I was reading an article in a motoring magazine the other day about the idea of going to an auction, buying a car, then trying to sell it in say 2 or 3 months time. Then once that car is sold, repeating the process. In theory, this method should mean depreciation free motoring as it should be possible to constantly get your money back everytime you sell the car.

On paper, this idea appeals as I live very near a large auction and can usually get a morning off work. However as far as I can see, the big snag is insurance - my private policy years ago complained when I changed my (troublesome) car after only 5 months. So am I right in thinking that a normal private policy will not tolerate someone constantly changing their car every 2 or 3 months? I'd imagine that trade insurance would be difficult to obtain as my initial research shows that trade policies require proof of trading when starting the insurance and when making any claim. It is of course possible I won't be able to sell the car within the 2-3 mth timeframe and I wouldn't really want to set it up as a business anyway as I'm not expecting to make a profit. Looking at a few old articles online, it seems as though trade insurance years ago would be ideal but it sounds as though a few people abused the system by using it to cheaply insure loads of cars they constantly owned and had no intention of reselling.

I just wondered if anyone on here has ever thought of or has carried out a similar idea and how they got around the insurance problem. So far, my online research hasn't revealed an "any car" policy. Just one more quick question, if I did manage to get an "any car" policy would I be able to tax the car using this after buying it at the auction?

Greatly appreciate any help - I'm only looking to get something like a Mondeo so I don't mind a policy that restricts the inclusion of anything exciting!