With car manufacturing down as much as 97%, the market for used vehicles is booming. Across the industry, motor traders up and down the country are seeing a huge spike in interest for used cars. It has therefore never been a better time to explore having a motor trade insurance policy.
Whilst the pandemic has extracted a tragic human toll, it also has wide ranging ramifications for the economy as a whole. New patterns are now emerging as we enter the phase of what's being called "the new normal.”
In talking with our client base, motor traders up and down the country like yourself, we are encouraged to hear that vehicle sales remain strong as people seek to change their habits. Whilst many inner-city mayors are talking about encouraging more cycling and larger pavement space to increase the number of people that do not use cars to get to work, but are still avoiding public transport, this is not the full story. It doesn't take a genius to work out that the UK is in the summer currently, and off the back of a very fine spring it is not surprising that more people have decided to cycle and walk to work. However, we all know what a grim wet autumn and winter looks like and it is at that point that people will revert to vehicles if they are still avoiding public transport. So despite the best intentions of encouraging people to walk and cycle, there is a huge spike in vehicle sales since people want the flexibility that having a car brings.
So the market for used vehicles remains strong. Our motor trade insurance policy can help you capitalise on that since it provides the flexibility for you to start trading immediately. You can take advantage of the market conditions as they currently are, to buy and then sell on used vehicles. What's more, we are seeing a large increase in the number of enquiries from first-time motor traders who are wanting motor trade insurance. It’s important to note that you do not necessarily need to trade from a premises or forecourt in order to qualify for a motor trade insurance policy.
You do not also have to do be involved in the motor trade on a full-time basis. Plenty of people are exploring a part-time motor trade insurance policy to supplement their other activities. This can come from people already involved in the motor trade; such as mechanics or those that work for dealerships but who want to undertake some private activity aside from their normal occupation. We have plenty of motor traders who have a motor trade policy which covers them for selling from their home premises. It is also the case that you do not need a large stock of vehicles; we can begin your motor trade insurance policy with as few as one or even two vehicles, adding more as opportunities present themselves.
With economic pain set to grip the UK, it is unlikely that customers will return to purchase new cars in any great numbers, anytime soon. The used car market represents good value for money and also, more crucially, immediate access to vehicles in stock. Speaking with some of our dealership clients, it is clear that motor manufacturers are having a bad time of it. The delivery of pre-ordered cars has slowed and indeed in some cases has stopped entirely. The manufacturing chain is stretched, and it is unlikely that factories will be up to normal speed, any time soon.
So the message is that there is real opportunity for you to get started buying and selling used vehicles. This can range from everyday cars through to performance vehicles, vans, motorbikes, and even agricultural vehicles allowing you to capitalise on the rather strange market conditions that looks set to be with us for some time.
A motor trade insurance policy gives you the cover to take on stock vehicles for selling, it can also cover your static risks; which is the risk of fire and theft for your stock vehicles as well as covering your everyday personal vehicles so that you may surrender your personal car insurance policy / policies, and pay the uplift to enjoy the full benefits of motor trade insurance policy. We have further information on setting up a motor trade business, albeit a casual part-time affair in our other blog which you can access here (link).
In addition to covering your stock of vehicles, we are also able to combine your motor trade policy with additional products like: public & employers liability, property cover and business interruption insurance to help protect you and your business.
Our team of motor trade insurance specialists are available to answer any of your questions and can walk you through the application process. We can give you an indication of the likely premium you will pay and can provide quotations for including your everyday vehicles in addition to your motor trade activities. It may well cost less than you think for this option.