Advice on Becoming Part-Time Trader
Discussion
Hi guys, a bit of background about me. I'm late 30's, have always enjoyed fixing up cars and am looking to turn my hobby into a business. I am under no illusions it will be hard work without a guarantee of success so the goal is to start off part-time, keeping my full time job, keeping costs low, while I see how things go. I do want to be an above board trader from the start though, offering cars with a warranty for peace of mind, etc.
There's a few good threads on here with the fundamentals of starting out, etc. so I have a rough idea of what's required (I've ran a few IT contracting LTD's so know what's required on the accounts side of things). BUT I wanted to run my business plan by you guys and get your thoughts if you don't mind. Constructive feedback welcome
In general I want to offer modern classics (90's era) coupes and convertibles. I think having a niche is a good plan and will let me focus on a few core models at first (MR2, MX5, MG, etc.). I'm looking to find fundamentally good cars that need work to bring up to scratch. So something with good history, low/average miles/owners but has body/mechanical/presentation issues (no write offs) then fix any issues, full service, MOT, valet, polish, etc. the works.The goal being restore them back to their former glory on a sensible budget, build a good reputation and learn the ropes. Not chasing profit yet but working towards being able to jack in my soul destroying IT job eventually if it works out.
As I'm starting out the goal will be to learn rather than take any big risks so I'm thinking get something worth a bit fixed up but relatively cheap to buy when they need sorting out - MK1 MX5 being a good example.
I have a double garage at home with a pit and some storage around the side of the house. It's presentable so initially to keep costs low I plan on starting out from home (but as a trader as I mentioned). If things work out I'll upgrade but the goal is keep costs down in the early stages so it doesn't make sense to rent somewhere bigger at the moment.
What do you reckon?
There's a few good threads on here with the fundamentals of starting out, etc. so I have a rough idea of what's required (I've ran a few IT contracting LTD's so know what's required on the accounts side of things). BUT I wanted to run my business plan by you guys and get your thoughts if you don't mind. Constructive feedback welcome
In general I want to offer modern classics (90's era) coupes and convertibles. I think having a niche is a good plan and will let me focus on a few core models at first (MR2, MX5, MG, etc.). I'm looking to find fundamentally good cars that need work to bring up to scratch. So something with good history, low/average miles/owners but has body/mechanical/presentation issues (no write offs) then fix any issues, full service, MOT, valet, polish, etc. the works.The goal being restore them back to their former glory on a sensible budget, build a good reputation and learn the ropes. Not chasing profit yet but working towards being able to jack in my soul destroying IT job eventually if it works out.
As I'm starting out the goal will be to learn rather than take any big risks so I'm thinking get something worth a bit fixed up but relatively cheap to buy when they need sorting out - MK1 MX5 being a good example.
I have a double garage at home with a pit and some storage around the side of the house. It's presentable so initially to keep costs low I plan on starting out from home (but as a trader as I mentioned). If things work out I'll upgrade but the goal is keep costs down in the early stages so it doesn't make sense to rent somewhere bigger at the moment.
What do you reckon?
As a trader you have many more responsibilities.
article said:
THE CONSUMER RIGHTS ACT
Replacing the Sale of Goods Act, this recent legislation provides further protection for buyers, including anything from a toaster to a transit van.
The scope of the act is wide-ranging, but can be summed up by demanding that all products must be:
Fit for purpose
Of satisfactory quality
As described
If a car does not meet these standards, then buyers are entitled to reject it within the first 30 days of purchase. They are also entitled to a refund. This applies to both brand new cars and second hand vehicles.
In addition, you will be liable for faults with the vehicle that were present at the time it was sold. This even applies if they only become apparent later on.
I think you'd only need a couple of 'problem' buyers to cause you angst and you may reassess whether it's all worth it.Replacing the Sale of Goods Act, this recent legislation provides further protection for buyers, including anything from a toaster to a transit van.
The scope of the act is wide-ranging, but can be summed up by demanding that all products must be:
Fit for purpose
Of satisfactory quality
As described
If a car does not meet these standards, then buyers are entitled to reject it within the first 30 days of purchase. They are also entitled to a refund. This applies to both brand new cars and second hand vehicles.
In addition, you will be liable for faults with the vehicle that were present at the time it was sold. This even applies if they only become apparent later on.
While there are certainly potential issues with problem buyers and the like, I wouldn't let that put you off. There are thousands of car traders out there making a living from this.
Your idea sounds very similar to something I would like to do one day, and I also work in the IT industry, go figure.
I think you are actually less likely to get problem buyers when selling more niche cars, so your idea of 90's coupe's and convertibles sounds pretty good to me.
Your idea sounds very similar to something I would like to do one day, and I also work in the IT industry, go figure.
I think you are actually less likely to get problem buyers when selling more niche cars, so your idea of 90's coupe's and convertibles sounds pretty good to me.
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