How do I make a living out of this?
How do I make a living out of this?
Author
Discussion

jamesallum

Original Poster:

313 posts

240 months

Tuesday 6th March 2007
quotequote all
‘noon all.

Hoping for a few free pointers. Sure this will open a big old can of worms but I’ve been thinking about getting into the motor trade for sometime now. Been lucky enough to have a decent enough career in IT sales but find it unfulfilling. Buying and selling fast German cars though, well that does float my boat.

Pretty sure I understand all the basics about starting a business but where can I find out specifics about starting a retail business in the motor trade? Henry, have you written your autobiography yet? laugh

Ta v much,
J


Edited by jamesallum on Tuesday 6th March 17:22

Merritt

1,669 posts

268 months

Tuesday 6th March 2007
quotequote all
jamesallum said:
‘noon all.

Hoping for a few free pointers. etc...

Pretty sure I understand all the basics about starting a business but where can I find out specifics about starting a retail business in the motor trade? Henry, have you written your autobiography yet? laugh

Ta v much,
J



Rule number 1 - don't ask the prospective competition for advice on how to set up in competition hehe

968csreading

3,088 posts

248 months

Tuesday 6th March 2007
quotequote all
I am in the IT industry and it is very quiet for us at the moment so ways of making money are always on my mind.

The way I see it is that you would need to be able to buy cars that might need a little bit of work doing to them. That way it must be easier to maximise your profit. However, unless you can do the work yourself this must be impossible.

Selling decent Porsches must be hard work because most buyers know what they want and would spot a duffer a mile away. Not like buying and selling run of the mill cars I would suspect.

If you are earning good money wouldnt you be better off just enjoying driving and owning a Porsche?

Globulator

13,847 posts

261 months

Tuesday 6th March 2007
quotequote all
jamesallum said:
‘noon all.

Hoping for a few free pointers. Sure this will open a big old can of worms but I’ve been thinking about getting into the motor trade for sometime now. Been lucky enough to have a decent enough career in IT sales but find it unfulfilling. Buying and selling fast German cars though, well that does float my boat.

Pretty sure I understand all the basics about starting a business but where can I find out specifics about starting a retail business in the motor trade? Henry, have you written your autobiography yet? laugh

Ta v much,
J
To be honest, if you can avoid all the scans the art of selling, premises and keeping the money safe when buying is doable. Probably better then many.

It appears that the real skill and art to the job is in the buying of stock. That's when you really make or lose the money I think, and you need more than pure commonsense to do that.

It may be easier to start up in new car sales as maybe a franchise, if you can identify an area that needs one. Or parts - genuine Bosche and Porsche Parts at Pelican Parts prices would be a big attraction.... maybe Pelican wants to open a branch here?!

nel

4,830 posts

271 months

Tuesday 6th March 2007
quotequote all
It's worth searching the forum - I recall a thread along these lines about a year and a half ago. Henry contributed much wisdom and reality at the time.

vpr

3,933 posts

268 months

Tuesday 6th March 2007
quotequote all
You'll find it hard to get a lender. Banks etc don't like cars as they move around. If you're cash rich then you'll be fine anyhow.

As someone stated the single most difficult aspect is finding stock....there's not much cream out there and when you find it everyone else will be after it so it'll be too dear. Keep your x's down to a bare minimum.

VR6-er

2,248 posts

270 months

Tuesday 6th March 2007
quotequote all
Best to get into an OPC for a year, then a semi volume franchise BMW - Merc. This way you get paid to get experienced and the risk is not with your cash.

What are you selling in IT?

johnfm

13,751 posts

280 months

Tuesday 6th March 2007
quotequote all
Do you think that buying and selling cars will be less dull than IT??

clinchy

193 posts

240 months

Tuesday 6th March 2007
quotequote all
If you think the IT industry is quiet at the moment then dont even think about the motor industry
Been selling cars since 1988, This is one of the quietest new plate issue for a good while,and most dealers are very over stocked with used cars ,so much so that trying to get a bmw /merc and most other prestige cars under-writen by main dealers is imposible

Even down to cars costing a £1000 or less that we put to auction ,Which always sell are not moving

Yes!!cheap cars are out their, but that does not mean they are selling

Just looked back at this ,Oh dear I did have a bad day

Be Cautious I my advice


drybeer

962 posts

255 months

Tuesday 6th March 2007
quotequote all
Sadly if you WERE cash rich, you might think it foolish to get into the motor trade unless you DREAM of doing it...

The return per unit can be dismal.

You might not get enough stock.

You might be in the wrong area of the country to set up selling fast German cars... (I am)

However, I have the motor trade know how...

You have the IT know how to set up a killer web site...

Lets make lots of money!!

testarossa

1,050 posts

251 months

Tuesday 6th March 2007
quotequote all
Pet shop boys will be turning in their grave, if they were dead anyway.

Where are you based? I would love to be a part of this venture, I'd work weekends selling cool cars (lifelong ambition!)

nervous

24,050 posts

260 months

Tuesday 6th March 2007
quotequote all
i can be the cool, good looking one that everyone likes.

what? shut up. i can have lessons.

softinthehead

1,550 posts

269 months

Tuesday 6th March 2007
quotequote all
you dont look anything like annie lennox.








......hang on a moment

magic torch

5,781 posts

252 months

Tuesday 6th March 2007
quotequote all
Getting out of IT is a smart move, but into car sales??

There's easier ways to make a living.

jeweller

37 posts

240 months

Tuesday 6th March 2007
quotequote all
Its easy

Pay at least £ 5k less than a car is worth at trade in/canvassing.

Charge at least £ 5k more than its worth at sale time.

Dont use your own money as then when it goes all wrong you walk away and start again.

Buy a flashy website and whitewash the inside of some obscure industrial unit in a small village miles from anywhere.

Buy a few Porsche Posters and a decent coffee machine to justify your price.

Back your warranty off to some 3rd party that will only cover you for the 1st 3 miles.

Now the hard bit!

Knowing what will sell, just look at the forums with the endless speculation on the correct price and desirable model.

Are you confident that in 2 years time the Viper Green GT3 RS will still look cool and will fly out of the showroom? ( IMHO i think it will be cool for ever!)

So my advise comes from my Brother in Law (Dealer principle for a German mark)

Cars are depreciating assets (exclude 2.7RS , etc), Therefore need to push then quick.
When selling the car is always woth less, when buying always worth more (simple supply/demand)
Never employ anyone who actually likes cars, this leads to them stocking what they like, not everbody else.

Jeweller

melv

4,708 posts

295 months

Tuesday 6th March 2007
quotequote all
banghead

Best post I've read all day......laugh

drybeer

962 posts

255 months

Tuesday 6th March 2007
quotequote all
testarossa said:
Pet shop boys will be turning in their grave, if they were dead anyway.

Where are you based? I would love to be a part of this venture, I'd work weekends selling cool cars (lifelong ambition!)


Now, Pet Shop Boys dead...

Actually that sounds like a better money making scheme than the car selling...




Based in Dumfries & Galloway...


You know - that haven for Porsche driving nuts with money to spend making us rich...

No - sorry - got mixed up - that'll be the south of the country then...

You'd need to work more than weekends!!

It's hard work this - honest guv.



Edited by drybeer on Tuesday 6th March 20:52

drybeer

962 posts

255 months

Tuesday 6th March 2007
quotequote all
jeweller said:
Its easy

Pay at least £ 5k less than a car is worth at trade in/canvassing.

Charge at least £ 5k more than its worth at sale time.

Dont use your own money as then when it goes all wrong you walk away and start again.

Buy a flashy website and whitewash the inside of some obscure industrial unit in a small village miles from anywhere.

Buy a few Porsche Posters and a decent coffee machine to justify your price.

Back your warranty off to some 3rd party that will only cover you for the 1st 3 miles.

Now the hard bit!

Knowing what will sell, just look at the forums with the endless speculation on the correct price and desirable model.

Are you confident that in 2 years time the Viper Green GT3 RS will still look cool and will fly out of the showroom? ( IMHO i think it will be cool for ever!)

So my advise comes from my Brother in Law (Dealer principle for a German mark)

Cars are depreciating assets (exclude 2.7RS , etc), Therefore need to push then quick.
When selling the car is always woth less, when buying always worth more (simple supply/demand)
Never employ anyone who actually likes cars, this leads to them stocking what they like, not everbody else.

Jeweller



He hath more knowledge than he doth knoweth... or something...

Wow.

That's a scarily good description of how the motor trade does work...

Except who's money do we use?

What small village (with no gays in it - even single ones) do we do it in?

And where can we buy these 911 GT3 RS and so on for £5k less than they are worth, and sell for £5k more than retail?

Have you a source?

No joking, have you?

Sounds idylic...


w1how

1,507 posts

245 months

Tuesday 6th March 2007
quotequote all
If you have little experience of the motor trade then dont set up selling expensive cars-you will get your fingers burned!!

Best to work at a prestige dealership for a while to learn the ropes or start with cheaper cars.

I am a trader,but in a small way.I dont have any employees-if I need things doing(valeting,paintwork dent removal etc)then I bring people in and pay per job.That way I keep overheads low.Ive been buying and selling cars for 20 years but still get caught out by a bad car every now and again.

As far as profit is concerned then its not as great as you may think for the outlay/grief/overheads etc.I am lucky that I have quite a few properties which pretty much run themselves and boost my income considerably.I really enjoy buying and selling cars of all types and prices but if it was my only income then it would not provide enough.

Will

POORCARDEALER

8,667 posts

271 months

Tuesday 6th March 2007
quotequote all


A thought for you to ponder......many of my friends who have been in the motortrade for many years and have a few quid (say £1M cash upwards available) are doing other things and have turned their back on the motortrade......you can make a decent living, but your investment in time and money will be huge, and you will make serious expensive mistakes along the way, the enthusiasm for whatever you are selling will wane in time, and something you really enjoyed as a hobby, will become less enjoyable as a job.......I still do it because I enjoy it, but the bulk of my income comes from other things..........if I was under severe pressure to make it pay to pay a mortgage etc I seriously doubt I would be doing it. One advantage of not been in the motortrade before is you wont remember just how profitable it was in years gone by, which is why many traders no longer do it, as the rewards for the effort and hassle are nothing like what they were.

If you do decide to go for it, go in with your eyes wide open, and good luck.