Question about setting up garage/ trading cars

[k_jessop]

Hi. I was just wondering what kind of certificates I would need if I was to do servicing and general repairs? Also from the same work area I would like to buy and sell secondhand cars so what insurance would I need to do the full thing apart from traders and public liability which I know of?

Thanks for any help

[TDIPLC]

Unfortuantely there are no barriers to entry whatsoever, which means that anyone can start and run a garage or car related business with no previous experience or qualifications whatsoever.

[k_jessop]

So it's basically full of untrustworthy people who may or may not know what they are doing with your P&J!!
Well I'm happy to say the person setting up the mechanical side of it is fully qualified and experienced. Been looking at premises and for the size and location I'm after it's around the 5-6k per annum mark. What about my council rates....Anyone know rough price what I'd pay and is it monthly?
Also I have no idea how much electric & water would be per quarter?

Thanks for any help much appreciated

[Mr POD]

k_jessop said:

So it's basically full of untrustworthy people who may or may not know what they are doing with your P&J!!
Well I'm happy to say the person setting up the mechanical side of it is fully qualified and experienced. Been looking at premises and for the size and location I'm after it's around the 5-6k per annum mark. What about my council rates....Anyone know rough price what I'd pay and is it monthly?
Also I have no idea how much electric & water would be per quarter?

Thanks for any help much appreciated

If you have to ask, maybe it's not for you ?

[k_jessop]

I have never done anything like this before but personally think I could manage it quite well. Everyone has to start somewhere and ask the silly questions lol

[V8mate]

k_jessop said:

I have never done anything like this before but personally think I could manage it quite well. Everyone has to start somewhere and ask the silly questions lol

You haven't done "anything" like this before?

1. Have you run a VAT-registered business before?
2. Do you have any experience of repairing cars to a warrantable standard?
3. Do you have any experience of trading in used cars and understand the liabilities associated with this kind of business?

IMO, you need to have answered a solid 'yes' to at least one of the above before entering into this venture. For example, if you were an expert at (2) or (3), then people like me can help you with (1). If you are already an expert at (1), you could find a business partner to do (2) and/or (3).

But we need to establish that you are bringing something to the table first.

Edited by V8mate on Monday 1st September 12:20

[k_jessop]

The person who would be doing the repairing is experienced to a high standard and I have limited knowledge of buying and selling cars but to start with I would be getting them off a mate who sells them.
I would get 2 or 3 at a time from him and mark them up for a bit more then he wants for them, and if I decided I couldn't cope I could just take them back so it's low risk for me on that front. I also know a painter/repairer who is willing to sell me cars below market value ( He gets them accident damaged at auctions etc that haven't been registered cat d or similar ). I know it would be a steep learning curve but I am prepared to work another job to help make it possible and put all my time into it.

[pgilc1]

k_jessop said:

The person who would be doing the repairing is experienced to a high standard and I have limited knowledge of buying and selling cars but to start with I would be getting them off a mate who sells them.
I would get 2 or 3 at a time from him and mark them up for a bit more then he wants for them, and if I decided I couldn't cope I could just take them back so it's low risk for me on that front. I also know a painter/repairer who is willing to sell me cars below market value ( He gets them accident damaged at auctions etc that haven't been registered cat d or similar ). I know it would be a steep learning curve but I am prepared to work another job to help make it possible and put all my time into it.

Dont go down the route of selling accident damaged cars on your 'forecourt'. That info will get out and could stick to you for years.

[k_jessop]

Ok, Will re-consider the accident ones then cheers

[pgilc1]

V8mate said:

k_jessop said:

I have never done anything like this before but personally think I could manage it quite well. Everyone has to start somewhere and ask the silly questions lol

You haven't done "anything" like this before?

1. Have you run a VAT-registered business before?
2. Do you have any experience of repairing cars to a warrantable standard?
3. Do you have any experience of trading in used cars and understand the liabilities associated with this kind of business?

IMO, you need to have answered a solid 'yes' to at least one of the above before entering into this venture. For example, if you were an expert at (2) or (3), then people like me can help you with (1). If you are already an expert at (1), you could find a business partner to do (2) and/or (3).

But we need to establish that you are bringing something to the table first.

Edited by V8mate on Monday 1st September 12:20

Based on your three questions, the o/p has three no's so its difficult to see what he would be bringing to the table?

Premises = overheads, employing a mechanic = overheads, forecourt = overheads, advertising = overheads, so the business is going to be weighed down with overheads even before it is proven it can make money.

To the o/p - i think you'd struggle to 'make ends meet' as it were. Personally, i'd sell from home initially to get a 'feel' for the market, then take it from there. Most small dealers i know dont have a dedicated on site mechanic. i'd reach an understanding with a local mechanic and focus on the sales.

[pgilc1]

k_jessop said:

Ok, Will re-consider the accident ones then cheers

Sometimes cars just need 'tidying up' and thats ok. Maybe a bumper fixed, or a panel painted and thats ok. But make sure you see the car first before its 'prepared'.

[k_jessop]

pgilc1 said:

Based on your three questions, the o/p has three no's so its difficult to see what he would be bringing to the table?

Premises = overheads, employing a mechanic = overheads, forecourt = overheads, advertising = overheads, so the business is going to be weighed down with overheads even before it is proven it can make money.

To the o/p - i think you'd struggle to 'make ends meet' as it were. Personally, i'd sell from home initially to get a 'feel' for the market, then take it from there. Most small dealers i know dont have a dedicated on site mechanic. i'd reach an understanding with a local mechanic and focus on the sales.

I have a my mechanic who doesn't want money till it takes off and can be on site whenever all day if needs be

[TDIPLC]

Enthusiasm is a fantastic place to start but nowhere near enough to be successful in business.

If you are sure you want to travel this road, I would advise first getting some experience as an employee in an existing business to see whether you really do enjoy it and can see yourself still doing it in 10 years time.

Good luck with it

[mc_blue]

Our main business activities have been established for thirty years but the retail/servicing aspect is new. We haven't made a loss on our garage services but at this stage it isn't in profit. The main business keeps it running and means that we can sustain it not making profit but I couldn't imagine starting it from scratch and seeing a return on investment for many months. A small garage can be successfully run through low overheads, wages being one of the biggest. I myself am not a mechanic but if I was the garage services would be in profit because I wouldn't need to employ one of my mechanics because I'd do some work myself. Our garage on its own wouldn't be viable. If the OP came here and said, 'I'm an experienced mechanic wanting to start on my own..' I think the viability would be much higher.

[k_jessop]

I see what you are saying but the mechanic that has agreed to work with me and the other partner would not be taking a wage from the company untill it is making a profit. I am also considering going to a couple of taxi companys and offering low price servicing and repairs....Anyone think this is a good/ bad idea and any reasons why?

Thanks for the input though much appreciated

[V8mate]

k_jessop said:

I see what you are saying but the mechanic that has agreed to work with me and the other partner would not be taking a wage from the company untill it is making a profit. I am also considering going to a couple of taxi companys and offering low price servicing and repairs....Anyone think this is a good/ bad idea and any reasons why?

Thanks for the input though much appreciated

You didn't respond to the three questions I posed yesterday. If, as others have assumed, your answer is three times 'no', I'm afraid to say (and I don't mean this rudely) that you are a liability to the business idea rather than an asset. Energy alone doesn't pay the bills.

[mc_blue]

Contracts with taxi companies are a lot of grief and desired prices are low in my opinion.

[pgilc1]

TDIPLC said:

Enthusiasm is a fantastic place to start but nowhere near enough to be successful in business.

If you are sure you want to travel this road, I would advise first getting some experience as an employee in an existing business to see whether you really do enjoy it and can see yourself still doing it in 10 years time.

Good luck with it

I used to sell cars from home and underwrote for some main dealerships too. I havent done it for maybe 5 years now, but i think if i was to go back to it, as you're suggesting, i'd get a job as a salesman first for a year or so to get the contacts again before going it alone.

[k_jessop]

I have written a first draft of a business plan minus the graphs and tables. Would anyone be will to give it a quick look to see if I am going along the right lines? I have also decided to get a fourth person on board who has been a mechanic for over 30 years and has ran his own garage so will be a great benefit