Part-time trader protocol

[Jayzee]

Was after a bit of advice from the experts on here...

Thinking about buying, improving and selling the odd car - maybe the odd classic.

Nothing too serious; maybe one car every three months or so - depending what work is needed to get the car in tip-top shape. Possibly drive the car if at all possible whilst it is in my possession - again, depending on what I have to do to it.

What is the protocol with regard to the V5?

Become an owner and potentially devalue the car by being "another one"? OR buy the vehicle as a trader?

What's the best way of insuring said vehicle? On a special trade policy, or on my own policy?

Want to do the right thing, but keep costs down and help realize a better profit margin on the car after I have carried the work out.

Thanks in advance

[wolfy1988]

I don't know but I also would like to know.

J

[martin84]

If its only around 4-5 cars a year the insurance answer depends on your insurance status. If you've got good no claims, over 25 and live in a nice area to the point where you can add and remove cars from your policy easily (check insurers T&C's before you do anything) then that could be the way to go. You could get a specialist trade policy which are usually done on a limit of cars or value i think, and you can add and remove cars from the MID yourself. Your problem is going to be the tax, a trader can get trade plates to use it on the road without the tax but if you're not trading that seriously then you do need to be careful. You dont want to pay £100+ to put tax on it (which it'd need for a test drive) only for it to run out before you sell it.

[Jayzee]

Thanks for that

So, what's the general feeling about becoming an extra owner on the V5 vs doing it as a trader, so keeping the previous owner count down by one?

Pros and cons each way I would have thought? Sure, as a trader you are governed by the Sale of Goods Act, but to what extent?