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Chris Bell

3 Ways to Reduce Costs in the Motor Industry

The motor industry can be an exciting and financially rewarding sector to work in, particularly if you run your own company. With the potential to expand, grow or sell your business, you can plan your future and enjoy being your own boss for as long as you choose.

Like all businesses, motor companies need to cut costs wherever possible. By minimising your expenditure, you can ensure more of your turnover is profit. If you work in the motor industry or you use company vehicles, take a look at three easy ways to minimise your costs now.

1. Maximising Your Assets

Vehicles, stock, property and equipment are the most expensive assets for most businesses. For motor-related companies, however, the cost of purchasing new assets can be a burden. Before you look for financing or commit to a big purchase, however, it’s important to assess the other options available to you.

In some cases, renting your equipment can be more cost-effective in the long-term. As many rental plans include regular upgrades and repairs, the additional service combined with the low price can give you the support you need without a hefty price tag.

2. Get the Right Insurance

Any company that uses vehicles will require insurance. However, obtaining insurance for a company car or a fleet of vehicles isn’t as straightforward as buying car insurance for a private vehicle. You’ll need to consider whether your insurance covers you for carrying passengers, as well as how often your company vehicles will be in use.

For some businesses, the use of vehicles increases significantly at certain times of the year. If you run a seasonal business, for example, you may want to take out short term motor trade insurance for Christmas or summer, rather than paying for insurance all year round. Providing your policy includes laid-up cover, you can ensure your vehicles are insured during your busiest periods and when they’re off the road.

If you’re unsure what type of insurance you need or whether you’re getting the best deal, contacting a specialist broker can be the best option. With expert advice, you can establish what your insurance liabilities are and find the most cost-effective cover available.

3. Switch to Subcontractors

As your business grows, you may need more staff to operate. However, hiring employees can be costly. Instead of taking on employees, you can obtain the help you need by hiring subcontractors instead. You’ll have fewer liabilities and obligations than an employer but still be able to access the expert input you need to help your business function effectively.

If you run a seasonal business, hiring subcontractors can be particularly beneficial. Depending on your contract, you can simply hire your subcontractors as and when they’re needed, instead of paying employees an annual salary.

Increasing Profitability in the Motor Trade

Maximising your profit margins can increase your overall income, so it’s important to reduce costs and increase productivity wherever you can. With these handy tips, you’ll find you can substantially minimise your costs and grow your business more quickly and successfully.