Buying cars for good prices at auctions is an important process for many car traders. When buying vehicles for domestic use, often temporary insurance is needed. This would give you enough time to get it home and fill out the full insurance details.
However, as a trader with a motor trader policy, the vehicle will be protected by your trade cover. The current advice from the MIB is that vehicles should be registered on the MID ‘immediately’. Many insurers will give you login details to do this via their website. If you are unsure how to add or remove vehicles from the MID on your policy, please see the Contact Us section to speak to us about setting this up.
It is as important to remove a vehicle from the MID as it is to put it on
If you are continually buying and selling vehicles at a reasonable rate then having to register every single one can be considered to be inconvenient. You’ll potentially be on the MID very frequently. But there are reasons why registering and removing vehicles from the database is a very important thing to do.
For example, someone buys a car from you and the car is damaged a few days later, injuring another road user in the process. If the vehicle is still on the MID under your name, you will have to prove you sold it. What if the buyer has only taken out temporary cover or worse, hasn’t taken out any cover at all? You could end up responsible for any legal liabilities resulting from an accident.
Auctions are a great opportunity
Getting it right with regard to auctions is crucial because they are a great opportunity for you as a motor trader, whether you are full or part-time. Of course, your experience as a trader will also tell you that there are plenty of vehicles that makes auctions less than perfect, so it still requires a keen eye for the right vehicle at the right place. However, you can save hundreds or even thousands of pounds by purchasing cars at an auction and adding them to your motor trader policy.
Often, the motors available are part-exchange vehicles. For example, a Vauxhall dealership finds itself with another make through a part-exchange deal and cannot sell it at their dealership. Instead, they sell it at an auction. Or they may simply be getting rid of older models to make room on the forecourt.
Auctions generally mean a large audience of potential buyers, so are particularly attractive to sellers. This means plenty of competition amongst consumers, but is extremely worthwhile when you are looking for good deals.
Remember, though, to ensure that vehicles are added and removed from the MID in just the same way as if you were purchasing them on an individual basis – and remember also to register your trade plates on the MID, too.