Newbie to MotorTrade - Help needed
Discussion
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
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
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.
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.
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.
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.
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