Buying a car that is registered to a company
Discussion
Hi guys
Im going to see a car tomorrow.
The person selling it says its registered to a car company that repairs cars. he used to work there as a mechanic. And did it to save insurance costs.
My worry is he allowed to sell it? whens a car registered to a company, is it the company name only on the logbook, or will it have a persons name on it it?
Is it safe to buy like this? whats the norm when buying a car that is registered to a company.
Thanks
Im going to see a car tomorrow.
The person selling it says its registered to a car company that repairs cars. he used to work there as a mechanic. And did it to save insurance costs.
My worry is he allowed to sell it? whens a car registered to a company, is it the company name only on the logbook, or will it have a persons name on it it?
Is it safe to buy like this? whats the norm when buying a car that is registered to a company.
Thanks
CanAm said:
OldGermanHeaps said:
insurance is usually way more expensive when a car is registered to a ltd company.
Not if it's a 17 year old mechanic trying to insure a Golf R, for example. Lots of dodgy dealings go on with motor trade policies. None of them work directly for his business, they all sub contract and invoice as either sole traders or ltd’s in their own right
This begs the wider question of how you ever know that the person to whom you are paying the money has the right to sell the car.
Sure it gives you some comfort if the seller is the person named on the V5 - or at least if the seller says he is that person.
What if in this case the seller is selling a car that really belongs to his employer? What if a father is selling a car that really belongs to his son because he wants the car off the drive or his son owes him money? What if it's a naive son selling his father's car while his parents are on holiday? What if it's a husband selling a car that forms part of his ex-wife's divorce settlement?
All of these may appear far fetched but none is more unlikely than the others.
The simple answer in any of these cases is to get a receipt which names the seller, and to see proof of ID for that person - a driving licence for example.
Car thieves don't usually provide receipts and proof of ID.
You could ask for something from the company which states that they have no financial interest in the car, but this will make completing the transaction potentially longwinded. I also suspect that this situation has arisen because the person selling the car has bought the car at an advantageous price and may not wish the company to know that he is flipping it for a profit, hence he will be reluctant to do this.
Sure it gives you some comfort if the seller is the person named on the V5 - or at least if the seller says he is that person.
What if in this case the seller is selling a car that really belongs to his employer? What if a father is selling a car that really belongs to his son because he wants the car off the drive or his son owes him money? What if it's a naive son selling his father's car while his parents are on holiday? What if it's a husband selling a car that forms part of his ex-wife's divorce settlement?
All of these may appear far fetched but none is more unlikely than the others.
The simple answer in any of these cases is to get a receipt which names the seller, and to see proof of ID for that person - a driving licence for example.
Car thieves don't usually provide receipts and proof of ID.
You could ask for something from the company which states that they have no financial interest in the car, but this will make completing the transaction potentially longwinded. I also suspect that this situation has arisen because the person selling the car has bought the car at an advantageous price and may not wish the company to know that he is flipping it for a profit, hence he will be reluctant to do this.
eltax91 said:
This. My mate runs a small building firm. Half his regular subbies slip him cash on the side (or do uninvoiced work) to have their vans on his fleet policy cos it works out much cheaper.
None of them work directly for his business, they all sub contract and invoice as either sole traders or ltd’s in their own right
I can see that being an issue come claims time.None of them work directly for his business, they all sub contract and invoice as either sole traders or ltd’s in their own right
Looked into insuring a van that would be owned by me but not registered to me recently and its an utter minefield.
Ltd Company is a separate legal entity, I'd be getting written permission from a Director (and only a Director) unless the car is clearly advertised either online under the company's profile or showing as for sale on their premises.
Could be genuine, my car is on the business fleet because it costs buttons to add it on.
Could be genuine, my car is on the business fleet because it costs buttons to add it on.
Edited by ninjag on Sunday 17th March 12:54
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