I'm not sure about the legal side of it, but this is how it works for us. The auctions which are almost all entirely online can only be bid on by insurance approved dismantlers such as ourselves. When the cars come to us they are supposed to have the VIN numbers removed, but this is rarely the case you can always find a sticker or something somewhere. Then after a certain amount of time we have to send pictures of the shell stripped down to prove that it is not going back on the road. If we don't do this then we lose our licence. We never have to deal we the DVLA ourselves I assume this is done by the insurance companies. The fact is the system is very lax there might be loads of rules and regulations, but most of them are ignored.
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