Decide What Your Motor Trade Business Sells

Of course, if you’re reading this, you’ll being saying ‘But I know what I’m going to be selling; it’s cars!” However, there is a lot more to decide than just ‘cars’, including what type of cars you will be selling such as petrol, diesel or electric, and what engine size(s) will they be? Will they be affordable cars or will you be selling cars known for their luxury and high quality? Deciding this is important because you need to be able to inform your insurer of the car price point you will be selling at i.e. the typical and maximum value(s).

Where’s Best for Your British Business?

Deciding where your UK business is going to be located is another crucial step on your journey to operating a successful Motor Trade business. You’ll need to decide what type of area you are looking to operate in, whether that be an industrial area near to, or perhaps away from, competitors or a residential area. However if you opt for a residential area, you have to consider whether the local community will be happy with your decision, especially if you run a noisy body shop Of course, if there aren’t any affordable options then you may end up having to sell motor cars from your driveway, and essentially working from home – in this instance you’d need a Road Risk policy.

The Difference between Car Insurance and Insurance for Traders

Knowing the difference between Car insurance and insurance for a Motor Trade business is essential to operating as a motor trade in the world of UK business. Essentially the main difference of a Car insurance policy when compared to a Motor Trade insurance policy, is that when you take out a Car insurance quote you cannot list multiple cars unless it’s a specific multi-car policy. As traders need to add and remove cars at will, because they are frequently buying and (hopefully!) selling them, they need a policy that recognises this – which a Motor Trade policy does.

Go Big or Go Home?

As a first time UK business owner you’ll be looking at how big your Motor Trade business is going to be, and whether you’ll be working as sole trader or as part of wider community of petrol heads who all share the same passion for motor cars as you do. You’ll need to decide what’s affordable for you, and not just in terms of your insurance too.

Just like a Car insurance quote, the bigger your engine, the less affordable the Car insurance may be, therefore the bigger and more complex your Motor Trade business, the more expensive the insurance for it will likely be.

Of course, if you’re starting out in the world of British business for the first time, going big might not be advisable, especially if your experience in the Motor Trade business is limited, in which case it might be best to test the waters as a part-time trader instead. Alternatively, you could trade from home first while you find your feet (if it’s possible to do so, that is), though bear in mind that operating a mechanics workshop or a car wash from your driveway may not look very professional. However, for a car dealer, working from home might be an ideal way to start out, particularly if you have the room to store your stock of vehicles.


As a first-time business owner you’ll learn that one of the key things to your Motor Trade business being a successful UK business is that it has the right insurance in place to protect it if something goes wrong. Make sure you know exactly what you need to insure, and make sure that you can afford to replace anything that needs to be fixed or replaced, in order to keep your business running.