How much does it cost to get a Car traders license?

Gunnapaul2 · 23-06-2005, 03:43 PM

Im thinking about starting a business in buying and selling cars and now I have someone who I can partner up with to go into sales with.

How much does it cost to get a license/account, whatever its called, so we can legally buy and sell cars?

The limit for selling cars without a license is 10 isnt it?

Thanks

Peter Piper · 23-06-2005, 05:27 PM

Hiya, I'm as green as grass on car sales, but you may find this useful.
http://www.businesslink.gov.uk
Good luck with your new venture.
P.P.

Phil_2k4 · 23-06-2005, 08:48 PM

Pm (musthavemobiles) He's brother sells cars

ashford_trader · 23-06-2005, 09:05 PM

As far as I am aware, there is no need to have a licence to buy and sell cars - but as far as trading standards are concerned, as long as you reveal you are a trader whilst advertising the vehicle for sale, and have all the relevant traders insurance that should suffice. I have been told that the insurance for selling cars is quite high, and depends on whether you are working from home or from a forecourt.

I have often thought about trading in cars and recently purchased an ebook about it - which I wasn't overly impressed with the amount of info for what I paid, but I can e-mail it to you if you'd like.

It gives you a basic understanding as to what is required of you - so you might find it useful.

Although my passion is cars, I'm not the most mechanically minded bloke, and as the best way of buying cars to sell on is at auction, I have not gotten the guts to go out and do it.

Also, with the depreciation that most cars have got nowadays, I have decided that to make a living out of buying and selling, you need it as a secondary income, unless you may have plenty of financial backing to start off with. The profit margins can be quite tight from what I understand in order acheive regular sales.

Hope that has given you some insight into the realms of trading in cars - and no doubt good money can be made, but only if you have money behind you to start you in good sted.

Good luck, and let me know if you want the ebook.

Gunnapaul2 · 23-06-2005, 10:04 PM

Thanks guys, its all your advise and opinions that make it easier for me to decide on how to go

**MustHaveMobiles** · 23-06-2005, 11:26 PM

Paul,

Adam (my brother) is on his jollies at the moment and will be back in 10 days I will tap him for any information then. As far as I am aware there is no license to sell cars but obviously if you are going to be operating a forecourt/premises then you will need to follow Helath and Safety guidelines etc.

Traders insurance is a must, it will cover you on any car you want/need to drive and you will also have to apply for trade plates (the red and white plates that cover the original license and are specific to the seller) as they also cover/insure for test drives etc... again I will have to ask for the exact source but am sure a quick google will turn things up.

Thats's the limit of my knowledge, when Adam gets back I will ask some more and let you know.

Mike

PS. ebay motors is the fastest growing category on ebay and with the new scrapping laws/charges you may find that approaching dealers will net you some very cheap part exchanges (top gear also did a show on this where Clarkson got a porsche 928 for 50p!!!).

The idea is that it costs more to get rid of these 'old bangers' so they clear them at ridiculous prices and there are some good pickings to be had, even if you plan to sell as parts. So get round the dealers and be cheeky, remember they want to get rid of them. What can you lose apart from a bit of time...bollocks to being embaressed.

Gunnapaul2 · 24-06-2005, 10:20 AM

Cheers mate, good advise. I'll await your reply from Adam.