Motor Trade

Running a motor trade business can be a great way to make a living.

If you're ever considered but weren't sure where to start then below are some of the main things you need to consider -

The type of business you want to run

There are many types of businesses that operate in the motor trade, from car showrooms to auction houses and MOT garages. When it comes to the type of business you want to run, you should think about where your strengths lie and what you have experience in. A lot of people get started in the motor trade by buying and selling cars. This makes sense since you don't necessarily need to have any prior experience and you can even do this without a premises when you're first starting out.

If you want to do something that requires technical expertise such as repairing or modifying cars, then you'll of course need the right experience and know-how.

Getting the right insurance

A vitally important aspect of running a motor trade business in the UK is having the right cover in place. The main types of cover you can get for a motor trade business are road risks, public liability, premises cover and cover for your tools, stock and cash. You can get motor trade insurance quotes online from sites such as

You are able to get cover for all of the above by getting a combined motor trade insurance policy. combined motor trade insurance cover service enables you to get combined traders insurance quotes from different providers very easily.

Getting a good premises

Another thing you need to think about when starting a motor trade business is getting the right premises. Choosing a good business premises is vital and can be the difference between success and failure. Ideally a premises should be located in a good area, be a good size and be affordable, whether you choose to rent or buy.

Finding good help

Unless you plan to operate a business that you can run on your own then you'll need to find good help. Hiring people for your motor trade business requires to consider a few key things. Firstly and most obviously is the attitude and skills of any potential employees. In addition to having the right skills and experience, you also want to think about things from an insurance perspective. Ideally any staff you hire would be over 25 and have a clean driving and criminal record.… Read more

If you enjoy working with cars then you might be considering setting up your own business in the motor trade. The great thing about working in the motor trade is that there are a lot of different paths to choose. Some common businesses in the motor trade include –

  • Car showrooms
  • Car auctions
  • Valeting services
  • MOT centres
  • Mechanics
  • Auto electricians
  • Delivery agents
  • Accessory fitters
  • Vehicle importers

These are just some of the businesses you could set up in the motor trade. In order to help you get started, below are some of the most important things to consider when setting up a new business.


Thinking about the type of premises you’ll need is extremely important. Some businesses will require much larger premises than others. For example, a car auction will typically need a very large plot of land, while you could set up a car showroom on much more modest premises.

When thinking about the premises, it’s not just size you need to consider though. Location is also extremely important. The location of your premises could have a big impact on how well your business performs. For businesses that rely on a good amount of foot traffic, such as showrooms and valeting services, you’ll want to find a place that has good visibility.

Another key decision to make where premises are concerned is whether you’re going to rent or buy. For most new starters in the motor trade, it’s much better to rent until you’re fully confident that you’re happy with the premises.


Staff is another key consideration when setting up a new business in the motor trade. Different types of businesses require different skills. Ideally you’ll be starting a business that you have personal experience in so you can easily identify and hire the right people.

Motor trade insurance

The minimum requirements for getting a motor trade insurance policy are as follows –

  • You must hold a full UK driver’s licence
  • You must be at least 21 years of age
  • You must be able to prove that you work in the motor trade

Types of cover you can get include –

  • Third party – A third party policy will provide enough protection so you and your staff can drive customer vehicles legally. It’s important to note that your vehicles wouldn’t be covered unless a third party was to blame for

the collision.

  • Third party, fire & theft – If want to add extra protection to a third party policy then this is a good option. If any of your vehicles are stolen or damaged by fire then you’d be compensated.
  • Comprehensive – Comprehensive insurance will provide the best level of protection and will cover customer vehicles for all types of collisions, even when you or your staff are liable for them.

Combined policy – A combined policy is an excellent choice when you work in the motor trade. It will not only provide full protection for customer and company vehicles but also cover your premises for theft and vandalism. Stock, tools and cash can

Shop around for your motor trade insurance ( is a good place to start and they can provide insurance quotes for full time and part time motor traders)… Read more