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    Me and my father have done this a few times, often unintentionally, with great results, averaged 400quid profit each, the largest we made was 870 from a 500 pound car. As well as my part time job, can you see any negative in doing this at university. There's a guy who parks fiestas and 206s outside college and sells them to the students. I know a lot about cars in terms of value and also repairs and maintenance. I know there's risk like any investment, and I know about my duties as a seller in terms of returns and warranty.

    Thanks in advance.

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    (Original post by vuvuzela)
    Me and my father have done this a few times, often unintentionally, with great results, averaged 400quid profit each, the largest we made was 870 from a 500 pound car. As well as my part time job, can you see any negative in doing this at university. There's a guy who parks fiestas and 206s outside college and sells them to the students. I know a lot about cars in terms of value and also repairs and maintenance. I know there's risk like any investment, and I know about my duties as a seller in terms of returns and warranty.

    Thanks in advance.

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    What's your budget?
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    (Original post by ViewsFromSi6)
    What's your budget?
    I'll stick to what we've always done is 800pound max. Usually they have been good running cars with minor niggles sold to the scrapman at scrap value. Being good friends with the scrapman we have always brought them quickly off him and he's made 200 pound of us just as a middleman. Simple things like a basic service, top up battery and a really good clean is all that's needed.

    I'll be looking at late 2000s saloons and late 90s luxury saloons. I'll avoid superminis, motorbikes and 4x4s because there's minimal profit in the ones I can get at my budget.

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    Beyond the small matter of the tax implications and running a business out of university property (if you're living in halls), there's no issue I can see that you'd need to think about?
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    (Original post by JC.)
    Beyond the small matter of the tax implications and running a business out of university property (if you're living in halls), there's no issue I can see that you'd need to think about?
    May be in private accommodation, and I'm not too sure how to go about the tax bit tbh

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    (Original post by vuvuzela)
    May be in private accommodation, and I'm not too sure how to go about the tax bit tbh

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    Register as self employed with HMRC and fill out a self assessment. You only pay tax on profit on used vehicles. Well, there are exceptions, but as you've stated that you're only dealing with sub 1k snotters you'll never deal with the exceptions.

    I can't see you turning over enough stock to need to be vat registered if you're just doing the odd one now and again.
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    (Original post by vuvuzela)
    I'll stick to what we've always done is 800pound max. Usually they have been good running cars with minor niggles sold to the scrapman at scrap value. Being good friends with the scrapman we have always brought them quickly off him and he's made 200 pound of us just as a middleman. Simple things like a basic service, top up battery and a really good clean is all that's needed.

    I'll be looking at late 2000s saloons and late 90s luxury saloons. I'll avoid superminis, motorbikes and 4x4s because there's minimal profit in the ones I can get at my budget.

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    where are you i might have some interest in this as a buyer if it worth the travel
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    (Original post by JC.)
    Register as self employed with HMRC and fill out a self assessment. You only pay tax on profit on used vehicles. Well, there are exceptions, but as you've stated that you're only dealing with sub 1k snotters you'll never deal with the exceptions.

    I can't see you turning over enough stock to need to be vat registered if you're just doing the odd one now and again.
    Thanks, but their not all snotters, if you know the common fault with certain models, you can have them fixed on the cheap and end up with some very respectable cars for pretty much banger money.

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    (Original post by jamesthehustler)
    where are you i might have some interest in this as a buyer if it worth the travel
    I'll be operating out of London hopefully

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    (Original post by JC.)
    Register as self employed with HMRC and fill out a self assessment. You only pay tax on profit on used vehicles. Well, there are exceptions, but as you've stated that you're only dealing with sub 1k snotters you'll never deal with the exceptions.

    I can't see you turning over enough stock to need to be vat registered if you're just doing the odd one now and again.
    What's the rate of tax on this sort of self employment and does it differ from capital gains tax? A lot of this stuff is cash in hand as well.

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    (Original post by vuvuzela)
    I'll be operating out of London hopefully

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    that OK I'm from west Kent so yeah I'll follow you and ask if i need anything as my dad's considering replacing his car before long
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    Haha I done this briefly. Always broke even, never a HUGE profit when I factored in my time spent and the work I did on the motors.
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    (Original post by CAElite)
    Haha I done this briefly. Always broke even, never a HUGE profit when I factored in my time spent and the work I did on the motors.
    If I can flip two a month at an average 400pound profit that's 800quid a month on top of a part time Job. Even if it's 4 a month at 150-200 pounds, the cars I'm buying are carefully chosen and I don't plan to spend any more than 5 hours a week on any car. Perhaps you don't know the right people or the right cars to buy. We've always adopted a policy whereby if the car is getting close to budget, sell it and advertise all the faults and we still make profit. Never made a loss, and this is just casually selling them every now and again over a few years. Used cars are never perfect. And to be very honest if the profit means a proper night out every now and again that's good enough for me.

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    (Original post by vuvuzela)
    I'll stick to what we've always done is 800pound max. Usually they have been good running cars with minor niggles sold to the scrapman at scrap value. Being good friends with the scrapman we have always brought them quickly off him and he's made 200 pound of us just as a middleman. Simple things like a basic service, top up battery and a really good clean is all that's needed.

    I'll be looking at late 2000s saloons and late 90s luxury saloons. I'll avoid superminis, motorbikes and 4x4s because there's minimal profit in the ones I can get at my budget.

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    Maybe go for a bigger budget like 2/3k more profit margins and obvs bigger risk but it's worth it if you have the money
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    (Original post by vuvuzela)
    If I can flip two a month at an average 400pound profit that's 800quid a month on top of a part time Job. Even if it's 4 a month at 150-200 pounds, the cars I'm buying are carefully chosen and I don't plan to spend any more than 5 hours a week on any car. Perhaps you don't know the right people or the right cars to buy. We've always adopted a policy whereby if the car is getting close to budget, sell it and advertise all the faults and we still make profit. Never made a loss, and this is just casually selling them every now and again over a few years. Used cars are never perfect. And to be very honest if the profit means a proper night out every now and again that's good enough for me.

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    Ah I was selling 1 every 1 or 2 months or so (by choice).

    Buying
    Fixxing up (I was working as a recovery driver at the time, fixxed them up in my spare time)
    Driving about for about a month
    Selling.

    I mean its essentially free motoring which was why I was doing it, also you get to motor about in all different sorts of cars . I was mostly working with <£500-600 superminis then selling them for about a grand with a fresh MOT, service and cleaned up. Cheap superminis will sell MUCH faster than old luxury cars as there is a much bigger market for folk wanting cheap runarounds than enthusiasts looking for older motors. Also any work you need to do on a 90s/00s luxury car will A. Be rather complicated B. expensive parts. I did pick up a couple of interesting motors though which I bought somewhat on a whim, notable a 220k mile Lexus LS400 which I nearly kept after me and a pal pulled all the mufflers off the exhaust (sounded like an old american V8), a couple of old jags (NEVER AGAIN!)

    Oh and vans! Vans sell really well suprisingly.
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    (Original post by CAElite)
    Ah I was selling 1 every 1 or 2 months or so (by choice).

    Buying
    Fixxing up (I was working as a recovery driver at the time, fixxed them up in my spare time)
    Driving about for about a month
    Selling.

    I mean its essentially free motoring which was why I was doing it, also you get to motor about in all different sorts of cars . I was mostly working with <£500-600 superminis then selling them for about a grand with a fresh MOT, service and cleaned up. Cheap superminis will sell MUCH faster than old luxury cars as there is a much bigger market for folk wanting cheap runarounds than enthusiasts looking for older motors. Also any work you need to do on a 90s/00s luxury car will A. Be rather complicated B. expensive parts. I did pick up a couple of interesting motors though which I bought somewhat on a whim, notable a 220k mile Lexus LS400 which I nearly kept after me and a pal pulled all the mufflers off the exhaust (sounded like an old american V8), a couple of old jags (NEVER AGAIN!)

    Oh and vans! Vans sell really well suprisingly.
    Your info is very accurate. I'll mainly be focusing on cheap jag xtypes (luxury mondeos) and Mercedes c class 98-03, and then vectras,astras,mondeos, avensis highish spec and of course the astravan, berlingos be because they share parts with other vehicles. I don't want to give away all my secrets but common faults in particular models is what I'm looking at.

    Thanks, I really appreciate your info. Being in London, I won't get much done in the way of driving, but I can get hold of relatively cheap labour through some people, but I don't intend to buy cars I can't fix myself anyway.

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    What about insurance? Where will you actually do the work? Is there ample parking? Can you, as a student, afford to make a loss? What if you sell a complete lemon and have to take the cost of an expensive repair for someone?

    Lots to think about if you go ahead...


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    (Original post by shaymarriott)
    What about insurance? Where will you actually do the work? Is there ample parking? Can you, as a student, afford to make a loss? What if you sell a complete lemon and have to take the cost of an expensive repair for someone?

    Lots to think about if you go ahead...


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    Insurance will be most likely temporary cover for test driving and delivery etc. My proposed location has a single parking space but with room to do any work, and the parents house has a large enough driveway for 3 cars and workspace. My aim is to get the cars sold within 7 days, and the 30 day SOGA rules applying for when I buy them, and also when I sell them. As a student right now I have limited funds but I am on a super strict budget, the largest loss I can make is the budget of 800pounds, all inclusive.

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    running such a business from halls (where i have been) is not possible.

    students cannot bring cars onto campus, although there is a pay and display nearby.
    the roads are residents only and the council actively pursue kerbside sellers.
    as soon as you buy a car the tax is void so you need to tax and insure it to get it somewhere,

    if it's a holiday enterprise, and your home has ample parking, fine.
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    (Original post by domonict)
    running such a business from halls (where i have been) is not possible.

    students cannot bring cars onto campus, although there is a pay and display nearby.
    the roads are residents only and the council actively pursue kerbside sellers.
    as soon as you buy a car the tax is void so you need to tax and insure it to get it somewhere,

    if it's a holiday enterprise, and your home has ample parking, fine.
    Private rented accommodation with parking. Tax is void from when the v5 slip reaches the DVLA, so you can drive it home.
 
 
 
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