cheap trade insurance for part time dealer
Discussion
Hi, I have found a number of companies and a broker online that offers trade insurance for part time dealers, planning to speak to them tuesday. I just need cover for driving cars i buy back from auction to my garage and for accompanied test drives with buyers. I want to pay premiums monthly. I don't want cover for my own personal cars these will be kept entirely separate on personal policies. just for info i am age 39 with clean license.
Does anyone have any recommendations on where i should go for cover and what the likely price would be? was hoping to pick something up for <£500.
I totally understand that the cheaper policies may cover me for less and not pay out as easily however I am only going to have 1 or 2 cars in stock at any one time, bog standard audis, vw, bmw, mercs. The maximum vehicle value is going to be £20k so I am not that concerned about having a top of the range policy.
Does anyone have any recommendations on where i should go for cover and what the likely price would be? was hoping to pick something up for <£500.
I totally understand that the cheaper policies may cover me for less and not pay out as easily however I am only going to have 1 or 2 cars in stock at any one time, bog standard audis, vw, bmw, mercs. The maximum vehicle value is going to be £20k so I am not that concerned about having a top of the range policy.
Andyjc86 said:
Since yesterday you've asked about insurance, trade plates and how to work out VAT. Have you ever been in the car sales industry before?
My motor trade policy is through Covea insurance, bit I'm a mechanic so it's a different type of policy you need. They do one for traders, but you won't get it for £500. You basically have to add and remove every vehicle you buy to the policy.
No I have never worked in the industry hence why I am asking. My motor trade policy is through Covea insurance, bit I'm a mechanic so it's a different type of policy you need. They do one for traders, but you won't get it for £500. You basically have to add and remove every vehicle you buy to the policy.
Thankyou4calling said:
are you seriously asking what I mean by telling the truth! Just stop now before you waste time and money.
yeah i guess there are some people are take the P***. I suppose if you say you are a mechanic working from home you can get a cheap quote compared to if you say you are a car dealer working from home. That would be insurance fraud though. In the event of a claim surely they are going to want records to prove things. Anyways I have contacted a few companies online and waiting for quotes. thanksMG CHRIS said:
Are you planning on trading from home are you planning on giving full protection to the buyer as your a trader. Why are you going into this without no history in the trade.
Given you think you can get covered for 500 then not sure you should be getting anywhere near trading.
Yes trading from home part time providing minimum 1 year left on manufacturers warranty plus additional insurance based warranty. I didn't say I think I can get covered for 500 I said I hope to. ThanksGiven you think you can get covered for 500 then not sure you should be getting anywhere near trading.
Jagmanv12 said:
From my experience you will be looking at over £1000 as others have posted.
That's if you have bog standard up to 2 litre cars. Anything remotely sporty will increase the premium or will only be covered TP.
Is £20k total stock value or £20k per car?
If you have several cars at 20k each then premium could be up to £2000.
You could try www.insurance-policies.co.uk
Yes 20k max stock 10k max car 2 litres engine max - road risks only. ThanksThat's if you have bog standard up to 2 litre cars. Anything remotely sporty will increase the premium or will only be covered TP.
Is £20k total stock value or £20k per car?
If you have several cars at 20k each then premium could be up to £2000.
You could try www.insurance-policies.co.uk
Edited by Jagmanv12 on Monday 29th August 14:10
update - i have got quotes via 2 brokers. Cheapest quotes:
3rd party F&F = £521 inc IPT
Fully Comp = £606 inc IPT
£15k car cover limit
motor trade only
road risks only
£1000 total excess, can be dropped to £250 for small additional premium.
accompanied test drives only
not too bad for part time trader.
got quote from autonet insurance. google for contact.
3rd party F&F = £521 inc IPT
Fully Comp = £606 inc IPT
£15k car cover limit
motor trade only
road risks only
£1000 total excess, can be dropped to £250 for small additional premium.
accompanied test drives only
not too bad for part time trader.
got quote from autonet insurance. google for contact.
Edited by legendtrader on Tuesday 30th August 16:07
fridaypassion said:
Was your quote from tradewise or similar? These companies get you legal but its not "insurance" in the sense that you will be able to make a claim. That said you do have to start somewhere and keeping your overheads low whilst still been legal is a good way to start. You just have to be mindful that you dont have stock cover which should be on your mind with Audis and BMWs on the drive at home. Ultra nickable cars.
I would pick a niche and stick to it. You will be able to to sell 15 to 20k cars no problem. If you live in a decent area and demonstrate very good product knowledge and have a personality people will buy into you can do this. People have free access to finance these days outside of a plate glass window dealership. Its not the barrier a lot may think.
I would go for slightly older cars maybe 4-5-6 year old. These will be easier to buy. Pick a little area of the market and stick rigidly to it. This way you will build that product knowledge and learn to come up with cheap/diy fixes and spot common issues.
It can be done. 3 years ago I had a cross your fingers tradewise policy to get me going. Now we have cover with a proper broker and 300 grands worth of cars on site at any one time and 5000 square foot of floor space.
Just work harder than the next bloke. Be quick to buy cars. Price realistically. Dont listen to people that say you cant do it. You can try without loosing your house over it. Good luck but bare in mind the motor trade is HARD HARD HARD. Loads of people have had a go but to keep up the workrate even with 2-3 cars and another job going it will not be easy.
the quote is from autonet insurance (google that for details). I have taken onboard the advice to find a niche and I think I have found one that I am going to work. There are less cars of this sort on Autotrader, less competition and pricing is less efficient. I agree about what you say on the insurance, I just need something to get me started I am not looking for a top line policy. Car crime in my area is very low and tbh I can take the financial hit if necessary if the policy didnt pay out or pays out a little short. I agree about finance, these days people can go on moneysupermarket or gocompare and get a personal loan in a couple of minutes.I would pick a niche and stick to it. You will be able to to sell 15 to 20k cars no problem. If you live in a decent area and demonstrate very good product knowledge and have a personality people will buy into you can do this. People have free access to finance these days outside of a plate glass window dealership. Its not the barrier a lot may think.
I would go for slightly older cars maybe 4-5-6 year old. These will be easier to buy. Pick a little area of the market and stick rigidly to it. This way you will build that product knowledge and learn to come up with cheap/diy fixes and spot common issues.
It can be done. 3 years ago I had a cross your fingers tradewise policy to get me going. Now we have cover with a proper broker and 300 grands worth of cars on site at any one time and 5000 square foot of floor space.
Just work harder than the next bloke. Be quick to buy cars. Price realistically. Dont listen to people that say you cant do it. You can try without loosing your house over it. Good luck but bare in mind the motor trade is HARD HARD HARD. Loads of people have had a go but to keep up the workrate even with 2-3 cars and another job going it will not be easy.
the way I see it is my 'edge' is I dont have to pay for premises(Lot/showroom), business rates, staff wages, utility bills and other assorted overheads. In the niche I am looking at I will avoid auctions for sourcing. I am hoping to buy from dealers, typically midlands/north/scotland and get around 5% to 10% of their price enabling me to mark up a little and remarket down South. I just have to exploit my strengths which are very low overheads, better to go for a specialised market that is in demand imo. As others have previously said the larger franchised dealers can work their edge best to try and compete. I have also sorted out a mailing address for £30pm at a local business park 2 miles down from my house, i think this will come across better than selling from a driveway.
Edited by legendtrader on Thursday 1st September 10:45
POORCARDEALER said:
Good luck with your venture.
"its all in the buying" is something you will see pretty quickly, buy the right stock at the right money and its not particually difficult, you will make mistakes along the way, some will cost you...if you buy from any big dealer groups, be VERY careful about things that will be sent in the post, ie logbooks and service history, they often dont arrive and stop you selling the car for weeks, or in the case of service history mean what youve paid them very good money for a car with little or no history leaving you in the lurch.
Get some trade plates if you can, use your "cheapie" insurance until you become established enough to move to a more mainstream company.
Dont let Autotrader talk you into spending thousands a month with them, you end up paying them more than you pay yourself if you are not careful.
Find a GOOD garage to do your prep work, they will save you a huge amount of time, hassle and money.
Finally, under promise and over deliver, dont leave any grey areas when selling the car as they will bite you on the arse.
Edit: If you need any advice feel free to give me a shout...there are also some very experienced motor traders on here who will give you good advice.
good tip about making sure to get all the documents upfront. That could really mess things up."its all in the buying" is something you will see pretty quickly, buy the right stock at the right money and its not particually difficult, you will make mistakes along the way, some will cost you...if you buy from any big dealer groups, be VERY careful about things that will be sent in the post, ie logbooks and service history, they often dont arrive and stop you selling the car for weeks, or in the case of service history mean what youve paid them very good money for a car with little or no history leaving you in the lurch.
Get some trade plates if you can, use your "cheapie" insurance until you become established enough to move to a more mainstream company.
Dont let Autotrader talk you into spending thousands a month with them, you end up paying them more than you pay yourself if you are not careful.
Find a GOOD garage to do your prep work, they will save you a huge amount of time, hassle and money.
Finally, under promise and over deliver, dont leave any grey areas when selling the car as they will bite you on the arse.
Edit: If you need any advice feel free to give me a shout...there are also some very experienced motor traders on here who will give you good advice.
Edited by POORCARDEALER on Thursday 1st September 10:56
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