Used Car Dealership - mad or wha??

BennyBlanko

Hi,

I'm redundant,and I'm going insane. If I don't get back to work,it's going to end in tears..and I'm not messing:o

Anyways,can't get a job, any job, there's none and the one's out there seem to be fake. So, I'm going to try and make my own luck and start up a business and be ready for the upturn as its on the way, only a matter of time. I've looked at my experience and attributes and I love to wheel and deal, meet people, manage people, drive revenue and be busy. I used to work in the car business/trade yonks ago and think I'll investage setting up a used car dealership. Am I mad!?!?!

The idea is this - Sell good quality 5 to 10k cars (good range of models,engines etc)
Not going into the luxury end at all as we've seen what happened the big boys this year.:eek:
Right now, this end of the market in cars is doing ok, prices have firmed as these are the cars that are selling/moving.Also, (credit union/cash under the mattress etc)regular money buys these cars.
Re; premises, I've got an idea/location identified on that.
Marketing, I'm a good marketeer.
Selling, I'm a good salesperson.
Warranty/Afterservice - I may farm that out, have a good contact there.
Insurance - costly.
Can anyone tell me about the Vat exposure on this about selling cars. How do this work in this sector? Thoughts and experiences please.

Thanks,

Benny.

btw - this is all top of the head stuff, trying to get all the info sorted prior to a business plan so help me please get down to the micro.:)

DubTony

My personal feeling on approcahing this business is - be very careful.

Guys who've been in the trade for years are struggling badly. The motors game is all about building a good reputation. If you're looking at renting premises, it's going to eat into your capital. Then you'll need stock, unless you're going to buy and sell cars one at a time. And you'll never build a rep doing that. My advice FWIW, kick this idea into touch mate.

RE VAT. There have been changes in the VAT structure for cars recently. For that info get in touch with one of the car sales guys on the Motors forum. After reading through a few threads you'll be able to identify them.

Tony

edit: Tried to send you a PM, but it seems they're switched off for you (or something). PM me when you get that sorted.

Donagh_mc

I don't think it's a mad idea, but as has been said - be careful.

From personal experience there are a lot of people out there that are looking to take advantage of the recession and pick up cheap, used cars at bargain prices. If you can manage to jump on board and manage to supply to that market then I think it would work.

Scouserfan

BennyBlanko wrote: »

Hi,

I'm redundant,and I'm going insane. If I don't get back to work,it's going to end in tears..and I'm not messing:o

Anyways,can't get a job, any job, there's none and the one's out there seem to be fake. So, I'm going to try and make my own luck and start up a business and be ready for the upturn as its on the way, only a matter of time. I've looked at my experience and attributes and I love to wheel and deal, meet people, manage people, drive revenue and be busy. I used to work in the car business/trade yonks ago and think I'll investage setting up a used car dealership. Am I mad!?!?!

The idea is this - Sell good quality 5 to 10k cars (good range of models,engines etc)
Not going into the luxury end at all as we've seen what happened the big boys this year.:eek:
Right now, this end of the market in cars is doing ok, prices have firmed as these are the cars that are selling/moving.Also, (credit union/cash under the mattress etc)regular money buys these cars.
Re; premises, I've got an idea/location identified on that.
Marketing, I'm a good marketeer.
Selling, I'm a good salesperson.
Warranty/Afterservice - I may farm that out, have a good contact there.
Insurance - costly.
Can anyone tell me about the Vat exposure on this about selling cars. How do this work in this sector? Thoughts and experiences please.

Thanks,

Benny.

btw - this is all top of the head stuff, trying to get all the info sorted prior to a business plan so help me please get down to the micro.:)[/quote
where do you intend setting up what county/town/area

dooardbhoy

I think you have chance with the price range you are looking at as its probably those with cash or credit union cheques that will be buying at present. As a previous poster said its down to location and reputation. I feel that the choice of makes and models has to be important .

blue4ever

price of well priced mid range, low emission cars secondhand cars
in the UK is climbing - nicely. you should expect the same here at certain brands/price points

GeeNorm

Yeah, these cars will sell. From what I know of the trade though, the key is getting the cars (at right price obviously) as selling is not the hard part.

You'll get calls from garages (who have a customer with a trade-in) and you need to be able to price on the spot. If you always price too low, the garages will ignore you, if you price too high then you'll go out of business.