Is there demand for....

V

vectramat

Member
...a BMW sales specialist? (may be a long post but feedback would really be appriciated)

As above guys, just doing some ealry market research. Ive been thinking of setting up on my own in business for quite some time now and theres always been something stopping me or that nagging feeling that it may go wrong. Anyway ive decided im going to do it and I am putting the wheels in motion to become a BMW sales specialist.

The company would be internet based only, to ensure running costs are minimal. The cars would be prepared to the same standards as a BMW dealer i.e refurbed wheels, long MOTs and serviced ect. But more importantly, I will undercut the BMW dealer on price of like for like cars.

Having worked for a BMW dealer, I can say that almost half of the customers i dealt with, all said yes its a nice car but I can get one cheaper at so and so or theres another one at another dealer for less money and done less miles. So id like to be that other dealer. People are bought on price these days more than anything so if I can offer the same high standard of serice as a dealer, while saving the customer money on their BMW, surely theres a market for that?

Id be running this business from an industrial unit where I can store the cars and also work on them i.e cleaning and refurbing wheels ect and not have a forecourt. Stock would come from dealer part-exchanges and national auctions and trader only publications. They will be hand picked and only the very best purchased.

In Hull, there is only one BMW dealer. There are specialists who do repairs and servicing but they do not do the sales side of things. I dont expect to take a wage in the first year and I will continue in my current employment on a part time basis - this will ensure I atleast have something to live on.

So guys sorry for this long post but do you think its a good business plan? Any thoughts or ideas would be really appriciated.
 
It's not a bad idea at all.....but you would be competing with other car dealers perhaps, as people's perception would still equate you to being a dealer, and you mention low overheads, eventually you will find that you will need to factor in money for your storage, tax and potentially VAT also.....so you won't be selling cars at private prices......

But a good project to really get your teeth into
 
An interesting idea, will you be offering a similar waranty to AUC, as that can be a deciding factor to for some buyers.
 
Yeah there will be running costs, however commercial property in Hull can be rented for £8,000 p/a for a reasonable size unit. Of course there would be rates to pay for elec and water ect. However this is still minimal compared to having a forecourt and needing it to be staffed every day and open every day. Theres also costs for advertising and website maintenance too.

Not looked into warranty as yet but I know there are some indys who have deals going with companies like warranty direct and the like.

Im convinced theres a market place for this business and ive got the know how and the experience to do it.
 
What is your target market? Is it the £5k cars or the higher value ones?

Different customers would expect different levels of service etc.
 
There is a market - and I admire your ambition - but to Joe Punter you will be just another car dealer. There are some that do it really well - A company I look at just cause they have nice cars is http://www.mervhannam.co.uk/. I have never bought from them but used to live in bournemouth and often drive by when visiting family and take a look. They have good comms on their facebook page and also a good web site which might give you some inspiration.

Obviously a little different to what you are looking to do as they have a forecourt but that is mostly where people see cars other than the internet.

Hope it helps and good luck!
 
Living the dream vectramat; this is something I've always wanted to do. Really hope it's a success for you. Sounds like you have a good local market. A lot of this will be around marketing yourself as an indy that feels as official as possible; a bit like quality service indy's do with their use of Bavarian words and M colour schemes.

Best of luck with it all :thumbsup:
 
Thanks to everyone for the suppot and words of advice. To answer a few queries:

Im looking at marketing cars no older than 10 years, and up to 120,000 miles. These are extremes but are also the same as a BMW main dealer would work to (yes they do sell cars that old, my local BMW dealer recently had an 02 plate Z3 3.0 Sport in dakar yelloy for just under £6,000). They quality of service will be the very best possible weather the customer is buying a car for £1500 or £15,000. Every customer deserves to be treat properly, with respect and courtesy.

Im going down the route of being internet based just because, in my experience, nobody walks onto a forecourt and buys a car anymore. People will always use the internet to look for what they want, find the best priced car, and then go looking.
 
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Really liking that Inkey - you may have just influenced the company logo. Might drop the V from the front and just be called Matt's Bavarian Motors 8)
 
I thought AUC was only cars under a certain age or under 60,000 with a requirement for full main dealer or approved indy service history.

There's no doubt a market for it. The devil will be in the details. Aiming at cars that would be AUC or just fall out with the AUC requirement or are more specialist (i.e. the big luxury models, well kept old models, M's. Alpinas etc). I think when it comes to something like a bogo 4 pot 1 or 3 series model that is around £10k people will just buy from the cheapest place that doesn't make them nervous and if you are offering a really well presented car and a warranty that is worth something then you will need to be stealing the cars to make money in that area.

It will be car enthusiasts that will search for a specific car online and it will be car enthusiasts that will appreciate a service like the one you describe. I'd aim at them and offer a service that panders to them i.e. local public transport pick up when they come to buy from you etc.
 
Thats true about up to 60k AUC although BMW dealer to sell them seperate to AUC. By doing it this way they do not have to put a warranty on (most do for 3 mths anyway) and do not have to ensure its full BMW history. The only downside for the customer is you dont get all the AUC benifits - but still get the experience of buying from a BMW dealer.

I agree with what you are saying, I would have anything in stock that would hand around. Id stock 1, 3 and 5 series and mostly diesels and if possible m-sport as these seem to be most desirable.

Id naturally offer to collect a customer (or possibly deliver the car for a small fee ect) give them as much tea and coffee as they want and give them the full experience of a main dealer. Present the car to them covered over and pull the cuver back so they can see their shiny new car and make them feel special.
 
:thumbsup: I'll do it properly and sort your official one out if you want. Always willing to help out those with a dream and you can pay me back with a decent discount one day when I come to buy a 3 year old, 4 door, low mileage Alpina Bi-Turbo :lol:
 
Aren't Muncich Legends doing what you're proposing?

Judging by their reviews, normal dealerships can't compete, plus they're BMW approved.
 
I'd be the voice of caution here, just to make you think and get it right.

Cars sold from an industrial estate without showroom will always command a lower price than a long standing BMW or top end dealer.

You'll need a dozen cars in stock and that means tying up £50k in stock and lots more on tools, security, etc. etc. Can you raise that plus rent, VAT on sales, etc. etc.? Friends of mine run car centres and always say any idiot can sell them, finding good saleable cars with margin is the challenge.

Your gross margin will be lower than you imagine, so will need to shift lots of cars. Lets say you make £1,000 per car on average in your sub prime sector you'd need to see 2 per week to cover all your expenses, funding costs, refurbs, warranty work, customer service, internet advertising and then if lucky make a few £k. Ignore my figures and run a proper business case for it. Factor in everything and some significant tolerance for warranty claims, etc.

Consider specialising. Z4, 3 series, 5 series, etc. are very different customers with different needs. I've seen very successful garages focussing on a sector as people go to them for a choice. 2 seater sports, 4x4's, semi classics, ///M's etc. I'd be reluctant to visit a warehouse to see a single 3 series when I can see several in any regular bricks and mortar dealers.

Not being in any way negative and would love to see this take off, but think everything through in real detail without any rose tinted specs.
 
Kind of what I was trying to say with my comment about things like 1,3,5 and even Zs. It's not difficult to go view one somewhere and a diesel 3 series isn't much more special than any other rep mobile so Mr & Mrs jones who just want a fancy badge for Ford Focus money won't give a stuff about paying a grand or even a few hundred more, they'd rather the money was in their pocket and they still had the badge.

Munich Legends do indeed do more or less what is described but it's generally the more special cars that they deal with and often it's a case of they sell cars for private customers and take a commission. I know 2 people that have used them recently and the service they provide gives full reassurance that you are buying a good one when it comes to M cars especially.

Regarding the logo. I'd tread carefully with that the ///M is a registered trademark and you will get taken to the cleaners for using it unless you are actually an authorised M supplier. Even some main dealers aren't allowed to use it.
 
I agree with your opening statement, Stratstone Hull wanted me to pay iirc £2000 more for a year and a half older zed with same engine size, with 40,000 more miles on(same spec)-they even wanted me to pay extra for road tax!
 
andysat said:
I agree with your opening statement, Stratstone Hull wanted me to pay iirc £2000 more for a year and a half older zed with same engine size, with 40,000 more miles on(same spec)-they even wanted me to pay extra for road tax!
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Agree not much to worry about in Hull.
I went to view that Dakar yellow Z3 it was a 2.2sport advertised as 48k miles. £5991
What a shed when I got there (50 miles each way)car wasn't prepped it had actually done 68k miles there were patches on the bonnet the size of your palm with no paint the whole car was a shed.
But your buying from a BMW dealer was all he could say.
Months later they still had it and it was under £5k why were they as a main dealer messing around with this shed?
 
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