What does it cost to become a motor trader (what do you legally need)
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- Опубліковано 9 лис 2021
- If you are thinking of becoming a motor trader then this video will tell you what it costs to get started (based on my costs).
This is me rabbiting on about all the things that you will need to get started, how to stay legal and some bits of equipment that you might not have thought of, but are a good idea.
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If for whatever reason you haven’t got a scanner OBD reader then know this. The engine management light should come on briefly when turning on the ignition. If it doesn’t then it’s already been plugged in and switched off to hide a fault.
This is the best video on how much it actually costs to become a trader! Brilliant video, I'm hoping in the near future to become a trader from home. Can't wait to give up my current job as a hgv driver 👌
Glad it was helpful!
Start off with a few on the side and then hopefully you can build it up and leave your job.
Good luck
I'm literally watching this video while on a 30min break 😂😂 any updates Joem?
Steps are simple as follows:
Spare 10k
Set up an used car sales Ltd
Get trader insurance( not cheap)
Apply for trade plates( up to 6 weeks waiting time)
Get stock( good luck finding decent one)prep them well, check cars to be safe.
Get a warranty on board
Get an autotrader account (837£ a month for basic 8 rolling adds) but comes with other advantages like unlimited hpi checks and valuations.
Be honest!
Don’t be greedy
Get a forecourt
Hi Alexandru, I appreciate you taking time to comment.
You really don't need 10k, a forecourt, warranties or a rolling auto trader account (£612 +vat) when setting up.
This series is all about starting out as a driveway trader, you can do that from home, with one car, that's how most traders start.
I have never seen the point in a rolling Autotrader account when you only have 5 cars or less for sale at any one time. You can register as a trader and have a pay as you go account, paying around £60 per car for a month listing.
The rolling account you talk of allows you 7 cars at any price and one under £1000 (if my memory serves me right), for that to make sense you need to be trading more than twelve cars a month consecutively, you won't be doing anywhere near that from the get go.
There are also more platforms out there than Autotrader, different vehicles will work better on different ones.
HPI checks can be done for less than £4 per vehicle (if you buy from auction it will come with a HPI).
Pricing the car, you can never trust what Autotrader tells you, but I will make a video on how I price vehicles for both buying and selling valuations, soon. I will also look at buying stock.
Warranties are not a legal requirement as some people think, I still only offer a warranty if the car retails at a certain price.
You don't actually need the full insurance cost upfront either, most will ask for around 25% and then give you a credit agreement.
It's a bit more simple that what you think mate.
@@Stevesautos I’m saying it in the way I started, and I started only 4 months ago. Sold 23 cars already and have 7 in stock at the moment and more to come. I’m not buying from auction as there is barely any margins or none, I’m buying mainly privately and I’m about to register with motorway for more stock. Giving that, in my case autotrader account really makes sense as I probably check 20-30 cars a day times 30 days really adds up, also the account itself looks more professional, can have reviews and make you more trustful. I always price the cars according to autotrader valuation tool and always sold at that price, people which are genuinely look to buy a car they always go first on autotrader.I know that some of the other platforms are giving different valuations but can’t really be bothered.
On the insurance matter, I pay monthly, full policy price was 3180£ for a year, 2 persons on it and it was that expensive as I’m a bit of a heavy foot and I have 9 points on my license.
The policy itself covers for unlimited number of cars including premium performance cars are covered except any cosworth or supercharged vehicle.
Forecourt, well it’s more like a storage place where to park your cars and meet the potential customers, again makes you look more professional than selling from home. I currently have a yard in an industrial estate where I can also prep and do basic repairs and servicing.
Warranty. it’s not a legal requirement but consumers act2015 says that 6 months as a retailer you are liable for any repairs that can occur to make the vehicle fit for purpose and some can be very repairs can be very expensive and you don’t have a crystal ball to know when or if a car will fail, so better be safe than sorry, also again, gives more confidence to the punters and makes you look professional. This applies to any car regarding its age or mileage unless it’s sold under “spares or repair” terms.
Well, I can't argue if that was what you invested to set up, was just pointing out that you don't need to invest 10K, have a forecourt or offer warranties from the get go, that comes a little bit down the line for most people, but well done on selling 23 cars in your first 4 months.
Warranty and consumer credit act 2015 is a grey area that needs some understanding, the law assumes that any problems were on the vehicle when it was sold.
A good car dealer will have a PDI (Pre-Delivery Inspection) done before the car goes out by a qualified garage, this inspection states if there are any issues with the car at point of sale, and removes the assumption that the problem was there in the first place, in most cases.
The law isn't there to catch out good dealers, it does also takes into consideration expectations with things like the mileage and the age of the vehicle, so your expectations on a 25,000 mile vehicle that's three years old would be different to a fifteen year old vehicle with 180,000 miles.
Don't get me wrong, I'm all for warranties, but on some cars they are not worth the paper they are written on and will not cover age related or common issues, so you are better off spending the money on a PDI over a warranty if the margins are tight (PDI should be pretty standard though).
I think you nailed it in your first comment, prep them well and be honest.
@@Stevesautos I know what you mean with the pdi, but yet if the car fails you still have an obligation to sort it out or to contribute to its repairs. Now it depends on your salesman skills to how much you can pursue the customer to take into his account. I’ve been lucky enough not to have any claims by now as I really pay a lot of attention and time in making the cars right, but you never know when the unfortunate is to happen. But at the end of the day what matters is to be honest and build yourself a reputation
"Don't be greedy" You are a hell of a joker. 🤣
Great video with tips and advice for those thinking about getting into the Automotive trade. 👍 Have a great Christmas.
Great video mate and lot’s of good advice Iv definitely been taking note. We need more videos from you. Definitely subscribed
Really enjoyable video Steven. Everything clearly and honestly explained. Looking forward to more content. Thanks.👍
Thanks mate, appreciate your comments.
Great information there Steve, nice to get the truth from someone who knows the business not just telling us how much they make flipping cars.
Just subbed . Please keep the content coming . Am thinking of going back to trading as a sidekick a lot has changed .
Keep it up
You know what this is the best most informative video on trading I have ever watched. Simple quality video. Thankyou very much.
You are welcome mate, I appreciate the comment
Really excellent video mate, exactly the type of content I'm interested in. Thank you! Subscribed and looking forward to more
Cheers Lewis
Thank God someone just talked very real and authentic 👏
Really well explained. Best I’ve seen on here with great advice 💰
I appreciate that!
Very useful video! Would be great to see a video regarding the VAT and how it works when you buy /sell vehicle with vat on it.
Cracking video, straight to point. Top man 🤙🏻
Very good video, clears everything up! Thanks mate
Really enjoyed this video as it is something I have an interest in. Would love to see more videos on car trading.
Cheers James.
Finally the content I’ve been looking for thank you
Thanks Jay for taking the time to comment, cheers.
Good info Steve. Just subbed so looking forward to more content. 👍
Thanks mate 👍
Really informatics video Steve many things to learn from you as new motor trader Hope will get support from you
Thanks 👍 any other questions please ask
Great video can you make a follow up video in regards to using other people's cars e.g family members etc with and with out personal insurance on the car
I'm trying to learn how to start a motor trade business. I'm only 1:30 seconds in to your vid and I know exactly the video you are referring to as I watched that one yesterday. I was wondering myself if what he said was actually true or not, now I know. Thanks.
The best video on youtube about selling cars and setup up the bussines!! Thank you Steve for very interesting information.
I start looking for trade insurance, I hope I can get one. Trading mainly from home.
Is there any chance you could share some knowledge about the warranty for the cars you selling under ltd company?
I'm a bit concerned when you selling cars as a sole trader or ltd company how much warranty should I provide with the car ? I really would like to be honest with the people and build healthy and friendly relationship. Thanks in advance.
Btw. Are you available outside youtube to talk about it and help with sime questions ? Im happy to pay fir your time 😊
Great set of information. Thank you.
Thanks for watching!
Very interesting video even for me as I'm in a business over a year and have some knowledge about buying and selling cars. I can also help (as I'm mechanic) with decent and cheap diagnostic tools also some advices how to not buy a crap vehicles which won't make any profit lol :)
Great video, I'm getting started myself so this is a massive help. i do have another business that i need some software help with how can i reach out. Thanks
Great video I’ve been looking into this for a while and can’t believe how hard it is to find this basic info around what insurance and trade plates cover etc shame you have gone quiet on UA-cam… thanks for the info and honesty
Hey Steve
Glad it helped, there's a new video coming out this weekend, watch out for it.
Top man love watching your videos 👍
Thanks 👍
Thanks for sharing your knowledge.
You have a new subscriber.
Thanks, lots of vid coming soon.
Excellent information. Thank you
Glad it was helpful!
Steve great video - where do you advertise? Which format would you recommend for value for money and sell cars quickly?
I always advertise on Autotrader, you bet a better price than ebay, I also put it on Facebook marketplace as it's free.
Looking to get into the car trade and this was a great informative video
Glad it was helpful!
You’re a star mate very brief and well detail video
Thanks mate
Hi mate, great video and very detailed in explaining the overall of trading cars. I just wanted more clarity on taxing the vehicles when you buy the cars as a trader. Is there a specific type of tax you need? Do you have to sorn it? or you don't have to tax at all while it is under the Ltd company until i sell them?
I want details specifically for someone who don't have a designated garage/area where the cars will be kept?
apologies if you explained this already
Thanks Tommy
Hi Tommy
Legally you should register it in your company name and tax the car in the normal way if you are keeping them on the road, but I believe that you can just register it in trade through the DVLA website as all traders do, and use the current owner doc to tax it without clocking up an extra owner.
Thanks for the helpful information:
Would you say that when buying your first car to "flip" you should do it personally and wait to setup a limited company after selling a few cars? I only ask due to adding an additional owner on to the car and then having to wait for a logbook in the post before being able to sell it on?
Cheers!
You can start out as a sole trader, as long as you have a motor trade insurance policy that you can provide to the auction, the vehicle gets registered in trade rather than the log book getting sent off, so no additional owners.
Can you explain how VAT works when you buy or sell . Thank you
Hi Steven firstly great video very well explain. Need to understand one point as you mentioned your policy cover 5 cars and you can drive all five cars for personal social etc use …so question is do we need place the trade plate while using the car ?
Hey
I tax the cars that I use for personal use, keep the a few months and then sell them on.
You shouldn't use trade plates for personal use (but people do).
Thank you for the tips
No problem!
I left the trade in 2008, after 26 years. During covid & the various lockdowns I started to give serious consideration to a return, but only as a side hustle. I'm amazed at just how many "experts" there now are on UA-cam who seem to think it's simple 🤦🏻♂️🤦🏻♂️
I agree
Would love a video on vat and taxes ect as i know its different
What make and model is the £15 scanner ?
hi, where can I get the excel sheet that you mentioned in the video?
Very interesting 👍
Very helpful video
My understanding is that trade plates are for tax (VEL) purposes only. Just means the trade vehicle is taxed to be on the road rather than having to tax each vehicle every time it goes on the public road.
Hi James, I was referring to people that think they can use trade plates instead of tax and park on the public road.
This is a gem of a video 😂
Hi, thank you for the video, really helpful. I understand that you have to have a trade insurance to sell a car, question is after respecting the 500m rule between cars for sale , the cars are for sale and are untaxed? Do you get fined for untaxed cars that are for sale? What is the way around it?
You can't keep a vehicle on a public road without tax, those vehicles need to be off the road.
Hi Steven, great video - who are you with for motor trade? I had a quote for 1890 but doesn't include personal cover.
Onesure is my broker
Hi Steve, watched through your videos and finding this helpful. I am not a trader persay but i am a huge car enthusiasts and am constanty changing and selling my own cars. For example in the last 14 months i have owned and sold 8 cars, all of them were all personal cars in my name. But i have made a profit on all of them but 1 some of wich have been very healthy profit.. i am now considering doing this as a actual side hustle as trader. I have enough space on driveway for 3 vehicles so excited to get set up and running but the entire legality and policy is bit mind baffling. Im just a car lover, comptent mechanic and half decent salesman 😂.. i have about 10k now aside ready to start this, would you recommend staying at the lower end of market or start with some mid range.
I personally operate in the under 5k sector, sometimes I do go above if the right vehicle comes along at the right price but I find that under £5k people can usually find the cash without needing a loan or finance, but the lower end you go the more problems you will find. I think around £3k is the sweet spot for fast turnover.
Love the honesty, any more videos to come?
Hi Ross
Yes I have a few I'm working on, my other business has been manic so haven't had the chance to put them together.
Watch this space.
I've been trading cars but now decided to make the move for motor trade insurance rather than taking out individual policies. Is there a particular policy should look out for? What you mention in the video is a lot like what I'd be after
A trade policy should cover it all, you can choose any add on like demonstration cover on top. As a driveway trader there are only about 2 companies that will insure us.
What are these companies?
Please do make an update nearly a year on , doesn’t have to be any different just your knowledge would be great thanks!
Hi Steve Thanks for this amazing and informative video. I am also planning to start a motor trading business soon. May be I need some more information so will be in touch.
Yes, absolutely
Hi Steve, love your videos. Please continue and make more 👍🏼. I've got a question about driveway traders insurance. I've been phoning around to get quotes and its a bit of a minefield. Please could you recommend any companies / brokers. Many thanks and Merry Christmas.
@stephenwilliams2913 there are only a handful of companies that will touch drive way traders, I changed in December from Tradex to AXA, I've been with Tradex for 5 years but they put the price up over £400, where AXA upped the value of my stock to £7500 with an unlimited number of cars.
It is a mind field which doesn't make sense to anybody.
@Stevesautos Many thanks for the advice. I really appreciate it. Will give AXA a ring in the New Year.
Thank you, finally a real video about buying selling cars
No problem 👍
Great Video when you said you’d give him £220 my first thought was I could give him a grand and still be winning.
my insurance is on par with yours , only thing I’d add to equipment is a good jumpstart saved me hassle many times in an unknown motor .
Thanks man
I need to do an update for the equipment, there's lots of things I use that I could add to this, might help people to cost their first year in the trade.
I’m struggling to get trade insurance. Most insurers need proof of trading for a year ie receipts of buying and selling cars. I’ve bought and sold a few cars through face book but never thought about providing receipts. Any advice or recommended insurers appreciated
super helpful thank you
welcome
Refreshing to hear someone understand uk car insurance. Used to sell private insurance over the phone and the number of people that haven't got a clue is mind boggling.
Cheers Neil
Hi Steve, what's a good site to get trade policy insurance?
Love the content ❣️
Onesure is a good broker
Excellent video mate very informative
Thanks mate
@@Stevesautos no problem i like a real person
Hi enjoyed watching this as I’m in the process of of starting up. Due I need to inform mrhc as a sole trader finiancing myself do I need a business plan?
Thanks paul
You don't need a business plan but will need to complete a tax return for the additional income. get yourself an accountant who will advise you on the easiest way for your personal circumstances.
Thanks for all this information, I couldn't find anything as such on YT, I have one question and it's about trade insurance, so I'm 21 and I've even trying to get trade insurance so I could start from somthing from home, the issue is that most of not all companies won't insure under 25s which is bolocks, as its not fair as I want to start somthing so by time I'm 25 I have a decent business running and I could have learned alot by then and expanded to from home basis to a yard and sell more, is there any way to get trade insurance at this age as I don't want to waste another 3-4 years waiting for turn 25 thats just waste of time.
Hi Hassan
I'm not an insurance expert or anything so this is just how I would consider doing it, there are 2 ways that I can see, 1) pay a big premium, 2) set up a limited company with someone who is older, even if they are just a silent partner, and put the insurance in their name and you as a named driver for business purposes.
It works in a similar way as it would if you had sales people working for you.
Again that's my opinion and not a guide
Great video. I sell mostly cat N, sometimes S from my driveway. I have packed in my part time job that I hated and going to do this full time. I have no mortgage so this works for me, plus I just love cars. This video was great thanks. I would like to know about the whole vat part and paying tax buddy. 👍
Hi Paul, thanks for the comment, I will get the VAT video done soon (bit manic at the mo with my other business but I'm working on it).
Cat N and S can be a really good earner, again the secret is just being honest, got a mate that deals in damaged repaired and he photographs everything through the repair and gives it with the car when it sells.
Personally, I've only really done a few stolen and recovered performance cars, maybe I will buy one to show that process in the near future.
Cheers
Is it wise to remap your cars before you sell them? It would class as a vehicle modification for insurance purposes so the car owner would need to declare it to the insurer.
It's a grey area, but it is only a modification if you are increasing the power (which I give the owner the option) if you are setting up the fuelling correctly, then it's not technically modifying the car, it's the same as setting up the speedo against the different size wheels so it is accurate.
Or, a better example is doing a BHP test and finding that your vehicle has lost 20 BHP, is it a modification to return the 20 BHP through a remap (you are not physically modifying the car) and returning it factory outputs. In the same way losing 20 BHP is also technically a different specification to factory standard, do the insurance company reduce a drivers premium for having less power, or do they demand that you declare it.
Reality is, no insurance company can tell if the vehicle has been remapped, and there are still arguments for and against what you need to declare.
My opinion, if you are not adding new parts to modify it, it was capable of this when it came out of the factory, all I've done is set it up within the manufactures limits.
I was told by an insurance company I didn’t need trade insurance as the motorcycles that I was buying and selling never go on the road until they have been sold on and put into a new keeper and that I am more than 7 meters away from a public road?
I don't do motorcycles so wouldn't claim to be an expert. If people are not test driving then you obviously don't need demonstration cover.
The only grey area here would be, how you transport the vehicle, in side a van or on a trailer people assume that they are covered by their current policy, but this would be goods in transit for business purposes so would need separate trade cover.
Hi Steven! I’m starting to trade on a proper way very soon. My question is that if I set up as a sole trader where I live, but I rent out someones garage and would sell the car from there , do you know if I put the trader insurance that garage address would that work?
Thanks in advance
Gabor
You need to tell your insurance company on where the vehicles will be stored, they will add the address to the policy.
Do you need to be registered with the DVLA to mark a car as "in the trade" on the V5 when buying cars?
No, you just need your trade name and address, you can put the sellers email into the DVLA form and it will send them conformation that the vehicle is no longer registered to them.
Thanks for the video Stephen, had bits in there I wasn’t aware or. I’m starting up myself next month as a sole trader to start with a budget of about 7.5k… more nervous about deciding what car to get to maximise profit than anything, but also excited to get going. I’ll watch more of your videos at a later date. Thanks mate.
good lick mate
@@Stevesautos Nothing like a good lick 😇
@@Stevesautosjust a quick one, always wondered if buying the vehicle as a trader/business adds you onto the number of previous owners? Cheers
@@Nomoreranch0 It does not as long as you fill out the trade section on the logbook and send that off
@@birgitfischer8031 Makes sense, thanks for the response
Hi, love this derailed vid, had a few questions to ask:
1.) Is copart a limited company/can u give examples of more limited company's.
2.) Does registering for a limited company make u legally a car trader/dealer.
3.) If u buy a vehicle on auction or trade only can u end up keeping that vehicle as a personal car or will u have to sell in eventually.
??? Thanks😊
1) Yes copart is an Ltd
2) When you register your company you have to tell HMRC your business activity.
3) Depends on how you register the vehicle, so for example, if I buy a vehicle to drive myself for a while then I will make my company the registered keeper and keep it as long as I want to.
Steven we need more videos! I really want to get into this and start off with 1 car at a time but i want to know how to go about it with only £1000 to start
I had to take some time out as my other business has been manic and I do some work for a charity but I will have new content to upload in the next month, i'm just clipping and editing it.
My dad’s been really thinking of it he’s starting me and him. We decided to do it as a company because my dad is his boss he owns a takeway business currently
@Ammar-vx5tb did you ever get started?
Very good run down.
cheers
How can i tax a car that i have bought as a trader if i am waiting for the trade plate ?( starting trading for the first time)
And once i get a trade plate , can i store car in front of my house but on off road parking and how to tax it or it doesnt need taxing as i bought as a trader?
I would really appreciate if you can reply, as you can tell i have no experience at all.
Trade plates for moving the vehicle only, you cannot use it instead of tax so if you are keeping a car on the road then needs to be taxed.
Sadly the only way to do this is to register it in your name or trade name.
Where is your free download for vat spread sheet thanks
Regarding the Trader's insurance: Is it not possible to get hourly/daily insurance to drive the car home from the auction as well as to get customers to buy the same hourly insurance for test drives (You can offer them a refund in the form of a discount on the agreed selling price)? This should reduce the overall insurance costs. I would appreciate any thoughts on this.
Ok, so firstly I believe it's different when it's business use, those policies do exist and I have seen people use them to drive a car home on more than one occasion once they bought it, you can even tax a vehicle with a temp policy if needed.
The first issue you have is the tax, the vehicle must be taxed or on trade plates to be on the public road, you can't get trade plates without trade insurance, so your buyer would be driving the car without tax on their test drive, that is your responsibility and I don't think you are going to tax it for them.
Secondly, what if they don't buy it, are you still going to refund them the cost of their insurance, a lot of people will find two or three cars to look at before they make a decision, if three dealers did that then they would be spending out and costing them money if they don't like the car.
And you would need to do your insurance every time to take the car out, so it could be a tyre one day, MOT the next, costa add up.
This approach is a lot of hassle for everyone involved, and comes across as unprofessional.
I think the reality is, people buy from dealers as they are looking for a certain level of service, having the vehicles insured with cover to test drive is a basic thing, I don't think you can call yourself a car dealer without having dealer insurance, auction houses don't class you as a dealer without the insurance, they charge you higher fees, and won't release the owner docs in to trade, you will then add another owner to the list and have to wait for the DVLA to send you new docs.
If you think about the cost as a per car thing, how many cars do you hope top sell in your first year, lets say 18 cars and your insurance is £1800, that's only £100 per car.
Hi Steve, a great video thanks, I am self employed already but not in the car trade, I have been thinking about doing this for quite some time though at least as a side hussle to make a bit more money, that and because I love cars and driving. I always wondered about the car insurance bit so thanks for explaining everything, cheers 😃
Glen 👍
You are welcome mate
Hello mate your comment is exactly what am wanting to do at the moment! Did you ever get set up? If so how’s it going?
Great video*****
Thank you! Cheers!
Hi Steven
Pls can I ask a question
If I start up as a trader from
Home and I just do 2 cars at a time and I have trade plates and trade insurance am
I right in thinking I can only drive those cars with trade plates on for non personal use?
I may have misunderstood but if I taxed one of the cars could I then drive it for social whilst trying to sell it?
Thanks
Hey @dominicedwards9117
To clarify, you can't use trade plates for personal use so you would need to tax one vehicle, and your insurance needs to state personal use on the policy.
I have a policy that allows me to use my vehicles for both business and pleasure, I always have one or two vehicles taxed for the public road, and use trade plates for test drives.
Appreciate your reply Steven,
Thanks very much
With all these costs the profit margins must be tiny unless you’re shifting a lot of motors! I looked into this a few years back and the costs made it prohibitive. Also auction prices these days makes earning a profit even more difficult.
I aim for £1000 per car, you have to do your homework when buying and know the retail price before you buy.
Great video, but I can only see about 6 videos, did you do the software and Range Rover videos and they are on another list?
A work in progress at the moment, my other business has been crazy busy so sadly haven't had the time to edit all the other stuff I have.
I'm working on it, I promise.
@@Stevesautos that’s ok, just didn’t want to miss them videos as found others compelling
A asked my local council if I can trade cars using my own personal driveway, which is completely off the main road. They replied I must submit plans to change the use of my property and to send them a cheque for £420, also they want a scale drawing showing where on my drive the cars will be parked. Do you think this is correct?
Luckily I married a Barrister so get good advice, more from her friends than her as it's not her area of law.
Obviously this is not legal advice but an educated opinion.
But, anybody can work from home unless you live in controlled accommodation where you need to seek permission.
There is no difference in being a car trader than an online sales person when it comes to getting permission.
The only reason you would need to apply for change of use would be if you stopped living at the address and used it solely for business use.
The council cannot stop you trading if you have everything else in place and you are not causing a nuance.
The beauty of selling cars is that it is not a stationary or permanent fixture (they move) and they are on a driveway, if you were turning the property into a showroom or building something then you may need permission.
At last someone telling the truth about this on UA-cam thanks fella
No problem, I hope it helps. Any other questions feel free to ask
What if you can’t get trade insurance due to being under 25 yet have a LTD set up ready to go?
What insurance group are you covered upto and when quoted upto £10k does that mean per car or total cars
I I currently have group 50 and it's 10K per car
Great video!! Looking for any advice on legal issues, customers not happy etc and want you to pay for repairs. Once they gone away and happy. (Im a sole trader from home) part time. thanks 😊
Hi Michael
I'm not a solicitor but I can give you my opinion, which should not be classed as legal advice.
So, as a sole trader your customers have 30 days statutory rights, in the same way as buying any product from a professional.
But, it really all depends on what level of stock you are selling, as a court looks at managing expectations.
What I mean by that is, a car must be fit for purpose, not dangerous in anyway or have any hidden fault that you know about, but everything else is dependant on the expectation of the vehicle, so a customer wouldn't expect a 3 year old car to develop a major electrical problem within the first month or so of taking delivery, yet a 15 year old car would have a higher expectation of a fault occurring.
The same goes for mileage, a 150,000 mile car would have different expectations than a 70,000 mile car of the same year.
This in most cases, comes down to vehicle prep, having a good garage look over the car and having your own OBD software so you can find most hidden faults before they happen.
Customer service is always good practice, if a customer comes back with an issue, try to help them, don't be scared to break even on a car to make a customer happy, then ask them for a review that you can share on social media, a review saying how amazing you were when there was a problem goes further than there never being a problem to solve.
We all buy lemons from time to time, that's the nature of the game, just be a good human if a problem does occur and bend over backwards to help the customer.
@@Stevesautos thank you very much for replying. This is great information just trying to get my head around things and learn. Cheers
Nice one cheers
Welcome
There's just one thing I want clarification on. If you purchase a car from auction with no tax, as a trader do I need to SORN the car, or do I need to buy tax for it? The car would be stored off road, thanks. Excellent video by the way, great information👌🏾
Hi Ninja
If you buy as a trader, the auction house will declare ownership as still in trade to the DVLA so no you don't have to tax the car to keep it off road, you just need trade plates to drive it home.
@@Stevesautos thank you so much, I've been worrying about this as I didn't know the answer. I purchased my first car for sale a couple months ago and didn't know if me or the previous owner was gonna get a huge tax bill. I already have trade plates and car is kept off road. Cheers buddy
Hi, what do you do about liability insurance? Thanks
Hi Les
Liability insurance is included in my trade policy.
excellent video... very well explained
Glad you liked it
Mate this was exactly what I needed, been in the trade 13 years working at VW on sales, I've had a 4 year sabbatical and wanted to get back into but on my own rather than working looong hours at a main dealer, any tips on where to source stock from? Thanks
@@garethwinnard4876 Hi Garath, the best place is always to buy main dealer part-ex if you can, sounds like you may have some connections already to buy direct and skip the auction fees.
Otherwise, the auctions, BCA is still the best.
I wish you luck, mate.
Hello mate love the informative video.
I own my fast food takeaway but want to get into trading cars, at the back of my shop I have parking for 3/4 cars it’s not technically on public road and ive CCTV etc so seems to be a ideal set up to start small. Traded a few cars but I’ve had to register them onto my name and dad’s name then tax them so the profit margins went very small.
Any tips and tricks which I can follow to chase my dream to become a motor trader?
Thank you so much
Hey buddy
Sounds like you have a potential for a good setup.
Get yourself a motor trade insurance policy, and get some trade plates, you only need to tax the vehicles if kept on the road.
I will be doing an update video on this next month, keep your eyes open for it.
@@Stevesautos Appreciate the reply bud,
Also how far in do I have to open a business bank acc etc, how dodgy is it trading from personal debit accounts etc. And auto trader have just picked up on me as selling to many cars and have to register as a semi trader or something is that somthing good? Thanks
If you are self employed there is no legal restriction saying you have to have a business bank account, but your bank might try and say differently after a while, as long as you declare it as self-employed it isn't dodgy at all, mate.
Auto-trader just says your a motor trader alongside your ads, in my experience this is positive as people will usually trust a dealer rather than a private seller.
Can u claim vat back from auction im confused how it works also when u sell do u give your customer a receipt to show proof hmrc how much vat your charging
VAT is confusing on cars, it's not charged on the full sale price, yes you can claim auction VAT back and no you don't put the VAT on the customer receipt unless it's a commercial deal where you add VAT to the sale price after.
I'm back making video's now so a video about VAT is on my list.
Any advice on how to fill the v5 out as a motor trader?
Just do it on line, it asks are you putting the car in trade.
what about planning permission to run commercial business from domestic property?
I don't sell commercial vehicles,
What if I don’t want to be vat registered is that possible ? Say I’m trading 30-70 k a year ?
As long as you sell in retail income less than the VAT threshold then you don't need to register.
Great video shame you have not done loads more
Thanks mate, more on the way, I had to take time out after an accident.
Are you saying if i have space for 2 other cars on my drive that I want to retail/sell I legally can’t because they are within 500metres of one another?
If they are on a public road space. Private land drive. Have as many as you can fit on. That's how I understand it.
Hi Nick, "on a public road" you can't have 2 for sale within 500m.
@@Stevesautos thanks for clearing that up Steve, look forward to more content in the future
Great and interesting video. Would it be possible to trade £300 - £500 cars that I can get from friends and offer to sell them without motor trade insurance and register it as my car in tax and add it to my car insurance
To my knowledge, you can change cars 6 times in a year on the same policy, but it would need to be in your name etc and that means you can't flip the car until the documents come back. Trade policies are better all around.
Are you not on instagram steven?
Hi Steven, any advice how to participate in car auction ?
Get yourself a trade policy and then you will qualify for a trade account, you will less in fees and be open to all the auctions that general public can't get into.
Do your research, set your budget for each vehicle you bid on and don't go above your line, you might be bidding against a main dealer who will make money on the extended warranty and finance and not be to bothered about the overall profit on the car itself.
Does motor trade insurance cover you to sell cars from your drive or the road? What I've read is it's illegal and requires planning permission
Your policy has to state that you can keep vehicles on a public highway.