Sale or return - should i do it?

[wibbleone]

I'm currently selling my Boxster and have been contacted by a local garage who are situated right opposite my local Porsche showroom

They dont want to offer cash for my car - but are offering to market it on a sale or return basis for 30 days - on the plus side they can offer people p/x and finance which in the current climate would make a sale easier - but i have a nagging doubt in the back of my mind

Has anyone good / bad experiences of sale / return

[wibbleone]

mines a 3.2s priced at £17k private sale they would market for £19k - they've offered me £16.5k - so a little over 15%

[wibbleone]

Thanks - i suppose the key is its your friend and you trust him

[littlebasher]

If it wasn't for sale or return, my friend would never have been unable to offload his RX8. Even then it took months, and the car was only 18 months old!

[Magic919]

I wouldn't as it's a risk in the current climate. I wouldn't fancy them selling the car and not paying me.

[Amused2death]

Check insurance situation re: poss customers and test drives. Where will it be kept overnight? What guarantee do you have regarding payment? i.e. if it sells, do they get the big cheque then pay you? (If they don't give you the money it's a civil issue, so may take time to get back if they get funny)

Personally it's not something I would entertain without some cast iron guarentees

[Rude-boy]

Another thing is to look carefully at the agreement in relation to any issues the buyer wants dealing with before the purchase. Fair enough if they are to come out of your respective pots 50/50 but if the dealer is agreeing to new discs and pads all round as they are 45% worn and it's coming out of your pot there could be an interesting conversation or two to be had...

[wibbleone]

Yes - getting paid is one of my concerns - i guess theres a risk if they go into administration between selling the car and paying me i'm screwed

I dont know who has legal title to the car at that point...

[Amused2death]

wibbleone said:

Yes - getting paid is one of my concerns - i guess theres a risk if they go into administration between selling the car and paying me i'm screwed

I dont know who has legal title to the car at that point...

If you have agreed to let them sell the car, it sells and they go under then you are just another creditor. If you have given them the authority to sell it then the new buyer has legal title and owns the car.

It may all go smoothly without any issue for you, and I'm certainly not saying this particular firm, whoever they are, is in any way dodgy, but it sounds full of opportunity to lose both car and cash.

[wibbleone]

Just spoke to a friend who did sale or return on his X5 - dealer sold the car, promptly went bust and left him high and dry for £40k

As there was no finance on the car the title passed to the new owner and it couldnt be reposessed - so i think the lesson is finance the car to the hilt before doign sale/return

Car auction here I come... unless anyone wants a bargain boxster

[E30M3SE]

The Crack Fox said:

Seems OK. Keep the V5 and a set of keys and make them sign to say that if they bend it, they mend own it @£16.5K.

Corrected that for you.