WorcesterVista.com

A business selling used cars.
Selling used cars even on a part time basis can make a very profitable business, as there will always be a large continuing demand for cars of all prices.

Qualifications.
You will need a full driving licence and some selling experience may help, mechanical knowledge will be an advantage although not essential. To be successful you must have agreeable pleasant even polite manner a sense of humour can sometimes help.

Capital.
The amount of capital you have may determine the quality of cars you are selling.
If you have limited capital, the cheaper end of the market is the only place to start, as you begin to sell more and more, your capital will gradually increase allowing you to go for more expensive models and obviously more profit. If you are intending to sell more expensive models remember buyers may need credit, for you to offer this a licence must be obtained from the local authority.
When buying stock, try and leave a reserve for any unexpected expenses, any cars you buy may need repairs.

Premises.
You could possibly make a living selling cars from home, however having a number of cars parked in your driveway and in the street outside your house, is not going to make you popular with the neighbours. Planning permission may also be required.
Unless you own a large house with plenty of space, the best option is to obtain premises but this will obviously add to your costs.
Renting space on a garage forecourt is something else you could consider, but a small workshop to prepare cars for sale would also have to be rented.

Insurance.
Motor trade insurance is essential when you become a car dealer, and this can be expensive, not all agents supply commercial insurance and you may have to shop around, remember your premises will also need to be covered.
Trade plates are a convenient way to drive a car without it having a road fund licence. They are obtained from local vehicle tax authority, remember to include these on insurance policy.

Equipment required.
A trolley jack axle stands or car ramps and car creeper will be useful when inspecting. Jump leads and a battery charger will be another essential piece of kit.
If you intend to do any minor repairs yourself, suitable hand tools will have to be acquired, buy these as and when required. Anything of a more technical nature should be left to the experts. Motor vehicles today can be complicated requiring expensive diagnostic equipment, and special tools.

Putting a value on cars.
To be able to value cars, a copy of used car price guide should be obtained from the local newsagent, many titles are available. Glasses guide is used most in the trade and you should try to procure a copy, It is usually only available to bona- fide members of the motor trade, and will only be delivered monthly to your business premises by subscription.

Buying cars.
Buying cars from the public can be a good way to obtain stock; it may be possible to pick up a bargain.
Become a regular at the local pub or even join a club to widen contact with people.
Scan the local newspaper for cars to purchase, you could also put a used cars wanted advert in, if you do this it is best to let it run for a number of weeks to allow this method to work.
Before buying try to establish person selling is the owner of car. Always ask for any receipts for original purchase, or repairs and note address on invoice.
If there are any extras fitted, or any remaining road fund, ask if this is included in sale, if not reduce price offered.
Try the local car auction, this can be risky if you don�t have a great mechanical knowledge. If you are lumbered with a rough motor you can always re-enter in the auction to hopefully get some or all of your money back.

What cars to buy.
The best cars to buy are cars that sell quickest, after a time experience will tell you which are the best sellers.
You could try to specialise in models of a certain type and price range, but this may limit supply. Best to have a variety of makes and models to suite all ages and tastes.
Try to avoid obscure foreign cars, as these will have a limited market, foreign vehicles can be expensive to insure and repair, also difficult to sell. Small family hatchbacks are usually good sellers, and hold their value.