|
Hello, Does anyone know what are the qualification to be a car trader and how to obtain a motor trade licence ? Can I be a car trader if i work from my home address or do i have to have premise ? In addition, what are the procedure i have to do to register to be a car trader?
|
Probably easier all round - with no risk of further liabilities, and so you can fix your losses - if you stand in the street and tear up £20 notes.
For a start, read Xtype's posts on the problems in being a brand-new-computer trader, and imagine how much worse it could be selling dodgy old cars.
Secondly, there is no stock available. Auction prices are HIGHER than retail prices - somebody posted yesterday that a major car supermarket are buying cars for a higher price at auction than they are selling them retail.
Thirdly, traders are in the habit of pushing at/beyond the edges of the law. Trading from home is almost inevitably in breach of planning regulations; often cars are unlicensed and sit on the road - trade plates are too expensive. And then even if they go to the trouble of trade plates, private journeys are undertaken - illegally - on these plates.
Fourthly, how are you going to accept cash?
Fifthly, what will the neighbours say.
In answer to your question; nothing. You just need to buy some suitable insurance, find some stock, and a set of trade plates, a place to trade from and then off you go - you need to tell HMRC, and possibly the local council too. In reality, I wouldn't bother.
Try a forum search. Try these for starters:
www.honestjohn.co.uk/forum/post/index.htm?t=46159&...f
www.honestjohn.co.uk/forum/post/index.htm?t=21245&...f
|
|
I would add that you should let the Inland Revenue know what you are doing for the tax situation and national insurance.
|
Motor trading is no different to any other business - keep proper records, accounts and declare it properly and you are legal.
Make sure you can keep books or get somebody else to do it and declare the profit on your tax form at the end of the year. If you are doing it full time you should advise HMRC that you are going self employed. Alternatively, you could set it up as a Ltd company.
Sure cars are expensive in the trade at the moment but it will even out - either all asking prices will go up or the trade prices will come back down. One of the two will happen.
The important bit is your business plan - what you are going to sell, how you are going to sell it, who you are going to sell it to and where you will source from. It is that which will make you succesful or unsuccesful.
Like anything it is experience that counts.
|
I've always thought there is a gap in the market for a trader selling high quality but older used cars at slightly above book prices but sold with an AA inspection or something.
The biggest reason I would avoid the motor trader is the stress of come backs, its bad enough dealing with computers yet alone cars.
PD I don't think the asking price will really go up, it can't do as people will not pay silly money for a used car, they will end up just buying a new Perodua or something.
|
I've always thought there is a gap in the market for a trader selling high quality but older used cars at slightly above book prices but sold with an AA inspection or something.
Sourcing decent cars would take too long and therefore be too expensive.
|
Rattle, used cars are cheaper than they were this time last year and vastly cheaper than the year before that. OK, we live in different econmic times but people still bought used cars instead or Peroduas then and they will now.
Personally, I find dealing in anything over 4 years old a pain in the watsit. Everyone who wants a 2k car really wants a new one and can't seem to get into their head that they are only 2k and a fraction of new price because they're basically worn out.
|
|
|
SQ
Sourcing decent cars would take too long and therefore be too expensive.
Or maybe it is just not possible to get 'high quality older used cars' that can legitimately pass an AA inspection?
Edited by Dynamic Dave on 17/03/2009 at 19:10
|
|
|
|
>>I've always thought there is a gap in the market for a trader selling high quality but older used cars at slightly above book prices but sold with an AA inspection or something <<
Check the back of classic car mags - its being done. I have sold quite a few older cars and if you can find the decent cars and you understand what your looking at and thus your recon costs, its worth doing but you do need to ask decent money or buy them very cheap.
The key is making alot of friends in the trade and in car clubs so you have the widest pool of cars - car clubs especially have some excellent cars floating around but they arent cheap - but they are often the least hassle.
|
craig1108 you can still do most things in this country but some councils do require you to register with them if you sell s/h goods
look at your local council website for details if you have to be so registered
ive got to say you are mighty brave to start in the motor trade at this time,was your other idea a deep sea firshermans life from grimsby ;-)
i dont recommend you work from home as punters turn up at all hours
|
|
|
|
|
