Vehicles INTENDED for the AIF were issued AIF numbers, while vehicles INTENDED for local service were not. There are many instances where Militia units possessed AIF reg vehicles, and vice versa. The reg was not changed each time a vehicle undertook an inter-unit transfer.
Progressively from Dec '41 ALL AIF registration numbers were cancelled and moved to the C system. As you could imagine, this would take some time and was still happening a year later. Once the vehicle was taken off the AIF system, the number was not re-allocated.
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