Entering the motor trade

TowerMan

Hey I was just wondering what a person needs to become a car dealer? Do you have to be registered and have a trading license or is it just go out there and try and make it work?

Seth Brundle

To my knowledge you don't need anything apart but proper insurance, public liability, etc. You can also get a dealer insurance policy to drive multiple vehicles.
Contact the SIMI also to get more technical advice.

Silvera

If you wish to deal in imported cars, you need to register with the Revenue in order to get a 'dealer number'.

You would also need to be VAT-registered, and have a premises (i.e. be paying commercial council rates, in order to obtain Trade Plates.

JohnCleary

If you mean small-time, I have a couple of friends who buy totally standard cars locally and sell them on for about 2-300euro profit. Not bad when your shifting 4-5 cars a week!

They are average soaps like you and I, no company, no VAT. Just people buying a car, advertising it sell and selling it on!

Our man in Havana

The tax man will love you! Audit! Ahem!

JohnCleary

If your selling privately, they have nothing on you

Squirrel

JohnCleary wrote:

If you mean small-time, I have a couple of friends who buy totally standard cars locally and sell them on for about 2-300euro profit. Not bad when your shifting 4-5 cars a week!

They are average soaps like you and I, no company, no VAT. Just people buying a car, advertising it sell and selling it on!

Does that not put an extra owner on the car?

Dilbert75

Know a few guys who do that - they "save" the seller the bother of sending in the change of ownership form and leave the purchaser's name blank pending sale to the new owner.

Guy:Incognito

Dilbert75 wrote:

Know a few guys who do that - they "save" the seller the bother of sending in the change of ownership form and leave the purchaser's name blank pending sale to the new owner.

Wouldnt fancy that if i was selling a ca. Your leaving yourself very open to tickets/points/fines etc.

Squirrel

Stekelly wrote:

Wouldnt fancy that if i was selling a ca. Your leaving yourself very open to tickets/points/fines etc.

I was thinking that

Victor

JohnCleary wrote:

If your selling privately, they have nothing on you

Yes and no. Income on gain in the sale of depreciating chattels are not normally taxable, however if you are doing a steady trade, that might be another matter.

Silvera

"chattels" ???

I read that in the UK you are only allowed to sell c.6 cars a year before you have to register for tax/VAT.