Buying/selling cars as a side business?

rocketship_2

I looking for advice on the advantages/disadvantages of buying selling cars as a private seller. I only want to buy/sell 2 cars a month, each buying under a grand and selling for a few hundred pounds profit each.

Is it worth going to car auctions buying cars for around £500 and selling them on for around £800? Do I need a traders license or anything like that? If I cannot test drive a car at a car auction how will I know its in good condition? Are cars outside of London generally cheaper?

NVRAM

you'll need to declare the income to tax man.
As for buying from auction thats your risk to take, guesing you mean real car auctions.

eBay auctions however, upto the seller if they wanna let you haev a test drive.

rocketship_2

Are cars generally cheaper outside of London like they use to be?I'm from London but will happily travel out further to purchase cars for a cheaper price at auctions and resell in London

alanrowell

The obvious thing to note is that you AREN'T a private seller, you are a business.

Saying that you are a private seller when you are a business is fraud.

force_ten

the major downside is that if you sell a car that is getting on in years and is up on the miles and the punter that pays pocket money for it decides they want a minter and they will come back and beat you to death with the sale of goods act

i fully understand a car has to be roadworthy and fit for purpose but many people think that there new to them 10 year old car with a 100k on the clock should be as new with no defects whatsoever

in these days of the internet people will pick up the car drive it home and if it squeaks or rattles as they go over a bump they will jump on the internet forums and everybody will advise them to take it back and get it repaired or get their money back

selling second hand cars is hard work and it is very easy to get your fingers burnt

robatwork

You'll be a car dealer.

You will then have to take back/fix/refund on faults because buyers will have the full force of consumer sales law.

Because you are asking the question my advice is - don't do it.

bobbymotors

Don't do it.


I've sold 5000 cars in 12years before I retired and you've either got to do it properly or not at all.


I've seen scores of pretend dealers (like you want to be) come and go, and it won't take long for it to all end in tears.


as for buying £500 cars at auction... oh dear, I'm afraid that is the worst idea ever.


don't do it... you heard it on this forum first!

arcon5

Buy for £500 - sell for £800 - make a few hundred quid per car.

:EEK:

There are two types of repairs...
those to get it roadworthy (MOT work)... may be some bushes, suspension or brake work, maybe a bit of welding or whatever
and
those to get it fit for purpose... why's it at auction..? clutch slipping; HG on wa out, some oil seals failed, what... this category is the expensive and time consuming bit... assuming you do the work yourself!

Then of course cost of the MOT; auction fees; a months road tax as I presume you wont have trade plates and also assume you want somebody to be able to test drive it; advertising costs..... your already at £100+

And insurance... well that's a whole other story.

rocketship_2

Okay, but why can't I just buy a car privately (one which already has MOT) and the sell it in a months time as a private seller? Assuming cars up north are cheaper?

ChumLee

It's a dark art but keeping its legal the the matter you need to address.

ohreally

rocketship wrote: »

Okay, but why can't I just buy a car privately (one which already has MOT) and the sell it in a months time as a private seller?

Because you won't be a private seller. You can dress this up however you want but it doesn't change the fact that you will be operating as a business and subject to the many pitfalls that await you at this point.