Journey

Set up a motor trade business

A step-by-step path for setting up a motor trade business of any kind — selling cars and motorcycles as a dealer, repairing and MOT-testing in a garage, supplying parts and accessories, or dismantling and scrapping end-of-life vehicles. Work out which rules apply, put the duties every motor business shares in place, follow the rules for your activity, then confirm everything with the compliance checklist.

Retail & Consumer Goods Starting Updated 24 October 2026

The motor trade covers different businesses, each with its own regulators and — because much of this is devolved or works differently across the UK — its own rules. This path takes you through it in order: put the duties every motor business shares in place, then follow the rules for your activity, and finish by checking you have covered everything.

Step 1 — Put the shared duties in place

Every motor business must protect personal data, avoid discrimination, insure its employees, manage health and safety, keep premises fire-safe, trade fairly and handle its waste before it takes on staff, customers or stock.

Step 2 — Follow the rules for your activity

Now work through the guide for what your business does. If more than one applies — many dealers also run a workshop, and many garages also sell parts — follow each relevant guide.

If you sell vehicles

Do not mislead buyers, display fuel and CO2 information on new cars, get FCA authorisation if you arrange finance, and type-approve vehicles you import.

If you repair or MOT-test vehicles

Get DVSA approval to run an MOT station, use F-gas certified technicians for air-conditioning, and consign your hazardous waste correctly.

If you sell parts and accessories

Supply only compliant safety-critical parts, and take back waste batteries and electrical items.

If you dismantle, salvage or scrap vehicles

Hold an environmental permit with Authorised Treatment Facility status, and get a scrap metal dealer licence.

Step 3 — Confirm you are compliant

Work through the motor trade compliance checklist to confirm every obligation that applies to your business is in place.