Newbie to MotorTrade - Help needed

Newbie to MotorTrade - Help needed

Author
Discussion

ziscomotors

Original Poster:

2 posts

89 months

Monday 17th October 2016
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Dear All

I am new to the motor trade and have decided to dabble in buying and selling cars.

I have recently purchased a Honda Civic 1.6 IVTEC and the MOT runs out on Friday. However I do not have insurance and tax on the car but need to get the car MOT'd. What is the best solution of getting the car to the MOT garage without getting into trouble with the police.

I would appreciate your replies on the above and help through my journey on buying and selling cars.

Kind regards

Suf

WonkeyDonkey

2,333 posts

102 months

Monday 17th October 2016
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Traders insurance

ziscomotors

Original Poster:

2 posts

89 months

Monday 17th October 2016
quotequote all
Ok, I'm newly starting out. What's the average cost of a traders insurance?

FSpoon

16 posts

140 months

Wednesday 19th October 2016
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Motor insurance costs depends on a number of factors including:
1. Location - south coast is good, central london bad
2. Security of vehicle storage
3. your personal risk profile - accidents, points bad behaviour
4. the number of cars
5. time trading (zero means a big first year cost)
6. the value of the cars
7. if any high performance cars are included

My experience would suggest you're looking at £1,500 as a minimum, but the good news is you may be able to avoid paying for any personal car insurance premium from this.

You will also need to get trade plates, especially now the road tax is automatically cancelled on ownership transfer.

quoteunquote_sir_

165 posts

183 months

Thursday 20th October 2016
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You need a friendly mechanic at your local MOT station who can pick cars up for you and drive them on their business policy. Tax isn't a big deal if the car is going to / from the test, I believe.

datum77

470 posts

120 months

Sunday 23rd October 2016
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Although it looks like a simple way to earn money - it ain't, and buying and selling motor vehicles is FULL of pitfalls.
If you intend to do it properly, you WILL need a motor traders insurance policy. This could range, (depending on your place of business, whether you have space for vehicles, how many personnel work for you, etc., etc), from £1000 a year up to circa £5000 a year. And, what sort of excess you are willing to accept.
If you sell vehicles acting as a trade seller - you HAVE to abide by the laws that cover the consumer. The "Sale Of Goods Act", amongst many, many others.
If you are planning on doing it "on the side" - don't. If you avoid paying VAT on the difference between what you pay for a vehicle and what you sell it for, it won't be long before HMRC catch's up with you. You will be selling to Joe Public, who, if you upset them, will not hesitate to drop you in a big bucket of poo.
Having experienced 50 years in the Motor Trade - I would not recommend anyone taking it up as a career.

832ark

1,224 posts

155 months

Thursday 11th May 2017
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datum77 said:
The "Sale Of Goods Act"
Hasn't existed for nearly two years. If you're going to give advice at least make sure it's correct.

steveo3002

10,493 posts

173 months

Thursday 11th May 2017
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best way will be find a local garage thats willing to collect on thier insurance

TooMany2cvs

29,008 posts

125 months

Thursday 11th May 2017
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832ark said:
datum77 said:
The "Sale Of Goods Act"
Hasn't existed for nearly two years. If you're going to give advice at least make sure it's correct.
TBF, it was only a year when he actually posted that.