Right, I am kind of toying with the idea of buying the odd car to repair or tidy up and then sell on. I know a really good mechanic who lives round the corner who has done a lot of work on mine and the wifes car, so getting work done cheaply isn't a problem. Also, I feel I know enough about cars to know what is worth buying and what isn't. I did study automotive engineering when I left school for a few years but never actually took it up as a job. In the past couple of years I've gone back to engineering through a course that work offered me. I am now a electro mechanical engineer in the fruit juice manufacturing plant that I work at.
Anyway, what is the deal with buying and selling cars from home as far as the paperwork goes?
I'm not looking to go mad, just to buy the odd cheap car for no more than a few hundred quid and then sell on for a bit of pocket money!
Any advice from anyone on here that does this would be great.

Nick.

 

At the kind of price bracket your looking at it might not make that much sence if your not going to be doing the work yourself,
There isnt as much money to be made as people think
You can make a little, but its just as easy to get caught out (more so if your relying on somebody else)
As with a lot of mechanics i do it from time to time, but even then i find it only makes sence if i let the car come to me, i never go looking for a car to flip as theres just no money in it that way
If somebody approaches me then fair enough
But if you go looking and then pay for parts and labout(even if its cheap labour) it rarely works out
Remember you make the money when you buy the car not sell it,
Its only worth doing if the car is cheap to buy, you can take a rough guess at how much its gonna cost you once finished but you'll never know untill its done, and thats me doing the work myself and being in the trade for 19 years
The paperwork side can be akward, most sellers will want you to put the vehicle in your name when they sell you it,
There is a bit on the v5 to say its transfered to trade but most people wont understand that and want you to register it,
And to lie around while getting repaired you should realy have it insured so you need trade. Insurance to drive it or to take buyers for test drive etc,
And the hardest bit is even with cheap cars under Ł1000 buyers these days expect the earth, more time wasters than anything else,
They all want full history and proof of cam belts etc with cars at Ł500, they are dreamers

I know i'm probably puting you off but it can make money, but its very rarely a cheap easy flip, so never risk more than you can afford to lose if it all goes wrong

 

Pretty much sums it up, with the amount of cheap cars on ebay/gumtree unless you get the cars dirt cheap there really is no profit in it unless its something rare or sought after and you do the work yourself to get it ready to sell

 

Not worth bothering with anymore, especially if you're only doing the occasional cheap car.

All the reasons mentioned above plus the road fund license is more complicated to "get around".

If you're getting trade insurance etc. and classing yourself as a trader, be aware of the Consumer Rights Act and the 30 day right to refund.

 

Find a good car auctions with a trade in stock from main dealer (like Arnold Clarke)

Spend time looking over the cars before the auction take the reg and manufacturer look on
Mot history check on Google you only need the reg and make that will give you all previous mot's and if it's recently failed a mot giving you some background of the car

Do your homework on prices, don't do EBAY best to sell local side of road, gumtree or Facebook all free

If you stay away from 200 pound shitters that are money pits but stay under the Ł1700 barrier people have this kind of money but anything much over people want finance

Small cars corsa fiesta astra focus low engine size 1.6 max!! etc are all good sellers

Don't bid the first few weeks get a feel for it and you will learn what cars don't sell and come back in the next week, keep your eye on the auctioneer they all bid them up don't get carried away

When you buy from there don't be greedy on profit it's best to flip a car quick and make a bit rather than hold out and try to be greedy work on 150 to 300 on mark up
Some times I've had as low as 50 but as much as 575 overall I've gained more than lost plus it's a hobby,

A good valet from a local car wash Ł12 to Ł15 helps sell a car a lot!

Good luck

 

selling cars especially from home get you classed as a bedroom trader/enterpreneur, I think most of us into cars have done this at one time or another and in this day and age with so many legal restrictions and dvla new rules in place makes it all too hard to do this and make it worth while

 

I've flipped a few cars in the past, mainly cars I wanted anyway and did it for a bit of fun. Trouble is with the old bangers, you only need to buy one bad one and it cancels out the profit on the last few sales...

Also, the current owner (as in you the trader) will be responsible for taxing the car these days which is an added ball ache.

 

Thanks for the replies guys, some useful information to think about.

 

And dont forget, when you advertise there are records of all cars etc...and there's also the scumbag government who'll want their cut of your profits.

And as a dealer, you have to honour some degree of a waranty

 

It's not worth the effort and hassle mate, trust me on this. It's easy to get caught out with a car that needs a lot of work and money spending on it, and the number of people messing you about drives you mad, and no-one wants to pay anything for anything now. Just my two penneth.

 

how many cars can you sell per year from home before your classed as a trader by the inland revenue for tax to be due?

 

Probably a bit of a grey area that.

Strictly speaking any income earned is supposed to be declared for tax.

And a lot of places like Gumtree etc...dont they only allow 2 or 3 adverts free before they want paid as you're deemed a trader or business used or sorts if you go over that ?

 

I wouldn't bother.

Selling cheap cars is a nightmare nowadays, can't legally sell from side of the road. Everytime you advertise on a FB page all you get is messers.

Seriously not worth bothering with IMO

 

Be handier fixing lawnmowers or bicycles ! lol

 

Where do you work BTW? You say a juice plant?

 

Yeah I work for the largest manufacturer of soft drinks in Europe. The UK plant where I work is based in Somerset.

 

also if parking is tight around your area, your neighbours will hate you and think youre a cunt for taking up loads of parking spaces with trade cars.

And thats before they grass you to the council and the council force you to stop.

 

You must be on about Britvic? But being based in Bridgwater can only mean Gerber?

 

This wouldn't be an issue as we have room for one extra car at our house, and like I said, it would only be the odd car every now and again.

 

Yep! Now called Refresco Gerber, since merging with Dutch firm Refresco. Been there six years now.

 

Thought so, small world, I work for a company based in the same town. But live in the next town up the motorway.

 

Trader part isn't really relevant as far as tax is concerned.


Not grey at all. If you earn money you can either do self assessment or, if employed, ask your employer to include it.


Doing neither is not an option, and you'll bet your neighbours will be pissed about it and shopping you to HMRC. If you're going to do it, you need to do it properly. And unfortunately you need to do it big to pay for the costs. Sorry mate.

 

Don't buy to sell them, Buy them and break them. That's where the money in cars are now...

 

I work at Copella - part of PepsiCo. ☺

 

A guy i used to work with had a neighbour who sold cars from his house. They didn't mind as he was in the corner and out the way and wasn't bothering anyone, until he asked if he could chuck a couple of cars on my colleagues drive think in the end they shopped the guy to the council lol

 

Then there is the issue of hazardous waste etc on site, certificate of disposal and again if you're advertising and selling, you're earning money that needs declared and if advertised you're leaving a very easy trail.

Have people not been pulled before on this site about having a car in pieces that they are actually working on on their property because of arsehole neighbours ?

 

Oh right, I did wonder why you asked!
We do a lot of work for Pepsi.

 

Small world indeed!
Who do you work for in the bright lights of bridgwater? And I'm guessing you are from either Taunton or Highbridge depending on which way you are travelling along the motorway?
What you driving? I may have seen you about.

 

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