Used car trade success stories?

[skerslake]

The tabloids have been full of doom and gloom in respect to the motor trade for the past 18 months. I started my used car sales business 7 months ago in a very challenging market and have kept stable-ish.

Does anyone have any success stories they wish to share in the used car sales business for 2009, UK?

I would really appreciate some inspiration going into 2010!

Thank you in advance.

[SeeFive]

Up until December, a friend of mine (a mortgage broker) created an online first car business with a friend of his selling cars up to about 4k. He has been shifting around 30 cars a month. I'd say that was a success.

December was a bit slow however, but he is expecting it to be back to normal in the new year. Good luck to him, he deserves it as he has been through a lot of serious health issues to compound the fall in the property market affecting his previous livelihood.

[skerslake]

SeeFive said:

Up until December, a friend of mine (a mortgage broker) created an online first car business with a friend of his selling cars up to about 4k. He has been shifting around 30 cars a month. I'd say that was a success.

December was a bit slow however, but he is expecting it to be back to normal in the new year. Good luck to him, he deserves it as he has been through a lot of serious health issues to compound the fall in the property market affecting his previous livelihood.

Great to hear a success story! 30 cars a month is excellent! Where is he based and does he have a forecourt or does he work from home? Do you have his web address I can have a look at?

[Gibson70]

I'd be interested to know how he manages to shift 30 cars a month !!

[SeeFive]

It's quite simple really. He's very honest and offering something very different to the other dealers in his space. He is literally turning his stock every month (as mentioned, except December when his traditional customers and referrals are buying other things) due to this very specific "peace of mind" inclusion that you do not normally get with cars in that sector of the market. That is why in these times, people with little disposable income buy from him - once you have bought from him, that is pretty much all you will spend.

He does not have a massive on road presence although he does have premises. It's cheap, cheerful and keeps his costs low. The cars are bought right, he's not greedy and has a very special ingredient that is included with every car, offering complete peace of mind to his customers for very little outlay himself.

We had a discussion the other week where he thought that an on road presence would attract passing trade, and maybe going for some slightly more upmarket cars. This may be a plan for next year although personally I am not sure he should. He's having success with an online formula in a specific market sector, so stick with it is my view.

I do not think he would be too happy with me posting details of exactly what he does and have everyone else jump on the bandwagon, so if you don't mind, I'll leave it at that for now.

[markmullen]

2009 has been our best year in over 20, low interest rates have seen people investing in big stuff. We have however had to be ready to change what we stock as the market changes.

[Rollcage]

SeeFive said:

It's quite simple really. He's very honest and offering something very different to the other dealers in his space. He is literally turning his stock every month (as mentioned, except December when his traditional customers and referrals are buying other things) due to this very specific "peace of mind" inclusion that you do not normally get with cars in that sector of the market. That is why in these times, people with little disposable income buy from him - once you have bought from him, that is pretty much all you will spend.

He does not have a massive on road presence although he does have premises. It's cheap, cheerful and keeps his costs low. The cars are bought right, he's not greedy and has a very special ingredient that is included with every car, offering complete peace of mind to his customers for very little outlay himself.

We had a discussion the other week where he thought that an on road presence would attract passing trade, and maybe going for some slightly more upmarket cars. This may be a plan for next year although personally I am not sure he should. He's having success with an online formula in a specific market sector, so stick with it is my view.

I do not think he would be too happy with me posting details of exactly what he does and have everyone else jump on the bandwagon, so if you don't mind, I'll leave it at that for now.

I'd be interested to know what the "Magic ingredient" is - in my experience, there isnt one!

(Other than obviously being honest, straight and not selling piles of old crap with a fresh MOT and a verbal warranty until the end of the drive!)

[markcoznottz]

Rollcage said:

SeeFive said:

It's quite simple really. He's very honest and offering something very different to the other dealers in his space. He is literally turning his stock every month (as mentioned, except December when his traditional customers and referrals are buying other things) due to this very specific "peace of mind" inclusion that you do not normally get with cars in that sector of the market. That is why in these times, people with little disposable income buy from him - once you have bought from him, that is pretty much all you will spend.

He does not have a massive on road presence although he does have premises. It's cheap, cheerful and keeps his costs low. The cars are bought right, he's not greedy and has a very special ingredient that is included with every car, offering complete peace of mind to his customers for very little outlay himself.

We had a discussion the other week where he thought that an on road presence would attract passing trade, and maybe going for some slightly more upmarket cars. This may be a plan for next year although personally I am not sure he should. He's having success with an online formula in a specific market sector, so stick with it is my view.

I do not think he would be too happy with me posting details of exactly what he does and have everyone else jump on the bandwagon, so if you don't mind, I'll leave it at that for now.

I'd be interested to know what the "Magic ingredient" is - in my experience, there isnt one!

(Other than obviously being honest, straight and not selling piles of old crap with a fresh MOT and a verbal warranty until the end of the drive!)

Of course there isnt a magic ingredient; it is almost impossible to buy stock at the moment, all small traders are in the same boat, although some are more honest about thier predicament than others. Its maybe never been harder than now, the future is uncertain at best. Id predict a lot of small traders with premises dissapearing next year.

[Jazzer77]

2009 has been great , used cars have done very well with a shortage of supply and values increasing you couldnt go wrong.

2010 will be the opposite as prices reached their limit and plummeted in Nov/Dec so we're back to the normal times of cars depreciating again with a recession. Less customers with your forecourt losing value every month = a cleansing of the dealer gene pool.
I predict a largish group going belly up this yr and a horde of smaller guys to follow.
The switched on aggressive used dealers will do very well out of 2010.

[Deva Link]

markcoznottz said:

Id predict a lot of small traders with premises dissapearing next year.

Did one of those annual trips to see a relative the other day and the main road leading to their house used to have 3 used car sites that have been there as long as I can remember and all had gone this year.

[markcoznottz]

Jazzer77 said:

2009 has been great , used cars have done very well with a shortage of supply and values increasing you couldnt go wrong.

2010 will be the opposite as prices reached their limit and plummeted in Nov/Dec so we're back to the normal times of cars depreciating again with a recession. Less customers with your forecourt losing value every month = a cleansing of the dealer gene pool.
I predict a largish group going belly up this yr and a horde of smaller guys to follow.
The switched on aggressive used dealers will do very well out of 2010.

Those with miniscule overheads might tick along, anyone else prob not. Not enough customers, shortage of stock, vat increase, the numbers just dont add up, in a long hours culture it has to be asked is it worth it.

[pgilc1]

markcoznottz said:

Jazzer77 said:

2009 has been great , used cars have done very well with a shortage of supply and values increasing you couldnt go wrong.

2010 will be the opposite as prices reached their limit and plummeted in Nov/Dec so we're back to the normal times of cars depreciating again with a recession. Less customers with your forecourt losing value every month = a cleansing of the dealer gene pool.
I predict a largish group going belly up this yr and a horde of smaller guys to follow.
The switched on aggressive used dealers will do very well out of 2010.

Those with miniscule overheads might tick along, anyone else prob not. Not enough customers, shortage of stock, vat increase, the numbers just dont add up, in a long hours culture it has to be asked is it worth it.

+1

Speaking as someone on the periphery of it all, i'm not sure being switched on and aggressive is going to be the right stance, given the shortage of stock and what few customers there are demanding more for less.

[Nolar Dog]

InternetCarLot did alright

[amir_j]

SeeFive said:

Up until December, a friend of mine (a mortgage broker) created an online first car business with a friend of his selling cars up to about 4k. He has been shifting around 30 cars a month. I'd say that was a success.

December was a bit slow however, but he is expecting it to be back to normal in the new year. Good luck to him, he deserves it as he has been through a lot of serious health issues to compound the fall in the property market affecting his previous livelihood.

link to his site?

[POORCARDEALER]

If I could buy the right stock at the price I could sell 100 cars a month......90% in the buying....rest of it is setting your stall out and doing the job correctly.

[GEWAGON]

Hi I stopped buying cars a couple of years ago, I was buying and selling part time for 20 years but found the right cars impossible to buy for the right money, main dealers are sending their trades to auction as the prices were reaching retail money so that source dried up.
Auctions are to cozy now so most of the public goes to them with the kids and Nan and granddad have a nice cup of tea and some lunch then bid over the odds for their ford and drive of happy.

ps any one got any gems for a quick sale, only high spec late cars need apply
happy new year
taperandjointer @ ntlworld.com

[Frimley111R]

I did a bit of trading for a year. Auctions are rammed with 20 people for every car. Hanging round all day to get nothing was soul destroying. I did buy some cars and do well at times but getting a good supply of cars at the right price is the key ingredient. As above, selling isn't too hard if you have good cars competitively priced.

[The Riddler]

musclecarmad said:

a lot of the people with small used car lots are wealthy - i know a lot of them around Yorkshire.

i wouldn't have thought making £500 per car is hard on cheapies around the £2k - £3k mark and selling a few per week

A few years ago i worked for an asian chap with a car parts business, just after i left he sold up and bought an MOT station, he then sold that and bought a show room. I returned to work for him and help him set up in 2007/8, he now has 2 premises and trade is ticking over nicely. I still see him from time to time.

[whythem]

Another case of not beingable to buy the right stock. I think the only way the small trader can survive these days is if A) They are very very established with low overheads and the cash to surviive tighter and tighter margins. B) If you are very friendly with the sales manager at one or two main agents. Auctions as others have said are over subcribed. The last 7 trips to the auction all I could afford was cheeseburgers.

[Simpo Two]

whythem said:

The last 7 trips to the auction all I could afford was cheeseburgers.

It helps a bit if you go when it's raining - tends to deter the casual buyer.

There's a bloke at my local auction who looks exactly like Lovejoy... and increasing numbers of Asians - last time whilst scoffing in the canteen there was a terrorist-looking bloke jabbering Arabic into his mobile for the whole time we sat there. Call me xenophobic but it is rather unsettling.

Edited by Simpo Two on Wednesday 13th January 20:29