I would have thought you could do this:
- Arrange insurance for a normal annual policy, ensure it includes EU cover, to start on the day you intend to buy it. It should cost far less than what you stated. Check that you are allowed to cancel it for a refund mid-term. Indeed, if you are going to complete the entire business in less than 14 days then I think you can always cancel under normal cooling-off rules (as long as you have not made a claim), but I am not sure about that.
- Buy car. If you are going overseas immediately there is an option shown here (www.gov.uk/responsibilities-selling-vehicle ) about what the seller needs to do:
What you do with your log book depends on where the buyer is taking or registering the vehicle.... Taking the vehicle abroad and registering it there: Fill in the ‘permanent export’ section of your vehicle log book. Send it to DVLA, Swansea, SA99 1BD. Include a letter giving the buyer’s name and address. Give the rest of your log book to the buyer - they’ll need it to register the vehicle in the country they’re going to.
- If however you intend to register it in the UK first, then the seller enters your UK address in the logbook, and the seller sends it off to the DVLA. When you leave the country, you then complete the permanent export section and send back to DVLA. Note that you'll need to leave enough time for the logbook to arrive, or arrange for someone to forward it to you at your EU home. You'll also need to tax the vehicle.
- Drive to your EU home. Phone up the insurance company, cancel policy - as long as you have had no accidents you should get a pro-rata refund (full months only, maybe). Take car to scrap heap and get rid. As mentioned above, you just need to confirm that your country allows overseas cars to be scrapped - but I cannot see why not (visiting cars must occasionally have accidents or breakdowns which are beyond repair, and so go straight to scrap without needing to be registered first).
- As long as the car has a valid MOT at time of purchase (valid till you scrap it) there is no need for another one.
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