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Working in the motor trade is a good way of making money, and it’s simple enough to get going. You’ll need to be organised to make a success of it, though.

Here’s some things to consider when setting up a motor trade business for the first time.

What do you want to do?

The most obvious question before you start!

Are you buying and selling vehicles, servicing and repairing them, or both? Do you want to be a mobile mechanic, or tyre fitter?

There are many ways to make money in the motor trade, so think carefully about what you want to do, then do your research to understand where your customers are and what to charge for your services.

Buying and selling cars

Most people start by trading cars on a part-time basis.

All you need to get going is some money to buy cars, somewhere to keep them (e.g. your driveway), and an account on eBay or Auto Trader.

To make a profit buying cars, you’ll need to know how much they’re selling for and which ones sell best to be successful. Some mechanical knowledge – or a friend to help you – is useful, so you can fix minor issues with cars and sell them on for more money.

Get skilled and know your market

If you choose to specialise in a trade – e.g. valeting – you need the right skills for people to use your services, and the right prices for customers to spread the word about how good you are.

If you get a regular job cleaning a fleet of company vehicles, for example, you know that you’ll be earning decent money on a regular basis.

Location is key

Setting up a garage, or selling vehicles from premises? Make sure you’re located in the right place.

It needs to be easy to get to you; have the right amount of space for your stock and equipment; and not cost too much to setup in your chosen location.

Get organised and get insured

Budgeting is crucial. Sort out your finances, so you know how much you’ll be spending and how much you’re likely to get back.

Factor in the costs of fuel when picking up vehicles; renting premises; business rates and utility bills; online costs (including advertising fees for cars you’re selling or the services you’re offering); and self-employed taxes.

Make sure you get the right motor trade insurance for your needs, too. Bollington’s expert team provides advice to help you get the cover you need at a price you can afford. Speak to us first to find out how much insurance could cost before you take the plunge and setup your business.

Promote yourself

You’ll need to get word around about what you’re doing. Give your business a winning name, then get yourself on social media, send leaflets to your local area, get yourself a website etc.

Working in the trade can be fun and lucrative. Follow these steps as a starting point to a successful career.

Our existing clients are delighted...