motor trade insurance

Road Tax; What You Need to Know

We'd been with a local broker for years and he'd always told us we were getting a good deal. It was only when Alison from garagecover gave us a quote that we realised how much we could save.

Gavin Harney,
Braconash Motors

Wider cover and a cheaper premium - what more could I ask for! The money is better in my pocket than in the insurance company's account.

R Beer
Victory Garage

Road Tax; What You Need to Know

In October 2014, new legislation came into action meaning that drivers no longer had to display a paper copy of tax records in their car. Instead, the DVLA keep a digital record on their system, meaning that it is much less likely for your details to be misplaced or lost.

But did you know that this change also affects the way you buy or sell your car? Many people are unaware and are being caught out so here’s what you need to know.

In the past, you could transfer the road disk to the person who buys your car but this is no longer the right way to do it. It is now a requirement for you to tax the new vehicle yourself before you even drive it, even if the car is a gift or bought from a family member.

Motor traders have also been affected by the road tax regulations. If you work in this industry, the best way to think of it is that every vehicle you buy or part exchange will be untaxed and therefore you will need to do this before it is driven.

As a car sales company, whether this involves new or second hand vehicles, it is your responsibility to have trade licence plates. Without this, all of your cars will need to be registered and taxed before you offer them for a test drive.

When repairing or testing a vehicle, it will need be checked to see if they have tax cover before driving, otherwise you should use a trade plate when on the roads.

Unlicensed stock vehicles are also required to use these types of plates, but it is only permitted for you to drive it for business purposes.

When it comes to demonstrations of your stock vehicles, there are certain rules to follow. Unlicensed stock vehicles can be driven on the roads if they have a trade plate licence and as long as they are accompanied by the seller.

If the customer wants to test a vehicle without you, this can only be done if it is fully licenced and covered by your insurance policy. 

Not following these rules means that you will be in breach of the new regulation and could even face prosecution from the DVLA or law enforcement.

If you are still unsure about any aspect of the road tax regulations, Garage Cover would be more than happy to give you advice. Please call 0345 224 2649 or email to speak to a member of the friendly team.