Motor trade company advice

ajm123

Considering setting up a small-time operation buying cars from auction and selling them on with a warranty and hopefully a profit. Anyone done anything similar?

Would welcome any advice in relation to whether I should get some advice from an accountant first. I'm thinking of setting up a limited company with myself as DIrector and my wife on the payroll - she is currently not working, so the tax situation speaks for itself.

Problem I have is I wont have a 'premises' as such and will be selling from my home address - how should I advertise?

I have several questions that need answering - I would be grateful if anyone with experience in this field could give some advice.

motorguy

if you have to ask such fundamental questions of the motor trade as 'how should i advertise?' please please please think very seriously about this before investing any hard earned cash.

Trade auctions are very risky for amateurs, and its really not as simple as buying at auction and selling it next week and making £££'s. There are lot of people trying to get their fingers in the same pie for one thing and its a very competitive market.

I got out of it a couple of years ago, its very hard work and in my opinion played out.

Its also very very easy to get burnt....

For the record, i've been selling cars on and off for 20 years, 2 years of that for a dealer, and probably around 500 from home part time and for years i did what you are proposing.

Any questions you have fire away and i will try my best to answer them though!

seaweasel

If you're setting up a limited company you'll require a minimum of two directors.

ajm123

that would be my wife and I

H_C_2

my partner is in the motortrade and has friends who have there own small car retail business. It is a very risky business. You need a godd relationship with a good garage who will provide you with mOTS and even go to auctions etc with you.

My partner has people offer him money to sign off MOTS for dodgy auction cars. He has turned down teh cash notified other gargaes. My partner best mate states some cars that come through the show room are insurance write offs.

BEST OF LUCK with this if you know the trade well and have contacts great. OTHERWISE you could be stung badly. My partner has been to the auctions the sale is fast and you need to get under the bonnet service history etc before even raising your hand.

If you in an area with lots of main dealers etc or small dealerhips you may struggle as a lot of people prefer the warranty etc that comes from dealerships.

BEST OF LUCK and don't mean to put you off if you have the drive and aimbition then great.

motorguy

"I have several questions that need answering - I would be grateful if anyone with experience in this field could give some advice"

So wots the questions?

ben500

You say you intend to offer a warranty how do you intend to underwrite this? Have you considered things like public liability insurance?

longforgotten

If you are selling from home are your neighbours going to be happy ? Have you plenty of ground to park the vehicles up or will they be parked on the road ? Then there is the aspect of trading from a home residence, what will the council say ?

Near where I live there is a guy who does motor repairs from home ending up with his cars parked up on the main road taking up precious parking spaces. Don't think he's too popular

motorguy

ben500 wrote: »

You say you intend to offer a warranty how do you intend to underwrite this? Have you considered things like public liability insurance?

You either 'take a chance' and build a set amount into your margins, or you buy an insurance policy

ben500

pgilc1 wrote: »

You either 'take a chance' and build a set amount into your margins, or you buy an insurance policy

I was merely trying to determine just how deeply the op has thought this over.

motorguy

ben500 wrote: »

I was merely trying to determine just how deeply the op has thought this over.

I dont think he has thought it through, but he hasnt come back to enlighten us.