Jay's Mechanics... needing some advice..

[Newtomud]

hmm starting to look very expensive now, im looking at buying cheap cars for £100- £300 and doing work on them ie to get an mot on them plus tax them and make some profit on them, would it be a good idea to start mobile? would that be cheaper?

im thinking maybe insure the zuk at £1900 a year and chuck tools in the back since it is a van and then i would only need public liability insurance right? would it be eaier to start off mobile and cheaper?

Hey.. Don't give up before your started..Patience and research.. I'm sure Mr Halford started somewhere??

[Jordi]

Is that boggo standard insurance? It would need insuring for business use. Fairly sure you'll still need traders insurance as your working on other peoples motors.

Everyone starts somewhere. Mobile may be a way to go. I would say a good googleing session.

Jordi

[Jay18]

that is true but with the wages im on at the moment its begining to look like it cant be done yet, if i was on the wages i used to be on id go for it, i used to be earning £800 a month but now i struggling to get £190 a month...

before i even start im looking at putting myself in £3000 worth of debt for a loan to pay for it all...


thats just standard third party fire and theft, if i was to do mobile mechanics i would need to get my girlfriends dad to insure the zuk aswel then as i cant get traders insurance until im 25...

[Jordi]

Look at Dalton business and RTA and any other websites that sell businesses. You may be able to buy a mobile mechanic out cheaper than you think.

You'd get a van and all the tools etc... Look for a limited company and possibly have someone over 25 buy, like a parent. So long as the insurance says any employee with no age restrictions you can drive it.

When you buy a company, especially one with a rented/leased van the cost isn't that high as the only assets they have are tools and "good will" (length of trading, established customer base and various other crap).

Jordi

[Jordi]

Also buying an established limited business it will have all neccesary insurances in place, you just take over responsibility.

[Jay18]

as long as its affordable with my £3000 budget at the moment as that is all i can pay at the moment....

[Jordi]

Where you make the money is the little quick jobs.

Example would be a basic car service fan belt and PAS belt, oil, filter, screen wash and coolant. We'll say £50 dependant on the car. One hours labours. You charge £100. Most garage now labour rates are £20/hr plus.

I would phone a main stealer for a "quote" to do some basic work. Servicing, brakes, cambelt, clutch etc....

Make sure they tell you what will be changed not changed. Then get onto a couple of motor factors and price the parts up. That'll give you an indication how much they are charging labour coats and to cover their over heads.

Again on the buying a business the finance is based on that companies accounts. Company forsale at £500k, chap agreed £140k. Another one up at £800k. Actual physical cash that would have changed hands £1. They are true examples.

When you buy a business it has history, accounts, customers. So long as you can keep the business coming in and prove it can pay for itself you may be able to borrow a lot more.

Jordi

[Jordi]

Another one. Don't let the Wheeler Dealers programm fool you. When has it ever said Ed Chinas labour £xxxxxs?

Don't be put off. Do lots of googleing, speak to people in the trade, market research. The reason i don't have my own business is because i didn't have the balls and confidence in success to do it when the time seemed right.

Expect rough times but, presuming you live with parents, when times are rough you can fiddle your costs about. You still charge customers the same but if work is slack you can adjust your salary. Then once it takes off regular work, you take more money out.

A lot of people don't have time to take a car to a garage or just can't be bothered. It may be an idea to speak to garages. See if they have a call out/mobile mechanic. If not see if they are interested in using you as a contractor. They would want their slice but so long as you get yours does it matter?

[Tramp]

If i was you id just start small, id do a bit of work at the weekends and after work (like Dan said at some point earlier in this thread) for friends and family, I certainly wouldnt be packing my day job in or jumping in feet first, I'd see how it develops over time and use the money i make from helping out friends & family to fund the growth in the business, that way if it doesn't take off your not left out of pocket & your efforts not in vain, also it would be self funding so you wouldn't have any initial outlay

[Jay18]

think that is what ill do for now, keep is minor for the moment, do little jobs and see if its worth all the investments, thinking about getting a loan to get the zuk on the road, to pay for insurance tax and the transprt to get it down from cheshire to northamptonshire...