Starting a Business in the Motor Trade

If you have a passion for cars then you may have considered starting your own business in the motor trade. There are many advantages to having your own business but in order to be successful there are certain things you must consider. Below are some of the most important.

Business type

Of all the things you need to consider when starting your own business in the motor trade, perhaps the most important is the type of business you’re going to run. There are countless business type in motor trade, including courier firms, valeting services, garages, MOT centres, car showrooms, windscreen fitters, mobile mechanics etc. Which type of business you start will depend on your experience and skills as well as where your main passion lies.

One of the business types in the motor trade that has the lowest barrier to entry is car sales. Although technically you only need the money to invest in your first car in order to start making money buying and selling, you will need a good amount of knowledge in order to make it a profitable venture. Knowing where to buy, what things to look for and how to advertise are all key parts of buying and selling cars successfully.


Choosing the right location for your business is another key factor in running a successful motor trade business. There are many factors to consider when choosing a location, not least of which is the premises itself. Ideally you will be able to find the ideal premises in the ideal location but this isn’t always the case. The thing to bear in mind is that a premises can be done up but if the location is poor then there’s not much you can do about it. Depending on the type of motor trade business you choose to start, then foot traffic might not be a huge deciding factor. For example, MOT garages get a lot of repeat business (providing they’re reliable) but a car showroom will rely heavily on being easy to find.


When you run a business in the motor trade, you need to ensure that you’re covered for all risks. This means getting a special traders insurance policy that covers you for working on and/or transporting customer vehicles. Websites like¬†¬†make it easier than ever to get motor trade insurance quotes so you shouldn’t have too much trouble finding a policy at a good price.

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