Dealers selling SOR cars - Warranty?
Discussion
Just something I've wondered really...
If a dealer sells a car on a Sale or Return basis, say a car that is not under manufacturers warranty - if someone buys said car from dealer and it develops a fault or whatever; who is liable to rectify the fault?
As the dealer has effectively sold the car on behalf of another customer is said dealer liable for any warranty issues or is the buyer of the car liable?
Is the sale the same as a trade sale/private sale in that respect?
If a dealer sells a car on a Sale or Return basis, say a car that is not under manufacturers warranty - if someone buys said car from dealer and it develops a fault or whatever; who is liable to rectify the fault?
As the dealer has effectively sold the car on behalf of another customer is said dealer liable for any warranty issues or is the buyer of the car liable?
Is the sale the same as a trade sale/private sale in that respect?
The sale is on exactly the same basis as any other so the end buyer of the vehicle will have the same consumer rights as they would buying from any other dealer.
The sale or return bit is between the original seller of the car and the dealer so as I am sure you realise the dealer doesn't pay for the car until it is sold.
The sale or return bit is between the original seller of the car and the dealer so as I am sure you realise the dealer doesn't pay for the car until it is sold.
steve-5snwi said:
Are you sure about that ? If the car is advertised as sale or return and the payment and invoice is between the owner and the buyer and it's made clear that it's not a dealers car then I would believe it's a private sale.
I have never come across such a sale as you describe but based on what you are saying I would agree however surely if a dealer is doing the advertising of the car they are becoming an intrinsic part of the sale and if it all went tits up would they be able to absolve themselves of all liability?I am as interested as the OP to know the answer now!
steve-5snwi said:
Are you sure about that ? If the car is advertised as sale or return and the payment and invoice is between the owner and the buyer and it's made clear that it's not a dealers car then I would believe it's a private sale.
It's very unlikely a dealer would advertise a car then just pass the buyer onto the owner. The whole point of SOR is that the dealer sells the car, deals with all prep, warranty etc, takes their cut and then pays the owner. That's how SOR works.Butter Face said:
steve-5snwi said:
Are you sure about that ? If the car is advertised as sale or return and the payment and invoice is between the owner and the buyer and it's made clear that it's not a dealers car then I would believe it's a private sale.
It's very unlikely a dealer would advertise a car then just pass the buyer onto the owner. The whole point of SOR is that the dealer sells the car, deals with all prep, warranty etc, takes their cut and then pays the owner. That's how SOR works.Ive been doing a bit of digging and stumbled across a forum for a car dealer and this question was answered...
From the forum
Good News Car Dealer Forum members... and you heard it here first... you can 'help' sell a customers’ or fellow motor dealers’ vehicle on a 'sale or return' basis and NOT be liable under the Sales of Goods Act.
You (the dealer) will act as an agent for client (the seller), if you advertise the car on your forecourt or website it must clearly state... ‘This is a sale or return vehicle, we are selling it on behalf of a client and it will be invoiced accordingly’.
When you sell the vehicle DO NOT invoice it from yourself (the dealer), the invoice should be from your client (the seller).
You will not be responsible for any sale of goods issues however you will be jointly and severally liable for any misdescription AND in the event that the vehicle is a clients vehicle and the client misdescribes it, you (the dealer) may be in the unfortunate position whereby you become liable while the client, not being in a trade or business, is not! So make sure any descriptions are correct.
Interestingly, if the client (the seller) is a fellow motor trader they will be liable for any sale of goods issues NOT YOU.
Any sale or return agreement should be strictly controlled and any agreement put in writing... make sure your name logo etc are not on the invoice... you are only an agent working on commission... AND make sure your customer is aware of this from start to finish of the sale process.
So - be aware if you buy a SOR car and the above procedure is followed
From the forum
Good News Car Dealer Forum members... and you heard it here first... you can 'help' sell a customers’ or fellow motor dealers’ vehicle on a 'sale or return' basis and NOT be liable under the Sales of Goods Act.
You (the dealer) will act as an agent for client (the seller), if you advertise the car on your forecourt or website it must clearly state... ‘This is a sale or return vehicle, we are selling it on behalf of a client and it will be invoiced accordingly’.
When you sell the vehicle DO NOT invoice it from yourself (the dealer), the invoice should be from your client (the seller).
You will not be responsible for any sale of goods issues however you will be jointly and severally liable for any misdescription AND in the event that the vehicle is a clients vehicle and the client misdescribes it, you (the dealer) may be in the unfortunate position whereby you become liable while the client, not being in a trade or business, is not! So make sure any descriptions are correct.
Interestingly, if the client (the seller) is a fellow motor trader they will be liable for any sale of goods issues NOT YOU.
Any sale or return agreement should be strictly controlled and any agreement put in writing... make sure your name logo etc are not on the invoice... you are only an agent working on commission... AND make sure your customer is aware of this from start to finish of the sale process.
So - be aware if you buy a SOR car and the above procedure is followed
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