Things to consider when starting your motor trade business

Starting a business in the motor trade involves considering four key basics. Let’s take a look at them.

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1. Know what kind of business you want to be in

From trading cars repairing and servicing them, there are many different kinds of business in the motor trade. Which aspect is best for you will depend on your own experience and skills. Many people take a job in a car showroom during their vacation and find they take to selling cars like a duck to water. Others are interested in getting into the technical side in a garage, and they will need qualifications and experience.

2. Find the right location and premises

Parking is crucial. If it’s difficult to park, people will avoid your business. If you will have customers coming in and out, make sure there’s enough forecourt or adjacent space for them to pull in. You should also ensure that the premises are affordable. It’s better to start small and trade up than to be landed with the overheads of a site that’s bigger than you need.

Make sure to give yourself enough space for storage as there will be lots of paperwork, archiving, office storage, stationery and other things to store in your new business. It is worth thinking about the options you have in the storage area and for the best use of the space you could look at Longspan Racking which could be sourced from This will give you peace of mind with all items from small lightweight objects to the heavy-duty equipment.

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3. Get the right trade insurance

One of the things you must put in place is the appropriate motor trade insurance. There are several different types of insurance for motor trade businesses, and you may need more than one depending on the kind of business you’ll be running, where it’s located and other factors. There are four main areas to cover: public liability, road risks, cover for your stock tools and cash, and premises cover. You can get a combination policy that will cover all of these. However, bear in mind you may also need a trade license from DVLA. Learn the definition of a motor trader at

4. Think about what kind of help you need

Hiring the right employees is a skill in itself. They’ll need the right skills and experience, which they should be able to prove, a clean driving license, and no criminal record. There’s also a raft of legislation about treating people fairly when recruiting. This is an area where someone with experience in the trade can advise you. If you don’t have enough work for a full-time employee, explore other avenues, like retirees who want part-time work or students or apprentices looking for experience.