I've bought all our familys cars from auctions for years now, then it extended to helping friends and relatives buy cars from auctions, hell I even bought my rally car fully prepared from auction!
The only thing that has stopped me from selling cars part time is the hassle of advertising a car in the local paper, when you live 5 miles out of town.
So i've been watching ebay grow in popularity with interest, and am considering buying a few cars to sell on Ebay. (no, seriously - stop laughing!)
I have the bookkeeping/accountancy knowledge to set up and keep the records for a limited company. Also am uptodate with second hand car VAT rules
I?ve had reasonable quotes for comprehensive motor trade insurance, to include public liability and sales indemnity cover. (Anybody want to suggest some good companies to get quotes from)
I?m assuming the trade insurance allows me to tax vehicles registered in my name, hence I can actually save money on my current premium as I can drop the insurance on my road car, 4x4 and rally car.
I?ve got a 4wd and trailer which I use for my rallycar, this would enable me to collect cars from auction, although I aim to get a set of trade plates. Anyone know what the DVLA would require to satisfy them to issue a set?
Space to store the cars off the road is not a problem as I live on a farm. But do traders need to notify the DVLA that they have particular cars on their forecourt and SORN them? I don?t want to register them to myself, as I don?t want to add additional names to the logbook, and wait a month for it to come back. However equally I don?t want the DVLA to find half a dozen untaxed cars on the farm!
What kind of things would the major auction houses require for a trade buyers account. (I usually use a small independent which charges very little commission). Is certificate of Incorporation / Company Bank Account / Trade Insurance / Reference from small auction likely to satisfy them?
The commissions charged by BCA/Manheim to private buyers are extortionate. If I remember correctly its over £100 on a £500 car. What reductions can you expect as a trade buyer, and do you have to buy x number of cars a year to retain the account?
As for selling the cars I?ve been comparing the Ebay prices of local vehicles hitting their reserve and not bought by Singaporian con-men! Against the main dealer px?s with good MOT?s at the local auction which meet reserve.
I think I?ve identified an opportunity in the more unusual or slightly higher mileage fleet cars (basically the stuff the independent garages don?t want on their forecourts). From about £500 to £2500. I?ve ?dry run? it with a couple of cheapies successfully, so am raring to go.
I have good Ebay feedback from my private dealings to instil confidence for customers
I have set up a checklist to try to ensure I find (and disclose or repair) any faults with each car before I sell it, and an adequate accounting / stock system.
More importantly I don?t need to make a living out of this (I have another flexible job), just could do with some extra money to fund the rallying.
So you?ve heard the story now, any comments/advice/answers to above questions? Or anything I should consider but have forgotton about?
Thanks
James
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