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Licensing Requirements For Auto Wreckers And Recyclers

Posted On Jul 24 2019
need for auto wrecking licence

You might be well aware of the fact that every motor vehicle business engaged with the recycling job, needs to get a license. You must possess a license if your business includes any of the below-mentioned activities:

1. Dismantling of vehicles for the various body parts or accessories

2. Buying and selling of:

  • Major body parts or components of the vehicle
  • Major accessories of the vehicle
  • Prescribes accessories or parts of the vehicle

However, you even need to get a motor car trading license if in case you are:

  • Planning to engage in trading activities of the damaged vehicle which can be again restored back on the roads once the repairing work is done
  • Engaging yourself in infrequent trading activities of the vehicle

So, when you get yourself engaged with the buying and selling activities of the vehicle, whether it be damaged, salvaged, or the incomplete state, you must possess proper trader license.

Criteria To Get The License

Criteria to get the license

One can fetch or apply for the license, once he meets the below-mentioned criteria:

  • be of at least 18years or more
  • Should be fit enough to hold the license
  • Should not be controlled member of any declared organization
  • should not be charged for bankruptcy
  • have received proper approval from the local authority and council
  • is not held liable or guilty in the last 10year for any offence relating to the motor vehicle
  • possess a sufficient amount of monetary resources to continue its business

When do you not need a trading license for the motor car?

Usually, every cash for cars removalist and auto wreckers or recycler must have a proper valid motor car license held for the trading purpose. However, in only two cases, you do not require to have the license provided:

  • The vehicle is in the incomplete state and does not pose the ability to run on the road again
  • The vehicle is exempt

The necessity of being a registered dealer of second-hand vehicle

Well, are you a registered, licensed trader of motor car engaged in buying and selling of used vehicle? If the answer is yes, then you do not need to acquire a separate second-hand registration. The legal obligation for all the motor vehicle traders is the same. However, the second-hand dealer will have to comply with the Second-Hand Dealers and Pawnbroker Act 1989.

used car buyer

For every vehicle dealer, if he is engaged in the wrecking or recycling work, registration for the second-hand dealership is a must. However, if one is engaged only with buying and selling of the car components, then the license is required.

Processing time required

If the application form is properly filled up, it takes 4 to 6 weeks. However, if the application is incomplete, it may take longer time. However, if you do not complete the application form, you can even withdraw it. You can avail a partial refund of the fees depending on the circumstances.

License numbers to be placed on the boards

It is very important to make sure that at every place of operation of the business, a board is displayed which highlights the name of the person followed by the license number. The name of the business can even be included on the boards. However, it cannot replace the licensee’s name. It must be placed at a proper angle so that it is easily visible to everyone.

So, it is important to hold a proper license if you engage in any such business. One can seek a license, valid for one or three years as per the requirement.

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