Ricky352
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Registered: 6th Apr 07
Location: Lisburn, N.I.
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A friend and I have recently been thinking about buying a car between us purely for the purposes of selling it on for a profit. It would be a car worth less than £1000 with as much MOT as possible to start with. In my opinion the best money would be in buying cars which have no MOT, fixing them up, and then selling them, but its just not viable at the minute.
We would aim to sell this car, buy another with the money and hopefully continually increase the value of these cars.
Was just wondering has anyone tried this? Any experience which may be of use?
I'm a student and work, this is only going to take up a bit of disposable cash, not be a full time job.
Cheers.
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JordyCarter
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Registered: 14th Mar 10
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If you were going to start doing this the first step is revision, look through autotrader etc and see whats holding value and whats selling. After that then id make my decisions
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Ricky352
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Registered: 6th Apr 07
Location: Lisburn, N.I.
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Yeah have been on various websites. See I'm doing a report in college about a similar subject and have done research.
A lot of cheap cars about by the looks of it, seems a good time to buy if your keeping, for example I saw an MOT'd MK4 Astra Estate for £300.
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Martin W
Organiser: South East
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Registered: 10th Aug 09
Location: Welling, Greater London
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Mike brewer and ed china, dont think it's gonna work to be honest. you'd never make enough money for all the work you have done on it.
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
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If you buy them as fails then you can't know what is wrong.
If you buy them with known faults you need to fix the fault and re-test/tax at your expense before you return.
You also need to deal with people who want to pay nothing. £1k is a bad price point to be doing it, everyone will be skint and haggle over every last detail.
That Vectra GSi I did a while ago, bought with an engine fault, wouldn't run, sourced another car for the engine, did the job and tested it, guy haggled like a motherfucker about everything and stalked me for days afterwards and there was actually no profit in selling the car. Made more weighing the scrap in off the other one, which I could have done without dealing with that clert.
Buying to strip is a lot less hassle as it's easier to sell smaller parts rather than an entire car. Tax and test alone is at least £150 which will basically eat the profits. Plus you need to have it insured to be able to tax it etc. etc.
[Edited on 04-11-2011 by Ian]
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Colin
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Registered: 4th Apr 02
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Dont think theres any money in it!
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Ricky352
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Registered: 6th Apr 07
Location: Lisburn, N.I.
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@ Deadliner Shouldn't really be much work at all though (in theory). Just the advertising and selling and a slight bit of work on the cars if necessary.
I've noticed its wise to consytantly check the internet as the cheap ones don't hang around too long.
[Edited on 04-11-2011 by Ricky352]
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Ian
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Registered: 28th Aug 99
Location: Liverpool
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It's loads of work, just dealing with sellers will take up days of your life. I got loads of text messages off people with no money, people with cars to sell etc.
Advertising costs you money.
Transporting the car costs you money.
You'll make about 50 quid and it'll take you 10 hours. You'd be better finding cars that are already on the road and offering to wash them.
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Ricky352
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Registered: 6th Apr 07
Location: Lisburn, N.I.
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quote:
Originally posted by Ian
If you buy them as fails then you can't know what is wrong.
If you buy them with known faults you need to fix the fault and re-test/tax at your expense before you return.
You also need to deal with people who want to pay nothing. £1k is a bad price point to be doing it, everyone will be skint and haggle over every last detail.
That Vectra GSi I did a while ago, bought with an engine fault, wouldn't run, sourced another car for the engine, did the job and tested it, guy haggled like a motherfucker about everything and stalked me for days afterwards and there was actually no profit in selling the car. Made more weighing the scrap in off the other one, which I could have done without dealing with that clert.
Buying to strip is a lot less hassle as it's easier to sell smaller parts rather than an entire car. Tax and test alone is at least £150 which will basically eat the profits. Plus you need to have it insured to be able to tax it etc. etc.
[Edited on 04-11-2011 by Ian]
Few interesting points there. I had thought about buying to strip but thought it could take a while to move the parts on?
If I was going down the route of buying cars with no MOT and tax I would have to invest a trailer etc in my opinion to do it properly...although at the minute in my opinion it would not be a good investment.
Didn't really think there'd be much money in it but could be interesting.
Cheers!
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VegasPhil
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Registered: 16th Jan 05
Location: Fareham, Hants Drives: Octavia VRS
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I bought and sold a few. My missus uses them as her car. Then when I see something else at proper bargain money I hop in.
My aim is free motoring for her car. The best one I bought for £1600 and sold for £2250 after three months use.
Only one I took a loss on was a ka. Lost £150 so not do bad.
Corsa 2.0 16v Vegas - Sold
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Ricky352
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Registered: 6th Apr 07
Location: Lisburn, N.I.
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Sounds like a good way to get free motoring anyway. I had a Nova there for a year and a half and sold it for the price I bought it for. Cost me a couple of tyres etc though.
Cheers for info.
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Ian
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Registered: 28th Aug 99
Location: Liverpool
User status: Online
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If you're using them that's better news becase you can use a regular insurance policy and find them with tax and ticket.
I was thinking you were meaning buying them bottom dollar and getting them ready to retail. The gap is wider than it looks if so.
That Disco will end up being free, bought with little faults which are sorted but it was roadworthy and currently insured etc. Also a valid story when selling it - ran it for a year and bought a newer one.
Wouldn't have such a good story with something I'd not been using. If it's obviously bought to sell then people will start wondering whether you've botched it up quick.
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Jed D
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Registered: 15th Mar 11
Location: Durham
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whats the actual law on the amount of cars you can sell in a year without being a registered trader??
i heard 6 iirc but could be wrong
also will be a hard thing to do as there's a lot of nails out there
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Ricky352
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Registered: 6th Apr 07
Location: Lisburn, N.I.
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quote:
Originally posted by Jed D
whats the actual law on the amount of cars you can sell in a year without being a registered trader??
i heard 6 iirc but could be wrong
Good question, may go on the amount of money you turnover or profit you make though?
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Ricky352
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Registered: 6th Apr 07
Location: Lisburn, N.I.
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quote:
Originally posted by Ian
Wouldn't have such a good story with something I'd not been using. If it's obviously bought to sell then people will start wondering whether you've botched it up quick.
Yeah I was thinking about how I could avoid that subject with potential customers lol
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daymoon
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Registered: 1st Aug 08
Location: Selby, North Yorkshire
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I always tell porkies when selling cars 
Bought a Ford Ka for 230 quid with short MOT, put it through MOT, serviced it and Got 150 quid profit + a welder which cost 60 quid. Not bad at all.
I think if you want to earn money by fixing and selling best bet is to spread the word that you are after cheap car(s), People who advertise online want more money in most cases.
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Ricky352
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Registered: 6th Apr 07
Location: Lisburn, N.I.
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quote:
Originally posted by daymoon
I think if you want to earn money by fixing and selling best bet is to spread the word that you are after cheap car(s), People who advertise online want more money in most cases.
Yeah definitly, cheers!
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Online
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quote:
Originally posted by Jed D
whats the actual law on the amount of cars you can sell in a year without being a registered trader??
i heard 6 iirc but could be wrong
It's not a law, it's a decision by IR about whether you need to pay tax.
Registering as a trader just means you must pay tax regardless of numbers of cars but you don't add keepers to the log book.
Also gives you additional obligations in respect of fitness for purpose.
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Archie
Organiser: Scotland
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Registered: 18th Dec 07
Location: South Ayrshire
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I do it here and there, buy cheap, tidy up, sell or swap on, cash either way.
I'd say i done alright this year, got myself a nice Golf i intend to keep, which 'owes' me on paper a fraction of what i could sell it for.
At one point this year i had 2 cars sitting for sale & swap until i finally managed to sell one for cash, using the cash & the other car to swap for the current.
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Gareth
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Registered: 2nd Mar 00
Location: Derby, Drives: EVO VIII MR & pug 308
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Its hard to make money on cars, best bet is big money cars imo
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Sam
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Registered: 24th Dec 99
Location: West Midlands
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quote:
Originally posted by Ian
That Vectra GSi I did a while ago, bought with an engine fault, wouldn't run, sourced another car for the engine, did the job and tested it, guy haggled like a motherfucker about everything and stalked me for days afterwards and there was actually no profit in selling the car. Made more weighing the scrap in off the other one, which I could have done without dealing with that clert.
Was he the guy that bought Brett's Audi?
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AndyCorsaSport
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Registered: 12th Feb 06
Location: Horsforth, West Yorkshire
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Its easy if you know what you are doing. Ive done a few and am sticking to it.
As said do your research, go to auctions and just watch a few times, then find decent cars to buy, i.e main dealer trade ins, usually have short MOT etc.
For instance on the 29th Sept i bought a 52 plate 3 door Astra SXi 1.8, 58k on the clock, 2 previous owners (the second owner had it for 8 years) full history.
It had 2 weeks MOT and a months tax, I won it at auction for £675 + £130 fees, total = £805.
I put on it:
Cambelt and water pump = £105
Front disk's and pads = £45
Handbrake cable = £45
MOT = £35
Misc (number plates etc) £15
I painted the quarter panel due to a key mark, that didnt cost anything.
Did all the work myself and run around in it for 3 weeks, so the car totalled £1,050. I advertised on pistonheads at £1750, making it one of the cheapest on there with the mileage/condition.
5 days later, a lad turned up, haggled me down a little, i took £1500 for it. So made £450 in 3 weeks.
For instance i just missed out last night on a Clio 182, gordini blue, 85k, 8 month MOT, both cup packs, stainless exhaust, it sold for £1850. Cheapest on trader is £3k.
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Archie
Organiser: Scotland
Premium Member
Registered: 18th Dec 07
Location: South Ayrshire
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Maybe only easy for the likes of ourselves Andy who are in the motor trade though ?
Have full use of my work if need be, discounted parts etc, contacts & what not.
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AndyCorsaSport
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Registered: 12th Feb 06
Location: Horsforth, West Yorkshire
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quote:
Originally posted by Archie
Maybe only easy for the likes of ourselves Andy who are in the motor trade though ?
Have full use of my work if need be, discounted parts etc, contacts & what not.
This is very true. I suggest if your outside the motor trade it would be hard. I wasnt planning on putting a cambelt on the Astra, was a rattle i thought was the heat sheild, turned out it was the water pump bearing
Also i suggest not doing it with a friend, if your going to do it, do it on your own. You WILL argue at something and will probly fall out over money etc.
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Ricky352
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Registered: 6th Apr 07
Location: Lisburn, N.I.
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Yeah the arguments are bound to happen but id be happy to split the risk when I'm earning so little.
Good to hear your experience Andy, and I agree that you folk in the trade are better off. But then again I would know at least a few in the trade myself fortunatly, but not much involvement myself.
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