SOR = Waste of Time?
Discussion
Does anyone benefit from this or is it just a way for dealers to make the same markup without the risk of tying up their money in the car? For example, if a car has a retail price of £80k and the dealer wants £5k for his trouble and another £3-4K(or more depending on how much he wants to fleece you) to prep the car, wouldnt it be just as easy to sell it privately at £70k? (ie Trade). Either way you will only get back trade price? See where I am going with this...?
In theory it should be a win-win for the dealer but in reality if a punter comes in to the showroom he is going to try to sell that punter one of his cars and get his own money back.
Even if that punter came in to see the SOR car
He has less vested interest in selling a car that has cost him nothing.
Even if that punter came in to see the SOR car
He has less vested interest in selling a car that has cost him nothing.
Ive just collected my brothers R8 which he gave back to the supplying Audi dealer 3 months ago on SOR.It was virtually a new car and had only done around 500 miles when it was dropped off.
When I arrived to collect it,it was parked in the furthest away parking space round the back of the dealership,they hadnt even prepped the car as it had marks off peoples shoes on the sill from getting in and out,and also marks on the carpet and leather.
Worst of all though the odometer was showing nearly 1000 miles.
In the time the dealership had the car I reckon it has depreciated over £10k,and it does not look to me as if they have made any effot to sell it.
When I arrived to collect it,it was parked in the furthest away parking space round the back of the dealership,they hadnt even prepped the car as it had marks off peoples shoes on the sill from getting in and out,and also marks on the carpet and leather.
Worst of all though the odometer was showing nearly 1000 miles.
In the time the dealership had the car I reckon it has depreciated over £10k,and it does not look to me as if they have made any effot to sell it.
Calculator said:
Sorry to move O/T but why did he want rid after 500miles?
Was probably hoping to get in on the 'overs' market.My view on SOR is people only give their cars to dealers when they have been kicked in the nuts with their p/x price, I think rather than have to realise their loss it is easier for them to let the dealer have a go at it and hope to take a bit more back; although I would imagine this rarely happens. There are also quite a few dealers out there who trade in high end vehicle's but own virtually zero stock, so they would probably take a smaller 'cut' in order to have a higher profile of stock.
matc said:
Calculator said:
Sorry to move O/T but why did he want rid after 500miles?
Was probably hoping to get in on the 'overs' market.My view on SOR is people only give their cars to dealers when they have been kicked in the nuts with their p/x price, I think rather than have to realise their loss it is easier for them to let the dealer have a go at it and hope to take a bit more back; although I would imagine this rarely happens. There are also quite a few dealers out there who trade in high end vehicle's but own virtually zero stock, so they would probably take a smaller 'cut' in order to have a higher profile of stock.
Not a car, but my tale of woe:-
Bought a new Triumph Bonneville from a large long established Triumph main dealer last year for £5500k
This dealer probably carries £1m of stock.
As I then got a good deal on a new Harley Davidson somewhere else, and did not want two bikes, I agreed that the Triumph dealer could put my mint Bonneville.....(373 miles from new) in his showroom at £4699, on SOR and keep £300 for himself. I left all the documents with them too........
They sold the bike the next day for full whack, to a guy to took it back home to Ireland.
I did not even know he had sold it, until the buyer telephoned me to ask a question about it three weeks later
I rang the dealer and said "What's going on, where's my dosh??"
Four weeks and ten/twelve irate phone calls later a cheque arrived.......
Never again.
Bought a new Triumph Bonneville from a large long established Triumph main dealer last year for £5500k
This dealer probably carries £1m of stock.
As I then got a good deal on a new Harley Davidson somewhere else, and did not want two bikes, I agreed that the Triumph dealer could put my mint Bonneville.....(373 miles from new) in his showroom at £4699, on SOR and keep £300 for himself. I left all the documents with them too........
They sold the bike the next day for full whack, to a guy to took it back home to Ireland.
I did not even know he had sold it, until the buyer telephoned me to ask a question about it three weeks later
I rang the dealer and said "What's going on, where's my dosh??"
Four weeks and ten/twelve irate phone calls later a cheque arrived.......
Never again.
Wacky Racer said:
Not a car, but my tale of woe:-
Bought a new Triumph Bonneville from a large long established Triumph main dealer last year for £5500k
This dealer probably carries £1m of stock.
As I then got a good deal on a new Harley Davidson somewhere else, and did not want two bikes, I agreed that the Triumph dealer could put my mint Bonneville.....(373 miles from new) in his showroom at £4699, on SOR and keep £300 for himself. I left all the documents with them too........
They sold the bike the next day for full whack, to a guy to took it back home to Ireland.
I did not even know he had sold it, until the buyer telephoned me to ask a question about it three weeks later
I rang the dealer and said "What's going on, where's my dosh??"
Four weeks and ten/twelve irate phone calls later a cheque arrived.......
Never again.
Could have been worseBought a new Triumph Bonneville from a large long established Triumph main dealer last year for £5500k
This dealer probably carries £1m of stock.
As I then got a good deal on a new Harley Davidson somewhere else, and did not want two bikes, I agreed that the Triumph dealer could put my mint Bonneville.....(373 miles from new) in his showroom at £4699, on SOR and keep £300 for himself. I left all the documents with them too........
They sold the bike the next day for full whack, to a guy to took it back home to Ireland.
I did not even know he had sold it, until the buyer telephoned me to ask a question about it three weeks later
I rang the dealer and said "What's going on, where's my dosh??"
Four weeks and ten/twelve irate phone calls later a cheque arrived.......
Never again.
A friend of mine gave a car to a dealer on SOR and after weeks of chasing payment the cheque bounced and the dealer from Silverstone has doe a Reggie Perrin.
£6000 ish down the swannie!
odyssey2200 said:
Could have been worse
A friend of mine gave a car to a dealer on SOR and after weeks of chasing payment the cheque bounced and the dealer from Silverstone has doe a Reggie Perrin.
£6000 ish down the swannie!
There's a certain used car dealer (still in the industry incredibly) who went to the wall owing over three quarters of a million pounds to their creditors. There were stories of SOR cars having been sold TWICE over, and neither of the owners getting a penny!A friend of mine gave a car to a dealer on SOR and after weeks of chasing payment the cheque bounced and the dealer from Silverstone has doe a Reggie Perrin.
£6000 ish down the swannie!
jleroux said:
odyssey2200 said:
Could have been worse
A friend of mine gave a car to a dealer on SOR and after weeks of chasing payment the cheque bounced and the dealer from Silverstone has doe a Reggie Perrin.
£6000 ish down the swannie!
There's a certain used car dealer (still in the industry incredibly) who went to the wall owing over three quarters of a million pounds to their creditors. There were stories of SOR cars having been sold TWICE over, and neither of the owners getting a penny!A friend of mine gave a car to a dealer on SOR and after weeks of chasing payment the cheque bounced and the dealer from Silverstone has doe a Reggie Perrin.
£6000 ish down the swannie!
If you have a good relationship with the dealer, it can work out quite well. Frankly I'd rather not deal with the usual tyre kicking knob jockeys that supercars tend to attract like flies round s
t when they go up for sale privately.
I'd be the last one to big up dealers and the margins they make. But when you consider the amount of time and effort that could potentially go into selling something like this, their margins are soon at risk.
btw, I'm not a dealer, nor affiliated to one. I did, however, sell a car in this way just under 2yrs ago. It was arguably "high mileage" for the marque but returned a very fair price because it was a good car that had had most of its upkeep done by the dealer who sold it (he knew the marque, knew the model and knew that this one was a good car you see).
t when they go up for sale privately.I'd be the last one to big up dealers and the margins they make. But when you consider the amount of time and effort that could potentially go into selling something like this, their margins are soon at risk.
btw, I'm not a dealer, nor affiliated to one. I did, however, sell a car in this way just under 2yrs ago. It was arguably "high mileage" for the marque but returned a very fair price because it was a good car that had had most of its upkeep done by the dealer who sold it (he knew the marque, knew the model and knew that this one was a good car you see).
The credit issue is certainly one to be aware of. I would have thought that with a proper SOR agreement and by retaining the V5, that the garage would never gain legal title to the car, nor would a purchaser, in the event they went bust. Still wouldn't want to fight it out though.
In terms of experience, I used Saffrons to sell my Porsche 997 GT2 and I know many friends have sold other cars (Porsche, Ferrari and Lambo) through them on SOR. This worked very well for us both. Yes it means they don't finance the car/take the risk, but they take a much lower commission than a dealer bid/offer and they are able to advertise, filter buyers, save hassle and also offer part-ex and finance, without which many cars do not sell.
I've also sold cars privately myself and my experience is that it is a lot of hassle at the high end of the market and as for getting dealer bids for an outright sale currently - good luck on anything, every dealer I know of in just about every marque has got the chequebooks locked firmly in the safe.
In terms of experience, I used Saffrons to sell my Porsche 997 GT2 and I know many friends have sold other cars (Porsche, Ferrari and Lambo) through them on SOR. This worked very well for us both. Yes it means they don't finance the car/take the risk, but they take a much lower commission than a dealer bid/offer and they are able to advertise, filter buyers, save hassle and also offer part-ex and finance, without which many cars do not sell.
I've also sold cars privately myself and my experience is that it is a lot of hassle at the high end of the market and as for getting dealer bids for an outright sale currently - good luck on anything, every dealer I know of in just about every marque has got the chequebooks locked firmly in the safe.
Be very wary ...had a CL500 on SOR with the dealer I bought it from 2 years ago .....he sold it ...gave me a rubber cheque.....ends up me £30k down and him walking away scott feckin free as it is 'a civil issue sir' ......oh and as the CPS class it as 'theft by deception' ..means you cant claim on your insurance....nice!!
Sir Snaz said:
Be very wary ...had a CL500 on SOR with the dealer I bought it from 2 years ago .....he sold it ...gave me a rubber cheque.....ends up me £30k down and him walking away scott feckin free as it is 'a civil issue sir' ......oh and as the CPS class it as 'theft by deception' ..means you cant claim on your insurance....nice!!
Excuse my ignorance, how can it be a civil issue and theft by deception?An infamous dealer in recent years would, sequentially, take cars in SOR, use them for his own 'big I am'ness and then sell them...
He'd either under pay the owner, cause the buyer to accept less than was planned due to a 'difficult' sale, or more than once cease trading and leave the real owner with no funds to show...
Said dealer is still squirming away, somewhere - please check old postings here on PH and Ferrari chat for
with various additions the old name of this dealer translates from Italian to English as red race
He'd either under pay the owner, cause the buyer to accept less than was planned due to a 'difficult' sale, or more than once cease trading and leave the real owner with no funds to show...
Said dealer is still squirming away, somewhere - please check old postings here on PH and Ferrari chat for
with various additions the old name of this dealer translates from Italian to English as red race
Edited by XXVIII on Monday 13th October 11:47
AndrewD said:
Sir Snaz said:
Be very wary ...had a CL500 on SOR with the dealer I bought it from 2 years ago .....he sold it ...gave me a rubber cheque.....ends up me £30k down and him walking away scott feckin free as it is 'a civil issue sir' ......oh and as the CPS class it as 'theft by deception' ..means you cant claim on your insurance....nice!!
Excuse my ignorance, how can it be a civil issue and theft by deception?XXVIII said:
An infamous dealer in recent years would, sequentially, take cars in SOR, use them for his own 'big I am'ness and then sell them...
He'd either under pay the owner, cause the buyer to accept less than was planned due to a 'difficult' sale, or more than once cease trading and leave the real owner with no funds to show...
Said dealer is still squirming away, somewhere - please check old postings here on PH and Ferrari chat for
with various additions the old name of this dealer translates from Italian to English as red race
I thought the police were investigating him..........He'd either under pay the owner, cause the buyer to accept less than was planned due to a 'difficult' sale, or more than once cease trading and leave the real owner with no funds to show...
Said dealer is still squirming away, somewhere - please check old postings here on PH and Ferrari chat for
with various additions the old name of this dealer translates from Italian to English as red race
Edited by XXVIII on Monday 13th October 11:47
Gassing Station | Supercar General | Top of Page | What's New | My Stuff