Buying and selling cars can be a very profitable venture for this who have the right skills and motivation. If you’ve considered buying and selling cars but don’t know where to start then you should find the information below very useful.
Do you need a premises?
If you want to make buying and selling cars your main source of income then you’ll certainly want to get a premises sooner rather than later. If you don’t have a premises then you’re limited to the amount of space you have at your home, which for most people is not enough for more than 2-3 cars.
When getting a premises for your business, you need to decide whether you’re going to rent or buy. The sensible approach is to rent first and then commit later when you’re sure you’re happy with it.
Some of the things to consider when you’re looking for a premises include –
- Location - Location is extremely important when choosing a premises for your business. You want to find somewhere that has enough space for you to hold enough cars to turn a good profit. Ideally it’s also easy to find for new customers.
- Security - Security is another key concern when looking for a premises. Ideally the premises you’re looking at will already have some security measures in place, whether it’s barbed wire, security lighting or CCTV.
- Insurance - When you have your own premises, you’ll also want to get insurance for it. You can either get a building insurance policy or get a combined traders insurance policy that covers your building amongst other things.
Making your first sale
When you’re buying and selling cars, especially if you’re new to it, it’s very easy to put the emphasis on the selling rather than the buying. However being knowledgeable about the process of buying cars is vital.
Since nearly all new traders start out by selling used cars, knowing where to buy and what paperwork is required when buying a used car is extremely important.
The idea with your first sale is to simply make a profit, no matter how small it might be. It’s more to get used to the process involved in buying and selling rather than to make a big pile of money.
One you’ve successfully done your first deal, you can then start thinking about how to make more the next time.