Hidden Costs of Setting Up Your Motor Trade Business

So, you’re ready to become a motor trader? Have you thought how much it costs to set up? As a Motor Trade Insurance specialist we’re privy to lots of gripes about the rising costs within the industry. Hopefully we can list some of these for you today so you don’t get too many unexpected shocks.

Website – a slick, user friendly website seems to be a must these days. Most of us haven’t got the time or expertise to set up our own, so we have to pay someone else to design and maintain it. It really pays to shop round here – have a look at some other websites they have done and haggle on the price.

Stock – you will need money to buy your initial stock. The amount of cash required depends on your circumstance and ambitions.

Insurance Cover – this can be anywhere from £300 for basic cover to several thousand for an all singing, all dancing, combined policy. Remember to ask your broker for some advice as to what you do and don’t need so you can save money.

Security – how is your stock protected? Do you need premises? When the vehicles are at the premises how are they secured? Your insurance company will want decent levels of security to cover vehicles there. CCTV, metal fences, an alarm, or the vehicles being kept indoors will all help. P.s just an alarm contract can cost over £50 a month!

Trade Plates – if you need these you’ll have to get them off the DVLA and they charge! Trade plates cost approximately £165 but they may also ask you for a presentation as to why you need them.

Advertising – where should you advertise and how much does it cost? It’s worth researching this before you dive in. The usual suspects are Autotrader, Ebay and local publications.

Finally, here are a list of other things you may of missed – Utility bills, rent, council rates, phone bill, fuel, cleaning products, an accountant/book keeper.

We hope this is helpful for you, and please remember we can help with your Motor Trade Insurance aswell.

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