S.O.R for the buyer

[bordseye]

Seen a car I like being sold by a small dealer on a SOR basis. Problem is that the dealers company accounts show negative equity - the company is technically insolvent. Not unusual for small companies where the capital is provided by directors loans but concerning all the same. For example, a claim for a past customer or HMRC or simply the ex wife could put the company into administration and the money from me, the buyer, might not get to the car owner.

The V50 ( or whatever number) is not proof of ownership.

If I were buying a boat, which are invariably sold on this basis second hand, the money is kept in the dealers client account and handed over when the bill of sale is signed by both seller and buyer. Is this what happens with cars?

I have never bought a SOR car before - always dealt with the owner of the car.

[Trevor555]

Make a traceable payment, ie bank transfer, debit card.

Make sure you have a proper bill of sale from the dealer.

You will then have title to the car.

If the dealer fails to pay the past owner that will be a debt between the last owner and the dealer.

And print off the dealers advert.

[bordseye]

the dealer cannot himself give a proper bill of sale for something he doesnt own

[Trevor555]

Best you buy another car somewhere else then.

[tickedon]

Pay at least some of the money to the dealer on a credit card. As long as the car cost is less than £30k, if it all goes wrong, your credit card company would be jointly liable to refund the whole payment (not just whatever amount you paid on your credit card).

[ZX10R NIN]

Talk to the dealer I've had similar situations where the dealer is happy for the buyer to pay the owner direct with the dealers fee being paid direct to them.