Buying/selling Cars?

[navid]

Hi,
I am thinking to start Motor Trade as a small business from home.
Please will the expertise help on the topic?
Is it enough profitable to be as the only means of living?
Are the Car Auctions good mean of getting values cars?
How can one make sure that the Car you are selling to a buyer is without any hidden major defects?
Any help will be really appreciated!
Thanks in Advance!

[highguyuk]

My advice - if you dont already know the answers to all these questions already maybe you should stay out of the Motor Trade for the time being.

[navid]

Thanks highguyuk for your advice!
I am desparate to strart any business soon. I sold my other small business about 3 months ago and have been looking for jobs and other business opportunties but no luck till now.
Please could you little clarify the words " for the time being"
Do you mean this time of year its slow to sell the cars?
Cheers!

[highguyuk]

I hear it is slow to sell cars this time of year, but if your a complete novice which it sounds like you are its a big step to just into your own business. Maybe try and get a job in a company along the same sort of lines "for the time being" and let them teach you the trade. When you feel confident, go it alone.

[navid]

Thanks once again highguyuk!
I know one needs some expereince to start his business and specially in motor trade one needs to know about the cars upside down. But I am willing to take a risk and learn from my mistakes.

[blue_haddock]

. But I am willing to take a risk and learn from my mistakes.

Tell you what, why not just hand me the 5 grand that you could lose from your mistakes and then go and find another business to try?

Seriously if you have no knowledge or experience of the trade i would not even consider trying it as a self employed trader. The idea of buying a car cheap from auction then selling it for a profit a week later in the autotrader seems so easy and simple but it most definately isn't.

Things you need to consider.

Where to trade from
Where to get work done on cars
What will happen if you get stuck with a car that won't sell
Do you know where to get a decent traders policy from
What about warranties on vehicles

[vansboy]

The negative responses, here, so far are in fact POSITIVE!!

You'll find it EXTREEEEEEEMLY hard, to do 'properly' without breaking some rule or law, of some sort.

Thats without doing any 'dodgy' deals, that the motor industry, gets accused of!

http://www.honestjohn.co.uk has hints n tips on buying/selling/auctioning, so well worth a look.

Apart from there being such small margins, to work with, if you do get going, you need to consider...

Insurance - expensive even if you have premisies
Planning - most councils dislike anything motor related
At home - neghbours won't like you having cars for sale/worked on/valeted - quite rightly so
Customers - when you get them, remember, the vehicle needs to be 'of merchantable quality' so if you thought budget priced stock - this'll cost you as much to put right a problem, as on a brand new motor!!

Now, if someone had told me this li'l lot, 30 years ago - I STILL WOULDN'T HAVE LISTENED!!

Have fun!!

VB

[navid]

Thanks to all of you for your time and honest advices.
It seems that it will be definitely a very bad start for me which honestly I can't afford right now.
I better look for something else to do.
Thanks once again for saving my little hard earned saving!

[ohreally]

Are you skilled enough to carry out repair work yourself (there will be lots, speaking from experience)? Do you have suitable premises in which to do the repairs, your really looking at having a two post hydraulic lift available. My gut feeling is by looking at the questions your asking, this may not be an easy money spinner for you. It's not quite as easy as going to auction, picking up a nice car, giving it a wash and taking £400 from it ( it happens but it's rare). How would you react to a punter returning a motor which has devoloped a major fault shortly after you sold it to him, remenber your running a business and you could get put in the firing line financially if you can't do the repairs yourself

[navid]

Are you skilled enough to carry out repair work yourself (there will be lots, speaking from experience)? Do you have suitable premises in which to do the repairs, your really looking at having a two post hydraulic lift available. My gut feeling is by looking at the questions your asking, this may not be an easy money spinner for you. It's not quite as easy as going to auction, picking up a nice car, giving it a wash and taking £400 from it ( it happens but it's rare). How would you react to a punter returning a motor which has devoloped a major fault shortly after you sold it to him, remenber your running a business and you could get put in the firing line financially if you can't do the repairs yourself
Thanks for the reply!
The job seems to be only for moto mechanics. Who else will have hydralic lifts?

[Aletank]

If you have no expertise at the moment or any idea, I'd get a normal 9-5 job and buy the odd £500 car to sell on and see how you go about making money. That way your buying cars you can't lose much money on and any profit you make you can use to buy another car and reducing the risk of losing your own money.
You will learn where to get cars from, auctions etc maybe get to know dealers from auctions that would pass on their part exchanges they don't want to you.
There's a lot to learn No1 is to Buy cheap and sell on at a profit!!

[navid]

If you have no expertise at the moment or any idea, I'd get a normal 9-5 job and buy the odd £500 car to sell on and see how you go about making money. That way your buying cars you can't lose much money on and any profit you make you can use to buy another car and reducing the risk of losing your own money.
You will learn where to get cars from, auctions etc maybe get to know dealers from auctions that would pass on their part exchanges they don't want to you.
There's a lot to learn No1 is to Buy cheap and sell on at a profit!!

Thanks for the tip!
I would like to buy cars for around £500 but where? I have been to some auctions but didn't see any small cars for this price. I think the small cars are sought after and not many of them get to auctions.
I found one car with potential of profit on ebay http://cgi.ebay.co.uk/ws/eBayISAPI.dll?ViewItem&item=4608459921&rd=1&sspagename=STRK%3AMEWA%3AIT&rd=1
The car didn't sell so I called the seller and he said the reserve price is £1400 and he has got offer of £1000. So I didn't make him any offer and wished him good luck!

[Aletank]

Cars around £500 is ideal 1st car territory for 17 year olds etc So best to concentrate on small cars with cheap insurance ie fiesta's, corsa's etc
I'd be looking in the local paper for car ads, Ideally with 1 or 2 owners and lowish milage below 80,000.
I remember my first car was a Fiesta, i live in Liverpool but was looking out of town for a car, around Southport etc. Out of the city's you usually find cars of this nature thats had the little old lady owner etc used for goin the shops a couple of times a week and been garaged etc. If you are looking out of town, find out what day the local free paper comes out and try and get a copy - Supermarkets or sweet shops sometimes have them.
A guy in work buys and sells cars, he seems to go through fazes of buying the one type of car, Calibras for a bit then MGF's, then maybe MR2's That way he gets to know the problems on the one make of car and knows what to look for or sort the common problems out that people can't be bothered fixing or think its too expensive to fix. Recently he's been buying Rovers with the Cylinder Head gone - he buys them cheap, fixes them cheap himself and sells them on.

[navid]

Thanks for the life saving advices!
You are right about buying small cars and targetting the first time buyers. My first car was also fiesta as it was the cheapest to insure and good in fuel consumption. I did buy only small cars while I was student as I couldn't afford the bigger cars.
I would like to start with small cars, ideally the Japanese ones as I found them more relliable.
Cheers!