Car trader start up advice
Discussion
Hello,
ive been in the motor trade for 11 years and im seriously considering taking the jump in to trading for myself. A few years ago i did test the waters out and the dealership I was working for at the time was more than happy to sell me trade ins at SIV + a touch for them. it worked out well and i made a decent amount of money for around 4 months but due to a fairly considerable change in circumstance i decided to shelve it. At the time i was spending anything from £500 to £2,000 on cars and on average making anything from £300 to £600 per car. I have recently started up again and have been spending and making similar profits and im in a better position financially and other circumstances are working in my favour. I currently work in a dealership now and would be ultimately looking to in the next 6 months finish up here and go it on my own! I'm not wanting to drop any balls with regards to making sure everything is above board ect as im probably at the point where i could do with notifying HMRC ect ect. any advice would be very much appreciated and this junction!
thanks in advance
ive been in the motor trade for 11 years and im seriously considering taking the jump in to trading for myself. A few years ago i did test the waters out and the dealership I was working for at the time was more than happy to sell me trade ins at SIV + a touch for them. it worked out well and i made a decent amount of money for around 4 months but due to a fairly considerable change in circumstance i decided to shelve it. At the time i was spending anything from £500 to £2,000 on cars and on average making anything from £300 to £600 per car. I have recently started up again and have been spending and making similar profits and im in a better position financially and other circumstances are working in my favour. I currently work in a dealership now and would be ultimately looking to in the next 6 months finish up here and go it on my own! I'm not wanting to drop any balls with regards to making sure everything is above board ect as im probably at the point where i could do with notifying HMRC ect ect. any advice would be very much appreciated and this junction!
thanks in advance
Hi, yes as it stands im keeping costs extremely low at present and will continue to do so for as long as possible. My next big cost will be trade insurance, ive been quoted in the region of £5k, does this sound reasonable? also from experience how much can expect to see it reduces after one years worth of driving with no claim? obviously ive had company car all my life so have no private NCB! Ive been using temp cover through an app on my phone however without having a trade insurance short of messaging every private seller in land to see if they are willing to trade out of the car(which I dont mind doing) I cant sign up to BCA, Dealer Auction ect.
cheers
cheers
vdn said:
Hmmm.Is he making money from selling cars or courses?
I always dubious of people revealing their most valuable secrets.
Dunc.cars117 said:
also from experience how much can expect to see it reduces after one years worth of driving with no claim?
This bit made me chuckle. The question is how little should I expect it to go up by, and the answers around 10% a year if you’re lucky. In terms of whether it’s a fair starting price, that’s difficult to say as it’ll depend on a lot of aspects - stock level/max per car/location etc.
I’ve previously used 1sure and quote me today for policies which generally ended up being Unicom.
There are countless dealer threads on here, but the search function isn’t great. Just Google whatever you’re looking for and add “pistonheads” to get other forum discussions around the trade.
5k for a trade policy sounds excessive unless you're a 12 year old looking to trade Toyota 4x4s in Basra.
Try onesureinsurance, personally with a similar sounding background to you, I've always had a split on my policies for mechanical repairs to cover me for private jobs and maybe 50% sales and never paid more than 2k even on my first policy from London. Pure sales policies for newbies always seem to be high, so it might be asking for a split and seeing how it affects your premiums.
Keep the sales managers sweet at whatever dealer you're working, direct part ex's are a goldmine, once they get shifted to BCA/menheim auctions you're fighting with hundreds of other people thirsty for similar stock - It's rough out there, good connections and contacts trump pretty much anything at the moment
Try onesureinsurance, personally with a similar sounding background to you, I've always had a split on my policies for mechanical repairs to cover me for private jobs and maybe 50% sales and never paid more than 2k even on my first policy from London. Pure sales policies for newbies always seem to be high, so it might be asking for a split and seeing how it affects your premiums.
Keep the sales managers sweet at whatever dealer you're working, direct part ex's are a goldmine, once they get shifted to BCA/menheim auctions you're fighting with hundreds of other people thirsty for similar stock - It's rough out there, good connections and contacts trump pretty much anything at the moment
Zoon said:
vdn said:
Hmmm.Is he making money from selling cars or courses?
I always dubious of people revealing their most valuable secrets.
and not forgetting what legal action you can take if you leave £15 of fuel in your demo and someone sells it JimmyConwayNW said:
Zoon said:
Hmmm.
Is he making money from selling cars or courses?
I always dubious of people revealing their most valuable secrets.
Exactly, no one who is doing well at something has time to run courses in it, you would just be busy making profits selling cars.Is he making money from selling cars or courses?
I always dubious of people revealing their most valuable secrets.
My boiler was broken, I had a good idea what it was and that I could fix it, but went on YT. There's a professional heating engineer on there doing a run though on how to service and repair my exact boiler.
So I did it myself...
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