Published on November 14th, 2018 | by James Simpson0
How You Can Start Privately Buying And Selling Vehicles For Profit
Car trading could be a pretty lucrative and straight forward business option for you if you’re interested in cars and want to trade them in your home. You don’t have to be an expert to make money with this, however! One of the best things about this is that you can choose to do it either full or part time, depending on the time you have available.
Below we have some ideas that will help you to get started.
Research The Market
Get an idea of the kind of cars people are buying right now and what they cost before you buy your first car. You’ll also want to consider who your audience is and the cars they purchase. Take the time to look at existing car adverts or car price evaluation sites to get an idea of how much you should charge.
Write Your Business Plan
Although this might not seem like a big business just yet, you should still create a business plan. This will show that it isn’t just a hobby to you, and allow you to plan for costs and different things that will affect your business. Bear in mind that you will have to repair any issues the car may have, so you will want to have a budget for that. Legal regulations and marketing considerations will also need to be taken into account. Use a template if you’re unsure of where to start.
Notify The Local Council
You’ll need to notify the council so you can be sure of how many cars you can have parked on the road at one time.
Get Motor Trade Insurance
You’ll need insurance which covers you when driving cars without having to insure them individually. With motor trade insurance you can add and remove as many cars as like without having to pay additional costs.
Apply For Trade Plates
These are like mobile task discs that save you having to tax and register every single car as you will only have them temporarily.
Buy Your First Car To Sell
Look at online auctions to buy your first car, as well as sites like AutoTrader. Auction houses can also be a good place to browse.
When you’ve done this it should be ready for resale. Making sure the car has passed its MOT will save you a lot of hassle when selling on. It should also be clean. Simple things like this will make it more appealing.
Car listing websites will enable you to create advertisements, as you’re not allowed to use signage on your house or price boards on the cars when selling from home.
Register As A Sole Trader
When you’ve sold your first car, register as a sole trader. You need to be registered for self assessment tax. You could be fined if you don’t do this!
- Check a car’s history online using the free government site.
- Make sure there are no outstanding hire purchase or conditional sale agreements.
- Take cars for a test drive.
- Make sure the car has a V5C registration document, this can be used as proof of ownership. Without one it can indicate a stolen vehicle.
- Tell prospective buyers everything you know about the car as if there is anything wrong once purchased you will be liable. The consumer has more rights than you.
- Have a friend or family member present to ensure that you feel safe when meeting the customer – you don’t know who you are selling to.