i want to buy used cars, refurbish them and sell them on via autotrader/ ebay etc. and would like to know what kind of regulations, if any, there are that i have to go through apart from the obvious use of a V5 registration document.
2007-03-18 02:07:23 · 7 answers · asked by Gothikal 1 in Cars & Transportation ➔ Buying & Selling
I believe that if you buy and sell more than two cars a year you must declare yourself as a trader in all adverts.
Failure to do so could land you with a hefty fine for false advertising.
Similarly, if you sell a faulty car, and a buyer can prove that you are trading (e.g. buying and selling more than two cars a year, or buying and selling cars without using them), you will have the same responsibilities as a main dealer would have to repair the car or refund the buyer.
Effectively, if you are doing this for profit, rather than to give yourself a nice car, you are running a business, and the same laws will apply. You may have to register for VAT - depends on your turnover, and will have to declare all profits to the Inland Revenue and be subject to income tax on them.
2007-03-18 23:39:32 · answer #1 · answered by Neil 7 · 0⤊ 0⤋
If you are selling them for profit then you must register as a business. This is because the Inland Revenue classes this sort of activity as income and it must be assessed for tax in the normal way.
Aside from this, you must of course ensure that the cars meet all current MOT standards.
2007-03-18 08:54:22 · answer #2 · answered by Anonymous · 1⤊ 0⤋
If you sell more than six vehicles in any 12 month period, the government considers you to be a business. You will have to declare yourself as such and pay business tax.
If you don't, there are very hefty fines or even jail sentences available...
2007-03-18 02:59:32 · answer #3 · answered by Nightworks 7 · 1⤊ 0⤋
1
2017-03-05 01:25:26 · answer #4 · answered by ? 3 · 0⤊ 0⤋
you have to get the cars tested at a vosa test station ed to say the cars are road worthy then you get it moted
2007-03-18 06:13:21 · answer #5 · answered by fire wall 2 · 0⤊ 1⤋
each state has differant statuates for exactly how many car tittles you can buy/and/or/sell per year!check with your local dmv.A way to circumvent that is to never sign or re-tittle a car youve purchaced for re-sale,therefore it goes from origanal seller to your buyer!
2007-03-18 02:57:48 · answer #6 · answered by tom l 1 · 0⤊ 2⤋
if you made a habit of it, and made money doing so, you would have to register for income tax, thats about it really.
2007-03-18 02:50:50 · answer #7 · answered by Anonymous · 2⤊ 0⤋