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Insurance and Other Considerations a Motor Trader Needs to Make to Conduct Business

  • October 20, 2021
  • By Nick Vincent
Insurance and Other Considerations a Motor Trader Needs to Make to Conduct Business

A motor trader can be a manufacturer, repairer of vehicles or one who deals in the selling of vehicles, which will involve collecting and delivering the vehicles of customers. A mechanic will need to be able to drive the vehicles of others to test them as well as provide the service of vehicle collection and delivery back to the customer, for their convenience.

So, to consider these types of businesses is to think about how they insure for this. The answer is that they purchase motor trader insurance through a company such as one sure insurance.


So, what does a motor trader policy cover? Well, it will cover the business mentioned above when staff drive or work on the vehicles of customers. There is also insurance coverage on this type of policy for the vehicles owned by a company. This saves a company then needing a separate policy to insure their vehicles.

Another good thing about a motor trader policy is that a business can be insured for most vehicles that they are likely to be looking after and working on for a customer. There can be exceptions to a policy with regards to this, though, particularly where very expensive vehicles are concerned. So, check the small print.

A company, by having motor trader insurance, can offer more of a service. For instance, the mechanic can then transport vehicles about rather than only be allowed to work on them in situ inside a garage. There can be that need to have to test them before returning them to a customer at the very least. Then, to offer a delivery service to a customer is to gain more customers who want such a service of convenience when they have other things to do.

All someone needs, to be eligible for a motor trader policy, is to provide some proof that they operate within the motor trade sector. So, if you are in this position of proving eligibility to get started with a motor trade policy, think about other businesses you might have run relating to cars, vans, or motorbikes as proof.

Where to Buy Vehicles to Sell

Car auctions are a good place to look for cars to resell. Part exchanges too are a way to gain another car to sell after selling the other one. Where a showroom also has a garage facility attached, a vehicle can be repaired and improved and more money made.

The Types of Vehicles to Sell

Selling cars is all about finding the right customer for a vehicle. There will be those that like a smaller car for the economy and using less fuel. There will be others that want a larger car for more comfort or transporting larger families about. Then, there are the ones who like to go sporty and will be more into the performance of a vehicle and buying a make that impresses and is noted for performance and quality. We are all different and our car says something about us, or at least our budget. So, this is how a showroom will have a market for any vehicle in theory. If your showroom is in a rural area, then 4WD is likely to be a popular and practical choice. However, they are trending as something of a designer vehicle in other communities too these days.

Working on Vehicles

Consider investing in more equipment to be able to work on a greater range of vehicles as a mechanic. Modern vehicles require more technology as they are very much run by their electrics. Diagnostics is made all the easier using these computer systems to view on the computer screen data relating to how a vehicle is performing in terms of emissions, for example.

To be able to work on electric vehicles will invariably mean new technology for garages to service the vehicles. Getting ahead of the game now will help gain the edge over competitors in the future.

Offering an MOT service is the way to gain more servicing and repair work.

In summary, as a motor trader, we can cover the vehicles of our customers as well as those that the business owns. This type of insurance allows for a better and fuller service to be provided to customers. So, it has to be the consideration of most in the motor trade industry. Other considerations apart from insurance will be where vehicles can be obtained from and how good profit margins can be made from accepting part exchanges as well as attending car auctions.

There is a market for every car because of different circumstances which are individual to a customer. When working on vehicles, a motor trader should seriously consider how new technology invested in can allow for a greater number of vehicles to be worked on and how an MOT service can lead to expanding a repair business. Also, embracing electric cars now can only but expand a business in the future.

By Nick Vincent, October 20, 2021