New Motor Trader - Car Supply Required ASAP!!!

[IAY]

Hi All,
 
I hope you are all well.
 
Having recently lost my job (organisation re-structure because of COVID-19) and with a young family to support, I have finally decided to buy and sell cars. I have invested in Motor Trade Insurance and a set of DVLA Trade Plates. I am from
Huddersfield, West Yorkshire and have over 15 years motor trade experience (mechanical repairs). I have sold my own cars alongside friends and families - whom have approached me to sell their cars.
 
The stumbling block now for me like many others is where to source cheap, good cars that I can turn a decent profit on. The Auctions are a no go area at present for beginners like me. I have a maximum budget of £2,000 to buy a car to sell which I would expect to make around a £400 to £500 profit on. Anything above would be a bonus!

I am also interested in working with Fleet Management or Vehicle Lease companies to sell their end of lease contract vehicles which would otherwise end up at an auction site. Each vehicle would be sold for its full Retail Value rather than an Auction/Trade Value + Auction Selling Fees applied on top. With my selling commission deducted from the final sale price, the vehicle lease company would still achieve a significantly higher value per vehicle than they would have otherwise done following the auction route.

I would be more than happy to collect the vehicles from anywhere in the UK and Scotland, do any preparation/mechanical work and sell them. Should the need arise, I have full access to an ex-bus and coach depot (property & land privately owned by a very good friend of mine) which could be used for vehicle storage and sales. The site is fully insured, safe and security gated all the way round, protected by an Alarm and full site CCTV system.
 
I believe the Piston Heads community is both helpful and very resourceful. I write this with great hope and thought to reach out to see if anybody would be kind enough to help me source/supply me cars to sell or recommend, put me in contact with a vehicle leasing company whom would be interested in working with me?

It has taken me along time to pluck up the courage to take out Motor Traders Insurance and also to get a set of DVLA Trade Plates. I really want to be involved with and have the privilege of living my dream and work in the motor trade. I am willing to do whatever it takes and put in all the time and effort required!
It would be a real shame to have to cancel/terminate both things for the sake of not having vehicles to sell but everything else in place and order.

Both professional and personal references are available upon request. I have full, clean UK Driving Licence and no criminal record.

I look forward to reading all your replies.

Many Thanks & Stay Safe!

[neutral 3]

I’m trade, but I thought that to get Trade Plates, one needs a registered business ( Garage ) premises ?

[Krikkit]

Facebook and gumtree would be my sources, especially in the run up to xmas

[A1VDY]

Krikkit said:

Facebook and gumtree would be my sources, especially in the run up to xmas

We have three sources of trade cars and it takes a while to establish a good relationship for a supply of decent cars.
Starting out from scratch lease companies won't touch you.
As above gumtree and faceache are where you want to start..

[IAY]

Hi All,

Thank you for your your replies. You need to be a registered business to obtain Trade Plates.

I always check out Gumtree/Facebook Marketplace, eBay, Autotrader, etc. but I have not come across anything with scope. Made some offers but to no avail.

If anyone has any other ideas or can help, please get in touch,

Many Thanks.

[IAY]

A1VDY said:

We have three sources of trade cars and it takes a while to establish a good relationship for a supply of decent cars.
Starting out from scratch lease companies won't touch you.
As above gumtree and faceache are where you want to start..

Hi A1VDY,

Thank you for your reply. Would you be interested or kindly consider supplying me cars? I would be buying one to start with, sell it and return for another, etc.

Many Thanks.

[LuS1fer]

It may be worth setting up a Facebook page or similar, offering to gurantee more than WBAC etc who generally offer low ball figures so there should still be a good profit in it.

I sold a motorbike, last year, for far less than I wanted to but there was still £1500 in it for the company who bought it.

[Trevor555]

Auction prices are sky high for anything that looks nice, and you also take the risk of buying without a road test.

Dealerships know auction prices are high so now send their PX's there.

As mentioned above, lease companies won't touch anyone they don't know.

Finding decent stock is the hardest part of trading.

£2,000 cars sell almost instantly when they go up for sale, if they look decent.

So you have to buy them before they get advertised.

Try some local wanted adverts, I used to buy 1 or 2 a week with them. You get to meet the owner and road test the car.

I also used to scan newly listed adverts on Ebay. You have to be quick, and willing to take a big gamble, but many I bought were fine.

Good luck with your new adventure.

[IAY]

Hi LuS1fer,

Thank you for your reply. I am not on any social media but will look into and try and setup a Facebook page.

Is it easy to do? I Googled it and I think I have to setup a personal page before I setup a business page.

Are there any other useful tips or advice you can give?

Many Thanks.

[LuS1fer]

IAY said:

Hi LuS1fer,

Thank you for your reply. I am not on any social media but will look into and try and setup a Facebook page.

Is it easy to do? I Googled it and I think I have to setup a personal page before I setup a business page.

Are there any other useful tips or advice you can give?

Many Thanks.

I'm not a trader myself but yes, setting up a page is easy.
Speaking as a seller, it is frequently annoying to be low-balled on a px and an extra few hundred was all that was required.
A car I recently px'd was put straight on the dealer's forecourt, over £2k higher and sold almost instantly.

[KnackeredOldBanger]

Can't really offer much in terms of help but also from Huddersfield so thought I would say hello.

One thing springs to mind. Why trade rather than repair? You say you have mechanical repair experience, access to a depot etc. Set up a garage?

Edit to add: That in itself may lead to a supply of cars. MOT failures etc. people want shut of.

Edited again: or even start up as a breaker? Start off small to test the water and then look into the permits etc. I was at Huddersfield Volvo Breakers the other day. Surprised me how little space they actually use even as a fairly large breaker.

Edited by KnackeredOldBanger on Sunday 29th November 15:25

[Coleman262]

Take a look on copart for cat N cars, other than that it’s Facebook gumtree etc MOT fails/ spares or repairs stuff,
Don’t rule out cheap stuff, small engine hatchbacks/ 5door cars, good for mums with kids,

Peugeot 206’s, Astra H’s etc sell well, not loads of profit but easy sell if it’s got 12 months ticket.
(Talking couple hundred profit a car but quick sell normally and generally reliable stuff you won’t have to worry about coming back)

[IAY]

LuS1fer said:

IAY said:

Hi LuS1fer,

Thank you for your reply. I am not on any social media but will look into and try and setup a Facebook page.

Is it easy to do? I Googled it and I think I have to setup a personal page before I setup a business page.

Are there any other useful tips or advice you can give?

Many Thanks.

I'm not a trader myself but yes, setting up a page is easy.
Speaking as a seller, it is frequently annoying to be low-balled on a px and an extra few hundred was all that was required.
A car I recently px'd was put straight on the dealer's forecourt, over £2k higher and sold almost instantly.

Hi LuS1fer,

Thank you, I’am definitely going to look into the Facebook page. It still surprises me how dealers with forecourts can offer so less value for Part Exchanges in return for a vehicle they are already making a profit on and sell on the Part Exchange for such high value. I bet you were lost for words when your old car was sold on instantly for £2k+!!

[The Rotrex Kid]

IAY said:

LuS1fer said:

IAY said:

Hi LuS1fer,

Thank you for your reply. I am not on any social media but will look into and try and setup a Facebook page.

Is it easy to do? I Googled it and I think I have to setup a personal page before I setup a business page.

Are there any other useful tips or advice you can give?

Many Thanks.

I'm not a trader myself but yes, setting up a page is easy.
Speaking as a seller, it is frequently annoying to be low-balled on a px and an extra few hundred was all that was required.
A car I recently px'd was put straight on the dealer's forecourt, over £2k higher and sold almost instantly.

Hi LuS1fer,

Thank you, I’am definitely going to look into the Facebook page. It still surprises me how dealers with forecourts can offer so less value for Part Exchanges in return for a vehicle they are already making a profit on and sell on the Part Exchange for such high value. I bet you were lost for words when your old car was sold on instantly for £2k+!!

Something you will find very quickly is that you require a decent margin across your cars.

£2k sounds like a lot of money, but once you take off the VAT (16.67% gone) prep (can run into hundreds/thousands of pounds), valeting costs (even if you do it yourself, you still have materials and time) and warranty costs (even if you self warranty, you’ll want to keep a pot from each car to cover costs) and then you may want to use some of the profit in one car to ‘over allow’ on a part exchange for another deal and your £2k becomes a lot less. Main dealers have a lot more overheads to pay than you will have.

I wish you luck. It’s a tough game and I wouldn’t do it with my own money unless I had a lot to burn in the first place. Maybe you need to focus and specialise in one model/marque to start with?

[jamoor]

Ive done this in the past, I used to buy privately and sell them on.

[Scaleybrat]

IAY said:

I would be more than happy to collect the vehicles from anywhere in the UK and Scotland!

Apologies for being off topic but this did make me smile. As an Englishman living in Scotland and having to listen to the continual Nats sh!te, it appears you’ve already determined the outcome of any future Independence vote. Good luck with the used car market and, for now, you don’t need your passport to come north of Gretna

[IAY]

KnackeredOldBanger said:

Can't really offer much in terms of help but also from Huddersfield so thought I would say hello.

One thing springs to mind. Why trade rather than repair? You say you have mechanical repair experience, access to a depot etc. Set up a garage?

Edit to add: That in itself may lead to a supply of cars. MOT failures etc. people want shut of.

Edited again: or even start up as a breaker? Start off small to test the water and then look into the permits etc. I was at Huddersfield Volvo Breakers the other day. Surprised me how little space they actually use even as a fairly large breaker.

Edited by KnackeredOldBanger on Sunday 29th November 15:25

Hi KnackardOldBanger,

Thank you for your reply and for the good advice. It’s nice to see someone from Huddersfield on here too - Hello and Good Evening to you too!!

The Repair business was good, it was a family business but in the recent years trade slowed down. There is so much competition, little back street garages doing repairs for next to nothing, the “have-a-go” guys watching YouTube, Wheeler Dealers and the like to tackle repairs themselves and the big guys muscling in by offering Service and MOT’s deals at ridiculous prices that it’s just worth it anymore. Of course the savvy ones amongst us understand that a proper, comprehensive Service cannot be done for under £50, the service parts and engine oil cost more than that alone (car depending).

I realised quite quickly that when I had the task of selling a car be it my own or for a customer, friend or family, I really enjoyed it. The buzz from preparing a car for sale, advertising it, to finally closing the deal was far more enjoyable and financially more rewarding than just repair work. I therefore decided that selling cars is where I want to be!

Many Thanks.

[IAY]

Scaleybrat said:

IAY said:

I would be more than happy to collect the vehicles from anywhere in the UK and Scotland!

Apologies for being off topic but this did make me smile. As an Englishman living in Scotland and having to listen to the continual Nats sh!te, it appears you’ve already determined the outcome of any future Independence vote. Good luck with the used car market and, for now, you don’t need your passport to come north of Gretna

Hi ScaleyBrat,

Thank you for your message.
I can’t comment on the future, but I love Scotland, got friends and family up there. Lovely place, lovely people, always a pleasure to visit!!

Many Thanks.

[IAY]

The Rotrex Kid said:

IAY said:

LuS1fer said:

IAY said:

Hi LuS1fer,

Thank you for your reply. I am not on any social media but will look into and try and setup a Facebook page.

Is it easy to do? I Googled it and I think I have to setup a personal page before I setup a business page.

Are there any other useful tips or advice you can give?

Many Thanks.

I'm not a trader myself but yes, setting up a page is easy.
Speaking as a seller, it is frequently annoying to be low-balled on a px and an extra few hundred was all that was required.
A car I recently px'd was put straight on the dealer's forecourt, over £2k higher and sold almost instantly.

Hi LuS1fer,

Thank you, I’am definitely going to look into the Facebook page. It still surprises me how dealers with forecourts can offer so less value for Part Exchanges in return for a vehicle they are already making a profit on and sell on the Part Exchange for such high value. I bet you were lost for words when your old car was sold on instantly for £2k+!!

Something you will find very quickly is that you require a decent margin across your cars.

£2k sounds like a lot of money, but once you take off the VAT (16.67% gone) prep (can run into hundreds/thousands of pounds), valeting costs (even if you do it yourself, you still have materials and time) and warranty costs (even if you self warranty, you’ll want to keep a pot from each car to cover costs) and then you may want to use some of the profit in one car to ‘over allow’ on a part exchange for another deal and your £2k becomes a lot less. Main dealers have a lot more overheads to pay than you will have.

I wish you luck. It’s a tough game and I wouldn’t do it with my own money unless I had a lot to burn in the first place. Maybe you need to focus and specialise in one model/marque to start with?

Thank you for your message and very useful advice - points noted.

I totally understand what you mean about the margins, that’s why I am wanting to sell 1 to 2 cars at a time and slowly build it up. Should I be lucky enough to land a deal with a vehicle leasing company, then this would be a game-changer, most definitely an opportunity I would welcome plus I have access to more than suitable premises for it.

Many Thanks.

[The Rotrex Kid]

IAY said:

The Rotrex Kid said:

IAY said:

LuS1fer said:

IAY said:

Hi LuS1fer,

Thank you for your reply. I am not on any social media but will look into and try and setup a Facebook page.

Is it easy to do? I Googled it and I think I have to setup a personal page before I setup a business page.

Are there any other useful tips or advice you can give?

Many Thanks.

I'm not a trader myself but yes, setting up a page is easy.
Speaking as a seller, it is frequently annoying to be low-balled on a px and an extra few hundred was all that was required.
A car I recently px'd was put straight on the dealer's forecourt, over £2k higher and sold almost instantly.

Hi LuS1fer,

Thank you, I’am definitely going to look into the Facebook page. It still surprises me how dealers with forecourts can offer so less value for Part Exchanges in return for a vehicle they are already making a profit on and sell on the Part Exchange for such high value. I bet you were lost for words when your old car was sold on instantly for £2k+!!

Something you will find very quickly is that you require a decent margin across your cars.

£2k sounds like a lot of money, but once you take off the VAT (16.67% gone) prep (can run into hundreds/thousands of pounds), valeting costs (even if you do it yourself, you still have materials and time) and warranty costs (even if you self warranty, you’ll want to keep a pot from each car to cover costs) and then you may want to use some of the profit in one car to ‘over allow’ on a part exchange for another deal and your £2k becomes a lot less. Main dealers have a lot more overheads to pay than you will have.

I wish you luck. It’s a tough game and I wouldn’t do it with my own money unless I had a lot to burn in the first place. Maybe you need to focus and specialise in one model/marque to start with?

Thank you for your message and very useful advice - points noted.

I totally understand what you mean about the margins, that’s why I am wanting to sell 1 to 2 cars at a time and slowly build it up. Should I be lucky enough to land a deal with a vehicle leasing company, then this would be a game-changer, most definitely an opportunity I would welcome plus I have access to more than suitable premises for it.

Many Thanks.

You mentioned in your first post you have a budget of £2000 to buy a car? I think you need to set your sights lower than speaking to any leasing companies, they will normally deal with companies buying multiple cars every week/month/year with huge budgets (FYI we have spent £100k+ this week with just one company) and most ex-lease cars are going to be minimum £10k+ value cars.

Also, we deal with some traders, they don’t get to pick and choose what they have, we call them and say we are doing a deal on an XYZ and it will be £XXXX and that’s it. They take the wheat with the chaff and that’s the way it is.