How do car traders get around the new continuous registration requirement?

The new requirement for continuous registration seems to be very a very unjust regulation biased in favour of extracting even more money from the hard-pressed motorist. This prompts me to enquire how the motor trade get around this regulation when they can hold many cars for long periods of time that are not taxed, not insured and not been subjected to a SORN. I would welcome your observations on this?

Asked on 4 June 2011 by TW, via email

Answered by Honest John

You have actually found a loophole. Motor traders register online via their insurers with MID all the cars they have in stock for more than a week and deregister them when they are sold. So against a motor trader's policy there will be a list of insured cars on the MID database. There would be nothing to stop a motor trader putting a friends car on the MID, except his common sense. Because the type of 'friend' who asks him to do this is the type most likely to have a crash resulting in a claim that could put the trader's trade insurance up by £5,000 a year.

Tags: registration dealers

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