Sale or Return Query
Discussion
Apologies if this has been covered before.
I’m selling my 70 plate Macan.
A dealer contacted me and said he can sell it on a SOR basis, however I keep the car. It’s pretty much in mint condition. If he has a customer, then he will take deposit, buy car from me and then prepare and give to customer.
I presume there is zero risk in this, as I have read horror stories.
Obviously I won’t release until I have cleared funds.
He does want me to sign an agreement to allow him to advertise it, although I will read it carefully.
Thank you.
I’m selling my 70 plate Macan.
A dealer contacted me and said he can sell it on a SOR basis, however I keep the car. It’s pretty much in mint condition. If he has a customer, then he will take deposit, buy car from me and then prepare and give to customer.
I presume there is zero risk in this, as I have read horror stories.
Obviously I won’t release until I have cleared funds.
He does want me to sign an agreement to allow him to advertise it, although I will read it carefully.
Thank you.
Porsche dealers are offering 52
Cazoo is offering 53
Indies are offering 55
It’s 11 months old, only done 1650 miles and has £9k in options.
Brand new with same options it is 60k and a 9 month wait.
Dealer believes he can high 50s for me.
Just wanted to see if there is any risk, as I’m keeping car, he’s just advertising and selling for a commission.
Cazoo is offering 53
Indies are offering 55
It’s 11 months old, only done 1650 miles and has £9k in options.
Brand new with same options it is 60k and a 9 month wait.
Dealer believes he can high 50s for me.
Just wanted to see if there is any risk, as I’m keeping car, he’s just advertising and selling for a commission.
I feel many private customers prefer to go through a dealer?
He said he will make a small commission but most of his profit will come through financing it for the client.
I think it was a higher mileage, lower spec and older then perhaps it would not be worth it, but it’s basically brand new, so a good car for someone who doesn’t want a 9 months wait.
He said he will make a small commission but most of his profit will come through financing it for the client.
I think it was a higher mileage, lower spec and older then perhaps it would not be worth it, but it’s basically brand new, so a good car for someone who doesn’t want a 9 months wait.
vaud said:
At some point you are handing it over to the trader.
Presumably they will want to prep it before passing to the customer. Presumably the customer will only pay in full on their collection.
Unless they are paying you on collection in full, I would be very careful. Also having a contract is one thing; enforcing it can be another as it would be a civil matter.
I’m handing it over to hi, once he’s paid me the money, otherwise no chance!Presumably they will want to prep it before passing to the customer. Presumably the customer will only pay in full on their collection.
Unless they are paying you on collection in full, I would be very careful. Also having a contract is one thing; enforcing it can be another as it would be a civil matter.
vaud said:
Possibly just the cash exposure.
£50k exposure for 3 days with a customer lined up who has paid a deposit is different to £50k speculative purchase for stock?
I actually asked him to buy it at a slightly lower price, but as you said, it’s using up capital exposure.£50k exposure for 3 days with a customer lined up who has paid a deposit is different to £50k speculative purchase for stock?
I suppose the agreement is there so if he does sell it for say the agreed 61 and takes the deposit, then I’m obligated to sell it to him for say 59.
Otherwise I could back out I guess.
Let’s see what it says.
Wacky Racer said:
How does the dealer know:-
a) His customer requires finance?
b) They are going to get the finance from them?
Very true…..anyway if there is anything not right with the agreement then I’ll hold off and keep going down the private route, and if it doesn’t sell then I’ll keep hold.a) His customer requires finance?
b) They are going to get the finance from them?
vaud said:
Or he/she is just derisking… find stock, find client and then just minimise the exposure.
Exactly - I have made it clear that the car will only be let go once clear funds in my account. He will advertise it, find customer etc….probably take 1k and then once he has deposit, will come and pay and collect car.I think with an 11 month old Macan with only 1.5k on the clock (2yr OPC warranty) it’s an easy way to do it.
Fat hippo said:
Personally I’d be uncomfortable with this sort of arrangement after reading horror stories.
Although you sat you wouldn’t hand over the car until you get the cash, when does legal title pass to the trader?
I thought (and could be wring), but once you sign the SOR agreement you are essentially handing legal title to the dealer. The dealer then owes you an amount equal to the agreed value of the car and it is part of his stock.
However, if he goes bust, the car technically belongs to him and you are an unsecured creditor.
The fact that the car and keys are still with you may not make much difference.
I could be wrong on my understanding, and happy to be so. But for me i’d go for a clean sale with WBAC, Cazoo etc
I’ll be reading the agreement very carefully and if there is anything to what you mention above then I won’t sign. I just want to give him permission to advertise it….will clarify tomorrow as he’s coming over to take photos etc….Although you sat you wouldn’t hand over the car until you get the cash, when does legal title pass to the trader?
I thought (and could be wring), but once you sign the SOR agreement you are essentially handing legal title to the dealer. The dealer then owes you an amount equal to the agreed value of the car and it is part of his stock.
However, if he goes bust, the car technically belongs to him and you are an unsecured creditor.
The fact that the car and keys are still with you may not make much difference.
I could be wrong on my understanding, and happy to be so. But for me i’d go for a clean sale with WBAC, Cazoo etc
Can someone please advise that if I sign a Sale or Return Agreement, irrespective of me keeping hold of the car, then legally I am passing legal title to dealer and the car is part of his stock….just being held at my address?
If this is the case then I won’t be going ahead or he would have to be happy with a simple letter asking him to advertise the car and sell it at a given price?
If this is the case then I won’t be going ahead or he would have to be happy with a simple letter asking him to advertise the car and sell it at a given price?
Indeed, but someone mentioned on another thread that an SOR agreement could be passing legal title to dealer, irrespective of whether the car is in his garage or in mine. Just wanted to know legally where I stand. I was hoping that if I keep hold then and he has “sold” it or taken a deposit, I don’t have to release it to him until I receive funds.
BlackWidow13 said:
Ignore what someone else said about the effect of an agreement that they haven’t read or seen.
What. Does. The. Agreement. Say?
Very simple question. You were asked for it twice in your other thread and said that you’d read it carefully. If you’re now asking for advice again, see the line above.
He is coming over tomorrow to take photos and a video of the car and will then give / email it to me.What. Does. The. Agreement. Say?
Very simple question. You were asked for it twice in your other thread and said that you’d read it carefully. If you’re now asking for advice again, see the line above.
I’m going to tell him when he comes over that I won’t be signing a sale or return agreement, simply because it will probably say in it that I agree to leave the car with the dealer for a given period of time etc….which I don’t.
If he wants to work on commission then an email or letter from me will have to suffice that he can advertise it for a given price.
If he wants to work on commission then an email or letter from me will have to suffice that he can advertise it for a given price.
I’m going to tell him when he comes over that I won’t be signing a sale or return agreement, simply because it will probably say in it that I agree to leave the car with the dealer for a given period of time etc….which I don’t.
If he wants to work on commission then an email or letter from me will have to suffice that he can advertise it for a given price.
If he wants to work on commission then an email or letter from me will have to suffice that he can advertise it for a given price.
vaud said:
It could be that the trader just wants to reduce their exposure. Once they have a fully qualified customer, who has taken out finance (or has committed to) then he will buy the car from the OP, prep it, etc and turn everything around in a few days, instead of 50k of stock sitting on a forecourt. 50k tied up for 7 days instead of weeks?
This is exactly that….it’s not as if it’s a 3 year old car, it’s only done 1650 miles and is less than a year old hence why the potential buyer will not need to test drive etc.I objected to sale or return, and just want him to advertise. He will take 1k if it sells and hopefully he will make something in the finance.
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