Car Dealers - Start up advice?
Discussion
The Nipper said:
Hi Daemon, I am Lisburn/Belfast area. Over the last few weeks I have been keeping my eye on the roads to see whats popular etc and I think specialising in the small/mini type car would be a good market as it is good with city driving and you also have the first time market. The miles appear to be lower on these types of cars too which is also a good selling point. Where do you start with regards traders licence and insurances etc? I know about traders vehicle insurance but what other things should I be looking at?
They are good as they are simple to fix. Corsa/polo etc are always good sellers.Mondeo diesels, Picasso,zafira vectra are all good aswell. Diesel focus cars to.
Basically diesel family cars and small petrol cars.
Meganes are good sellers for me,just budget for none of the windows working.
The Nipper said:
Hi Daemon, I am Lisburn/Belfast area. Over the last few weeks I have been keeping my eye on the roads to see whats popular etc and I think specialising in the small/mini type car would be a good market as it is good with city driving and you also have the first time market. The miles appear to be lower on these types of cars too which is also a good selling point. Where do you start with regards traders licence and insurances etc? I know about traders vehicle insurance but what other things should I be looking at?
I used abbey bond lovis for trade insurancehttp://www.abbeybondlovis.com/
If you happen to get first time buyers as an aside then grand but i wouldnt be aiming specifically the first time market - its smaller than you might think and you'll get a lot of tyre kickers who are expecting the world for the little money they have saved up and then have to go and sort out insurance so cant deal on the spot.
Also, you miss out on what can be quite lucrative trade ins.
JimmyConwayNW said:
The Nipper said:
Hi Daemon, I am Lisburn/Belfast area. Over the last few weeks I have been keeping my eye on the roads to see whats popular etc and I think specialising in the small/mini type car would be a good market as it is good with city driving and you also have the first time market. The miles appear to be lower on these types of cars too which is also a good selling point. Where do you start with regards traders licence and insurances etc? I know about traders vehicle insurance but what other things should I be looking at?
They are good as they are simple to fix. Corsa/polo etc are always good sellers.Mondeo diesels, Picasso,zafira vectra are all good aswell. Diesel focus cars to.
Basically diesel family cars and small petrol cars.
Meganes are good sellers for me,just budget for none of the windows working.
But otherwise yes, "good" diesel cars (rare) or even petrol family cars at the right price. I'd a few good hits last year on petrol scenics, grand scenics, zafiras and mondeos. Unloved generally, and a bit slow to sell but they tend to find a home.
And yes to scenics too - not an expensive fix anymore and they're decent enough wee cars.
The Nipper said:
Hi, i know this an old post but I am interested in doing something similar but have no experience. I have sales experience, run my own business and have a real love of cars. Its something I have always thought about but not seriously up until now.
Daemon, I would be interested in hearing more about your story as I am also based in Northern Ireland.
Sorry for the delay.Daemon, I would be interested in hearing more about your story as I am also based in Northern Ireland.
Basically i stuck it 2 1/2 years before it wore me down. I was shifting cars but margins were getting ever thinner, cars less reliable & less well described by the dealers i bought from and customers more demanding
I started at 07:00 in the morning and rarely got sitting down before 22:00 at night. Saturdays i did 09:00 to 14:00.
Customers want cheap diesel cars. Too often there were either problems identified during prep or the car came back with a fault, negating any profit.
I was making money at it, but not enough to draw the wage i needed, therefore i was eating into my "pot" monthly. This became very frustrating as i really had expected to be able to grow my "pot" as well as draw a reasonable wage. I saw no prospect of things improving so i drew a line on it.
Back in IT now. Have a great wage. Work a standard 7 1/2 hour day and home for 17:15 every night. I did continue selling cars part time for a year or so, but i've had my second decent pay bump inside a year, so i dont need to any more.
My observations :-
- Customers look for the cheapest car on gumtree, usedcarsni and autotrader in that order.
- If your car is pitched mid price range. The phone doesnt ring.
- To get the phone to ring your car has to be the cheapest or second cheapest.
- Whilst you may well want to valet, MOT and prep the car correctly, the person you are "competing" against doesnt and wont, so his costs are lower and chances are hes a fly by night merchant who'll meet them at tescos via a disposable phone.
- Even if you are the cheapest, customer still expect you to be able to take a big discount.
- Customers are lying weasels. They'll blatantly lie about their car to get the best price, but then complain bitterly when something goes wrong with the one they bought.
- Customers expect the car to be prepared to a high standard with fresh MOT, but dont want to pay for any of it - ie, they'll drive 100 miles to buy a rough one £50 cheaper
- You are competing with sellers all over northern ireland. So you cant just be cheapest locally, you have to be cheapest provence wide for the phone to ring.
- If you're operating from home, you will get threats if a customer has a problem that you wont cover. I had various veiled threats like "dont worry, we'll be round to see you soon. we know were you live", when you wouldnt cover a slipping clutch on a 12 year old car three months after purchase.
- Once you break the £5,000 barrier people tend to want finance facilities thus they will gravitate towards dealers who offer that.
Edited by daemon on Monday 23 June 13:13
Edited by daemon on Monday 23 June 13:15
daemon said:
- If you're operating from home, you will get threats if a customer has a problem that you wont cover. I had various veiled threats like "dont worry, we'll be round to see you soon. we know were you live", when you wouldnt cover a slipping clutch on a 12 year old car three months after purchase.
legendtrader said:
daemon said:
- If you're operating from home, you will get threats if a customer has a problem that you wont cover. I had various veiled threats like "dont worry, we'll be round to see you soon. we know were you live", when you wouldnt cover a slipping clutch on a 12 year old car three months after purchase.
ks small time window tinter.When he broke it he had his Eastern European henchmen ringing me every ten minutes for a week shouting and swearing down the phone threatening to kill me.
At least they didn't know where I live.
Roo said:
I traded a high spec car to a Charlie Big bks small time window tinter.
When he broke it he had his Eastern European henchmen ringing me every ten minutes for a week shouting and swearing down the phone threatening to kill me.
At least they didn't know where I live.
ks small time window tinter.When he broke it he had his Eastern European henchmen ringing me every ten minutes for a week shouting and swearing down the phone threatening to kill me.
At least they didn't know where I live.
LayerCake said:
XXXX: [over the phone] Dragan?
Dragan: Yes.
XXXX: I've got an idea... Why don't you come 'round for breakfast? I'll squeeze some orange juice and grind some coffee and we can talk about this like adults. How's that sound?
Dragan: Sounds very hospitable.
XXXX: Do you know where I live?
Dragan: No.
XXXX: Well, fk off then.
[hangs up]
Dragan: Yes.
XXXX: I've got an idea... Why don't you come 'round for breakfast? I'll squeeze some orange juice and grind some coffee and we can talk about this like adults. How's that sound?
Dragan: Sounds very hospitable.
XXXX: Do you know where I live?
Dragan: No.
XXXX: Well, f
k off then.[hangs up]
just thought id resurrect this old thread, was wondering how the OP was doing if he is still going has he got any advice for anyone else starting
I was talking with a lad ive known at the car auctions today he started with 5 grand many years ago and recons he sells 25 cars a week and can make 20k a week out of that
he has 50 cars listed on his website in total about 400k retail..cars upto 10k max..nothing special, mainly low milage
got to take my hat off to him because i know for a fact he started with nothing and grafts at it
I was talking with a lad ive known at the car auctions today he started with 5 grand many years ago and recons he sells 25 cars a week and can make 20k a week out of that
he has 50 cars listed on his website in total about 400k retail..cars upto 10k max..nothing special, mainly low milage
got to take my hat off to him because i know for a fact he started with nothing and grafts at it
tooldtocruise said:
just thought id resurrect this old thread, was wondering how the OP was doing if he is still going has he got any advice for anyone else starting
I was talking with a lad ive known at the car auctions today he started with 5 grand many years ago and recons he sells 25 cars a week and can make 20k a week out of that
he has 50 cars listed on his website in total about 400k retail..cars upto 10k max..nothing special, mainly low milage
got to take my hat off to him because i know for a fact he started with nothing and grafts at it
Hes doing exceptionally well and clearly got into it at the right time. To turn £5,000 these days into something thats supporting 50 cars at £8,000 each on a forecourt and allow you to draw a big wage would be nigh on impossible - unless of course hes well backed by a finance company or bank.I was talking with a lad ive known at the car auctions today he started with 5 grand many years ago and recons he sells 25 cars a week and can make 20k a week out of that
he has 50 cars listed on his website in total about 400k retail..cars upto 10k max..nothing special, mainly low milage
got to take my hat off to him because i know for a fact he started with nothing and grafts at it
If hes selling 25 a week from a stock of 50 this is way above what a dealer of this size would be expecting - a turnaround from a forecourt is probably averaging 6-8 weeks, not two.
I take it he has a load of people working for him or farms out the valeting and mechanicals to other companies? If hes doing 25 cars a week theres two full time valeters and probably two full time mechanics.
If hes netting £800 a car actual profit into his pocket on each car, then hes doing exceptionally well, given the very fast turnover of cars he has (which would suggest hes pricing them cheap to sell). If hes grossing £800 a car then hes going to have very little remaining once his bills are paid.
Finally, heres a thought. If 5% of cars come back with a major problem / difficult customer and hes doing 100 a month and hes got to cover them under the SOGA for roughly six months, then at any time he has up to 30 irate customers that hes having to calm and resolve significant problems for.
If hes truly pulling £20,000 profit a week out of the business, then (a) hes probably the only man in the country doing it in used cars sales and (b) i'd be at it for a couple of years and move on to something else with my £2 mill in my back pocket.
daemon said:
Hes doing exceptionally well and clearly got into it at the right time. To turn £5,000 these days into something thats supporting 50 cars at £8,000 each on a forecourt and allow you to draw a big wage would be nigh on impossible - unless of course hes well backed by a finance company or bank.
If hes selling 25 a week from a stock of 50 this is way above what a dealer of this size would be expecting - a turnaround from a forecourt is probably averaging 6-8 weeks, not two.
I take it he has a load of people working for him or farms out the valeting and mechanicals to other companies? If hes doing 25 cars a week theres two full time valeters and probably two full time mechanics.
If hes netting £800 a car actual profit into his pocket on each car, then hes doing exceptionally well, given the very fast turnover of cars he has (which would suggest hes pricing them cheap to sell). If hes grossing £800 a car then hes going to have very little remaining once his bills are paid.
Finally, heres a thought. If 5% of cars come back with a major problem / difficult customer and hes doing 100 a month and hes got to cover them under the SOGA for roughly six months, then at any time he has up to 30 irate customers that hes having to calm and resolve significant problems for.
If hes truly pulling £20,000 profit a week out of the business, then (a) hes probably the only man in the country doing it in used cars sales and (b) i'd be at it for a couple of years and move on to something else with my £2 mill in my back pocket.
You wrote all that even tho we both know that is bull sIf hes selling 25 a week from a stock of 50 this is way above what a dealer of this size would be expecting - a turnaround from a forecourt is probably averaging 6-8 weeks, not two.
I take it he has a load of people working for him or farms out the valeting and mechanicals to other companies? If hes doing 25 cars a week theres two full time valeters and probably two full time mechanics.
If hes netting £800 a car actual profit into his pocket on each car, then hes doing exceptionally well, given the very fast turnover of cars he has (which would suggest hes pricing them cheap to sell). If hes grossing £800 a car then hes going to have very little remaining once his bills are paid.
Finally, heres a thought. If 5% of cars come back with a major problem / difficult customer and hes doing 100 a month and hes got to cover them under the SOGA for roughly six months, then at any time he has up to 30 irate customers that hes having to calm and resolve significant problems for.
If hes truly pulling £20,000 profit a week out of the business, then (a) hes probably the only man in the country doing it in used cars sales and (b) i'd be at it for a couple of years and move on to something else with my £2 mill in my back pocket.
t?? haha.rich12 said:
daemon said:
Hes doing exceptionally well and clearly got into it at the right time. To turn £5,000 these days into something thats supporting 50 cars at £8,000 each on a forecourt and allow you to draw a big wage would be nigh on impossible - unless of course hes well backed by a finance company or bank.
If hes selling 25 a week from a stock of 50 this is way above what a dealer of this size would be expecting - a turnaround from a forecourt is probably averaging 6-8 weeks, not two.
I take it he has a load of people working for him or farms out the valeting and mechanicals to other companies? If hes doing 25 cars a week theres two full time valeters and probably two full time mechanics.
If hes netting £800 a car actual profit into his pocket on each car, then hes doing exceptionally well, given the very fast turnover of cars he has (which would suggest hes pricing them cheap to sell). If hes grossing £800 a car then hes going to have very little remaining once his bills are paid.
Finally, heres a thought. If 5% of cars come back with a major problem / difficult customer and hes doing 100 a month and hes got to cover them under the SOGA for roughly six months, then at any time he has up to 30 irate customers that hes having to calm and resolve significant problems for.
If hes truly pulling £20,000 profit a week out of the business, then (a) hes probably the only man in the country doing it in used cars sales and (b) i'd be at it for a couple of years and move on to something else with my £2 mill in my back pocket.
You wrote all that even tho we both know that is bull sIf hes selling 25 a week from a stock of 50 this is way above what a dealer of this size would be expecting - a turnaround from a forecourt is probably averaging 6-8 weeks, not two.
I take it he has a load of people working for him or farms out the valeting and mechanicals to other companies? If hes doing 25 cars a week theres two full time valeters and probably two full time mechanics.
If hes netting £800 a car actual profit into his pocket on each car, then hes doing exceptionally well, given the very fast turnover of cars he has (which would suggest hes pricing them cheap to sell). If hes grossing £800 a car then hes going to have very little remaining once his bills are paid.
Finally, heres a thought. If 5% of cars come back with a major problem / difficult customer and hes doing 100 a month and hes got to cover them under the SOGA for roughly six months, then at any time he has up to 30 irate customers that hes having to calm and resolve significant problems for.
If hes truly pulling £20,000 profit a week out of the business, then (a) hes probably the only man in the country doing it in used cars sales and (b) i'd be at it for a couple of years and move on to something else with my £2 mill in my back pocket.
t?? haha.
lol more than likley right
I think when he says 25 cars a week he could be talking about the glory days gone by
but i will say this he is always there and his brother is always at the next one and they do buy cars none stop and visit 5 auctions a week what i know of
mind he still dresses like a tramp and drives about in a st car and never buys a cuppa haha
i know he has a few salesmen, valeters, and has paint done by 3 diffrent outside people
he is in a good spot with plenty of passing traffic
someone else said he is doing about 14 a week now
I think when he says 25 cars a week he could be talking about the glory days gone by
but i will say this he is always there and his brother is always at the next one and they do buy cars none stop and visit 5 auctions a week what i know of
mind he still dresses like a tramp and drives about in a s
t car and never buys a cuppa hahai know he has a few salesmen, valeters, and has paint done by 3 diffrent outside people
he is in a good spot with plenty of passing traffic
someone else said he is doing about 14 a week now
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