Starting a used dealership
Discussion
Think you might need to be a bit more specific in which areas you need help.
But generally stick to what you know and what your comfortable with and don't try and compete with dealers. Cheap small cars are what's selling. Don't cut corners in any area and don't budget to make silly money on each car. £800 average profit is a good figure to base your plans on.
A moderate understanding of mechanics will help you endlessly as well. What sort of cars were you thinking about?
But generally stick to what you know and what your comfortable with and don't try and compete with dealers. Cheap small cars are what's selling. Don't cut corners in any area and don't budget to make silly money on each car. £800 average profit is a good figure to base your plans on.
A moderate understanding of mechanics will help you endlessly as well. What sort of cars were you thinking about?
1987 said:
Think you might need to be a bit more specific in which areas you need help.
But generally stick to what you know and what your comfortable with and don't try and compete with dealers. Cheap small cars are what's selling. Don't cut corners in any area and don't budget to make silly money on each car. £800 average profit is a good figure to base your plans on.
A moderate understanding of mechanics will help you endlessly as well. What sort of cars were you thinking about?
Is that a net or gross profit figure?But generally stick to what you know and what your comfortable with and don't try and compete with dealers. Cheap small cars are what's selling. Don't cut corners in any area and don't budget to make silly money on each car. £800 average profit is a good figure to base your plans on.
A moderate understanding of mechanics will help you endlessly as well. What sort of cars were you thinking about?
paoloh said:
1987 said:
Think you might need to be a bit more specific in which areas you need help.
But generally stick to what you know and what your comfortable with and don't try and compete with dealers. Cheap small cars are what's selling. Don't cut corners in any area and don't budget to make silly money on each car. £800 average profit is a good figure to base your plans on.
A moderate understanding of mechanics will help you endlessly as well. What sort of cars were you thinking about?
Is that a net or gross profit figure?But generally stick to what you know and what your comfortable with and don't try and compete with dealers. Cheap small cars are what's selling. Don't cut corners in any area and don't budget to make silly money on each car. £800 average profit is a good figure to base your plans on.
A moderate understanding of mechanics will help you endlessly as well. What sort of cars were you thinking about?
Thanks guys,
I have a idea on what too sell, keeping them low around the 5-8K mark. 3 large main dealers near vw/audi/bmw and in a rural area with towns near by. Possibly a few 4x4 as they are suitable for the area.
Not sold cars commercially before but many privately. But I have a history off commercial sales not car related.
My knowledge of cars is good but not great on the mechanical side although the person I would start with is.
Looking for help on where too source 1st stock and startup requirements such as liability insurance, trade plates, planning permission etc, licence too sell cars? There is not that much information on the internet.
I have a idea on what too sell, keeping them low around the 5-8K mark. 3 large main dealers near vw/audi/bmw and in a rural area with towns near by. Possibly a few 4x4 as they are suitable for the area.
Not sold cars commercially before but many privately. But I have a history off commercial sales not car related.
My knowledge of cars is good but not great on the mechanical side although the person I would start with is.
Looking for help on where too source 1st stock and startup requirements such as liability insurance, trade plates, planning permission etc, licence too sell cars? There is not that much information on the internet.
Edited by waring192 on Sunday 18th April 14:57
As I say if you work for someone else for a couple of years you'll form the contacts and knowledge to make it work, a vast amount of trade at the lower end is done through contacts and who you know rather than advertising, most main dealers (those that are not part of a group who will have a trade policy) will have traders they trust to underwrite stock, they're very unlikely to start selling to you when they don't know you.
1. Decide on your market - Classics, Sports, General, 4x4 etc
2. Get a good accountant
3. Don't bite off more than you chew - start with small premises if you can and make sure theres not too much competition around the area (although not a problem if you going to specialise)
4. As said before, have a good understanding of mechanics and if possible either have a small workshop and ramp and hire a p/t mechanic, or maybe sublet a workshop area to a mechanic so you can use their services
5. Get a good website - amazing how big you can make yourself look by a decent website - and make sure its updated regularly - it will put people off if it isn't
6. Be prepared to be flexible on price at the start and build it up, don't be afraid to lower your margins if something sticks around too long
7. Advertise!! - use the web to your advantage - Ebay is a good place to get UK coverage, just use classifieds to draw potential buyers in - look for other free websites - i.e. carandclassic.co.uk, etc
8. always offer a PX even if its a pig, start low and see how you go! Depending on what your selling some old bangers can be worth more to break and scrap then sell on
9. Make sure you HPI any P/X purchase as some owners don't even know they have a Cat C or D car on their hands
10. Make sure you have card payment facilities available, and check your charges for using them, you can lose chunks of profit if buyers spend big, you may have to charge 1 or 2% for using them, so make sure this is clearly advertised
11. Know your rights and your buyers rights - You need to be clear whats covered nder warranty, distance seller regulations etc - well worth joining something like FSB (Federation of Small Businesses) as they can provide invaluable assistance/advice.
12. Get someone like warranty direct in to do 3rd party warranties to avoid any future issues (either add to the screen price or offer it as sold as seen + additional warranty)
13. Buy stuff you enjoy, chances are if you like them you will be more positive in the sale.
14. Don't dress like an estate agent - nothing puts buyers off more than seeing some smooth Kn@bhead trying to sweet talk them into a deal
15. Enjoy it and have fun!!!
Hope that adds a few points to your list!
2. Get a good accountant
3. Don't bite off more than you chew - start with small premises if you can and make sure theres not too much competition around the area (although not a problem if you going to specialise)
4. As said before, have a good understanding of mechanics and if possible either have a small workshop and ramp and hire a p/t mechanic, or maybe sublet a workshop area to a mechanic so you can use their services
5. Get a good website - amazing how big you can make yourself look by a decent website - and make sure its updated regularly - it will put people off if it isn't
6. Be prepared to be flexible on price at the start and build it up, don't be afraid to lower your margins if something sticks around too long
7. Advertise!! - use the web to your advantage - Ebay is a good place to get UK coverage, just use classifieds to draw potential buyers in - look for other free websites - i.e. carandclassic.co.uk, etc
8. always offer a PX even if its a pig, start low and see how you go! Depending on what your selling some old bangers can be worth more to break and scrap then sell on
9. Make sure you HPI any P/X purchase as some owners don't even know they have a Cat C or D car on their hands
10. Make sure you have card payment facilities available, and check your charges for using them, you can lose chunks of profit if buyers spend big, you may have to charge 1 or 2% for using them, so make sure this is clearly advertised
11. Know your rights and your buyers rights - You need to be clear whats covered nder warranty, distance seller regulations etc - well worth joining something like FSB (Federation of Small Businesses) as they can provide invaluable assistance/advice.
12. Get someone like warranty direct in to do 3rd party warranties to avoid any future issues (either add to the screen price or offer it as sold as seen + additional warranty)
13. Buy stuff you enjoy, chances are if you like them you will be more positive in the sale.
14. Don't dress like an estate agent - nothing puts buyers off more than seeing some smooth Kn@bhead trying to sweet talk them into a deal
15. Enjoy it and have fun!!!
Hope that adds a few points to your list!
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