Second hand dealer

Licence summary

To sell goods second-hand, including at auction where you are selling goods on your own behalf, you need a second-hand dealer's licence from the local authority.

Eligibility Criteria

You must not be disqualified from holding a licence, and you must be fit to be the holder of the licence. The premises or vehicle you use in order to carry out the work must be suitable for that purpose. You must not have applied for the same licence within the last year, unless there has been a material change in your circumstances since your last application.

  • A second-hand dealer's licence is not required for:
  • a pawnbroker
  • a business as a wholesale dealer purchasing exclusively from licensed second-hand dealers
  • a charity entered in the Scottish Charity Register
  • a dealer in second-hand goods or articles incidental to another business which is not being a dealer in such goods or articles
  • a business either of financing the acquisition of goods by means of hire-purchase agreements, conditional sale agreements or credit sale agreements or of financing the use of goods by means of hiring agreements

Regulation Summary

See the External Links section on this page for the regulation summary.

Application Evaluation Process

A licence fee may be payable.

Applications must:

  • be in writing (including by electronic means)
  • be signed by the applicant (including by electronic means)
  • contain the applicant's name and address, and those of any employee who will manage the activity on a day-to-day basis, and the area in which the activity is to be carried out

Conditions requiring you to keep records of your stock-in-trade, may be attached.

The local authority will:

  • send a copy of the application to the Chief Constable
  • place a notice in at least one local or national newspaper which states the premises and applicant details contained in the application, that any objections or representations may be made to the local authority, and how such representations should be made
  • keep a register of applications in which they will enter the details of the receipt of the application, their final decision and reasons for the decision, the details of the terms of each licence granted and a note of any suspension, variation of the terms, or surrender, of a licence

The register must be available for inspection by any member of the public at reasonable times and places and any member of the public must be permitted to make a copy of it.
If the work is to be carried out mainly or wholly in premises, the application must also contain either of the following:

  • A declaration that you will display a notice at the premises for 21 days, which contains the details in your licence application and details on how to make representations regarding the application. This should be followed by a certificate to the licensing authority stating that this requirement has been complied with.
  • A declaration that you do not have rights in the premises that enable you to put up a notice, and detailing the reasonable steps that you have made to acquire those rights.
  • Where the local authority fails to make a decision within six months of the application, the licence is held to be granted or renewed.

Will Tacit Consent Apply?

Yes. This means that you will be able to act as though your application is granted if you have not heard from the local authority by the end of the target completion period.

Apply online

Please use the link under the External Links section on this page to submit an application.

Failed Application Redress

Please contact your Local Authority in the first instance. Within 28 days of the date of the decision to refuse their application, the applicant may require the licence authority to give the reasons for their decision.

The applicant may appeal to the sheriff against the decision, within 28 days of the decision, as long as they have already followed any available procedure in terms of stating their case to the local authority.

The appeal will only be successful if the sheriff considers that the local authority, in making their decision, had:

  • erred in law
  • based their decision on an incorrect material fact
  • acted contrary to natural justice
  • exercised their discretion in an unreasonable manner

The applicant may then appeal on a point of law from the sheriff's decision to the Court of Session within 28 days from the date of the sheriff’s decision.

Licence Holder Redress

Please contact your Local Authority in the first instance. If the local authority decides to suspend a licence, not to renew a licence, or not to consent to material changes to the premises or vehicle used in the course of a licence holder's work, the licence holder may appeal against the decision within 28 days of being notified, as long as they have already followed any available procedure in terms of stating their case to the local authority.

The appeal will only be successful if the sheriff considers that the local authority, in making their decision, had:

  • erred in law
  • based their decision on an incorrect material fact
  • acted contrary to natural justice
  • exercised their discretion in an unreasonable manner

The licence holder may then appeal on a point of law from the sheriff's decision to the Court of Session within 28 days from the date of the sheriff’s decision.

Consumer Complaint

We would always advise that in the event of a complaint the first contact is made with the trader by you - preferably in the form a letter (with proof of delivery). If that has not worked, if you are located in the UK, Consumer Direct will give you advice. From outside the UK contact the UK European Consumer Centre.

Other Redress Objections or representations relating to a licence application may be made in writing to the local authority, within 21 days of notice of the licence application being given, stating:

  • the grounds of the objection or nature of the representation
  • the name and address of the person making the representation

A chief constable, or anyone who has made a relevant objection or representation regarding the licence, may appeal against a decision within 28 days of being notified, as long as they have already followed any available procedure in terms of stating their case to the local authority.

The appeal will only be successful if the sheriff considers that the local authority, in making their decision, had:

  • erred in law
  • based their decision on an incorrect material fact
  • acted contrary to natural justice
  • exercised their discretion in an unreasonable manner