I'm only half way through but this is fascinating so far. Love the business side of this channel rather than just being about cars, really unique.

Could James do a interview about his background & how he got into car sales… I think it would be interesting 👍

@ianrobinson68

3 ай бұрын

Yes agree would like that , always interests me how people ended up doing what they do.

Following on from what you said about fiat 500s/small petrol cars. This week (and every week) I went to auction with a list of 20 small that I wanted and came away with 3 that I hadn't even looked at (a diesel C-max with an EML, a focus full of water, and a mint Mini Cooper with FSH) and my wife was like why have you bought them....because there's profit in them, that's what I could get at the right price. I saw a mint 40k miles Corsa, needed zero prep, cap clean £3200....I was prepared to go to £3600 and it went for £4200 plus fees! No profit in it what so ever. The 3 I bought cost me £5200 including fees, 2k prep, £10k retail. You do have to buy/find nuggets in what other people don't want.

@cardealerpro

3 ай бұрын

Your spot on

Depends on his experience, if he's not up on the motor trade he wants to give it a miss, it's a difficult job theses days.

Thanks guys another great episode really enjoyed that lots of good advice, plenty to think about.

I would share it with a very good friend who is probably one of the best mechanics in the land but has fallen on hard times. His CV is very impressive working on everything from formula one racing cars to family runarounds and everything in-between. He's helping everyone else and doesn't charge enough and I think he needs a break . so it be a nice gesture 👌👍😍

I would have had £120k but I've been running a wife for 16 years... Regular expensive tax, keeps breaking down, needing new parts and takes up space on the bed gathering dust 😅

@cardealerpro

3 ай бұрын

😂😂😂

I believe you have to stock what the customers in your area want. You can't really pick the cars you like, you need to pick what sells... We do very well on lumpier Audi's and Volvo's and struggle to sell run of the mill Focus's etc. We are based in Surrey and close to London.

@cardealerpro

3 ай бұрын

Exactly

Really enjoyed this episode guys...keep it up!

In agreement with you, stick totally to bread and butter, not too expensive, main dealer p ex at auction, jobs either easy money or a total nightmare I find, no sporty stuff, buyers are hard work, as you say avoid lumpy stuff.

@cardealerpro

3 ай бұрын

So true!

Very interesting and educational,certainly made me think ...

Hi Dave can you do a quick video explaining how you set up the banking and the separation of the accounts. Ie. Profit , tax , stock. Be very helpful.

@cardealerpro

3 ай бұрын

No probs!

Very informative.

With 120k I’d buy a house needing a refurb oversee its refurb go to auctions / online buy four five cars and sell them as a side line. Problem with car sales is you have so much cash tied up to make wages… say he makes £50k a year from his £120k he could have used the £120k in btl or shares and made £25-30k and got a job on say £45k plus and he’s better off… and has a much easier life

@Graham-rc1cp

3 ай бұрын

Where are you getting a 40% return on a BTL, or 30% return on shares, 6-8% is a *really* good BTL return and around 5% on shares…

@c11yan

3 ай бұрын

@@Graham-rc1cp I get 20 percent on btl cap growth and rental income, leverage the money and across three houses should make a nice return

@cardealerpro

3 ай бұрын

I hear you, but personally I like being busy and cars do that for me, cars are my fast pounds property is my slow pounds. If he can get the cash flowing that extra money can go into property.

@c11yan

3 ай бұрын

@@cardealerpro if the guy has zero motor trade experience imo advising him to go and buy 20 £5k cars and then a storage site and then set up an auto trader dealer site and find trusted local garages bodyshops is a huge ask / responsibility… that could take a year to achieve. What if after two months it’s not for him the exit costs are huge. Everyone is different - maybe buy really uptogether late ex fleet cars 90-130k miles - five or six is enough. As you say these will generate pxs. Three at home and three at relatives house and see if it’s really for them. I like late ex fleet as the prep is minimal and the cars are homogenous so it’s obvious what they are worth etc. And would still have enough for a deposit on a btl to refurb refinance and go again with.

I think the first question is are you going retail or trade? As a trade seller you can buy stock at any price from £1000 to £50,000, with £120,000. As a trader you move stock much quicker. For example, this week there was a new Land Rover Defender 90 hard top. Bought for £35500 Plus VAT and sold for £37500 Plus VAT. This car was then retailed at £44,750 plus VAT by a main dealer. These are two very different profit margins. But some sales (the retail sale) is likely to take a few weeks. The trade sale was done in a day.

@cardealerpro

3 ай бұрын

This is so true, if he’s got the contacts trade to trade would be a good move,

Hi I would buy as little as possible at first look at the market prices first and go and look at the auctions and don't buy online you need to buy in the face and I would only trade with 50k at first cover you back

I would honestly keep a 100k aside use 20k to pick up 4or5 cars and sell them as from doorstep ie house parents bro/sis use the profit to re invest till maybe make the push towards pitch/unit use to buy ex taxis try and make a £300/500 wage on them sometimes just by doin a £70 full detail valet or couple tyre etc back in the early 90s bought lots of nissan micras could sell them day and night worse scenario was replace cross member

@cardealerpro

3 ай бұрын

This is really good advice too!

My mate borrowed some money to start car dealing, he was actually a mechanic, within 3 mths he'd lost the lot, car after car needing work, he just didn't want to do it so he lost on every one, he'd actually trade them to me for half money, bought a c4 off him needing a battery Fri night, sold it Saturday morning, when he called Saturday afternoon it'd gone.

@StevieMc1971

3 ай бұрын

Darooooootdaroooooooo

Hello Dave really love the channel been watching from the start. Who do you bank with and how do you set up all those mini accounts to keep the banking all straight with tax etc! Thanks can you explain would be a great help.

@cardealerpro

3 ай бұрын

I use NatWest business banking you just need to call them and they will set up however many sub accounts you want, you can then name the accounts yourself

@jonathanlee5888

3 ай бұрын

@@cardealerpro fantastic that’s great I bank with Nat west . Really appreciate the help.

The last thing you want, btw, is notoriety 😳😂

Weird I sold my house and … £25k mk2 rs2000 20k Focus RS £18k Sierra Cosworth £10k vw bay window pickup £10 Merc restomod with 700hp £7k 18k mile transit sport Borrowed £11.5k to buy a 20 Reg Focus ST line Rests in the banco

@chiefrocka8604

3 ай бұрын

I did want a lambo but weirdly couldn’t find one I liked in a colour or gearbox I liked Either wrong colour interior gearbox or body style

£120k…if you put £100k into stock that leaves you £20k for all your startup costs *and* prep costs…nothing in reserve for unexpected costs or to cover costs until stuff starts shifting…

You can buy alot of stock with 120k it's alot of money in my opinion

@cardealerpro

3 ай бұрын

Your right!

i'd buy 10 honda jazz mk2's and 10 toyota yaris's. a mixture of manual and autos. they sell well and dont go wrong often.

@cardealerpro

3 ай бұрын

Sounds like a great idea!

120k to get into the job , with a building lease, trade insurance, auto trader ,one staff, all the bits / tools for the unit , don’t sell owt for fist 3 months cause cars are broke and got ya leg in, your down to 60 k

@cardealerpro

3 ай бұрын

😂😂

How are the car 🚘 sales going chaps ?

@cardealerpro

3 ай бұрын

We’ve been flying mate! You’ll see on Sundays vid!

if i have ten grand to start buying and selling from home,what would your advice be,thank you

@cardealerpro

3 ай бұрын

Try and have a stock of 3, keep £3k - £4k in the bank for repairs and prep.

@coasttocoast1140

3 ай бұрын

@cardealerpro what type of profit margin would you say,would be achievable ,thank you

@cardealerpro

3 ай бұрын

Gross after prep needs to be around £1000

If you have £120,000 and you have no experience whatsoever in the motor trade. And then all of a sudden want to spend all your money on being a motor trader. Then you would have to be brainless, Need experience first its not as easy as it seems.

@cardealerpro

3 ай бұрын

I started up with 15k - 20k with zero experience and that felt like 120k to me at the time, deffo won’t be easy but I think it’s doable with the right mindset.

@winbig1

3 ай бұрын

@@cardealerpro Yeh I've been doing part time trading for few years now as started from absolutely no experience whatsoever. And Little money, And made many mistakes and lost a lot. But got to a good point now where I have around that money and will need to quit my job of over ten years. 120k to me now though I know exactly what I would do.

Isn’t 5% just too small as a profit figure? £1000 profit and only £50 divdends seams tiny for running around & stress? Thank you

@GorgiRO

3 ай бұрын

you would be amazed when u run a proper business how much pure profit goes dwn, overheads, tax, waranty claims... its gonna kill you. better dont be greedy especially in the begining so in future u can enjoy life with no stress..

@adilaltinsoy540

3 ай бұрын

@@GorgiRO I understand that but for all that work , collecting the vehicle, prepping , sitting on the car for it to sell, customer BS for £50 sounds unrealistic. I’m not encouraging greed but you have to put food on the table!

@cardealerpro

3 ай бұрын

This is just me personally! for a few years I did take 10% but I like the thought of 10% going back into my stock and having my stock compound in value year on year, I actually gave the wrong percentages in the vid, they go like this, overheads 65% profit 5% stock 10% vat tax 20%. Yes your right once all the bollocks comes off 5% is measly but you need to remember I’m paying myself a wage that comes out of overheads, the 5% is the cream off the top that pays for holidays and the nice things in life! for me I want to run the business efficiently and not be stressed out at the end of every month wondering where I’m gunna get x amount of money to pay for everything and for me it’s worked amazing.

Last year when the intrest rates went up to 5% I opened 8 bank accounts and put 20k in each, I am getting a good intrest rate

@cardealerpro

3 ай бұрын

Class 🙌🏻

@dan44zzt231

2 ай бұрын

Until you get the tax bill 😂

@leedstown

2 ай бұрын

@@dan44zzt231 banks don't take off anymore you have to declare it 🤔

Only need 10k

@cardealerpro

3 ай бұрын

I started with 15k so yes you can

Great info guys, really enjoy your content. Only traded cars as a sideline from home up to now but looked at pitches/units but it's a big step up in costs and I think a good chunk of the £20k would need to be set aside for unit/forecourt rent, biz rates, utilities, maintenance/repairs on the unit, setup costs eg phone line etc Plus trade policy which is £3k off the bat, premises insurance etc. Then the outflow from autotraders savage fees lol. Also if he buys some cars with issues etc that needs repairs or dont sell. My mates got a 40 car pitch and mot place, he always seems mega stressed keeping it all running. Keep the content coming cheers

@cardealerpro

3 ай бұрын

Thanks mate