Trade Plates & Traders Insurance
Discussion
Right I have found this thread here on PistonHeads. Trouble is its from 2005 so I am not sure whether things may have changed since then.
Basically I want to start buying larger pieces of kit from auctions across the country i.e. vans, pickups, 4x4's, 7.5t lorries etc. Paying someone to transport these by lorry would be expensive and I, or anyone working for me doesn't have an HGV licence to get a big enough wagon. I could use a trailer to an extent, however most items would be over weight/sized.
Therefore the obvious answer to me appears to be trade plates, as I understand it Trade plates can be used when a vehicle is A) Untaxed and B) On its way to an MOT/Plating center. Insurance would have to be arranged separate, although a traders policy would cover this also.
I visit a few auctions a year and also monitor a few online on a weekly basis, I think If I had trade plates I would purchase more items however there is no guarantee of this. So is there a minimum number of vehicles your expected to buy before they would issue these plates, I could buy zero or twenty four vehicles in a year, I just don't know? I want to build a solid (and honest) case for my self before applying with the DVLA.
Secondly, traders Insurance, How does this work? Does it cover you to drive any vehicle and insure the vehicle while it is in storage/preparation waiting to be sold i.e. a shed?
Last but certainly not least, how do I remove the need to put my name on the Log Book, for example when I buy to sell on immediately, I assume I have to register as a trader and then there's something on the V5 to accommodate this switch? I am new to this so excuse the silly/obvious questions.
Basically I want to start buying larger pieces of kit from auctions across the country i.e. vans, pickups, 4x4's, 7.5t lorries etc. Paying someone to transport these by lorry would be expensive and I, or anyone working for me doesn't have an HGV licence to get a big enough wagon. I could use a trailer to an extent, however most items would be over weight/sized.
Therefore the obvious answer to me appears to be trade plates, as I understand it Trade plates can be used when a vehicle is A) Untaxed and B) On its way to an MOT/Plating center. Insurance would have to be arranged separate, although a traders policy would cover this also.
I visit a few auctions a year and also monitor a few online on a weekly basis, I think If I had trade plates I would purchase more items however there is no guarantee of this. So is there a minimum number of vehicles your expected to buy before they would issue these plates, I could buy zero or twenty four vehicles in a year, I just don't know? I want to build a solid (and honest) case for my self before applying with the DVLA.
Secondly, traders Insurance, How does this work? Does it cover you to drive any vehicle and insure the vehicle while it is in storage/preparation waiting to be sold i.e. a shed?
Last but certainly not least, how do I remove the need to put my name on the Log Book, for example when I buy to sell on immediately, I assume I have to register as a trader and then there's something on the V5 to accommodate this switch? I am new to this so excuse the silly/obvious questions.
1. Trade plates will cover you for the vehicle having no road tax only.
2. You apply to your local DVLA office for them...It is not a "gimme" that you will get a set, in the last couple of years they have become more stringent in the criteria for having a set....Usually they will want to come and inspect your premises, and see some trading records ie...stock book, certificate of insurance etc....it may differ slightly regionally (and how busy the DVLA office is)
3. Insurance....Traders policy will cover you for road risks and theft depending on the policy...It may cover vehicles overnight in pre designated premises, however insurance companies can start insisting on site visits, accredited alarm systems with certificates etc etc so check carefully. Be very carful with insurers you havnt heard of, they may appear cheap but can be a nightmare to deal with in the event of a claim, and usually operate from offshore places, so you can do zilch leaglly with them
4. Logbooks will be given to you in full when you buy from auctions, as long as they recognise you as a bona fide trader. You simply keep the v5 until you sell the car then send it off in the customers name once sold. While you hold the vehicle in stock the vehicle will have a status of "in the trade" at the DVLA, if the auction have done their bit properly.
HTH
POORCARDEALER said:
1. Trade plates will cover you for the vehicle having no road tax only.
2. You apply to your local DVLA office for them...It is not a "gimme" that you will get a set, in the last couple of years they have become more stringent in the criteria for having a set....Usually they will want to come and inspect your premises, and see some trading records ie...stock book, certificate of insurance etc....it may differ slightly regionally (and how busy the DVLA office is)
3. Insurance....Traders policy will cover you for road risks and theft depending on the policy...It may cover vehicles overnight in pre designated premises, however insurance companies can start insisting on site visits, accredited alarm systems with certificates etc etc so check carefully. Be very carful with insurers you havnt heard of, they may appear cheap but can be a nightmare to deal with in the event of a claim, and usually operate from offshore places, so you can do zilch leaglly with them
4. Logbooks will be given to you in full when you buy from auctions, as long as they recognise you as a bona fide trader. You simply keep the v5 until you sell the car then send it off in the customers name once sold. While you hold the vehicle in stock the vehicle will have a status of "in the trade" at the DVLA, if the auction have done their bit properly.
HTH
Superb Feedback as expected from this place!2. You apply to your local DVLA office for them...It is not a "gimme" that you will get a set, in the last couple of years they have become more stringent in the criteria for having a set....Usually they will want to come and inspect your premises, and see some trading records ie...stock book, certificate of insurance etc....it may differ slightly regionally (and how busy the DVLA office is)
3. Insurance....Traders policy will cover you for road risks and theft depending on the policy...It may cover vehicles overnight in pre designated premises, however insurance companies can start insisting on site visits, accredited alarm systems with certificates etc etc so check carefully. Be very carful with insurers you havnt heard of, they may appear cheap but can be a nightmare to deal with in the event of a claim, and usually operate from offshore places, so you can do zilch leaglly with them
4. Logbooks will be given to you in full when you buy from auctions, as long as they recognise you as a bona fide trader. You simply keep the v5 until you sell the car then send it off in the customers name once sold. While you hold the vehicle in stock the vehicle will have a status of "in the trade" at the DVLA, if the auction have done their bit properly.
HTH
2. As I am starting out, I will not have any stock or items bought from auction. Well I have bought lots of stuff from auction but none with the sole intention of selling on, would they appreciate this and still issue them? As mentioned, I want to be as open and honest as possible and hope by getting as much advice as possible I can put forward a good case.
4. What will the auction house accept as proof of me being a "bona fide trader", I read something about a VAT number & some headed paper, surely there must be a need for more than that?
So Trade plates do not cover a vehicle even if it is booked in for its test?
2. As I am starting out, I will not have any stock or items bought from auction. Well I have bought lots of stuff from auction but none with the sole intention of selling on, would they appreciate this and still issue them? As mentioned, I want to be as open and honest as possible and hope by getting as much advice as possible I can put forward a good case.
I THINK ALL YOU CAN DO IS APPLY AND SHOW THEM YOU ARE WORKING IN A PROFESSIONAL MANNER AND SEE WHAT HAPPENS.
4. What will the auction house accept as proof of me being a "bona fide trader", I read something about a VAT number & some headed paper, surely there must be a need for more than that?
TAKE YOUR INSURANCE CERTIFICATE, VAT NUMBER, HEADED PAPER ETC, IT SHOULD BE ENOUGH.
So Trade plates do not cover a vehicle even if it is booked in for its test?
A VEHICLE DOESNT HAVE TO BE TAXED TO GO TO A PRE BOOKED MOT TEST. (TRADE PLATES DONT COVER INSURANCE,ONLY TAX )
I THINK ALL YOU CAN DO IS APPLY AND SHOW THEM YOU ARE WORKING IN A PROFESSIONAL MANNER AND SEE WHAT HAPPENS.
4. What will the auction house accept as proof of me being a "bona fide trader", I read something about a VAT number & some headed paper, surely there must be a need for more than that?
TAKE YOUR INSURANCE CERTIFICATE, VAT NUMBER, HEADED PAPER ETC, IT SHOULD BE ENOUGH.
So Trade plates do not cover a vehicle even if it is booked in for its test?
A VEHICLE DOESNT HAVE TO BE TAXED TO GO TO A PRE BOOKED MOT TEST. (TRADE PLATES DONT COVER INSURANCE,ONLY TAX )
Download the trade licence application from the DVLA website, or call them up and they will send the form out in the post. Complete it, giving details on how many vehicles pass through your hands and predicted vehicles for the future and send to your local office. They normally then invite you in to discuss the application, where you can take relevant paperwork to make you case. They may then decide to inspect your premises, if they feel its needed, or grant you the plates, which most of the time for new applications, is done on probation for 6 Months, where then your invited in again for another interview to see if your initial application information is still valid, together with paperwork relating to the last 6 Months from which you should get a full licence, or you may get a refusal from the start.
I think getting the plates as a new motortrader is perhaps the hardest part of the trade, vehicle delivery companies and accessory fitters are alot easier, as it puts this type of business on a back foot against competitors if they can't take on work with new or unlicenced vehicles, by not having plates, especially accessory fitters who may need to test drive after installation(?)!
As far as insurance, as long as you have cover in connection with your business, thats fine, it can be third party etc.
When purchasing vehicles, a trader will complete the yellow part of the V5, this is sent to the DVLA and the remainder kept with the trader until sale, the yellow part updates the vehicles records to show it in "trade". Your trader details are not placed as a recorded keeper on the V5, just held for info on the database.
Using the plates has specific rules, rocking up to the DVLA local office with your family with you, on plates is perhaps not recommended, but my friend in the office has many a story of how many times this happens and sadly it would seem the office love to have a nosy around whilst walking to get their lunch, looking for this and other crime worthy issues on plates, which they can act upon!
I think getting the plates as a new motortrader is perhaps the hardest part of the trade, vehicle delivery companies and accessory fitters are alot easier, as it puts this type of business on a back foot against competitors if they can't take on work with new or unlicenced vehicles, by not having plates, especially accessory fitters who may need to test drive after installation(?)!
As far as insurance, as long as you have cover in connection with your business, thats fine, it can be third party etc.
When purchasing vehicles, a trader will complete the yellow part of the V5, this is sent to the DVLA and the remainder kept with the trader until sale, the yellow part updates the vehicles records to show it in "trade". Your trader details are not placed as a recorded keeper on the V5, just held for info on the database.
Using the plates has specific rules, rocking up to the DVLA local office with your family with you, on plates is perhaps not recommended, but my friend in the office has many a story of how many times this happens and sadly it would seem the office love to have a nosy around whilst walking to get their lunch, looking for this and other crime worthy issues on plates, which they can act upon!
Edited by joreco on Friday 7th October 10:21
Edited by joreco on Friday 7th October 10:24
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