Car Dealers - Start up advice?
Discussion
After many months of planning and searching, today i've placed a deposit on a modest forecourt with offices. It's the most I've ever been excited about anything I can remember. Lots of work ahead before i start trading on the 1/1/11.
Any advice from people who started their own business is welcome. Basically I'm trying not to over look anything and learn from others mistakes before i make them myself in the early months. I think I've got most bases covered but I've never been in this position before so what do i know!
Any stories of your start up would be really interesting and helpful.
Any advice from people who started their own business is welcome. Basically I'm trying not to over look anything and learn from others mistakes before i make them myself in the early months. I think I've got most bases covered but I've never been in this position before so what do i know!
Any stories of your start up would be really interesting and helpful.
First off thanks to D G. Just found your second email in my spam folder! Thanks for your advice and help.
@ deamon I've got 3 years experience selling cars. 1 at a main dealer where you don't learn a lot and 2 years selling used cars for someone else. I'm 23 now and I've been looking at the ins and outs for the last 18 months so I'm prepared as I'll ever be.
@ V8mate. I'll be starting small and building up my stock with profits (hopefully) as I don't want to borrow or use stocking plans. No need for 6 figure sums really. Slow and steady wins the race! ETA I'm going to specialise in small cars.
Thanks for all the encouraging comments and good luck. I'll keep you up dated with how its going.
@ deamon I've got 3 years experience selling cars. 1 at a main dealer where you don't learn a lot and 2 years selling used cars for someone else. I'm 23 now and I've been looking at the ins and outs for the last 18 months so I'm prepared as I'll ever be.
@ V8mate. I'll be starting small and building up my stock with profits (hopefully) as I don't want to borrow or use stocking plans. No need for 6 figure sums really. Slow and steady wins the race! ETA I'm going to specialise in small cars.
Thanks for all the encouraging comments and good luck. I'll keep you up dated with how its going.
Edited by 1987 on Wednesday 10th November 10:56
Just to give you guys that are interested a bit more info. The site is small, holds about 18 cars. I'll be starting with 12ish. I need to sell 2-3 cars a month to break even. Any dealer should be looking at turning over at least 30% of their stock each month.
My approach will be to target new drivers with cheap to run, tax and insure cars. They sell quickly, are cheap to fix and transport. Less part exchanges = better cash flow. Cars will range from £1k to £3.5k to start with. These will provide the highest % of return in terms of profit from investment.
Initial investment around £20k and look to move on if it's successful to a larger forecourt etc. Low risk really.
No Porches or Ferraris I'm afraid.
My approach will be to target new drivers with cheap to run, tax and insure cars. They sell quickly, are cheap to fix and transport. Less part exchanges = better cash flow. Cars will range from £1k to £3.5k to start with. These will provide the highest % of return in terms of profit from investment.
Initial investment around £20k and look to move on if it's successful to a larger forecourt etc. Low risk really.
No Porches or Ferraris I'm afraid.
What I'm trying to say is expensive stock doesn't provide greater margins.
We bought an 2002 fiesta last week for £1200 as sold on Saturday for £2995 with 0 reconditioning. I would struggle to buy a £12k and make the same profit in 3 days.
Not saying these happen everyday but margins aren't any larger until your at £20k cars.
We bought an 2002 fiesta last week for £1200 as sold on Saturday for £2995 with 0 reconditioning. I would struggle to buy a £12k and make the same profit in 3 days.
Not saying these happen everyday but margins aren't any larger until your at £20k cars.
PH is truly wonderful. Have managed to find ways to register a domain, set up @yourdomain.com email accounts, find a letter headings and business cards company run by a PHer, regulations on towing trailers, bookkeeping software information and lots of other advice just by searching previous threads.
Things are taking shape nicely. Hope you don't mind if I update this regularly.
Currently thinking of ways to advertise to the college and sixth form kids who need a first car. Maybe driving instructor pupils too.
44 days to go.
Things are taking shape nicely. Hope you don't mind if I update this regularly.
Currently thinking of ways to advertise to the college and sixth form kids who need a first car. Maybe driving instructor pupils too.
44 days to go.
Quick update. I've sold my Clio and have bought my first 3 cars yesterday. Another 12 to go before new year.
Signage is next which is looking expensive, but i want it to look as smart as possible as i think people judge a garage a lot on the appearance.
Still at my current job so juggling everything and Christmas is difficult but hopefully everything will be ready in time!
Signage is next which is looking expensive, but i want it to look as smart as possible as i think people judge a garage a lot on the appearance.
Still at my current job so juggling everything and Christmas is difficult but hopefully everything will be ready in time!
MMA. I did check the underwriter before going ahead for the reasons you mentioned.
Spending my life browsing the classifieds at the moment. Managed to get in with a main dealer so the cars are coming in nicely.
Finished with my current job on Wednesday so I really should be down at the forecourt painting the whole place but it's too cold!
Starting to become very real now.
If anyone could help on the following i would be grateful:
Trade hpi checks. (experian want £3.33 a go. Is that any good?)
Invoice templates for Microsoft Word.
Card machine which charges per transaction and not a percentage on the total amount.
Spending my life browsing the classifieds at the moment. Managed to get in with a main dealer so the cars are coming in nicely.
Finished with my current job on Wednesday so I really should be down at the forecourt painting the whole place but it's too cold!
Starting to become very real now.
If anyone could help on the following i would be grateful:
Trade hpi checks. (experian want £3.33 a go. Is that any good?)
Invoice templates for Microsoft Word.
Card machine which charges per transaction and not a percentage on the total amount.
renorti said:
hope your car sales go well,sounds like your doing well. amazed to see you sold a fiesta on an 02 plate for 3k.tried to sell my wife's 2007 fiesta {low mileage/tidy spec},could't get £4250 for it,as a private sale,best of luck to you though.
Unfortunately the majority of the general public think that buying privately is not an option. I sold my Clio 200 to a dealer as despite being the cheapest for the age, mileage etc. Selling privately is only for people with the patience of a saint or if your selling a car that is worth less than a grand. A forecourt makes all the difference to joe bloggs.
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