DISCOVER
×

How to Become a Motor Trader

Updated March 23, 2017

To become a motor trader means to engage in the business of buying and selling motor vehicles. Requirements to become a motor trader vary by jurisdiction, but many have minimum requirements to become a licensed motor trader. If cars and sales peak your interest, then motor trading could be the right choice for you.

Decide if you want to trade cars to the public or privately. The licenses you need will depend on this fact. Selling privately does not require a license, but you could face serious penalties under the law. Public motor trading requires licensure, but the requirements vary by jurisdiction.

Purchase a lot to house the motor vehicles you wish to trade. A legitimate motor trader must have a place customers can come to see the vehicles and process applications to buy a vehicle. In addition some jurisdictions will not approve your application for a business license without a location already secured.

Apply for a business license to operate a motor trading business. Like any business, a motor trader must be certified by the local municipalities to operate a business within a specific jurisdiction. Most jurisdictions require proof of business location as well as proof of permission to trade vehicles at specified location.

Secure motor trading insurance. Each vehicle on your lot must be insured for you to drive, as well as any employees that may operate your vehicles. Motor trading insurance can be quite costly, but it is necessary for a licensed motor trader.

Apply for motor trade number plates for all of your vehicles. Test drives and vehicle relocation will require number plates to travel, and all vehicles must have plates before they are allowed on the road.

Apply for liability insurance for your auto lot. Although each of your cars should be insured, your lot should also be insured to protect you against injuries or problems that arise with employees and customers.

Wait for application approval and license, and start trading vehicles.

Tip

Check for specific requirements with your local licensing authority.

Warning

Operating as a motor trader without a license is illegal is some jurisdictions

Things You'll Need

  • People skills
  • Sales ability
Cite this Article A tool to create a citation to reference this article Cite this Article

About the Author

Natasha Jackson-Arnautu is an experienced writer and researcher who specializes in topics ranging from politics to proms. She has worked for online websites like eHow.com, Elance, Tickets-in-Stock.com and many more. She is the quintessential political junkie with both a bachelor's and a master's degree in political science.