Retail & Consumer Goods UK-wide

Which motor trade rules apply to your business

"Motor trade" covers very different businesses — selling cars and motorcycles as a dealer, repairing and MOT-testing vehicles in a garage, selling parts and accessories, or dismantling and scrapping end-of-life vehicles. Each has its own regulators and rules, on top of the duties they all share. Work out which description fits you and follow the right guide.

Guide summary

Find out which type of motor trade business you run – selling, repairing, selling parts, or dismantling vehicles. Start by following the shared duties that apply to all motor businesses. Then follow the specific rules for your type of work. Different regulators cover different businesses, so use the right guide from GOV.UK.

  • Start with shared duties for all motor businesses
  • Follow 'Sell vehicles: rules for dealers' if you sell cars or bikes
  • Get FCA authorisation if you arrange vehicle finance
  • Get DVSA approval to run an MOT test station
  • Get an environmental permit to dismantle or scrap vehicles
  • Get a scrap metal dealer licence if you trade in scrap
  • Follow 'Sell vehicle parts and accessories' if you sell parts
  • Offer take-back for waste batteries and electrical items if you sell parts
  • Finish with the motor trade compliance checklist
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Related guides in General Compliance

Motor trade compliance checklist

A confirmation checklist for motor trade businesses. Work through the cross-cutting duties every motor business shares, then the …

The motor trade spans selling vehicles, repairing and testing them, supplying parts, and dismantling and scrapping them at the end of their life. The rules depend almost entirely on what you do: a used-car dealer, an MOT garage, a parts factor and a vehicle dismantler are different businesses with different regulators — Trading Standards and the FCA for dealers, the DVSA for MOT testing, the Environment Agency for end-of-life vehicles, and local authorities for scrap-metal licensing.

Many of these rules are devolved or work differently across the UK — MOT testing in Northern Ireland is run by the state, not private garages, for example. Start with the duties every motor business shares, then follow the guide for what you do.

  1. 1

    Put the shared duties in place

    Whatever you do, start with the universal spine. Follow "Run a compliant motor trade business" for data protection, equality, employers' liability insurance, health and safety (motor work is higher-risk than most), fire safety, consumer fair trading and the waste duty of care.

  2. 2

    If you sell cars, vans or motorcycles

    You must not mislead buyers about a vehicle's history, must display the right information, and — if you arrange finance — must be authorised by the FCA. Follow "Sell vehicles: rules for dealers", which also covers the type-approval duties for dealers and importers (each vehicle needs GB type approval and a Certificate of Conformity before registration).

  3. 3

    If you repair, service or MOT-test vehicles

    Opting into the MOT scheme needs DVSA approval as a test station, and garages have specific air-conditioning (F-gas) and hazardous-waste duties. Follow "Run a vehicle repair garage or MOT station".

  4. 4

    If you sell vehicle parts and accessories

    Safety-critical parts must meet approval standards, and you must offer take-back of waste batteries and electrical items. Follow "Sell vehicle parts and accessories".

  5. 5

    If you dismantle, salvage or scrap vehicles

    Depolluting and scrapping end-of-life vehicles needs an environmental permit and Authorised Treatment Facility status, and trading in scrap or salvage needs a scrap metal dealer licence. Follow "Run a vehicle dismantler or salvage business".

  6. 6

    Confirm you have covered everything

    Finish with the motor trade compliance checklist to confirm your obligations are in place before you begin or continue trading.

Official sources

Authoritative starting points for motor trade businesses.