buying and selling cars. V5 issues

andrew007007

hi all.

interested in buying and selling cars on a very small basis.

could anyone advise me on the following;

1. When u buy a car how do you get round not putting my name on the V5 as I will be selling it on ?
2. How do you get hold of trade plates?
3. what's the process of becoming a sole trader ?
4. Any other relevant information would be appreciated

Thanks Andrew

droopsnoot

As I understand it, when the seller sells their car to a trader, there's a special part of the V5 that they fill in that tells the DVLA it's no longer theirs, but has been sold to a trader. That way, it doesn't just get registered to the trader as an extra name in the book, but it can only be left as "in the trade" for a certain amount of time.


Becoming a sole trader is really as simple as registering for self assessment with HMRC, though there may be other stuff required to become a motor trader - insurance, for example.


You might get more detailed answers in the Motoring section, or perhaps they're a bit too specialised for this site.

ams2ash

HI,
As far as I know, You need to signed the Counter part and take off the Yellow slip as this is the one who can tell DVLA that you sold the car on the bases of traders.
For trader's plate you need to buy a motor trader insurance which will cover your cars and you can add and remove the car when you will buy or sell the cars.
there is nothing special to become sole trader. Just registered with HMRC, as self employed and they will issue a unique tax reference No. so after that you can run your self as sole trader so if you want to open a bank account you can do it.
you need to have a place where you can park your cars because when you will buy cars, they will not sell next day so it take more longer may be week so its good for you to park your car on drive way or on road.
This is good for your business too.

Thanks

droopsnoot

Surely it won't be legal for the OP to park his stock on the road? When the previous owner sells it to the OP, the DVLA will refund any unused VED to the PO, leaving the car untaxed. It will therefore need to be off the road, surely, or are there special rules for traders?

Mistral001

I believe you have to give a guarantee now when selling a car as a are a trader. I am not sure of all the details of this and what constitutes being a trader. If you are selling your own car to a member of the public, you do not have to give a guarantee as far as I know. What I am saying is that it may actually cost you more than what you think to become a trader, i.e. giving a guarantee with every car you sell as well as other requirements to operating such a commercial operation, such as Planning permission, insurance, waste disposal costs, etc.

droopsnoot

Yes, there are different consumer regulations involved in selling as a trader, compared to just selling your own car to someone.

andrew007007

many thanks for the replys.

as ever this is a very useful website

thanks Andrew