stef_2010

iTrader: (3)

Hi,

I'm considering starting my own small business in the motor trade, mainly dealing in second hand cars, I thought I'd ask for advice on here as there seem to be a fair few people who have done quite well for themselves in the world of business

Since I'm still pretty young (23) I obviously dont have all the money in the world but I have a wee bit saved up, so would be starting out on lower end car/runarounds and work my way up

Does anyone on here sell second hand cars for a living or even as a hobby to make a little extra pocket money ?

Do you have your own premises and if so what is the rent like ?

I done a quote for traders insurance this morning and it came out at £1400 (cheaper than my sti insurance) which includes customer test drives, does this sound reasonable for someone of my age ?

And is it worth my while starting out on something like this ? I mean the way the economy is at the moment I cant see too many cars being sold but was at a car auction last night and some nice cars go for silly cheap

Any help anyone can give me is very much appreciated

Stefan

David Lock

Do remember that as a trader you have quite a responsibility when it comes to aftercare for cars you have sold. So check out these duties on the web as it may surprise you and can be expensive if you are not prepared for a complaint. Forget "Buyer Beware".

Do you have reasonable skills as a mechanic?

Good luck. dl

drb5

iTrader: (4)

Good luck indeed!

Auctions are fine if you get lucky, but chances are you have to spend money on said car to make it sellable AND you "should" be putting a warranty on it too for around 30 days at least.

It's a very hard business and i suggest checking out the area you intend on dealing from. If there's plenty choice for customers, i'd say to forget it, but if there is a lack of secondhand dealerships, then you could do well.

Maybe speak to local mechanics and see if they'd be interested in exclusively doing the repair work and maybe main manufacture dealers to ask if they would show any interest in offering you their trade in's.

stef_2010

iTrader: (3)

Ye think I may need to look into the aftercare a little bit deeper

I done a machanic course at college for a year when I was younger, so I can do the basics, doubt I'd be able to strip an engine down though but things like brakes, suspension, clutch shouldnt be a problem

Ye I was thinking something along the lines of a 30 day warranty, wouldnt really like to give much more unless its an expensive car as the customer could be doing anything to the car in this amount of time

I do know a local mechanic whos a good freind of my dads so I'm sure hed help out with anything I couldn't fix myself

I did have the thought about the main dealer trade ins as thats the kind of cars that come up in the auction, so really I'm just cutting out the middle man

thanks for the replys

Luan Pra bang

Get a warranty company to sort the warranty otherwise you may end up right in the ****. The cheaper ones won't ever pay out but at least people complain to them not to you. I started dealing with all my own claims and had many a car cost far more on a warranty claim than I made on the car.
By CAP or glasses have a look then throw it in the bin, as a home trader you need to value cars based on what they are going for on autotrader etc, you will never get CAP retail from your front door unless you are very lucky.
Never buy any car without good history and verifiable milage. Also if you do well expect one of the miserable ******* neightbours to report you to the tax man.
Also never buy from auctions unless you really have good connections there or are feeling lucky.
I could write a book to be honest but that will do for now.

Luan Pra bang

As an extra beware of too much stock, one particularly bad summer a few years ago I can remember having 30 cars sat on a forcourt not selling and based on CAP values I think they lost about 3k in value per month . These words are good to remember, Diesel Auto Estate.

Caged "R"

iTrader: (4)

90 days warranty by law unfortunately. Hpi everything & make sure your trade insurance covers imports, Impreza's & Evo's as many don't

PaulC72

Yup 3 months warrenty min

I would also suggest reading up on a few things like SOGA 1979 to start so you know what rights your purchasers will have as it could cost you allot of money if something goes wrong with the car, main period being the first 6 months where the dealer has to prove everything was ok at their expense!

drb5

iTrader: (4)

Really? 3 months minimum? Must be different up here in Scotland then as Arnold Clark is 30 days i'm sure.

AndyC_772

iTrader: (2)

What a lot traders still don't realise - or still won't admit that they realise - is that any warranty they offer is always in addition to a customer's statutory rights, and cannot replace them.

Have a read, there's some good information here:
http://www.adviceguide.org.uk/index/..._from_a_dealer

PaulC72

Here is a general guidline supplied by the OFT it does highlight some does and don'ts

http://www.oft.gov.uk/shared_oft/rep...08/oft1242.pdf