Would you trust this?
Discussion
Hi Chaps,
I'm selling a £20k car privately and have been contacted by a car dealer in Peterborough who have offered to take the car from me on a guaranteed sale agreement. Essentially, they have it and have guaranteed me a price which will be payable either after they've sold it or a maximum of 60 days ie if they haven't sold it by then they effectively buy it off me. The price offered is only just shy of what I was asking privately, but they say that they move stock quickly and make a relatively small profit on cars.
Has anybody heard of this type of arrangement before and what are the risks?
Cheers
I'm selling a £20k car privately and have been contacted by a car dealer in Peterborough who have offered to take the car from me on a guaranteed sale agreement. Essentially, they have it and have guaranteed me a price which will be payable either after they've sold it or a maximum of 60 days ie if they haven't sold it by then they effectively buy it off me. The price offered is only just shy of what I was asking privately, but they say that they move stock quickly and make a relatively small profit on cars.
Has anybody heard of this type of arrangement before and what are the risks?
Cheers
sounds like a very clever way to run a used car dealers, you can fill a car lot without investing anything in stock
I suspect the risk other than it being a total scam is that they won't make good on their promise to buy it if they've not sold it in 60 days. You would also want to see proof that it would be insured while in their hands
I suspect the risk other than it being a total scam is that they won't make good on their promise to buy it if they've not sold it in 60 days. You would also want to see proof that it would be insured while in their hands
Wouldn't touch it with a long pole.
We often purchased stock from private ads, autotrader and the like but we always paid in full at the time of collection.
In addition to the above mentioned you will have no guarantee that the dealer has the funds to purchase your vehicle at the end of the agreed period.
We often purchased stock from private ads, autotrader and the like but we always paid in full at the time of collection.
In addition to the above mentioned you will have no guarantee that the dealer has the funds to purchase your vehicle at the end of the agreed period.
They appear to be kosher, and advertise regularly on the PH classifieds. They have sent me a draft contract and T&Cs which all seem to add up, and have advised that the car will be insured under their trade insurance. I'd clearly need to see proof. My worry is that if they go into liquidation, does my car go with it? I will hold the V5 until they sell it, so I guess it basically my car parked at their premises if that we're to happen?
Bincenzo said:
I will hold the V5 until they sell it, so I guess it basically my car parked at their premises if that we're to happen?
Careful.The V5 details the 'Registered keeper' and not the 'Legal owner'.
A subtle distinction perhaps, but a very important one (especially in a situation such as this)
Bincenzo said:
They appear to be kosher, and advertise regularly on the PH classifieds. They have sent me a draft contract and T&Cs which all seem to add up, and have advised that the car will be insured under their trade insurance. I'd clearly need to see proof. My worry is that if they go into liquidation, does my car go with it? I will hold the V5 until they sell it, so I guess it basically my car parked at their premises if that we're to happen?
What do the T&Cs see about transfer of ownership?!!?monthefish said:
Bincenzo said:
I will hold the V5 until they sell it, so I guess it basically my car parked at their premises if that we're to happen?
Careful.The V5 details the 'Registered keeper' and not the 'Legal owner'.
A subtle distinction perhaps, but a very important one (especially in a situation such as this)
CampDavid said:
Last time this came up someone posted this link, which makes for depressing, if accurate, reading
I think that was me and this is the sad tale - no winners all round and a very salutary warning about sale or return deals.http://www.pistonheads.com/gassing/topic.asp?h=0&a...
PurpleMoonlight said:
Be very careful.
There was a motorcycle dealer in Market Harborough that did similar then went pop owing loads of innocent owners loads of money.
That ended tragically when he jumped off a cliff because of his conscience. Not many people knew the ending to that story...There was a motorcycle dealer in Market Harborough that did similar then went pop owing loads of innocent owners loads of money.
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