A couple of questions - buying and selling cars for profit
Discussion
k-ink said:
I would stick to high end performance cars. The sort which would sell here. Buy a cast iron third party warranty. Make the money on fewer large trades rather than lots of cheap ones. Not that I know much, but that is how I would like to do it personally.
The only issues with that are.1. You need the capital to do this
2. You often need the reputation and after sales to support such a sale
3. The margins might not always be so huge that you can throw on cast iron warranties and still make money
4. At this value you have a huge amount of money you can lose if you have judged the market wrongly or encounter an expensive issue
k-ink said:
I would stick to high end performance cars. The sort which would sell here. Buy a cast iron third party warranty. Make the money on fewer large trades rather than lots of cheap ones. Not that I know much, but that is how I would like to do it personally.
The probelm with those cars is that they are the type which are getting knocked down month on month in the guides. You could easily lose a lot of money very quickly with it just sitting there.The real demand and quick sellers at the moment are sub-£5k cars which do 40-50mpg. The fastest selling car I've had all year was a very tatty Fiesta TDCi which came in a a px - had at least 10 calls within 3 hours of advertising it.
All valid points I'm sure. That would mean only pulling the trigger if the price was superb in the first place. So waiting for the right car could take some time I guess.
The sort of thing I had in mind would be say a mint 968, 964 RS, that sort of enthusiast vehicle. Not a Bentley, where the buyer would demand a palace and lapdance to entertain a sale.
The sort of thing I had in mind would be say a mint 968, 964 RS, that sort of enthusiast vehicle. Not a Bentley, where the buyer would demand a palace and lapdance to entertain a sale.
Breadvan73 said:
PS - Pedantry corner: a leading question is one which supplies its own answer. Zwoelf did not ask a leading question.
No it isn't. A leading question is one that prompts or encourages the desired answer which is exactly what Zwoelf was doing.Breadvan73 said:
PPS - This thread sounds like another chapter in the saga of what the famous "friend" of the PH massive is planning, in between his assorted speeding, crashing, goatee wearing and getting fired exploits. We all have seem to have such naughty friends.
Is that OK? Is that what you wanted to hear?
It's not true but if it keeps you happy then that's good.
I'll say again for the hard of reading and the slow of brain. The purpose of the thread was to make sure I had my info correct before posting on another forum.
Thanks to all those who have clarified the situation for me
Suggesting an answer is leading, prompting an answer by careful phrasing of question is not. Source: 25 years trial lawyering.
OK, so it's your friend, and not your "friend". The thread may persuade him that being a car trader isn't a risk free get rich quick scheme. It could still be worth while, so long as he goes into it aware of the downsides.
OK, so it's your friend, and not your "friend". The thread may persuade him that being a car trader isn't a risk free get rich quick scheme. It could still be worth while, so long as he goes into it aware of the downsides.
Let's get this straight.
No it is not my friend any more than you are. It's not even someone involved in the conversation. It is an internet thread on another forum where me and another person, who is not my friend as I have never met them, are discussing the legalities of buying and selling cars as a side line. The issue arose out of a discussion on how the change in the insurance law would impact on people and one person posted that it would prevent them from continuing to trade unless they got a trade insurance policy. This person then did not post any further and me and another poster started to exchange views about it.
That is all. Neither me or anyone else I know personally (i.e. not through the internet)is planning to buy and sell cars for profit.
No it is not my friend any more than you are. It's not even someone involved in the conversation. It is an internet thread on another forum where me and another person, who is not my friend as I have never met them, are discussing the legalities of buying and selling cars as a side line. The issue arose out of a discussion on how the change in the insurance law would impact on people and one person posted that it would prevent them from continuing to trade unless they got a trade insurance policy. This person then did not post any further and me and another poster started to exchange views about it.
That is all. Neither me or anyone else I know personally (i.e. not through the internet)is planning to buy and sell cars for profit.
k-ink said:
All valid points I'm sure. That would mean only pulling the trigger if the price was superb in the first place. So waiting for the right car could take some time I guess.
The sort of thing I had in mind would be say a mint 968, 964 RS, that sort of enthusiast vehicle. Not a Bentley, where the buyer would demand a palace and lapdance to entertain a sale.
They are certainly viable cars to sell.The sort of thing I had in mind would be say a mint 968, 964 RS, that sort of enthusiast vehicle. Not a Bentley, where the buyer would demand a palace and lapdance to entertain a sale.
If you have some working capital and arguable a suitable place to sell them from it can work well.
You'd also be wise to have some spannering ability unless you know someone who can do it for good money, reliably and on time. Local would help too.
Cars like this will need a little fettling from time to time and no matter how choosy you are in buying (which you normally you can't be if in a hurry/need) then things can go wrong.
Finding stock is also the issue, as you likely won't have time or money to drive 200 miles (either with a mate or a trailer) to go view 5 different cars and buy only 1.
Devil2575 said:
The issue arose out of a discussion on how the change in the insurance law would impact on people and one person posted that it would prevent them from continuing to trade unless they got a trade insurance policy.
Just to muddy the theoretical waters a little further, whilst you may not need to have trade insurance (which comes in several different flavours) you do need to be covered by an insurance policy . . . . I can't remember ever seeing a private policy document, that allows the policy holder to drive a car in connection with motor trade activities, which as I'm sure everybody would agree, would mean that in the event of an accident, the policy holder / driver, will be putting themselves in a very actionable position and is on the same moral level as fronting (which it effectively is)300bhp/ton said:
Finding stock is also the issue
Finding stock of the right standard at the right price is the biggest issue. Most stock of that level doesnt come from auctions, more often than not, it's from other contacts in the trade who are looking for somebody to underwrite / buy their part exchanges or cars they themseleves have no real interest inDevil2575 said:
Breadvan73 said:
PS - Pedantry corner: a leading question is one which supplies its own answer. Zwoelf did not ask a leading question.
No it isn't. A leading question is one that prompts or encourages the desired answer which is exactly what Zwoelf was doing.Devil2575 said:
If they are lying from the outset then I have every reason to suspect they are telling a lot more lies.
As the post I followed it up with, providing links to the most recent OFT study into the market and their findings on the matter. The "desired answer" was that you were aware that such statements are equally dishonest and the people employing them must be approached with a healthy dose of caution.
Is there a certain number of V5's a private induvidual can pass through Swansea in a year before a computer notices and they follow it up in as much as you are a trader and not a private induvidual.
Think the most i've done in a year is about 5...but not for commercial reasons, just get bored quickly!
Think the most i've done in a year is about 5...but not for commercial reasons, just get bored quickly!
Who are "they" and what are they following up? DVLA does not enforce trading standards. Many PH posts suggest an apparent belief that the Nanny State is even more Nannyish than it really is. There is no one meta-authority that oversees everything we do (OK, there is, but it's a giant alien lizard spaceship; don't tell anyone).
theironduke said:
Is there a certain number of V5's a private induvidual can pass through Swansea in a year before a computer notices and they follow it up in as much as you are a trader and not a private induvidual.
Think the most i've done in a year is about 5...but not for commercial reasons, just get bored quickly!
No I don't think there is to your first question.Think the most i've done in a year is about 5...but not for commercial reasons, just get bored quickly!
But yes you are "trading" in cars even if it's for non profit purposes.
Breadvan73 said:
There is no magic number either way. You are either in business or you aren't.
doesn’t matter if you sell one car or 12 in a year, as soon as you buy one to sell on for a profit, then you are by definition a motor trader.DVLA doesn’t have a magic number, however HMRC do keep an electronic eye on people selling cars . . . . .and they are the only organisation in the UK I wouldn’t want to mess with
theironduke said:
Is there a certain number of V5's a private induvidual can pass through Swansea in a year before a computer notices and they follow it up in as much as you are a trader and not a private induvidual.
There's no restriction on how often a private individual can change a vehicle, or buy another one, or sell one currently owned. They just do the administration. Traders don't register cars to themselves, which is why it tends to be safest to assume that if when looking at a car on the private market, the seller is not the person named on the V5C and the address is not the one you are viewing the car at, then you are more than likely dealing with a trader of some sort.
Registering a car takes time and adds another registered keeper to the V5C, so it can reduce sale appeal, the vehicle's value, make a sale more difficult/reduce customer confidence in you as a seller if you are not in possession of the full V5C (if a person only has the V5C/2 "green slip" why are they selling before the ink's dry on the deal so to speak?) and also increase the time taken to turn a vehicle around, none of which are particularly conducive to business and the profitability thereof.
k-ink said:
All valid points I'm sure. That would mean only pulling the trigger if the price was superb in the first place. So waiting for the right car could take some time I guess.
The sort of thing I had in mind would be say a mint 968, 964 RS, that sort of enthusiast vehicle. Not a Bentley, where the buyer would demand a palace and lapdance to entertain a sale.
A good RHD 964 RS is now around £100k, buyers for them are tremendously picky and demand a serious level of knowledge and expertise, not the kind of car I would recommend starting off in the trade with.The sort of thing I had in mind would be say a mint 968, 964 RS, that sort of enthusiast vehicle. Not a Bentley, where the buyer would demand a palace and lapdance to entertain a sale.
Gassing Station | General Gassing | Top of Page | What's New | My Stuff