Ever dreamt of being your own boss and running a successful business? Becoming a motor trader could be the answer. If you’re thinking of entering the exciting world of motor trade there are plenty of positives. But be careful, it’s not without pitfalls if you’re unprepared.
So before you rush off to your nearest MID to buy your stock vehicles, there are a few things you should consider.
If you have little experience in the motor industry it is important that you do some research and on top of that - do more research. You should be thinking about:
There are also plenty of other requirements that you need to be up to speed with before you start out, which we’ll discuss later on.
Wondering where to trade from? A simple search engine browse for motor trade premises is a good place to start. Some key points you should consider when looking at premises are:
Many premises will also include tools, diagnostic equipment and ramps if you’re going to be servicing vehicles.
If you’re looking to trade from your home there’s also a few things to keep in mind:
It’s important that you take your time and set yourself a realistic budget. Costs need to cover the rent of the premises, business rates and electricity and refuse disposal. If you want to dispose of your own hazardous waste (car oil, batteries and tyres) you may need a waste carrier license.
Creating a website and paying for branding and advertising is something you should also consider when coming up with a budget. This is worth doing as you’ll want to be seen as a professional and customer focused business.
Having MID should not just be an afterthought. It’s a necessity! Even if you are trading part-time you’ll still have to prove that you are a motor trader to be able to take out an insurance policy, you can do this by providing documents such as sales receipts and invoices.
It is best practice, and in some cases a legal requirement to hold some form of motor trade insurance if you’re:
The type of insurance you consider will depend on the type of business that you run.
Being organised will help you avoid sleepless nights and a mountain of paper work. It’s important that you keep all your records up to date, such as, sales receipts and invoices to provide proof to insurers that trading has been taking place on the premises in case a claim is made.
It’s also important to keep receipts for all costs such as; sales, parts and advertisement receipts and logbooks.
Hopefully this helps. Starting a motor trade business can be fun and rewarding if you like meeting and talking to different people, have a business mind and a knack for cars and enjoy a challenge.