Starting a Used Car Restoration Business – Suggestions Invited

[ss80]

Hi everyone,

I have a plan to start a small part time weekend business, of buying, restoring & selling cars. I have tried all sorts of things in cars so far, except knowledge & experience I earned nothing (rather I lost a lot). Having learnt from my mistakes,
I want to give it a shot one last time. No more stories here is the plan.

Why this business & not anything else?
- I simply love cars, I dont mind spending time & money on cars, I love buying spares ( basically auto spares shopping) & ofcourse restoring old cars is my dream. If I cant make money here, I doubt if I could anywhere else.

Funds Source:
I have applied for a loan/credit with two of my known people, one is my ex-employer & the other is a friend. Both are willing to fund, but on different interest rates & payback time. 1.5lakhs is what I am planning to invest on the first car, which includes buying, restoring & selling.

What if it succeeds?
I get a fair margin (fair is much lesser than any dealer/true value type centers). With which I can pay off the interest & still be left with some cash & continue use the principal fund for the next car.

What if something happens & I fail?
I will have a car for myself & pay back the credit by applying a personal loan after a year.

What about job?
I have a bpo job as of now, that just lets me pay off my existing loans emi (10K per month x 4 pending) & still just enough to survive. I get two weekly offs, which should again help me in my business.

Where do I approach the buyer?
Used car websites, with plenty of photos & lots of details. Newspaper ads as the last option.

Why am I trying to do all this?
The dream to be a one of a kind car restorer, who loves his job, earns his bread & butter from cars, leads a successful life by selling cars that are genuinely good.

What if everything goes well, what's next?
After sales service, limited warranty on sold cars, accessory shop, water wash center etc

Ok now thats the thoughts behind the idea of purchasing the car for now.

The Car in my mind:

1. Maruti 1000 - 2nd or 3rd owner

buying cost: 45k (max)
Engine reconditioning: 12K
Clutch overhaul: 5K
Tyres: 22K
Alloys: 25K
Full body paint: 19K
MPI kit: 5k
Interiors: 7K
misc: 10K

total bill: 1.5lacs

Selling price & profit is directly affected by 1 thing - buying price. SInce I cannot cut corners in any other area. Quality is guaranteed as I am likely to own it in future so nowhere I will compromise.

Why M1000 & not any other car.
As far as I know, M1000 are lesser in numbers on road compared to zen/800/esteem - exclusivity.
It is not a 1.3ltr (rocket type acceleration of esteem) esteem engine, so mileage can be expected.
Looks like a esteem - useful while selling it.
Many parts can be swapped from zen & esteem i guess.
I think it has the same zen engine(1.0ltr, 4cyl, 8valve, 5speed GB) - can anyone confirm this please.

Here comes the scary part - I have never touched/driven a M1000! I have driven esteem (mpfi only) & the light chassy with PS & 1.3 engine scares everything out of me. Still loved it a lot.

Please pour in your advice/opinion/suggestions. it will help me decide about the car & the business idea. Thank you for reading the long post.

Here is a pic of M1000 from the internet.







Here are a few deals on OLX.in

Rs. 60,000 for metallic grey 1994 Maruti 1000 for sale !!! - Bangalore - Cars - Yeshwanthpur - maruti1000 for sale in bangalore

Maruti Esteem 1000 for sale - Bangalore - Cars

The only concerns I have are:

1. Did M1000 come with AC & PS?
2. Is the suspension same as esteem?
3. is it a aluminium engine? how many valves? Sohc or Dohc?
4. 45bhp to move a sedan, is it going to be a underpowered car?

If M1000 isnt really worth it, should I consider Esteem 1.3Lxi? although buying cost is very high?

 

[P3T3R]

Re: Is Maruti 1000 a good car for restoration project (commercial)?

Appreciate your enthusiasm but isn't the M1000 the wrong car. Even after restoration it won't fetch much. I have seen a mint condition 1000 for sale in Goa 2 years ago for 25K. Also this engine is shared with the old Gypsy and not the Zen. Parts could be an issue. For 45K you could get an Esteem (Carb). I would suggest that to start off buy cars like 800, Santro etc which do not require body work. Buy the car cheap, do minor touch ups, polishing, interior cleaning, engine bay cleaning and a service (oil & filter change) if required. You should be able to make at least 10-15K profit. After doing a couple of these deals you can go in for bigger restoration projects.

 

[anshuman8]

Re: Is Maruti 1000 a good car for restoration project (commercial)?

Hi ss80,

As mentioned by Peter, M1000 is definitely a wrong car. If you want to restore, you need to buy a classic/vintage which would sell at a premium after restoration.

If you want to enter normal car trading business buy cars which have good resale value(e.g Santro/Swift/Wagon R), do quick restoration / painting / polishing and sell off.

Do PM me if you need any help, I can provide you same as I had similar thing in my mind for long time.

Cheers,
Anshuman

 

[jarpickle]

Re: Is Maruti 1000 a good car for restoration project (commercial)?

As a business buying a 1000 and restoring it is not going to yield any profits.

You are right the F10A is common with the Gypsy.The zen had the G10B and a lot use the G13B from the esteem.

 

[amit1km]

Re: Is Maruti 1000 a good car for restoration project (commercial)?

Business idea is very good but choose correct car. You also need to stand out of the normal 2nd hand car dealer. They also do some restoration,you need to be class part from them.

Maruti-1000 is not so popular car in the market but where as M-800 /alto/zen are very popular.
Best of luck for business.

 

[Girish]

Re: Is Maruti 1000 a good car for restoration project (commercial)?

Hi Anand,

Hats off to your enthu man!!! Let me wish you all the best and luck on your business. Where there is a passion, there is everything!!!

As everyone sugessted, I would say avoid Maruti 1000 and why don't you try with ss80 which is the one which you were looking to go with earlier??

Once again wishing you all the very best..

Regards,
Girish

 

[ss80]

Re: Is Maruti 1000 Good Car For Commercial Restoration Project?

Business idea is very good but choose correct car. You also need to stand out of the normal 2nd hand car dealer. They also do some restoration,you need to be class part from them.

Maruti-1000 is not so popular car in the market but where as M-800 /alto/zen are very popular.
Best of luck for business.

Thank you for the valuable feedback, the fact that M1000 is not so popular was definately the reason for me to question the choice of car. You have cleared it now.

As a business buying a 1000 and restoring it is not going to yield any profits.

You are right the F10A is common with the Gypsy.The zen had the G10B and a lot use the G13B from the esteem.

Alright so I will skip cars with F10A engine to avoid hunting spares etc. I had assumed that Zen & M1000 had the exact same engine

Hi ss80,

As mentioned by Peter, M1000 is definitely a wrong car. If you want to restore, you need to buy a classic/vintage which would sell at a premium after restoration.

If you want to enter normal car trading business buy cars which have good resale value(e.g Santro/Swift/Wagon R), do quick restoration / painting / polishing and sell off.

Do PM me if you need any help, I can provide you same as I had similar thing in my mind for long time.

Cheers,
Anshuman

Thanks again.

Appreciate your enthusiasm but isn't the M1000 the wrong car. Even after restoration it won't fetch much. I have seen a mint condition 1000 for sale in Goa 2 years ago for 25K. Also this engine is shared with the old Gypsy and not the Zen. Parts could be an issue. For 45K you could get an Esteem (Carb). I would suggest that to start off buy cars like 800, Santro etc which do not require body work. Buy the car cheap, do minor touch ups, polishing, interior cleaning, engine bay cleaning and a service (oil & filter change) if required. You should be able to make at least 10-15K profit. After doing a couple of these deals you can go in for bigger restoration projects.

Thank you Peter, I dint get your point in bold above. Do you mean to say esteem/sedan needs more body work than these hatchbacks? or is it that plane shapes (M800 panels etc) will be easier to work with than esteem type curved sheet metals?


I will certainly skip the M1000 & now the question is which car would be ideal.

1.If I buy a M800 Type 1 then this is my plan.

Modify the exteriors into type 2 (swap body panels - 2fenders, bonnet, hatch door, 2 bumpers & headlamp & taillamp) - Is this feasible? or needs lots of modification for that to happen?
No major changes to engine (retains same engine no etc) & sell the car with full body repaint & good interiors etc - whole thing could happen below 1.2lacs.

2. Zen (old shape) - very difficult to find a good piece (single owner especially) at a below 1lakh price. Secondly I dont know if it is possible to fit PS from alto or similar car. Overshoots my whole budget.

3.Santro (zip) old shape
I can get this for around a lakh or so. Mpfi engine, 4 cyl, PS & AC (yes to all).
but wont hyundai parts be costlier than MGP/after market? Does Santro still have market (especially after the huge success of Santro xing, is there still demand left?)

4. Esteem Carb:
Buy one, install MPI kit, full body repaint, bigger brake booster, new type tail lamps, alloys, interiors engine gaskets, new clutch - all this will roughly hit the target of 1.5lakhs again.

5. SS80: The car that I have dreamed of a lot.
I am sure I can do wonders in this car, its not much different (mechanical & electricals) than M800 type 1. However most Ss80's in decent condition will cost me 30K atleast here in Bangalore & engine work will definately come up. Is there still demand left for one of a kind SS80? or am I the only guy crazy about it? (Thank you Girish for reminding me about SS80)

So help me chose one please.

 

[Releesh]

Re: Is Maruti 1000 Good Car For Commercial Restoration Project?

SS80@

The idea is good, some suggestions from my end, to avoid loss in your business.
1. Please buy the cars nearing it registration expiry(98-2001models). you get these car marginally less price/cheaper price, most of them are will not be in good paint/engine condition and the owners will start to worry about test & re registeration formalities and they will sell the car at less price.
2. buy the car simply restore and sell at least 15k above the model price . Do not try any engine/body modification. this will keep the buyers away.Use new tires and fix a good HU.
3. Select Maruti models first, which had buyers always.

My experiance- I bought a 97 model 800 Dx (type 1) 1.5 year before for my own use @ Rs.40K.Used around one year spend almost 20 K. Replaced/fitted new parts like LORVM, beedings, New headlights, taillights. All oils replaced, rear shock changed.Paint touch up and test done. Though i done it for my personal and after one year and 10K km run, i give an add in one site and a guys bought it at Rs.65K.I had removed the HU unit which costed me around 5.8K

will share you more. little busy now.. Best wishes for your Business..

 

[350Z]

Re: Is Maruti 1000 Good Car For Commercial Restoration Project?

I have a plan to start a small part time weekend business, of buying, restoring & selling cars. I have tried all sorts of things in cars so far, except knowledge & experience I earned nothing (rather I lost a lot). Having learnt from my mistakes, I want to give it a shot one last time. No more stories here is the plan.

Your enthusiasm is truly commendable. Get a car that’s cheap but also has a reasonable demand in the market. The problem is that there are only a few people who understand the value of decade old SS80s, Palios et al and finding someone who does while reselling could be a task. A car like Zen, Alto, Wagon-R, Santro should be ideal in the beginning as Peter advised. You might even consider the former Honda City at later stage depending upon funds. They are available under a lakh but ensure it’s in reasonable condition (Honda’s spares are expensive), make it like new and benefit from Honda’s strong resale value. Just remember not to go overboard with major modifications whichever car it is. Sensible buyers always prefer second hand car models which are intact and in stock condition. Keep yourself in place of an actual buyer. Present the car well and maintain service records. This link will provide some indicators on this point of view.

Where do I approach the buyer?
Used car websites, with plenty of photos & lots of details. Newspaper ads as the last option.

Make best out of free classified websites. Magazines / Newspapers work wonders but I’m not sure about the cost of publishing in one. You can also approach reliable brokers.

Drive Safe,
350Z

 

[anshuman8]

Re: Is Maruti 1000 Good Car For Commercial Restoration Project?

Make best out of free classified websites. Magazines / Newspapers work wonders but I’m not sure about the cost of publishing in one. You can also approach reliable brokers.

Drive Safe,
350Z

while selling if you can advertise in right forum/magazine/classifieds you can fetch a good price as there are lot of enthusiasts in the market for right cars.

I would still suggest you to go for a classic/vintage car which fetch good resale after refurbish.

 

[P3T3R]

Re: Is Maruti 1000 Good Car For Commercial Restoration Project?

Thank you Peter, I dint get your point in bold above. Do you mean to say esteem/sedan needs more body work than these hatchbacks? or is it that plane shapes (M800 panels etc) will be easier to work with than esteem type curved sheet metals?

What I meant was that the body should be free of (or minimal) rust and dents whic

1.If I buy a M800 Type 1 then this is my plan.
Modify the exteriors into type 2 (swap body panels - 2fenders, bonnet, hatch door, 2 bumpers & headlamp & taillamp) - Is this feasible? or needs lots of modification for that to happen?

If you are doing it migh as well go for the latest look as the only difference from Type 2 onwards were the lights and grills.

2. Zen (old shape) - Overshoots my whole budget.

Simple, skip it. Otherwise make some money on a few 800's and then go for it.

3.Santro (zip) old shape
I can get this for around a lakh or so. Mpfi engine, 4 cyl, PS & AC (yes to all).
but wont hyundai parts be costlier than MGP/after market? Does Santro still have market (especially after the huge success of Santro xing, is there still demand left?)

This is the best bet.

4. Esteem Carb:
Buy one, install MPI kit, full body repaint, bigger brake booster, new type tail lamps, alloys, interiors engine gaskets, new clutch - all this will roughly hit the target of 1.5lakhs again.

Don't bother. MPFI Esteems are available cheap.

5. SS80: The car that I have dreamed of a lot.
I am sure I can do wonders in this car, its not much different (mechanical & electricals) than M800 type 1. However most Ss80's in decent condition will cost me 30K atleast here in Bangalore & engine work will definately come up. Is there still demand left for one of a kind SS80? or am I the only guy crazy about it? (Thank you Girish for reminding me about SS80)

Take up this project only if you want to keep the car. All the effort and money will not translate into profits as people don't understand the value of it when you are selling.

You might even consider the former Honda City at later stage depending upon funds. They are available under a lakh but ensure it’s in reasonable condition (Honda’s spares are expensive), make it like new and benefit from Honda’s strong resale value.

But you need to look for enthusiast buyers if you want a decent price.

Just remember not to go overboard with major modifications whichever car it is.

Money spent on mods is usually never recovered.

 

[freakdude]

Re: Is Maruti 1000 Good Car For Commercial Restoration Project?

A 1000 is the worst example to begin shaping your idea buddy. It would pain you in every sphere, right from finding a non-disintegrating one to finding spares for it.

Had I been starting something like this, my pick would have been Lancers, why, purely as they were, are and would be in demand for their sheer mod potential and killer looks. Second best bet would be a Santro/Jellyean Zen.

BTW, I too am nurturing the very same idea inside me from a long time. Will start something like this soon but my target customers would be my friends only, initially. Hats-off to your enthu buddy.

 

[afrose3]

Re: Is Maruti 1000 Good Car For Commercial Restoration Project?

that maruti 1000 is little underpowered , yeah you're right 45 bhp cant do much with a sedan.
how i know its underpowered , i've read an ownership review of M1000 and yeah spares are a bit problem to find. Find cars which have demand and buy them at bargain price and add few touch ups and sell them.

wish you all the best for your business.

 

[ss80]

Re: Is Maruti 1000 Good Car For Commercial Restoration Project?

that maruti 1000 is little underpowered , yeah you're right 45 bhp cant do much with a sedan.
how i know its underpowered , i've read an ownership review of M1000 and yeah spares are a bit problem to find. Find cars which have demand and buy them at bargain price and add few touch ups and sell them.

wish you all the best for your business.

Thanks a lot. Yes I have removed M1000 from the list.

A 1000 is the worst example to begin shaping your idea buddy. It would pain you in every sphere, right from finding a non-disintegrating one to finding spares for it.

Had I been starting something like this, my pick would have been Lancers, why, purely as they were, are and would be in demand for their sheer mod potential and killer looks. Second best bet would be a Santro/Jellyean Zen.

BTW, I too am nurturing the very same idea inside me from a long time. Will start something like this soon but my target customers would be my friends only, initially. Hats-off to your enthu buddy.

Thanks a lot again, every word that TAI member types here motivates me, saves me from trouble & helps me gain clarity.
Somehow I have always disliked the Santro Zip (old shape), however it is available for around a lakh rupee. It is very difficult to modify/ give it any kind of sporty looks. Although I wont be doing it, but still I am scared of owning a Santro (for the looks part alone).

Your enthusias......................ct and in stock condition. Keep yourself in place of an actual buyer. Present the car well and maintain service records. This link will provide some indicators on this point of view.

Make best out of free classified websites. Magazines / Newspapers work wonders but I’m not sure about the cost of publishing in one. You can also approach reliable brokers.

Drive Safe,
350Z

Thank you Sir. Your inputs are valuable & yes you are right. very few people really understand the value of SS80, Palio, OHC etc.

while selling if you can advertise in right forum/magazine/classifieds you can fetch a good price as there are lot of enthusiasts in the market for right cars.

I would still suggest you to go for a classic/vintage car which fetch good resale after refurbish.

I am too inexperienced to do a classic car restoration like say a Premier Padmini & the no:of people interested in buying it (irrespective of its condition) are very less. Hence more chances of it becoming a burden on me at a later stage. Contemporary cars (2000 & above) is what I am currently thinking of. Thanks yet again.

SS80@

The ................nd sell at least 15k above the model price . Do not try any engine/body modification. this will keep the buyers away.Use new tires and fix a good HU............our Business..

Thats my point too, I am expecting only 15 to 20K max margin on a restored car. As of now, I am just exploring the options on olx.in & similar websites. Although I wont do big engine modifications. This is what I have in my mind.

Every car that I sell should have atleast these things for sure
1. Good body line & fresh paint work
2. No oil leak of any sort anywhere in the engine bay
3. Clean interiors with ICE
4. better electricals with bigger dynamo
5. Functional AC & PS (PS if it is factory fit)
6. Absolute overhaul of brakes (no matter what, no cost cutting in safety)


I know I am being a bit too mad about quality but then this is why I want to start something on my own. To deliver what I dreamed to people like me who are still waiting for that special pre-loved car.

I am skipping these cars as of now -
1. M1000 - not a good car
2. M800 type 1 & SS80 - it wont fetch any money in today's market(tough to sell it later)
3. Matiz - too old
4. Padmini - too tough to start with

I will focus on getting either a good

• Zen carb - 70K max
• Esteem 1.3 Carb - 70K max (first option)
• Esteem 1.3 Mpfi - 95K max
• Santro Old shape - last option

Please let me know if my expected prices are too less/more compared to actual market. Hope I have shortlisted the right cars to start with.

 

[freakdude]

Re: Is Maruti 1000 Good Car For Commercial Restoration Project?

I will focus on getting either a good

• Zen carb - 70K max
• Esteem 1.3 Carb - 70K max (first option)
• Esteem 1.3 Mpfi - 95K max
• Santro Old shape - last option

Please let me know if my expected prices are too less/more compared to actual market. Hope I have shortlisted the right cars to start with.

The prices would be around these only for the models you have shortlisted. Out of these, Esteem is one for which you'll always find customers easily. I still insist that you keep a smallish eye for Lancers too, believe me, they age very slowly and good ones can be had very cheap and have the max mod potential.