New car dealer chat

[MK2baldwin]

something that has been ticking over in my head for years, a scratch im so close to itching.... i know there will be alot of negatives towards car dealers but i love the search of finding cars and to be honest the amount of cars i 'find' and think 'that's a good price' then two weeks later its on a dealers site has always annoyed me... especially when i go back and its sold for good margin using the margin scheme and imagining it need the wheels refurb etc.

now i know its not going to be easy but to start with i was thinking maybe 3 cars 8-10k each and i have a small yard my dad has access to which i can store off road and trade from. At this price point i bet alot of people start to want finance so my question was.... How many cars if any do you need to have to be able to offer finance, will brokers be happy to offer finance via a company with not physical premises etc i.e any recommendations for brokers for small car dealerships/start ups??

thank you

[Mark V GTD]

Maybe watch some of the High Peak Autos videos on YouTube and consider signing up for his car traders training video course? I'm not affiliated but the guy seems to know what he is doing and is happy to share his knowledge.

[SandhurstCars]

There are a lot of finance companies that will happily have you sell their finance packages but you need to be FCA regulated. I looked into it for my small side business but the requirements weren't worth it for me. There are companies that will manage the process for you for a couple of grand I believe

[MustangGT]

MK2baldwin said:

something that has been ticking over in my head for years, a scratch im so close to itching.... i know there will be alot of negatives towards car dealers but i love the search of finding cars and to be honest the amount of cars i 'find' and think 'that's a good price' then two weeks later its on a dealers site has always annoyed me... especially when i go back and its sold for good margin using the margin scheme and imagining it need the wheels refurb etc.

now i know its not going to be easy but to start with i was thinking maybe 3 cars 8-10k each and i have a small yard my dad has access to which i can store off road and trade from. At this price point i bet alot of people start to want finance so my question was.... How many cars if any do you need to have to be able to offer finance, will brokers be happy to offer finance via a company with not physical premises etc i.e any recommendations for brokers for small car dealerships/start ups??

thank you

Have you looked into all the legislation around selling second-hand cars?

[HTP99]

MustangGT said:

MK2baldwin said:

something that has been ticking over in my head for years, a scratch im so close to itching.... i know there will be alot of negatives towards car dealers but i love the search of finding cars and to be honest the amount of cars i 'find' and think 'that's a good price' then two weeks later its on a dealers site has always annoyed me... especially when i go back and its sold for good margin using the margin scheme and imagining it need the wheels refurb etc.

now i know its not going to be easy but to start with i was thinking maybe 3 cars 8-10k each and i have a small yard my dad has access to which i can store off road and trade from. At this price point i bet alot of people start to want finance so my question was.... How many cars if any do you need to have to be able to offer finance, will brokers be happy to offer finance via a company with not physical premises etc i.e any recommendations for brokers for small car dealerships/start ups??

thank you

Have you looked into all the legislation around selling second-hand cars?

And the legislation to be able to offer finance.

[MK2baldwin]

SandhurstCars said:

There are a lot of finance companies that will happily have you sell their finance packages but you need to be FCA regulated. I looked into it for my small side business but the requirements weren't worth it for me. There are companies that will manage the process for you for a couple of grand I believe

i did see a few companies offered to do the paperwork for you for a set fee, i just imagine 80% of people finance cars now a days and like things handed to them i.e wouldn't be interested in me saying 'you can arrange your own finance no different to how i would do it for you without the fees...'

[TerryMcCann]

I hope you call it "M.V.B Motors".

Edited by TerryMcCann on Tuesday 17th June 10:20

[JimmyConwayNW]

MK2baldwin said:

something that has been ticking over in my head for years, a scratch im so close to itching.... i know there will be alot of negatives towards car dealers but i love the search of finding cars and to be honest the amount of cars i 'find' and think 'that's a good price' then two weeks later its on a dealers site has always annoyed me... especially when i go back and its sold for good margin using the margin scheme and imagining it need the wheels refurb etc.

now i know its not going to be easy but to start with i was thinking maybe 3 cars 8-10k each and i have a small yard my dad has access to which i can store off road and trade from. At this price point i bet alot of people start to want finance so my question was.... How many cars if any do you need to have to be able to offer finance, will brokers be happy to offer finance via a company with not physical premises etc i.e any recommendations for brokers for small car dealerships/start ups??

thank you

The money is in the buying.
If you have an eye for things that look value at certain price points and can buy with margin in stuff thats the trick.

I sell 70-80 and rather than messing around making youtube videos and selling courses just get on with the job. Feel free to ask anything.

The one thing I will say in this industry I know high level successful operators, mid range people ticking over and people struggling. The successful ones work non stop, constantly. This is not an easy business to automate. If requires serious graft.

Give it a go, eat sleep and breathe it, loads of info online worst that happens you try and doesn't go well. Best case ten years from now you are making a living doing something you like gradually despising the general public, cars and the consumer rights act.

[clio007]

Before all the naysayers come in here to shoot you down and ask you look at XYZ legislations and rules

I would say start with 1 car sub 8k first and see how that goes without finance

You will get a feel for it. I wouldn't be thinking about finance as lots buy without finance. Credit card and bank loans are usually much cheaper

[Red9zero]

Shifting Metal do a podcast for dealers and especially newer ones. Might be worth a listen and maybe contact them to see if they would have you on.