F&I Management & Training

Car dealers will still be able to use trade plates on their second-hand stock following the introduction of new rules on the treatment of part-exchanges and pre-registered dealer demonstrators, and will not be required to register ownership of vehicles while they are on their site, the Retail Motor Industry Federation (RMIF) has revealed. Sue Robinson, RMIF Director, explains: 'The introduction of new rules on Vehicle Excise Duty (VED) refunds in January 2009 will not prevent dealers from using trade plates on second hand stock for which they have completed a Statutory Off The Road (SORN) declaration. However, dealers must remember that trade plates can only be used on vehicles in their temporary possession. A vehicle registered in their name is not regarded as being in their temporary possession.' There was some concern among dealers, as one interpretation of the new rules was that dealers would need to become the registered keeper of a vehicle, and then make a SORN declaration, in order to obtain a VED refund. This is not the case. For dealers, the main impact of the new rules will be that they will not be able to obtain VED refunds from vehicles where a SORN is in force. Instead the customer will be required to seek the refund themselves. Robinson continues: 'Where a customer trades in a car and applies for a refund themselves, they should notify the Driver and Vehicle Licensing Agency (DVLA) that the vehicle has been disposed of into the trade rather than declare SORN. The vehicle can then quite legally be used under trade plates.' RMIF members that want more information on this issue should contact the RMIF

DATED: 07.10.08

FEED: AW