In Germany not necessarily. It depends on, how the registration was cancelled. Mostly the temporary de-registration is usual: the papers were postmarked and the silver stickers in the plates scratched off. Up to 7 years you can bring the vehicle with these papers and this number back into traffic.

It's also possible to get a vehicle out of registration for export or scrapping. Then, besides the postmark in the papers and the destroyed plate-stickers, the the lower right edge of the "Fahrzeugbrief" (= title) will be clipped off. In this case the registration, also the number, expired immediately.
It is possible to bring back the vehicle to a registration afterwards, but it's a bit elaborate and costs more money.
It's the same way, as you want to have a registration for a vehicle with no German registration or no papers (import, papers expired more than 7 years or lost papers).


P.S. The conviction of these dealers didn't depend on the papers, they were based on the condition of the cars.

A complete, roadworthy vehicle, which can pass the TÜV-inspection without or with just minor repairs, is no wreck or scrap according the German judicature.