Run a compliant motor trade business

Every motor trade business — from a one-person used-car pitch to a large dealership, garage chain or vehicle dismantler — has a set of duties that do not depend on the part of the trade it is in. Put these in place first, then add the rules for your specific activity.

Protect the personal data you hold

Dealers and garages process a great deal of personal data — customer and finance records, V5C keeper details, service histories, and CCTV or ANPR footage. You must handle it under the UK GDPR and the Data Protection Act 2018, and unless you are exempt you must pay the ICO data protection fee. These rules apply across the whole UK.

Do not discriminate

You must not discriminate against customers or employees because of a protected characteristic, whether in selling goods, providing repair services or in employment. The Equality Act 2010 applies in England, Scotland and Wales; Northern Ireland has its own equality law enforced by the Equality Commission for Northern Ireland.

Insure your employees

If you employ anyone — technicians, sales staff, valeters, administrators — you must hold employers' liability insurance of at least £5 million from an authorised insurer. This is a duty in Great Britain; equivalent rules apply in Northern Ireland.

Manage health and safety

Motor work carries above-average risk — vehicle lifts and jacks, brake dust, isocyanate spray paints, fuel and battery handling, tyre inflation and lithium batteries. You owe a general duty to protect your employees and anyone else affected by the business. The Health and Safety at Work etc. Act 1974 applies in Great Britain; Northern Ireland has its own corresponding health and safety order.

Keep your premises fire-safe

Workshops, showrooms, paint and body shops and parts stores carry a heightened fire risk from fuels, solvents, oils and lithium batteries. The responsible person must carry out and maintain a fire risk assessment. This is a devolved area: the Regulatory Reform (Fire Safety) Order 2005 covers England and Wales, with the Fire (Scotland) Act 2005 in Scotland and the Fire and Rescue Services (Northern Ireland) Order 2006 in Northern Ireland.

Trade fairly with consumers

Vehicles and parts you sell must be of satisfactory quality, as described and fit for purpose, and your repair services must be carried out with reasonable care and skill. Misleading customers — about a vehicle's history, a repair's necessity or a price — is a banned practice. These duties apply UK-wide under the Consumer Rights Act 2015 and the consumer protection regime now in the Digital Markets, Competition and Consumers Act 2024, enforced by Trading Standards.

Deal with your waste responsibly

Motor businesses produce controlled waste — waste oil, filters, brake fluid, coolant, tyres, batteries and end-of-life parts. The waste duty of care requires you to store it securely and transfer it only to an authorised carrier with a waste transfer note. (Hazardous waste and end-of-life vehicles carry extra duties — see the garage and dismantler guides.) This is devolved: the Environment Agency in England, Natural Resources Wales, SEPA in Scotland and NIEA in Northern Ireland.

Next steps

With the shared duties in place, follow the guide for what your business actually does:

• Sell vehicles: rules for dealers
• Run a vehicle repair garage or MOT station
• Sell vehicle parts and accessories
• Run a vehicle dismantler or salvage business

Then confirm everything with the motor trade compliance checklist.