Utility Saving ExpertMotor Trade InsuranceGuidesHow To Start A Used Car Dealership

Motor Trade Insurance Guides

How To Start A Used Car Dealership

Trading cars sounds simple, right? You buy cars at a lower price and sell them for more than you paid.

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Market research

Before buying your first used car, find out what types of cars are selling well in the city/town you will be operating in, including details of how much they typically sell for.

Think about who you’re selling to, you may wish to target a specific audience e.g. you decide to specialise in selling a specific car make and/or model you have knowledge about. Find out where your target audience buys used cars from, and how long it typically takes to sell a car. You can price your cars by looking at current adverts as well as price evaluation websites, this will help you understand how much you should be charging.

Have a business plan for your used car dealership

Compare cheap motor traders insurance quotes

Inform your local authority

Buy motor trade insurance for your used car dealership

Apply for trade plates

Trade plates are basically mobile tax discs, these will save you money as you won’t have to register and tax each car individually.

Check out our guide to trade plates to learn more.

Buy a used car to sell

You can buy used cars through a number of different ways. Online websites such as Auto Trader, Carwow, as well as auction sites such as eBay and Gumtree may offer your used car dealership business the most convenience. As an alternative, you can also find used cars at auction houses, this also presents a cheap option when purchasing.

If you have limited experience when it comes to auctions, it’s a good idea to visit them a few times to understand how it all works before you start bidding.

Sell a used car

Register as a sole trader