Good Business Idea? One For The Petrol Heads..

[mattk1]

Hi guys,

I have a friend back in the UK who specialises in used prestige brand car parts (Mercedes, BMW, Audi etc) and I had the idea of maybe having him send parts to me that I can sell over here.

I put this idea to a couple of local friends but they reckon it wouldn't work out so well as there are not so many of these brands over here. Plus I would need someone Thai to be the front man who preferably has some knowledge about cars.

I could source virtually any part from the UK, and by that I mean engines, body panels, interior parts etc. And offer them for sale at very good prices compared to ordering brand new parts from main dealers.

I know there companies who source parts here and sell them to Europe but what do you guys think about my idea doing business the other way round?

Feel free to be bluntly honest with me as it's opinions I'm looking for.

Cheers!

[keemapoot]

Premium Brand auto parts (Mercedes/BMW esp.) are a good business here. I have & have had several Mercs here, and parts are always a problem to get at the right price. However, there is a long established network in Bangkok mostly for the import and distribution I believe. Not sure UK-sourced auto parts would be price competitive. The shops I buy my parts from always seem to be able to locate most anything, though not always easily.

Like any business, you'll have to do your research, and it probably means searching for some niche within the auto parts areas you mentioned where UK-sourced would be price competitive. I suppose it means doing first hand research going and talking with the current retailers, distributors, importers, etc...

If you're just at the idea stage, and do not have experience and contacts it will be tough. Are you an experienced car person?

[WarpSpeed]

^ Yep and mostly from Japan, there is big players in the parts business and they'll muscle you out at the gate with their customs connections.

Edited March 26, 2013 by WarpSpeed

[mattk1]

Thanks for the reply keemapoot, it is encouraging to know that there is a market for this even if this idea is in the very early stages. Out of interest where do you buy your parts from?

Just to clarify, the parts I can get hold are not new but either reconditioned or as good as new. In England he sells most things with a 30 day warranty if the part turns out to be faulty and some things like recon engines and gear boxes with 3 months.

I myself come from a car background so I'm confident I can source all the correct items. The problem is having someone to front things while I do all the behind the scenes stuff. Unless of course I start a company in my wife's name but that's something to consider later. Baby steps as they say..

Hi warpspeed, thanks for the reply. Do you know of any companies off the top of your head? I would like to get an idea of how they operate. Cheers!

[WarpSpeed]

The unfortunate thing is they don't operate the way you're used to, being from the west, nothing is clear or upfront, everything is opaque and under the table with layers of players that's by design intended to be convoluted to allow for wiggle room, a large percentage of the customs agents supplement their paltry paychecks this way..

Furthermore if you're talking complete engines, rebuilt parts and the like they'll duty you to death if they even allow it all? That's the thing, the goal posts move all over the place to suit themselves and the Thai players, there are also BIG Japanese players in this game too. So good luck, I wish you the best but there's a reason it appears to be an open market..

Edited March 26, 2013 by WarpSpeed

[VocalNeal]

I thought importing used vehicle parts is now illegal? Or was that used something else? I assume your friend will only sell to you?

You could try small with your nearest, biggest repair shop. Maybe Volvo as there are only about 3 really good ones and Volvo parts are not from Asean/Asia.

Depends where you are located. That always helps. Phuket and Pattaya are smaller so maybe easier there.

Wife 62%, you 35 and the other 3 one each. That way you don't attract the attention of the 51/49 companies involving foreigners.

[arthurwait]

I thought importing used vehicle parts is now illegal? Or was that used something else? I assume your friend will only sell to you?

You could try small with your nearest, biggest repair shop. Maybe Volvo as there are only about 3 really good ones and Volvo parts are not from Asean/Asia.

Depends where you are located. That always helps. Phuket and Pattaya are smaller so maybe easier there.

Wife 62%, you 35 and the other 3 one each. That way you don't attract the attention of the 51/49 companies involving foreigners.

Volvo factories in Malaysia.

[Jitar]

The OP would need to check the status of the ban on importing used car parts reported April last year. One report stated:

"The Cabinet has agreed to ban the import of used car parts for the production of new vehicles in Thailand. Deputy Government Spokesperson Chalitrat Chantharubeksa has announced that the Cabinet agreed with the Commerce Ministry’s proposal on the control of vehicle production, forbidding vehicle modification with the use of used car parts. He said the Cabinet resolved to forbid all imports of used car parts to prevent manufacturers from using old parts to assemble new vehicles. The move is set to protect consumers’ rights and prevent impacts from the practice on the nation’s economy. Besides, the Cabinet also agreed to ban registration for vehicles that have been built or modified from old car parts. This measure will be forwarded to the Juridical Council committee for implementation.

Seems heavy handed but TIT.

[mattk1]

Thanks for the reply Jitar.

I will look into this more, but it seems from the statement you have put on here that my idea would be a no-go.

It does seem very heavy-handed doesn't it? I think the Thai government have tried to rule out all moneymaking ideas to do with vehicles.

I will do some research on this and post back to let you know what I find out.

Cheers

[BSJ]

It would be easier to pile all the money you intend to invest in one heap and set fire to it. At least it will keep you warn for a few minutes!

[WarpSpeed]

Thanks for the reply Jitar.

I will look into this more, but it seems from the statement you have put on here that my idea would be a no-go.

It does seem very heavy-handed doesn't it? I think the Thai government have tried to rule out all moneymaking ideas to do with vehicles.

I will do some research on this and post back to let you know what I find out.

Cheers

At least in terms of ones that THEY don't personally benefit from..

[arthurwait]

I think that law is used parts in new/newly registered vehicles. Tuk tuks, kit cars , lorries I can't see any other point in it otherwise. Surely major manufacturers aren't using used parts.

As for the business idea. Warpspeed is probably right about it being sewn up by people with contacts in customs. Also any Thai can use Ebay etc.