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How to Get a Motor Trade Licence

It is estimated that the UK motor trade industry generates over £70 billion annually, with a recent study finding that the industry has created over 810,000 jobs. If you’re interested in getting into this sector and want to obtain a motor trade licence, here is what you need to know.

Who Needs a Motor Trade Licence?

To be eligible to apply for a motor trade licence, a person must be a motor trader or a vehicle tester. Motor traders who are working as private motor traders do not need a licence, but licences for public motor traders are absolutely vital.

Allowed Uses of Motor Trade Licences

A motor trader is allowed to use their motor trade licence if they look after ‘mechanically propelled vehicles’ on a regular basis in their business. A motor trader who is a manufacturer is allowed to use the motor trade licence on a vehicle they use for development and research needs. A vehicle tester can only use a motor trade licence on vehicles given to them primarily for testing.
Motor trade licences are required for certain motor trade business purposes, such as:
●     Moving vehicles - e.g. driving from a garage to the home of the vehicle’s owner
●     Vehicle demonstrations
●     Testing a vehicle after its repair

How Long Do Motor Trade Licences Last?

Motor traders can either apply for a 6 or 12 month trade licence in January, or a 6 month trade licence in July. Please note that new motor traders who apply for a trade licence not in January or July will need to get a licence that lasts for either 7, 8, 9, 10, or 11 months, so that their licence ends in December or June.

Applying for a Motor Trade Licence

Motor traders who are applying for a first trade licence need to fill in the DVLA’s VTL301 form. Alongside the VTL301 form, motor traders need to also submit a copy of their named motor trade insurance certificate, a copy of their public liability insurance certificate, and their Companies House registration number. If a motor trade licence renewal is required, traders need to complete the DVLA’s VTL318 form.
Don’t forget that if you need a motor trade insurance renewal, you need to renew it without having a break in your cover - as you may end up receiving a fine. If you have any queries, get in contact with us today.

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