Hi Rob, you can only get away from both taxes when buying from private hands. When you buy from other dealers then you pay GST. You are right about getting a dealer license too. I would not recommend flipping cars until one gets a license though. Man, I get the dealer news reports every quarter and "curbsiders" get sooo hammered with HUGE fines. Not worth it. V..
Excuse my ignorance, but hear of "Curbstoners" here in the states and have heard the warnings. I am still unclear exactly the mode of their operation.
Thanks for all the kind words and encouragement. My stomach has been upside down the last few hours with the nervous butterflys buzzing away! We have the dealer and whole sale licences already. Hopefully by selling simple cheap cars, we can build up to the bigger stuff later on down the road. For now we are just keeping things simple, and trying to work under strict guidlines we have set for ourselves. The polishing/ detailing side of the business is booming at the momment. Doing stuff only for local dealerships at the momment, mostly paint restorations for vehicals that have come in off lease, or for cars that are headed to the auctions.
Well you do pay the GST but it is then claimed back and returned so while you do pay it, you can have it back in as little as 3 months (depending on your remittance schedule). Then again, during that time you are collecting GST on jobs that are being done so the GST is coming back to you all the time Flipping cars without a licence is nuts because you need to register it to the company in order to legally use the company money to purchase it and you start off 14% behind if you pay both taxes on a car you just want to flip.
Tom with regards to the company allow me to offer you three pieces of advice from someone who has been there: 1. If it is your intention to be bigger than just two guys, then you must learn to slowly let go the hands on stuff and develop as a team leader and manager. This will not happen early but keep your eyes on it or you will have trouble growing. A friend of mine was a bricklayer and now employes over 400 people laying bricks. His philosophy was simple: 'In one day I can lay x number of bricks but if I source out work then other people can lay many more bricks than just me working' He has MANY Ferraris now 2. Be fair and you'll have customers for life. Screw people and you will have tons of new 'one time' customers. This is a small community and word gets around. You already have experience here and are a straight shooter so this advice is only telling you the obvious 3. The customer is NOT always right. Some customers are more hassle than they are worth so don't be afraid to politely turn certain people away
To my Fellow Tom of North America, I extend a goyish Mazel Tov on fulfilling the prophecy, for it is written; tbakowsky shall kick butt. Those aren't butterflies in your stomach. That is a Phoenix, Rising.
Tom, congrats, and a hearty Mazol Tov to you as well. When you get some Countachs in, give me a call.
Congrats! I quit my job about 5 years ago to go out on my own. Best thing I ever did in every sense. Good luck
Thanks Wax, and all others. Had a busy day today which is good. Just able to get on-line now. If this keeps going I'll have to get a bigger shop! LOL
Hey Tom, Congrats! Send me a message to let me know where your shop is now. I need to bring my 348Spider in for service next season...so I'm glad you're on your own now.
