Thinking of Starting a Used Car Buyer Advisory Service
Thinking of Starting a Used Car Buyer Advisory Service
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GallantMotors

Original Poster:

29 posts

1 month

Wednesday 30th July
quotequote all
Hi everyone,

I’m a former used car salesman here in the UK. I’m considering starting a small online advisory service to help regular people (especially first-time buyers or those buying privately) navigate the used car market more confidently.

The idea is to offer affordable support like helping find the right car, background checks (MOT/HPI), common model-specific issues, price negotiation tips, and even joining the customer remotely via video call for viewings if needed.

It’d be independent advice, not tied to any dealer or seller, more like a trusted car-savvy friend who’s on your side.

I’d really appreciate your honest thoughts:

• Would a service like this be useful?
• What would you want included?
• Any price range you’d expect to pay for this kind of help?

Thanks a lot in advance for your feedback!

GT03ROB

13,830 posts

237 months

Wednesday 30th July
quotequote all
What liability will you take?

GallantMotors

Original Poster:

29 posts

1 month

Wednesday 30th July
quotequote all
I was thinking that my liability would be managed through clear terms and conditions that define the scope of our service, and we would also carry Professional Indemnity Insurance to cover any claims arising from negligent advice.

Also, by partnering with reputable HPI and pre-purchase inspection companies, I would leverage their guarantees for the data and physical checks they provide, adding another layer of protection for clients too.

LimaDelta

7,410 posts

234 months

Wednesday 30th July
quotequote all
It should cost the buyer nothing. In fact, it should save them money.

I considered a similar service for buying larger yachts, the theory being I leverage my experience in the industry to negotiate a lower price (find things less experienced buyers might not find), and my commission would be a percentage of the money saved.

For example £50k car, you haggle the price down to £48k, you take £1k, buyer has saved £1k. I guess all you would be doing though is what most motor dealers do, just dressed up slightly differently.

If you could do that with cars I think people might use it. I'm not sure anyone would pay for such a service though.

GallantMotors

Original Poster:

29 posts

1 month

Wednesday 30th July
quotequote all
LimaDelta said:
It should cost the buyer nothing. In fact, it should save them money.

I considered a similar service for buying larger yachts, the theory being I leverage my experience in the industry to negotiate a lower price (find things less experienced buyers might not find), and my commission would be a percentage of the money saved.

For example £50k car, you haggle the price down to £48k, you take £1k, buyer has saved £1k. I guess all you would be doing though is what most motor dealers do, just dressed up slightly differently.

If you could do that with cars I think people might use it. I'm not sure anyone would pay for such a service though.
I really appreciate your reply thank you.

How did your research and execution go with the larger yachts business?

I guess so yeah, just that I won't have an actual lot and will be on the customers side more than a dealer so to speak. Just going off general sentiment for used car dealers.

I'm also wanting this to be completely online and remote so I don't feel I can haggle so to speak without doing an inspection myself.

The service is basically cutting out the research and searching aspect of car buying (sources suggest the average person takes 14 hours to find a car)


LimaDelta

7,410 posts

234 months

Wednesday 30th July
quotequote all
GallantMotors said:
LimaDelta said:
It should cost the buyer nothing. In fact, it should save them money.

I considered a similar service for buying larger yachts, the theory being I leverage my experience in the industry to negotiate a lower price (find things less experienced buyers might not find), and my commission would be a percentage of the money saved.

For example £50k car, you haggle the price down to £48k, you take £1k, buyer has saved £1k. I guess all you would be doing though is what most motor dealers do, just dressed up slightly differently.

If you could do that with cars I think people might use it. I'm not sure anyone would pay for such a service though.
I really appreciate your reply thank you.

How did your research and execution go with the larger yachts business?

I guess so yeah, just that I won't have an actual lot and will be on the customers side more than a dealer so to speak. Just going off general sentiment for used car dealers.

I'm also wanting this to be completely online and remote so I don't feel I can haggle so to speak without doing an inspection myself.

The service is basically cutting out the research and searching aspect of car buying (sources suggest the average person takes 14 hours to find a car)
It's not something I've actively pursued yet, as it would conflict a bit with the day job. However, my plan was definitely to work in person rather than online. To visit the yacht and carry out thorough inspections, almost like a complete survey. It is a much lower volume market though compared with cars, so probably not that helpful really.

FlyingPanda

512 posts

106 months

Wednesday 30th July
quotequote all
Business Consultant Here! The thing most people overlook when looking at starting a small business such as this is the cost of customer-acquisition. Whilst I could see a (limited) appeal for the service, my first thought would be, how do you find the customers? Anyone who's likely to need the service is unlikely to be a car nerd, so you're going to be advertising very widely in the hope that they find you. Obviously people like AA and RAC can offer it (or something broadly similar) to their existing database of members so that's easy for them. (I know it's not a great service, but again, non-car nerds won't know that).

So that's where I'd start - think abut how to reach them, look at what that might cost (per paying customer, not per enquiry) and then see how much you'd need to make to generate a profit. It might be a sobering calculation.

paul_c123

995 posts

9 months

Wednesday 30th July
quotequote all
Don't really have any solid evidence as such, but in my opinion this would be a non-starter. I don't think you'd be able to get insurance, and if so what's it covering anyway? It just adds a layer of confusion if a secondhand car later goes faulty. I think buyers would more likely seek a third party warranty (I know, full of holes.....but its a more direct kind of insurance), than have someone online/remote coaching them on the purchase and seeking some kind of future protection from them.

Also, if you're acting as an intermediary, what's to prevent the buyer and seller (once they meet in person) sidestepping you and ghosting you? Payment up front? The other traditional intermediary, in car trading terms, of course is auction houses. They are able to take possession of the vehicle and take control of the sale process for themselves, including preventing contact with the original seller. Also, there is a trend overall to move away from consumers, and focus more on trade-trade - I suspect Covid was a gift for the likes of BCA and Manheim, who were almost there with online sales anyway and were able to capitalise on it and chop of private buyers in the process, and to their benefit. And they are also legitimately able to avoid CRA2015 responsibilities.

I don't know if the likes of AA Inspections are more or less popular now, but AA is a huge household name and has market position and reputation. You'd be kinda competing with them too.

There's lots of what-ifs. What if your customer/the buyer decides not to take your advice? What if the seller declines to proceed with the deal with your involvement? What if you're presented with a situation where you just don't know the answer, or can't know because of the limitations of doing it remotely? What about business information, eg accurate market trends on pricing, how is this different to Auto Trader valuations (which have an enormous pool of data behind them, but are still perceived as sometimes inaccurate by the trade; or the lag or limitations of CAP data? How is a one-man-band going to better them?

And also, with the internet, there is an awful lot of "free" advice out there now, of varying quality. How are your potential customers going to perceive your service as a valuable extra?

And lastly, advertising, how are your potential customers going to even find you? The people who need the advice the most, are the ones who are least likely to seek it.

AddyT.

250 posts

109 months

Wednesday 30th July
quotequote all
I think it's a good idea as have myself considered doing something like YT reviews of used cars I have owned to give people an honest perspective of them to help them make a more informed decision as no one really seems to do them....finding a niche I guess. However, hadn't considered the practicalities of your venture so the other posters do make sense with the points they have raised smile And of course remembering, over 90% of car buyers in the UK don't give a crap (sadly) with what they drive, frustrating as this is for us on here!

Countdown

44,760 posts

212 months

Wednesday 30th July
quotequote all
GallantMotors said:
Hi everyone,

I m a former used car salesman here in the UK. I m considering starting a small online advisory service to help regular people (especially first-time buyers or those buying privately) navigate the used car market more confidently.

The idea is to offer affordable support like helping find the right car, background checks (MOT/HPI), common model-specific issues, price negotiation tips, and even joining the customer remotely via video call for viewings if needed.

It d be independent advice, not tied to any dealer or seller, more like a trusted car-savvy friend who s on your side.

I d really appreciate your honest thoughts:

Would a service like this be useful?
What would you want included?
Any price range you d expect to pay for this kind of help?

Thanks a lot in advance for your feedback!
I hate to sound so negative but everything you’re offering most people will be able to access quite easily. E.g

Internet to find cars (PH or autotrader)
HPI or CarVertical
Google for common model issues
Price negotiations have become much harder because cars are usually priced keenly

And rather than video call I’d prefer to pay for an inspection by a time served mechanic.

Why not offer your services as a car salesman instead ie sourcing high quality cars at good prices and selling them with comprehensive warranties?

georgeyboy12345

3,950 posts

51 months

Wednesday 30th July
quotequote all
I’d think a bit harder and try and come up with a better way to make money

Simon_GH

770 posts

96 months

Wednesday 30th July
quotequote all
Will you still leave the buyer with the issue of seeking their existing car? This forum has no shortage of question along the lines or ‘should I fix this expensive fault or just p/x the car’. You may not want to attract these sort of customers.

covmutley

3,227 posts

206 months

Thursday 31st July
quotequote all
Countdown said:
I hate to sound so negative but everything you re offering most people will be able to access quite easily. E.g

Internet to find cars (PH or autotrader)
HPI or CarVertical
Google for common model issues
Price negotiations have become much harder because cars are usually priced keenly

And rather than video call I d prefer to pay for an inspection by a time served mechanic.

Why not offer your services as a car salesman instead ie sourcing high quality cars at good prices and selling them with comprehensive warranties?
Yes, but all of which assumes people know these services exist, want to spend time searching, and even know what cars exist! I would say that a lot of the replies ere are through the eyes of car enthusiasts.

With new car prices rocketing, I think more people are going to be venturing into the used market. Plus, the market is now very complicated with ice, hybrid, ev.

I can well see some people paying for some advice on a 5 figure purchase. Also, I assume the cost to entry here is low- just a basic website? Perhaps just do it and see?

Don Roque

18,137 posts

175 months

Thursday 31st July
quotequote all
GT03ROB said:
What liability will you take?
The fact that this is the first question asked should probably indicate that this will be the biggest issue for your business - the fact that some customers will assume or believe that you should be liable for should some fault arise that you 'could or should' have spotted.

Irrespective of however genuine your advice is and whatever indemnity you stipulate, Joe Public will always look for someone to blame when the wheel comes off. I can foresee that being a significant hassle.

Chris_i8

2,219 posts

209 months

Thursday 31st July
quotequote all
I gave this ago a couple of years back alongside my other business...helped a handful of people but long story short - I wouldn't waste your time.

911Spanker

2,620 posts

32 months

Thursday 31st July
quotequote all
Total waste of time.

1690cc

166 posts

32 months

Thursday 31st July
quotequote all
For a non car person to see value I would suggest the service would need to be.

  • They give you a budget and details of their intended use.
  • You short list a number of actual physical cars for sale that might meet that brief.
  • More discussion with them further to the short listing which might mean short listing alternatives once their focus has been refined having seen the first shortlist.
  • You then negotiate the price and deal with the transaction with the seller.
  • You then arrange delivery to the customer along with a guarantee / warranty of some kind to reassure them that if it's a lemon then the problem is yours not theirs.
All this for a fixed fee.

I could see some people going for that if they can be made to understand just how much hassle you are taking away from them.

However, as already mentioned how are you finding these 'customers' it would either mean starting very small and waiting for word of mouth of a chunky advertising spend.

SuperTee

4 posts

18 months

Thursday 31st July
quotequote all
Worth a shot. Probably works if tagged onto the side of something else.

I follow this chap on YouTube who offers a similar service.
https://www.notaguru.co.uk/
https://youtube.com/@definitelynotaguru?si=42eF2eq...

paul_c123

995 posts

9 months

Thursday 31st July
quotequote all
By offering some kind of warranty service or trying to add value to get a more reliable than average car, you are trying to predict the future. Dealers do it all the time but have a healthy margin on each sale.

Also bear this in mind: you can have a problematic/issue riddled car be 100% reliable. As in, it may need thousands spent and many trips to a repair shop/garage, many new parts etc, but because the issues are spotted in time, and/or don't actually cause a breakdown, it never breaks down, therefore is 100% reliable.

By that same analogy you can have an almost trouble free car with a good reputation break down, because something that would have been spotted by the owner of the above example, got overlooked. Guess what kind of owner would overlook such a problem, the car-knowledgeable who wouldn't use your service, or the inexperienced one?


ADJimbo

639 posts

202 months

Friday 1st August
quotequote all
You need to have a think about the legalities of this as well, and the problems it could cause your customer.

A potential scenario;

You source a vehicle for your customer where you appraise the vehicle and negotiate its purchase and commercials from the dealer concerned.

The vehicle then borks further down the line and your customer wants to back it under CRA(2015) - it leaves a potential weak position for you and your customer whom are then exposed. The dealer could, quite rightly, argue that as you’re a business, the purchase falls under a B2B transaction (as you’re the professional) opposed to a B2C transaction, and therefore consumer rights do not come into play here. You could obviously defend this under the ‘follow the money’ argument but it could/would inject significant doubt into the equation should litigation occur over whom was the actual customer - the consultant or the consumer?

I know I’m being a neigh-sayer and a prophet of doom to your plans, but it’s something that ‘could’ happen further down the line.