Buying/selling cars as a side business?

TonyMMM

As soon as you buy something with the intention of selling it on for a profit, you are running a business ( whether you choose to declare it or not).

You wouldn't be selling it privately but as a trader, with all the responsibilities ( Sale of Goods Act etc. ) that entails.

First one that goes wrong you might get away with , but it won't take long for other disgruntled customers to identify you as a trader and start asking awkward questions of Trading Standards and the like.

if you want to be a car dealer - do it properly.

bobbymotors

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? Assuming cars up north are cheaper?

They aren't cheaper 'up north' it's a fallacy


Even if they were it will cost you a fortune in time and money to get them from 'up north' to 'down south'


You appear to not want to take advice, so go ahead if you want to. Unless you are very clever and experienced it will not work.

force_ten

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? Assuming cars up north are cheaper?

you cant do that because you are buying the cars to sell for profit, so what you are suggesting will make you a part time dealer who is pretending to be a private seller

as said above do it properly or don't do it at all

motorguy

Speaking as an ex trader, i would say.... dont do it.

There was a time 20 years ago when i was hoovering up cheapie trade ins from my local dealer and getting an easy £300 profit on each. Those times are long long gone.

Firstly, if a car is at auction at that price its there for a reason - most likely because its got a fault that the owner knows about that you dont. So statistically a good proportion of the cars you would be buying would require significant repairs that will irradicate your margin, and some will be beyond economical repair.

Secondly, buyers have rights and they are acutely aware of them. Your average sub £1,000 car buyer has no money for repairs so the first sign of a rattle, squeak, engine light, slight problem and they will be on YOUR doorstep.

Also, EVERYBODY is at it, therefore competition is fierce. I saw some "traders" bid over a car at auction and the guy ended up paying £490 + £90 fees - had it on gumtree the following day at £650.

IF you want to get into the realms of being like all the other "private" trader scum meeting people at tesos, "only selling it because my wife doesnt like it" and hiding faults, then you "might" make a few pounds at it, but generally it catches up with you (or an irate customer does)

bobbymotors

motorguy wrote: »

Speaking as an ex trader, i would say.... dont do it.

There was a time 20 years ago when i was hoovering up cheapie trade ins from my local dealer and getting an easy £300 profit on each. Those times are long long gone.

Firstly, if a car is at auction at that price its there for a reason - most likely because its got a fault that the owner knows about that you dont. So statistically a good proportion of the cars you would be buying would require significant repairs that will irradicate your margin, and some will be beyond economical repair.

Secondly, buyers have rights and they are acutely aware of them. Your average sub £1,000 car buyer has no money for repairs so the first sign of a rattle, squeak, engine light, slight problem and they will be on YOUR doorstep.

Also, EVERYBODY is at it, therefore competition is fierce. I saw some "traders" bid over a car at auction and the guy ended up paying £490 + £90 fees - had it on gumtree the following day at £650.

IF you want to get into the realms of being like all the other "private" trader scum meeting people at tesos, "only selling it because my wife doesnt like it" and hiding faults, then you "might" make a few pounds at it, but generally it catches up with you (or an irate customer does)

^^^^^^^^^
What he said

colino

I think there are three versions of DM currently posting, this rocket is just one of them.

ChumLee

bobbymotors wrote: »

^^^^^^^^^
What he said

Yeah, you'll only get some retard trying to return a Yaris as there are no rear brakes.

Minrich

bobbymotors wrote: »

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!

More than ONE every day over a 12 year period ?

robatwork

Minrich wrote: »

More than ONE every day over a 12 year period ?

Busted and Outed!

bobbymotors

Minrich wrote: »

More than ONE every day over a 12 year period ?

Absolutely correct.


As well as retailing cars I used to sell quite a few within the trade too.


EG In the late 90's Ireland's currency was the funt and the exchange rate was quite good.


I used to export probably 5 cars a week to the man in Ireland for a short profit on each one. I knew he would pay, he knew I wouldn't sell him a shed, it worked well. The roads over there are / were so bad that a 30000m Irish car would be worn out but they would pay good money for a 50000m English one.


Plus other trade sales too, probably around a 50/50 split.


My record was 13 cars in one day, 4 retail, 5 to Irealnd, 4 other trade sales.