How to Become a Successful Motor Trader

Plan Insurance summarises and offers guidance for anyone considering establishing a motor trade business. It’s important to look at more than just the cost of motor trade insurance.

London, United Kingdom, June 12, 2012 --( As specialist motor trade insurance brokers Plan Insurance has many people calling their offices on a daily basis enquiring about taking out motor traders insurance for the first time.

Appropriate insurance is crucial but it’s important to look at more than just the cost of motor trade insurance when potentially establishing a business in the trade. There are a few steps they have noticed which have led to people becoming successful traders.

The first step is to set up a business plan for what you are about to start, many people call up for motor trade insurance but have no idea how many cars they aim to buy and sell a year, what types of vehicles they hope to deal with and the average profit margins per vehicle. It’s important to know all of these things before even considering getting the insurance.

The second step would be to register your company whether that be through companies house as a limited company or registering simply as a sole trader. This is important as many people do not have trading names or business names which can limit their sales and credibility as a motor trade company.
The third step would be to consider the practicalities. Where you are going to trade from? If from home do you have enough storage space in your garage or driver for the vehicles? If they will need to be kept on the road do you need to limit the risk by trading in lower value vehicles. If you require premises to store vehicles how much will they cost?

Are you going to need people to drive for you? If so they will require insurance cover and this will be an additional cost. The younger they are the less you are likely to pay in wages but the more the insurance will cost.

Who will do your book keeping and invoicing? These days motor trade insurance companies need traders to keep good records as evidence that they are genuinely trading and not just taking out a policy as a cheap way to insurance numerous vehicles in one go.

If you are part time are you going to have sufficient time and energy in the evenings and at weekends to make the motor trade activity pay? Perhaps you need to share the work load and profits with a business partner?

The next step would be to get the motor trade insurance cover, there are many insurers within the market which are tailored to the needs of the clients, looking at your business plan will help you decide which insurance company to choose and which would serve you the best.

The final stage is to promote effectively, Plan Insurance have written blogs on how to promote your vehicles and motor trade business online. They have also broken down some of the best websites to use. Motor Auction sites are crucial in this modern era of motor trading and using these websites to your advantage can prove to be very beneficial and profitable. Also utilising old fashioned methods like local newspapers and simply putting a for sale sign on the vehicle will help promote the vehicles and build awareness of your motor trade business.

Plan Insurance hopes this has been of use and presented some important points to take into account when considering whether to establish a motor trade business. Should you require motor trade insurance please do not hesitate to contact Plan Insurance.
Plan Insurance
Grant Georgiades