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Setting up a small prestige car business
Could you help me again please.
I am 50 years old and I have had an interest in high end cars for many years.
I've owned a fair few and turned them over frequently. I have bought 18 month old Porsches etc for my own use, but where I have made money is buying top end cars by being on top of the waiting list and selling them on delivery: F430, Audi R8, etc. But this is not scaleable, it only works if you are early for the new model, and you get one car only ... the trade pays a good premium.
I have a demanding decently paid job. but I am unusual to still to be doing the job at my age. It will not go on for ever. Considering setting up a small prestige car business, below Tom Hartley / William L. levels. It'll be older cars, a bit higher mileage and lower prices. Start small to see if it works and limit losses.
'Buy in' price is the key I feel. Thinking of buying Bentley Continental GTs and the like via BCA, plus Merc GL etc. Very selective. Am I mad?
What I do not know is how do I offer a buyer a warranty, finance etc? Could you help me here please? Set up as a Ltd. company in case someone sues me (I have assets personally)?
Please point me in the right direction... What else do I need...?
I am 50 years old and I have had an interest in high end cars for many years.
I've owned a fair few and turned them over frequently. I have bought 18 month old Porsches etc for my own use, but where I have made money is buying top end cars by being on top of the waiting list and selling them on delivery: F430, Audi R8, etc. But this is not scaleable, it only works if you are early for the new model, and you get one car only ... the trade pays a good premium.
I have a demanding decently paid job. but I am unusual to still to be doing the job at my age. It will not go on for ever. Considering setting up a small prestige car business, below Tom Hartley / William L. levels. It'll be older cars, a bit higher mileage and lower prices. Start small to see if it works and limit losses.
'Buy in' price is the key I feel. Thinking of buying Bentley Continental GTs and the like via BCA, plus Merc GL etc. Very selective. Am I mad?
What I do not know is how do I offer a buyer a warranty, finance etc? Could you help me here please? Set up as a Ltd. company in case someone sues me (I have assets personally)?
Please point me in the right direction... What else do I need...?
Asked on 12 January 2011 by JSH
Answered by
Honest John
The best advice I can give you is to take up painting and decorating or plumbing or something else that pays well with very little risk because the potential for getting your fingers burned in this end of the car trade is very high indeed.
Today, for instance, you could have bought a Merc CLS 5.5 at £10k under trade book. But the reason why it was 10k under trade book is that in the present climate cars like this are very hard to move on. Then, assuming you had, and the engine went pop within 6 months, you would be liable to refund the punter's money in full or replace the engine (at something like £20k). I guess that some traders may be trying to insure themselves against this sort of risk, but the premiums would be high. There is some help available at www.dealerclub.co.uk.
Today, for instance, you could have bought a Merc CLS 5.5 at £10k under trade book. But the reason why it was 10k under trade book is that in the present climate cars like this are very hard to move on. Then, assuming you had, and the engine went pop within 6 months, you would be liable to refund the punter's money in full or replace the engine (at something like £20k). I guess that some traders may be trying to insure themselves against this sort of risk, but the premiums would be high. There is some help available at www.dealerclub.co.uk.
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