Car dealer / restoration business

[geeeman]

Myself along with a mechanic friend of mine are thinking to start a small car sales business for classic cars and also restoration.
It will be a limited company
if a car is restored and fails to sell or is to be used as a company demonstrator how would the car be insured and titled etc.. would this be done under the limited company name, and could the car still be used for social/leisure purposes?

[Stuart12]

A motor trade policy extending to cover sdp use for the companies owned vehicles (and potentially the directors own vehicles by separate endorsement as they are not owned by the Ltd company entity). The road risks element would also cover trade plates if your stock and customers vehicles you are collecting were not taxed etc.

This can be arranged on its own but usually would be part of a motor traders combined policy also covering material damage iro customers vehicles in your custody, your general contents such as workshop equipment, hand tools etc. it would usually also include public liability and defective workmanship in respect of the work your carrying out. There are lots more options for cover you could roll into a motor traders combined policy but that’s the basics.

Edited by Stuart12 on Sunday 24th October 06:27

Edited by Stuart12 on Sunday 24th October 06:28

[Simpo Two]

But first, how many cars would the OP have to sell each year to make a working profit for two people?

[Monkeylegend]

Maybe none if the restoration bit takes off.

[geeeman]

Simpo Two said:

But first, how many cars would the OP have to sell each year to make a working profit for two people?

would be a bit of fun, not expecting to make huge profits. would be a way to own/restore some cars ive wanted and then potentially move them on

[Simpo Two]

geeeman said:

Simpo Two said:

But first, how many cars would the OP have to sell each year to make a working profit for two people?

would be a bit of fun, not expecting to make huge profits. would be a way to own/restore some cars ive wanted and then potentially move them on

Which is fair enough. I was just thinking that the premium for the super-duper bomb-proof insurance policy you plan to take out might wipe out any profit!

[geeeman]

Yes good point
I have no idea how expensive motor trade insurance will be for a small operation like this

[chrisr29]

Try Footman James classic trade policy. I use them.

[MustangGT]

Don't forget the tax implications of the 'company cars'

[nickv]

Insurance to cover my bodyshop is almost touching 4k
also have SDP for myself and workers.
I am well covered for Customers cars, public liability plant and machinery and hand tools, rebuild costs, business interruption etc.

Decent Insurance cover has shot up on the back off all that has happened in our country in the last 18-24 months

This is the only area of my business that i entrust someone else to look after.

A decent broker will give good advice on many things that may not occur to you.

If you do go into business dont ever go to energy brokers you will be forever plagued by them lol

[Deep Thought]

geeeman said:

Simpo Two said:

But first, how many cars would the OP have to sell each year to make a working profit for two people?

would be a bit of fun, not expecting to make huge profits. would be a way to own/restore some cars ive wanted and then potentially move them on

Restoring cars usually ends up costing more than the car ends up being worth to do.

If you want to restore cars for a bit of fun then thats fine. If you want to run it as a business, then i'd definitely be restoring cars for other people, paid on a fixed fee for an agreed piece of work or T&M basis.