A couple of questions - buying and selling cars for profit

[Devil2575]

I've been having a discussion on another forum about the legality of selling cars for profit as a sideline and it's raised a few questions. I was wondering if anyone on here who is in or connected to the trade could answer them?

1 Is it illegal to buy and sell cars for profit is you are not registered as a motor trader?

2 Does a motor trader have to have a trade insurance policy?

I am not considfering this myself but the questins came up when discussing hiow the new insurance rules (car must be insured unless it is sorn) will imapct on comeone who buys and sells a handfull of cars a year on the side.

Thanks

[Devil2575]

Thanks for the replies. So in order to sell cars for profit you don't need to do anything other than declare any earnings to the inland revenue of course?

[Devil2575]

300bhp/ton said:

Registered with who?????????????? Some of you guys act as though this is your first day on planet Earth

Trade insurance is not required, but advisable. Liability insurance is also something to consider.

A registered company. That would be registered with conmpanies house I guess

[Devil2575]

300bhp/ton said:

Self employed earning are no different for car sales than anything else.

I would seriously consider looking at insurances and be-aware as a trade seller you do have more responsibility and you may well have customers come back at you.

Thanks for the tips but I must reiterate, this post is for academic purposes only. I have no interest in becoming a part time motor trader. There seem to be so many people out there at the moment doing it and I wonder how legit these guys are.

[Devil2575]

Chrisw666 said:

99p shop PAYG sim and £5 credit for each car sold, use a council lock up 1/2 mile from home as 'storage'. Don't go overboard on prep, make sure adverts look a bit amateur.

Sell car 1 as Robert Sole.

Car 2 as Carl Hunt.

Car 3 as Joe King etc etc.


My consultancy fee is beef monster munch, a twix and some diet coke.

Which is why I wouldn't buy a car from an add down as private but with no land line listed.

[Devil2575]

Yes I would in that case.

The difference is honesty. A straight up trader selling a car sold as seen with no warranty is being honest. A trader pretending to be a private seller is being dishonest.

If they are lying from the outset then I have every rreaqson to suspect they are telling a lot more lies.

[Devil2575]

Zwoelf said:

Only if you decide to register a limited liability partnership or limited company. One man band doing weekend trading would tend to be a sole trader and dispense with having to pay Employer's NI and have to submit formal accounts annually, which then remains a matter of public record (along with their personal details as directors) etc.

Ok.

Thanks.

[Devil2575]

Zwoelf said:

Quite so, which is where I was leading with that query.

Thanks for the leading question...

[Devil2575]

Breadvan73 said:

PS - Pedantry corner: a leading question is one which supplies its own answer. Zwoelf did not ask a leading question.

No it isn't. A leading question is one that prompts or encourages the desired answer which is exactly what Zwoelf was doing.

Breadvan73 said:

PPS - This thread sounds like another chapter in the saga of what the famous "friend" of the PH massive is planning, in between his assorted speeding, crashing, goatee wearing and getting fired exploits. We all have seem to have such naughty friends.

Ok, you found me out, it's a fair cop. Yes I am planning to start selling cars as a sideline.
Is that OK? Is that what you wanted to hear?

It's not true but if it keeps you happy then that's good.

I'll say again for the hard of reading and the slow of brain. The purpose of the thread was to make sure I had my info correct before posting on another forum.

Thanks to all those who have clarified the situation for me

[Devil2575]

Let's get this straight.

No it is not my friend any more than you are. It's not even someone involved in the conversation. It is an internet thread on another forum where me and another person, who is not my friend as I have never met them, are discussing the legalities of buying and selling cars as a side line. The issue arose out of a discussion on how the change in the insurance law would impact on people and one person posted that it would prevent them from continuing to trade unless they got a trade insurance policy. This person then did not post any further and me and another poster started to exchange views about it.

That is all. Neither me or anyone else I know personally (i.e. not through the internet)is planning to buy and sell cars for profit.

[Devil2575]

I'll have you know that i'm a real 13 year old acne ridden fat nerd who goes on internet forums pretending to be someone he isn't

Either that or someone wasting time on an internet forum rather than doing his work...