New Business Idea - Car Sales Agency
Discussion
Hello All,
I'm currently doing some research on a new business idea that I have been thinking of setting up for a few years now...
In a nutshell I would act as an agent selling peoples cars for them - similar to an estate agent selling houses.
I would only be interested in selling cars that have a minimum value of £8k, and would try to specialise in higher value cars.
I know that there are a handful of others who offer a similar service, and some garages/showrooms offer to sell peoples cars for them on a sale or return basis... But my service would be slightly different.
This is how I see it working:
> A potential client calls me, interested in me selling their car on their behalf.
> I arrange to visit them to take a look at the car and paperwork.
> I go away and research the cars true value.
> I call the client and give them a minimum and maximum amount that I think the car would sell for.
> The client instructs me to sell the car... At this stage the client can either keep the car at their address, or I move it to my premises.
> I then prepare the car for sale (valet etc..) advertise the car for sale, deal with all enquiries and viewings.
> Once the car is sold I deal with all paperwork and take payment for the car by secure bank transfer.
The fee for the service would be 5% of the cars sale price, but with a minimum fee of £950.
The above is just a brief overview of how I see it working... Obviously there are lots of if's, but's, how's and when's etc..
Do you think this idea is viable?
As I say - I know of others who offer similar, but I think there is a gap for this type of service within the area that I live.
Thanks for reading
I'm currently doing some research on a new business idea that I have been thinking of setting up for a few years now...
In a nutshell I would act as an agent selling peoples cars for them - similar to an estate agent selling houses.
I would only be interested in selling cars that have a minimum value of £8k, and would try to specialise in higher value cars.
I know that there are a handful of others who offer a similar service, and some garages/showrooms offer to sell peoples cars for them on a sale or return basis... But my service would be slightly different.
This is how I see it working:
> A potential client calls me, interested in me selling their car on their behalf.
> I arrange to visit them to take a look at the car and paperwork.
> I go away and research the cars true value.
> I call the client and give them a minimum and maximum amount that I think the car would sell for.
> The client instructs me to sell the car... At this stage the client can either keep the car at their address, or I move it to my premises.
> I then prepare the car for sale (valet etc..) advertise the car for sale, deal with all enquiries and viewings.
> Once the car is sold I deal with all paperwork and take payment for the car by secure bank transfer.
The fee for the service would be 5% of the cars sale price, but with a minimum fee of £950.
The above is just a brief overview of how I see it working... Obviously there are lots of if's, but's, how's and when's etc..
Do you think this idea is viable?
As I say - I know of others who offer similar, but I think there is a gap for this type of service within the area that I live.
Thanks for reading
5% of £8000 is £400, so if you sold a car for £8000, you'd want over 10% of the sale price? You'd have to sell £19000 cars to get the £950 minimum fee, or have i missed something?
Sums aside, I think it would be an OK idea... but you'd have to be an expert and pitch yourself to classic, sports performance and 'rare' car owners.
Sums aside, I think it would be an OK idea... but you'd have to be an expert and pitch yourself to classic, sports performance and 'rare' car owners.
charltjr said:
What's in it for me? What's to stop you just vanishing with my car? If I want to sell my car on a sale or return basis without the hassle of a private sale why wouldn't I just ask a local dealer to handle it for me or go to WBAC?
Good questions.I obviously wouldn't vanish with anyones car, but yes that could be a concern so a legal agreement would be signed by both the client and myself.
Not all dealers offer sale or return and those that do have their own stock with their own money tied up in it so they wouldn't focus on selling your car as much.
We buy any car? That's for desperate sellers... They only offer about 70% of the cars true value at best!
I would be targeting people with money who don't have the time to sell their own car and would rather have someone else do it for them.
A few points! Are you in the trade at the moment? If not have you any experience within the motor industry?
If a customer wants to finance a car have you got a CCL in place?
If a customer has another car to part exchange do you have the facility to purchase the px and pay out the owner of the car you've sold?
Have you considered the cost of advertising & valeting customers cars that potentially wont sell and the client takes them back?
Just a thought!
If a customer wants to finance a car have you got a CCL in place?
If a customer has another car to part exchange do you have the facility to purchase the px and pay out the owner of the car you've sold?
Have you considered the cost of advertising & valeting customers cars that potentially wont sell and the client takes them back?
Just a thought!
vikingaero said:
It sounds like the OP has never had any experience as a car dealer/salesman. I would work as a salesman for a year and then decide whether your business plan is viable.
Hi everyone... Thanks for your comments - I'm taking it all in as constructive.The above statement is false though... I have experience in the motor trade.
This is a US company doing what you're proposing but using technology: https://www.beepi.com/sell/
US-only for now but shouldn't be hard to replicate in the UK. Give me a shout if you decide to give it a go! I'm keen to follow the process.
US-only for now but shouldn't be hard to replicate in the UK. Give me a shout if you decide to give it a go! I'm keen to follow the process.
I had a car for sale at £19995. When it had been on AT for a couple of weeks, a gent called me and offered me a service where he would come and prep the car for sale to a higher standard, take pics, advertise it and aim to sell it for more. If he did, then I would get my asking price and he would keep the rest.
He did a good valet on it, better pictures and a much better ad. He was able to offer finance and warranties. He sold it for £21,995 and paid me my full asking before the car, keys or docs were out of my possession.
That was a good service for me
He did a good valet on it, better pictures and a much better ad. He was able to offer finance and warranties. He sold it for £21,995 and paid me my full asking before the car, keys or docs were out of my possession.
That was a good service for me
JPJPJP said:
I had a car for sale at £19995. When it had been on AT for a couple of weeks, a gent called me and offered me a service where he would come and prep the car for sale to a higher standard, take pics, advertise it and aim to sell it for more. If he did, then I would get my asking price and he would keep the rest.
He did a good valet on it, better pictures and a much better ad. He was able to offer finance and warranties. He sold it for £21,995 and paid me my full asking before the car, keys or docs were out of my possession.
That was a good service for me
That sounds like a good deal to me. Did he claim an exclusive on selling it or could you do a deal without him at your original asking price.He did a good valet on it, better pictures and a much better ad. He was able to offer finance and warranties. He sold it for £21,995 and paid me my full asking before the car, keys or docs were out of my possession.
That was a good service for me
andrewjames said:
... I have experience in the motor trade.
What experience though? Is it relevant?I have been in or around the MT for well over 30 years, would I try what you are trying to achieve? No chance!
Good luck though, no doubt this thread (and you?) will disappear like the myriad of other posts like this in the past.
Advertising will be a major expense and if you don't sell the car that will come out of your pocket. What about any remedial work required, who's going to pay for that? Work will probably need to be done before buyer agrees deal/pays deposit.
Edited by Jagmanv12 on Saturday 6th June 18:51
JPJPJP said:
I had a car for sale at £19995. When it had been on AT for a couple of weeks, a gent called me and offered me a service where he would come and prep the car for sale to a higher standard, take pics, advertise it and aim to sell it for more. If he did, then I would get my asking price and he would keep the rest.
He did a good valet on it, better pictures and a much better ad. He was able to offer finance and warranties. He sold it for £21,995 and paid me my full asking before the car, keys or docs were out of my possession.
That was a good service for me
So a bit of evidence that a similar concept works...He did a good valet on it, better pictures and a much better ad. He was able to offer finance and warranties. He sold it for £21,995 and paid me my full asking before the car, keys or docs were out of my possession.
That was a good service for me
Did he show the potential buyers the car or did you?
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