does anyone actually buy their cars from brokers over main dealers? I'm thinking of clients that want a certain specification, or a car that is not available in the UK, or that want to jump waiting lists etc...

I'm interested enough to do a feasability study on it, but not to actually go and set up as a franchised dealer for anyone (I don't want to go and sign up to buy 300 cars a year from Vauxhall for example)

Anyone able to give an insight?

Dave

[Altrezia]

I hope this is what you were going to talk to me about

Speak to you tomorrow.

[KingRichard]

Altrezia said:

I hope this is what you were going to talk to me about

Speak to you tomorrow.

That and another thing

[tog]

KingRichard said:

Altrezia said:

I hope this is what you were going to talk to me about

Speak to you tomorrow.

That and another thing

Is this a secret club

I bought my Bristol from a broker and he does quite good business I think. However, he is specialising in a very niche market (just Bristols), has been in the owners club and Bristol scene for decades so knows everybody, and there's only one other person dealing in this market (and he caters to possibly a slightly different area of the Bristol market). As a result he is well known in the Bristol world as dealing in Bristols, so people go to him to sell their cars for them and buyers come to him with their wants, as they know that he will have access to cars before they come to open market. (There's also Bristol Cars themselves, who sell old Bristols as well as new ones, but they cater to a yet another area of the market.)

I should stress that this is just to give you an example of a broker - I am certainly not a car dealer so don't take my advice on setting up a business as gospel! As a layman, my guess is you'd have to know the market well, and have access to stock from people who want to sell their cars by commission. You'd have to make a commission sale seem more attractive than than p/x, and selling privately or at auction, but if you can do that I don't see why it should not work. At least if you are brokering sales you will not have any major capital investment to make in acquiring stock, so the risk involved is small.

[POORCARDEALER]

Raise the capital and have a proper go, rather than selling for others. Usually the owner of the car wants far too much money for it and thats why he is willing to let someone sell it on commission, if you write the cheque you get the lot when you sell it.........I am sure your eyes are wide open but its an easy market to blow a fortune, your would be business partner from Barclays, has he got experience in other Prestige margues?

Flip said is there is plenty to be made, but you really need an expert in the field.

Good Luck

[escargot]

Tough market at the moment. Some of the traders I know who do this sort of stuff are scaling back on their top end stuff to concentrate more on bread & butter prestige gear. The margins are similiar but the risk is lessened. You can also hold more in stock & turn the stock over quicker.

Give me a shout if you want some more advice.

[stimmers]

KingRichard said:

I've just spoken to a guy that dropped into conversation that he worked for Jack Barclay in London. This has rekindled my interest in a project I was toying with a few months ago. I'd been thinking of starting a car dealership, or a brokerage as a sideline to my private hire business.

Is it possible to sell cars to buyers on commission (either buyer or vendor)? I've lots of experience with running agency sales (Estate Agency, Executive Recruitment and Financial Services).

Does anyone actually buy their cars from brokers over main dealers? I'm thinking of clients that want a certain specification, or a car that is not available in the UK, or that want to jump waiting lists etc...

I'm interested enough to do a feasability study on it, but not to actually go and set up as a franchised dealer for anyone (I don't want to go and sign up to buy 300 cars a year from Vauxhall for example)

Anyone able to give an insight?

Dave

Dion from Elms Collection does exactly this. He sources cars for clients and finds hard to source cars to exact client spec.

He is a PH member called elms, this is his site http://www.elmscollection.co.uk/