Thin Client

I'm thinking about doing this as I'm sick to death of IT.

I'd like to know how seemingly tiny used car dealerships have 20 to 30 cars on their forecourts for what seems like forever and yet still seem to stay in business.

How are these cars paid for and where are they making their money?

Any help with the process of being a car dealer would be greatly appreciated!

TIA

Hadi

TopBanana

Don't think there's much money in it at the moment... unless you can find a niche of course

marty_t3

The amount of anti-car policy around right now... i think your best bet would be to become a used bus dealer.

Euro imports are hampering the UK market and petrol prices have driven the cost of bigger engined luxury cars down (and therefor less profit to be made).

The only market that shifting well these days are the small/family cars. There's already far to many of them around to make any decent profit. Lower new car prices don't help much either.

One thing i've thought about is buying cars down here in Yorkshire and taking them up to Scotland to sell. Prices are nearly 10% higher up there for used small cars (probably due to less choice).

Thin Client

Thanks chaps

I was thinking along the lines of trackday cars, Caterhams, Westfields that kinda thing along with classic sportscars, historic rally cars etc

TopBanana

Track day cars is a good idea. Huge growth area here in the UK

GaryK

well there's a garage round here that was featured on BBCs under the bonnet program for selling clocked cars and does alot of business (so Ive heard) even still. Why? simple because they offer credit to people who wouldnt get it anywhere else and that brings in *alot* of trade.

Gary

marty_t3

Trackday cars...

That's not too bad an idea. Like jlanng says, it's getting more popular with the enthusiasts these days (you can thank congested roads and gatso's for that).

I think the companies who sell cars to folk with poor credit aren't so much car dealers, more like money lenders.

Thin Client

Yeah, I've noticed a lot of places saying something like "Refused credit elsewhere. Try us!! CCJs welcome etc"

Are these people selling illegal policies or pulling the wool over the eyes of the loan companies?

If it's all legit, sounds like a mighty fine idea to me;-)

BTW do any of you think location is a major issue when it comes to specialist car sales? I'd like to think people would be prepared to travel for the right car?

Thanks again for responses

I love Scoobynet!

marty_t3

If its a specialist trackday car/classic sports car type dealership you might want to make sure you're have a track nearby ,and preferably some nice roads for customers to have their test drives on

I dont think the actual location of the dealership (whether in a town or out in the sticks) would really matter. It's a specialist dealership so you're not likely to attract much passing custom anyway. People will see the adverts and come and find you.

Tiggs

is trackdays a good market? it may be a growth area but its not massive and allready catered for by catherham, tvr dealers? also....very seasonal, cant see you shift many track cars in jan!

Thin Client

Looks like I might be onto something here then, lovely deserted Peak District roads, Donington 40 minutes away and potential for testing at Darley Moor track 15 minutes away!!

Look out for my ads in the near future.

Still can't find out how dealers afford their stock though :-(

marty_t3

Tiggs,

That's just another excuse to take a 6 month holiday every year

If you can shift enough in spring/summer you can spend the winter finding your next seasons cars (cheaper to buy in winter too).

If you have the premises, you can keep it ticking over during the winter months with repairs etc if you hire a decent mechanic.

marty_t3

You could try selling cars on behalf of other people (private sellers). Bound to be people trying to sell their cars privately who'd happily display their car in your garage if you could offer to sell it for them and give them a decent price for it (minus your own cut to cover costs and a bit extra to build up your stock of course).

apples24

iTrader: (1)

i started in a dodgy second hand garage and now im on my own,started trading from home, and am now sorting my first fourcourt as we speak (approx 15 cars on front) i do guaranteed finance, with a £95 deposit, matey above is right, if ya wanna trade ya need an edge, specialise in somin, although no matter what ya choose still loadsa competition, the guaranteed finance is down to the companys we use, trhey are some what lax

you also neeed a lot of cash to jump into this game, to tade from home and make a half decent income you need to start with atleast 10k, i would say 15k, to start any decent forcourt need approx 30-40k, and a handfull of contacts inc finance reps, warantee reps, need a consumer credit licence ( get from office of fair trading, takes bout 8 weeks) but my advice is do what you know in life, if your not in the motor trade and are not confident, dont bother, not unless you know a trader to go in with, its hard to do it on own asits a 7 day week job, 9 am till late 6pm atleast.

any other questions?

47 NAT

Without trying to pi$$ on your bonfire its not the easiest trade (but what is now days?).

I've been in it now for nearly 20 years and by no means is it getting easier. Everyone wants a bargain and unless you can buy cheap to sell cheap your always going to have the larger Plc companies like Reg Vardys, Pendragon and Inchape and car supermarkets, etc, etc to contened with, and sometimes you just cant compete with their "pile 'em high and sell'em cheap" theory. It seems that the market has got fussier and not willing to have anything over the 100k miles (unless its a right trumpy bit of kit) and certain colours will sell where others will hang around for a while. Which doesn't sound too drastic until you realise theres a fair few quid tied up in it and its not moving.

Specailising in a certain make or marque is a better idea, but you'll need to thoroughly research your market and area (depending on advertisememnt budgets). I set up a site about 8 years ago that prodimantly sold Renault Clios of all models and really rung the bell... It was done on the basis that they were cheap to run, insure and maintain and were of a reasonably good build qualilty with reasonably priced parts.

Be careful of main dealer part exchanges (not all but some) as people only chop cars in for a few reasons..

1. Their new car buying cycle is every 2/3/4 years regardless of miles, etc.
2. A change of manufacturer or newer model.
3. Its fecked and ready to die.

Not forgetting that a lot of people dont want to get whacked with company car tax so have opted out and purchaed outright...are they maintained to the book? as some will cut corners and leave you with a lemon...

Setting up with Finance and Warranty houses is a fairly simple thing to do although you'll have to bash them all on the head for the best commission structers (and read the claw-backs clauses very carefully).

I'm currently Area Sales Manager with a Japanese Manufacturer so I'm not so involved in the daily runnings anymore like I used to be (also involved in a mobile valeting company as well), but if you need any friendly un-biased advice/help then feel free to mail me on 47nat@thomson47.fsnet.co.uk

Good luck...

Nath

Popeye P1

On a serious note I knew a guy who decided to trade in 2nd hand cars. Anyway he bought a 'wrong un'from a car auction and sold it to this huge fella.
When this bloke found out he'd been sold a lemon he beat the living crap out of this guy. To make matters worse the guy has never been the same since suffering from mental illness etc.

BOB.T

Having been in the trade, selling cars is one thing I'd never, ever get involved with ever again

The public are such fussy b*stards it's untrue, the car you're seeling is f&cked, has been ringed etc yet the shed they're trading in is an absolute minter

IMHO, the only money in car sales is via finance deals.

Personally, I wouldn't go anywhere near car sales.

apples24

iTrader: (1)

no money in sales aye?? hmmn at the garage i worked at recently, only a small kacky place, 17 cars out front, guaranteed finance, outgoings were a grand a week, each month that business makes a minimum 14k profit after all bills paid. i have seen and ahem played with the books for him, most he plows back in to business but FFS 14k a month!!!