Side hustle - selling cars privately
Discussion
Guys
I've been thinking about importing cars from Japan with the intention to sell them in the UK for a profit. I think I'll meet my side hustle goal by selling about 5 cars a year
I'm not a trade, or want to be one ever! I have a full time job. Just want a second source of income, do doing this....
I have imported 2 cars this year so far. One was delivered yesterday, other ones on a ship reaching mid Aug.
Plan is to sell using autotrader listing...
My questions -
1. My plan is to add-remove cars to my personal car insurance while I see them... This will be a cost from any profits. Is there a better way to get insurance without going trader route?
2. Any car sold, will be sold as seen and as a private sale. I do not intend to hold any information back... Provide all Japan docs, auction sheet etc. So the buyer can make decisions themselves. How can I protect myself from someone who might not like the car after it's sold, and demands refund... Or even shows up at doorstep
3. Any buyer will want to ride before they buy. I'd like to run the car a few miles myself to check. So, I suppose I will surely need insurance... Is there any way to not require a full insurance?
4. Should I not sell it from my home but instead in some public park etc. So no one shows up on doorstep?
Thanks
I've been thinking about importing cars from Japan with the intention to sell them in the UK for a profit. I think I'll meet my side hustle goal by selling about 5 cars a year
I'm not a trade, or want to be one ever! I have a full time job. Just want a second source of income, do doing this....
I have imported 2 cars this year so far. One was delivered yesterday, other ones on a ship reaching mid Aug.
Plan is to sell using autotrader listing...
My questions -
1. My plan is to add-remove cars to my personal car insurance while I see them... This will be a cost from any profits. Is there a better way to get insurance without going trader route?
2. Any car sold, will be sold as seen and as a private sale. I do not intend to hold any information back... Provide all Japan docs, auction sheet etc. So the buyer can make decisions themselves. How can I protect myself from someone who might not like the car after it's sold, and demands refund... Or even shows up at doorstep
3. Any buyer will want to ride before they buy. I'd like to run the car a few miles myself to check. So, I suppose I will surely need insurance... Is there any way to not require a full insurance?
4. Should I not sell it from my home but instead in some public park etc. So no one shows up on doorstep?
Thanks
If you want to play with the big boys you'll be needing a £3000 plus PA insurance. Registration with HMRC for VAT and business tax. They will take half of everything you earn.
You can try and keep it on the side but that won't protect you from legals if a cars not right and I've if you're neighbors will likely grass you up to HMRC.
The car trade is the hardest thing you could go into the people I know that duck and dive and try and help everything dodgy never really make any proper money. If there's an opportunity in doing these imports do it properly and do more of it and you'll learn good money.
You can try and keep it on the side but that won't protect you from legals if a cars not right and I've if you're neighbors will likely grass you up to HMRC.
The car trade is the hardest thing you could go into the people I know that duck and dive and try and help everything dodgy never really make any proper money. If there's an opportunity in doing these imports do it properly and do more of it and you'll learn good money.
the intention to sell them...for a profit.
I'd have to check, but I'm pretty sure that this is the exact definition of a trader so far as the law/HMRC are concerned. So you will be a trader and nothing you say about 'side hustles' or 'sold as seen' will change that. Of course, if you only sell one car every few months you might get away with pulling the wool over your customers' eyes, but make no mistake that's what you will be doing so I'm not sure the good people of PH will be falling over themselves to help you do it.
I'd have to check, but I'm pretty sure that this is the exact definition of a trader so far as the law/HMRC are concerned. So you will be a trader and nothing you say about 'side hustles' or 'sold as seen' will change that. Of course, if you only sell one car every few months you might get away with pulling the wool over your customers' eyes, but make no mistake that's what you will be doing so I'm not sure the good people of PH will be falling over themselves to help you do it.
kers.As part of importing, I'd have paid HMRC and DVLA the import taxes vat etc.
Upto 5 cars a year, and depending on how it goes, I may even not do that!!!
If you mean HMRC from the perspective of tax on profit, could I use my wife's personal allowance (12.5k) to not have to pay any tax...? She doesn't work, so could use her tax free allowance . Don't think I'd make that much with what I'm trying to do
Upto 5 cars a year, and depending on how it goes, I may even not do that!!!
If you mean HMRC from the perspective of tax on profit, could I use my wife's personal allowance (12.5k) to not have to pay any tax...? She doesn't work, so could use her tax free allowance . Don't think I'd make that much with what I'm trying to do
I’m sure you would avoid a whole heap of grief if you only sold to dealers (not private retail buyers), and / or created some kind of broker service where you bought cars on behalf of individuals (and not owed them yourself).
Only takes one upset customer (I think ‘sold as seen’ has no legal definition), takes you to court, if your history of buying, importing and selling cars surfaces, I’d imagine you will be classed as a ‘dealer’ and the customer enjoy their consumer protection rights.
What type of budget of cars you considering ?
Only takes one upset customer (I think ‘sold as seen’ has no legal definition), takes you to court, if your history of buying, importing and selling cars surfaces, I’d imagine you will be classed as a ‘dealer’ and the customer enjoy their consumer protection rights.
What type of budget of cars you considering ?
Wilmslowboy said:
I’m sure you would avoid a whole heap of grief if you only sold to dealers (not private retail buyers), and / or created some kind of broker service where you bought cars on behalf of individuals (and not owed them yourself).
Only takes one upset customer (I think ‘sold as seen’ has no legal definition), takes you to court, if your history of buying, importing and selling cars surfaces, I’d imagine you will be classed as a ‘dealer’ and the customer enjoy their consumer protection rights.
What type of budget of cars you considering ?
£5-8k cost to get it on UK roads.Only takes one upset customer (I think ‘sold as seen’ has no legal definition), takes you to court, if your history of buying, importing and selling cars surfaces, I’d imagine you will be classed as a ‘dealer’ and the customer enjoy their consumer protection rights.
What type of budget of cars you considering ?
E.g. V40 T4, 30k miles, 2013, FSH, grade 4.5(very good condition). Selling price £7000
However you frame it you are a trader. You need to check with your accountant about using your partners tax allowance. I suspect if she is not working, it is not possible. Why not just be upfront and honest about what you do- i.e. a small specialist car trader- and not try and con the tax man and potential buyers. It only takes one unhappy buyer to take you to court for a broken /defective vehiclef or you to be personally liable for a lot of money and back taxes etc.
itssmallstuff said:
£5-8k cost to get it on UK roads.
E.g. V40 T4, 30k miles, 2013, FSH, grade 4.5(very good condition). Selling price £7000
When you said importing from Japan I thought you meant "proper" importing cars from Japan.E.g. V40 T4, 30k miles, 2013, FSH, grade 4.5(very good condition). Selling price £7000
Surely it's not worth the hassle for run of the mill Volvos?
This has all the hallmarks of someone asking for advice, being told it’s a bad idea and in doing it they will be opening yourself up to a world of pain, then they go ahead and do what you want anyway. Am I right? 
Trying to hide a trading status from customers and income from HMRC will only come back to bite you on your arse.
Trying to hide a trading status from customers and income from HMRC will only come back to bite you on your arse.
itssmallstuff said:
Guys
I've been thinking about importing cars from Japan with the intention to sell them in the UK for a profit. I think I'll meet my side hustle goal by selling about 5 cars a year
I'm not a trade, or want to be one ever! I have a full time job. Just want a second source of income, do doing this....
I have imported 2 cars this year so far. One was delivered yesterday, other ones on a ship reaching mid Aug.
Plan is to sell using autotrader listing...
My questions -
1. My plan is to add-remove cars to my personal car insurance while I see them... This will be a cost from any profits. Is there a better way to get insurance without going trader route?
2. Any car sold, will be sold as seen and as a private sale. I do not intend to hold any information back... Provide all Japan docs, auction sheet etc. So the buyer can make decisions themselves. How can I protect myself from someone who might not like the car after it's sold, and demands refund... Or even shows up at doorstep
3. Any buyer will want to ride before they buy. I'd like to run the car a few miles myself to check. So, I suppose I will surely need insurance... Is there any way to not require a full insurance?
4. Should I not sell it from my home but instead in some public park etc. So no one shows up on doorstep?
Thanks
Putting aside all the technical issues, there is always a reason as to why a price arbitrage opportunity exists and that boils down to either no one else spotting the opportunity, no one else able to participate in the opportunity or the risk is too high for it to be logical for anyone to partake in the opportunity. I've been thinking about importing cars from Japan with the intention to sell them in the UK for a profit. I think I'll meet my side hustle goal by selling about 5 cars a year
I'm not a trade, or want to be one ever! I have a full time job. Just want a second source of income, do doing this....
I have imported 2 cars this year so far. One was delivered yesterday, other ones on a ship reaching mid Aug.
Plan is to sell using autotrader listing...
My questions -
1. My plan is to add-remove cars to my personal car insurance while I see them... This will be a cost from any profits. Is there a better way to get insurance without going trader route?
2. Any car sold, will be sold as seen and as a private sale. I do not intend to hold any information back... Provide all Japan docs, auction sheet etc. So the buyer can make decisions themselves. How can I protect myself from someone who might not like the car after it's sold, and demands refund... Or even shows up at doorstep
3. Any buyer will want to ride before they buy. I'd like to run the car a few miles myself to check. So, I suppose I will surely need insurance... Is there any way to not require a full insurance?
4. Should I not sell it from my home but instead in some public park etc. So no one shows up on doorstep?
Thanks
Where retail traders in all markets go wrong is that they never factor in the risk differential. Start to correctly price up your capex, transaction and time costs to account for risk and you usually reach the same conclusion as every single historic and current market participant which is that the price arbitrage doesn't actually exist due to the inevitability of the eventual failed trade.
What you're in fact looking at is a bet and that bet is that you can take on hugely elevated levels of risk and execute enough single trades before the one that cancels out all those micro gains and delivers the net loss.
It's a pure roll of the dice, one person might get 20 trades done before the capitulation whereas someone else could get hit on their first punt. That's not something a business would be built on but a gambling activity.
The only true side hustle is exchanging spare labour hours for cash. Around the world everyone understands this and in the U.K. the majority of people who wish to have extra money via a 'side hustle' don't go gambling but instead turn to the market that exists absolutely for this purpose and has in recent years been rebranded as the gig economy.
Punting cars is a bit of fun, importing is a bit of fun. Laying out a large lump of capital, paying enormous transaction fees, being exposed to the market for an abnormal duration and hoping to eventually sell on to someone willing to pay enough to cover all those costs but with zero risk premium is not a 'side hustle'.
itssmallstuff said:
Guys
I'm not a trade, or want to be one ever!
1. My plan is to add-remove cars to my personal car insurance while I see them... This will be a cost from any profits. Is there a better way to get insurance without going trader route?
2. Any car sold, will be sold as seen and as a private sale. I do not intend to hold any information back... Provide all Japan docs, auction sheet etc. So the buyer can make decisions themselves. How can I protect myself from someone who might not like the car after it's sold, and demands refund... Or even shows up at doorstep
3. Any buyer will want to ride before they buy. I'd like to run the car a few miles myself to check. So, I suppose I will surely need insurance... Is there any way to not require a full insurance?
4. Should I not sell it from my home but instead in some public park etc. So no one shows up on doorstep?
Thanks
Wind-up thread, surely? These are ALL red flags. I'm not a trade, or want to be one ever!
1. My plan is to add-remove cars to my personal car insurance while I see them... This will be a cost from any profits. Is there a better way to get insurance without going trader route?
2. Any car sold, will be sold as seen and as a private sale. I do not intend to hold any information back... Provide all Japan docs, auction sheet etc. So the buyer can make decisions themselves. How can I protect myself from someone who might not like the car after it's sold, and demands refund... Or even shows up at doorstep
3. Any buyer will want to ride before they buy. I'd like to run the car a few miles myself to check. So, I suppose I will surely need insurance... Is there any way to not require a full insurance?
4. Should I not sell it from my home but instead in some public park etc. So no one shows up on doorstep?
Thanks
Ignoring the legalities and tax aspect, I assume you are selling fairly high value cars? I'm only saying this because transport and import duties seem to have killed off any potential to bring in lower price cars. But if we are talking about £10k+ cars, with no UK history at all, how are you going to convince people to part with their money? Especially when you want to meet them in a carpark. As a buyer I would be running an absolute mile from this.
If you want to do this, set up as a business and do it properly. If you can make some money with proper insurance, customer obligations and accounting in place, then brilliant, nice way to make additional income. If not, then there isn't a business there in the first place.
If you want to do this, set up as a business and do it properly. If you can make some money with proper insurance, customer obligations and accounting in place, then brilliant, nice way to make additional income. If not, then there isn't a business there in the first place.
SteveStrange said:
Wind-up thread, surely? These are ALL red flags.
I must admit, I did think that if you wanted to create a wind-up thread then you couldn't do much better! But then on the odd occasion I happen to see stuff pulled from Reddit to do with business/finance I'm stunned at the naivety and general cluelessness on display, so I really don't know.
Gassing Station | Business | Top of Page | What's New | My Stuff