Car trading from home
If you are a motor trader running your own dealership, or a franchise of a main brand dealership, then you will probably find that you are having to sell thousands of pounds worth of vehicles just to cover the rent or the franchise fees you have to pay, which could be tens of thousands of pounds a month. In addition, you will likely have lots of other costly overheads which may make it more stressful, knowing that no matter what, you have to make a certain level of income each month just to cover the costs. This will also mean you are probably having to fork out for Motor Trade Combined insurance to cover all of the peripheral bits associated with your car sales business, including buildings, contents and money etc.
If this sounds like your situation, have you ever thought about getting rid of the franchise or the dealership and trading cars from home instead? You could get ‘Traders Insurance Working From Home’ to cover you, meaning your insurance cost could be cheaper. This could save you a shed load of money and hassle at the same time!
Alternatively, if you don’t have a big enough drive to be trading cars from home and don’t have any land with your house which you could store your vehicles on, then you could look in to renting a piece of land that is close to your home, and using that for vehicle storage. You would need to make sure any stock of vehicles you keep on either your home land or your rented land are properly secured and kept safe, but this could prove far, far cheaper than having your own dealership. Always be careful though if you are parking your vehicles on the road outside your house, as this could make them more prone to theft or damage, and this will be reflected in your insurance premium. The greater the risk to the insurer, the more you will have to pay, so while renting a plot of land might seem like an unnecessary expense, it could save you in the long run.
Rent a Lock up unit
Alternatively, you could rent a lock-up unit to store your vehicles or to work on your cars if you’re trading cars from home. There is obviously a cost involved, but it will likely be far cheaper than your dealership site and save you money on insurance too probably. A rented lock-up can also give you somewhere safe to store any tools or equipment that you need for your work. If you have to leave them at your home, then they may be susceptible to theft or damage, and if you don’t have your tools, this may mean you can’t carry out any work and therefore can’t earn any income, so always bear this in mind when deciding what does and doesn’t need to be covered on any insurance policy.
Instead of having a huge, swanky forecourt, which no doubt comes with equally huge and swanky overheads, you could look to change how and where you sell your vehicles. For example, with the development of technology, more and more people are using their mobile phones, laptops and tablets to search for cars to buy, instead of browsing at dealerships. This means that you could set up your own website to advertise your stock, as well as using the nationally-known and widely-used platforms such as AutoTrader to list the cars you have for sale. These websites get millions of visitors and have a far wider reach than you could achieve on your own, so while they may incur a cost to use, it could be a cost-effective way of promoting your business and vehicles.
Mobile Motor Trading
Depending on the nature of your business, you may be able to offer a mobile motor trading service, meaning that you don’t have a fixed location and don’t require any premises cover at all. This won’t be applicable to some of the areas of the motor trade such as motor traders or car jockeys, but for others such as mechanics, valeters or vehicle recovery agents, this could be suitable. A mobile valeter goes from location-to-location, cleaning and valeting cars on the premises of their owners, or on non-home sites like workplaces or on car parks. Likewise, a mobile mechanic would drive to fix broken-down vehicles on site, in order to get them moving again, so this could include people’s homes, workplace or even the side of the road, which is similar to mobile vehicle recovery agents.
Part Time Motor Trade Insurance
It might be that you are looking to scale down your business operation, or even that you run it as a side-line to earn some extra cash. In this instance, you might look to get a part-time Motor Trade insurance policy which would reflect the fact that it isn’t your main occupation. This could also save you money.
The key thing to remember is that no matter what your circumstances, it is likely that someone else has been in the same situation as you and so by speaking to Motor Trade insurance experts, you can take advantage of their experience and knowledge to build a policy that fits you and your business perfectly – whether that’s full-time or part-time Motor Trade insurance cover.