How keeping a healthy stock can equal a healthy business for car dealers

As a car dealer, ensuring your stock has passed all checks and is certified roadworthy has to be the number one priority in your business.

How do you make sure you’re doing all you can to run a profitable and above board business? We spoke to motor trade insurance experts, Insurance Revolution, about how a dealer can avoid any legal misconduct.

A well-run dealership needs to be organised to make sure that every vehicle has the right series of checks and tests carried out before it is handed over to a customer. Besides carrying out a good valet, the pre-sale checks include:

  • MOT certificate
  • Registration document
  • Service history
  • Finance history
  • Write off check
  • Test drive and walk about check
  • Engineers’ check

One of the most important aspects of staying on the right side of the law is to obtain the right motor trade insurance policy to protect you and your business.

This will provide you with the valuable cover that is necessary to run a stress-free business.

However, some businesses have fallen foul of the law over the past few years, mostly through disorganisation and oversight. Owners have had to appear in court, fined and sometime imprisoned for faults that are easily avoidable.

One dealer in Warwick had to pay £2000 in October 2016 after being found guilty of selling an unroadworthy Hyundai. The seller had described it as “fabulous” in its advertisement. However, the court found that the car had 14 faults including seized brakes, leaking exhaust, suspension, steering problems and a seized bonnet hatch – despite the ad selling it stating that it was “a fabulous low insurance motor car ready to drive away today.”

Despite his brush with the law, the dealer had never been in trouble with Trading Standards in his fifteen year trading history vowing to improve his paperwork and change his procedures.

Running a business is difficult and a high level of discipline is needed to keep up on safety and insurance records.

Finding the right type of motor trade insurance policy puts your business on the right foot – just make sure you get a policy that fits your type of organisation.

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