Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on [email protected] for help. Thanks :)
Private profiles - please note that profiles marked as private will soon be public. This will facilitate moderation so mods can view users' warning histories. All of your posts across the site will appear on your profile page (including PI, RI). Groups posts will remain private except to users who have access to the same Groups as you. Thread here
Some important site news, please read here. Thanks!

Buying and selling as a hobby

  • 17-06-2021 6:39am
    #1
    Registered Users Posts: 1,566 ✭✭✭ Patsy167


    What are some considerations to be mindful of when considering buying and selling cars as a hobby in Ireland?

    Plan would be to buy and sell second hand cars (max 1-3 at a time) on DoneDeal and resell doing minimum work on them (valet and minor work at most)?

    Main aim would be to have as a hobby, rather than making money.

    If others have tried this before, I would be keen to hear your stories.


Comments

  • Registered Users Posts: 9,637 ✭✭✭ Midnight_EG




  • Registered Users Posts: 29,707 ✭✭✭✭ NIMAN



    IF you're above board, pay your taxes etc then it wouldn't be a concern.


  • Registered Users Posts: 2,985 ✭✭✭ User1998


    If your selling 1-3 cars at a time its not a hobby, its a for profit business


  • Banned (with Prison Access) Posts: 991 ✭✭✭ ineedeuro


    Patsy167 wrote: »
    What are some considerations to be mindful of when considering buying and selling cars as a hobby in Ireland?

    Plan would be to buy and sell second hand cars (max 1-3 at a time) on DoneDeal and resell doing minimum work on them (valet and minor work at most)?

    Main aim would be to have as a hobby, rather than making money.

    If others have tried this before, I would be keen to hear your stories.

    Plenty have tried it. Most without paying tax on buying/selling. You are talking about setting up a back street garage and it's clearly not a hobby.

    Fair play to you and if you want to do it but you need to declare and pay tax. Also how are you setting up? are you going to import and then sell? do you have contacts in UK market to source cars?

    The guys I know doing it already have a model setup so they get hands on cars without the auctions etc and can make decent money on them


  • Advertisement
  • Registered Users Posts: 12,943 ✭✭✭✭ Toyotafanboi


    Honestly, I used to do it for years, in my late teens, early 20's, around a decade ago. It was great, you'd generally get on ok with cars, with "customers", with money. Back then you were advertising your private sales on carzone.ie and the buy and sell. You'd sell pretty much anything without too much difficulty, I don't know if that was the boom times or the relative innocents or whatever.

    Life got in the way, college, work, house etc. Got a bit settled at long last and said i'd get back into it last year and it's totally different. Bangernomics'y stuff €1-3k tops. Partially like yourself for the love interest in cars, you get to see and feel and experience a lot of different cars and historys and problems and it's half ways nice to see a car come back from the brink and serve a few more years and maybe getting a few euro to boot.

    Have flipped around 20 since this time ish in the last year. Tried to make it more legit for myself and any purchaser, getting an oil change and a safety check locally on the cars, always getting a fresh NCT before you sell and I know a young lad that valets them fairly reasonably. Got a trade insurance policy too for road risk. All income absolutely declared.

    Joking aside, it's tough auld going and not like it used to be at all and the money you made on a car ten years ago is still all you'd make now or even less if anything. It's very hard to source stuff that isn't absolutely rattled and anything air a bit untidy will not sell. Good stuff is snapped up very quick for near retail money by big scale traders.

    Getting to the point of sale is very difficult dealing with an infinity of time wasters, low ball offers etc but unfortunately you do have to deal with them as nobody seems to know how to "traditionally deal" anymore which i found difficult at first. You need to know the worth of what you are selling and be priced absolutely spot on or the cars will sit and sit. The only upshot is with 100% certainly when someone comes to view the car, the first viewer always seems to buy lately, nobody deposits and comes back or hums and haws, anyone who turns up seems to buy. Best I made on a car was €850 but some you'd be happy to get your money back out of, more realistically €250-€300 gross per car is a bit like reality in that price range at least. Now if you had €1500 or whatever in the bank you'd not get a €250 return on it in your lifetime but it's a lot of work for not a lot of money.

    Anyway, as it goes at the minute, i'd say: 3/10 wouldn't really recommend unless you love mundane cars are like a bit of heartache in addition to your 9-5 heartache. I'm thinking of changing tack personally and maybe just buying actual interesting cars and fixer upper projects and enjoying them myself over a period of time before not getting too attached and flipping them. Focus on quality and enjoyment over quantity as unless you quit your 9-5 and go "full time - part time, part legit trader" you won't make an awful lot worth talking about at it.


  • Registered Users Posts: 5,188 ✭✭✭ zg3409


    As others have said there is not much money in it. I know someone who did it as a hobby (paid no taxes) and he gave up saying asking prices were too high, and many sellers had no idea of real selling price of cars. Often done deal prices are unrealistically high, and those cars sit there for months and others copy their prices from those ads not actual sold prices.

    Then in terms of taxes, telling the buyers you are not a private sale but a dealer (e.g. 3+ cars listed on done deal at same time), then a dealer is not allowed to sell a car that's not road legal and safe (except for trade deal) and typically you would give some defined warranty.

    That said if you can buy cars with no NCT, bad photos, and get them through NCT and clean them up, there might be a few quid. You get a lot of tyre kickers when trying to sell and low ballers. You are also decieving buyers. Often you don't want to transfer the car into your name for revenue reasons, so you try get sellers to not post the ownership change, otherwise you have another owner on the books.

    You could try one car at a time, it's a gamble, but it's not really a business. What brings up value is new NCT and to buy cheap. Risk is it fails NCT with expensive issues. If you can't fix the common fail issues yourself you will end up giving profits to mechanic.


  • Registered Users Posts: 6,724 ✭✭✭ Barr


    Honestly, I used to do it for years, in my late teens, early 20's, around a decade ago. It was great, you'd generally get on ok with cars, with "customers", with money. Back then you were advertising your private sales on carzone.ie and the buy and sell. You'd sell pretty much anything without too much difficulty, I don't know if that was the boom times or the relative innocents or whatever.

    Life got in the way, college, work, house etc. Got a bit settled at long last and said i'd get back into it last year and it's totally different. Bangernomics'y stuff €1-3k tops. Partially like yourself for the love interest in cars, you get to see and feel and experience a lot of different cars and historys and problems and it's half ways nice to see a car come back from the brink and serve a few more years and maybe getting a few euro to boot.

    Have flipped around 20 since this time ish in the last year. Tried to make it more legit for myself and any purchaser, getting an oil change and a safety check locally on the cars, always getting a fresh NCT before you sell and I know a young lad that valets them fairly reasonably. Got a trade insurance policy too for road risk. All income absolutely declared.

    Joking aside, it's tough auld going and not like it used to be at all and the money you made on a car ten years ago is still all you'd make now or even less if anything. It's very hard to source stuff that isn't absolutely rattled and anything air a bit untidy will not sell. Good stuff is snapped up very quick for near retail money by big scale traders.

    Getting to the point of sale is very difficult dealing with an infinity of time wasters, low ball offers etc but unfortunately you do have to deal with them as nobody seems to know how to "traditionally deal" anymore which i found difficult at first. You need to know the worth of what you are selling and be priced absolutely spot on or the cars will sit and sit. The only upshot is with 100% certainly when someone comes to view the car, the first viewer always seems to buy lately, nobody deposits and comes back or hums and haws, anyone who turns up seems to buy. Best I made on a car was €850 but some you'd be happy to get your money back out of, more realistically €250-€300 gross per car is a bit like reality in that price range at least. Now if you had €1500 or whatever in the bank you'd not get a €250 return on it in your lifetime but it's a lot of work for not a lot of money.

    Anyway, as it goes at the minute, i'd say: 3/10 wouldn't really recommend unless you love mundane cars are like a bit of heartache in addition to your 9-5 heartache. I'm thinking of changing tack personally and maybe just buying actual interesting cars and fixer upper projects and enjoying them myself over a period of time before not getting too attached and flipping them. Focus on quality and enjoyment over quantity as unless you quit your 9-5 and go "full time - part time, part legit trader" you won't make an awful lot worth talking about at it.

    Excellent post , great to hear of experience like this to get a real world perspective


  • Registered Users Posts: 5,344 ✭✭✭ LollipopJimmy


    Make sure you have storage, there's a lad doing it currently on my street and he has 7 cars parked around, this is in the middle of Dublin so the neighbours are all seriously pee'd off, it's hard enough to find parking


  • Registered Users Posts: 2,193 ✭✭✭ deandean


    A guy on my road started this about 10 years ago.
    Next thing he had 3 or 4 cars parked on the road around his house, obviously for sale (i.e. spick 'n span etc).
    Then I was driving by and I saw a squad car parked outside his house and a Garda having words with him.
    Then all the cars were gone.
    So, beware of running this type of enterprise from your house in suburbia.


  • Advertisement
  • Registered Users Posts: 3,686 ✭✭✭ Theboinkmaster


    Sounds like a very stressful “hobby”


  • Registered Users Posts: 5,095 ✭✭✭ James Bond Junior


    Did it for a time, did very well but stopped. You need contacts in the trade, get into a few good garages and look after the lad taking in trades and you can make good cash. But the amount of scummers and dodgy baxtards doing the same thing is insane. Stay away unless you want to lie down with dogs and get fleas.


  • Registered Users Posts: 885 ✭✭✭ oinkely


    I fell into this a few years ago, but with evs. Bought a few from the UK, drove them for a few months and then sold them on, usually at a small profit. It was easy at the time as i was only buying one at a time and then driving it while waiting for a buyer. I only bought nissan leafs as i had a good knowledge of them and was happy driving them to and from work while waiting to sell them. I had another vehicle on the road at the time so wasn't stuck when I sold one and and had a second insurance policy for the flipper. With brexit though that particular avenue is now closed.


  • Registered Users Posts: 295 ✭✭ Fils


    Toyotaboi I won’t quote your post but your issue is you are dealing with the bottom barrel clients. Up your pocket money and start dealing in 10-15k cars.
    All you are dealing with now is lads with 2-3 weeks COVID payments in their wallets.


  • Banned (with Prison Access) Posts: 991 ✭✭✭ ineedeuro


    Fils wrote: »
    Toyotaboi I won’t quote your post but your issue is you are dealing with the bottom barrel clients. Up your pocket money and start dealing in 10-15k cars.
    All you are dealing with now is lads with 2-3 weeks COVID payments in their wallets.

    Which most buyers don’t want to know about back street dealers anymore. Once you move up the range people prefer a garage with a service history and warranty.


  • Registered Users Posts: 295 ✭✭ Fils


    My advice to you is buy new. You want champagne on a orange juice budget.


  • Registered Users Posts: 6 reccit


    Honestly, I used to do it for years, in my late teens, early 20's, around a decade ago. It was great, you'd generally get on ok with cars, with "customers", with money. Back then you were advertising your private sales on carzone.ie and the buy and sell. You'd sell pretty much anything without too much difficulty, I don't know if that was the boom times or the relative innocents or whatever.

    ..............

    What sort of cost is the trade policy, do you mind me asking?


  • Registered Users Posts: 2,985 ✭✭✭ User1998


    reccit wrote: »
    What sort of cost is the trade policy, do you mind me asking?

    Prices start at around €1,500 for a middle aged person and around €5,000 if your under 25.


  • Registered Users Posts: 12,943 ✭✭✭✭ Toyotafanboi


    I have it with a friend, both of us are 31, full clean license yada yada €1400 in total for the policy, €700 a each and it covers our personal cars fully comp too but i dont use it on my personal car as I want to keep my NCB up and my personal policy isn't too dear anyway.


Advertisement