SOR with a dealer - how do you protect yourself
Discussion
So long as you hold the V5 form and correspondence that they are holding the car to your order and that title is with you, then any claim from a liquidator/ trustee in bankruptcy to the asset can be easily defeated and it is quite common for a car dealership to hold assets in trust for others. So I don't see an issue there.
However, if they apply for a new V5 behind your back and sell it, then there could be issues in recovering the car/monies. In some ways, if there was a finance agreement on the car you would be altered as soon as someone tried to clear or make enquiries on the finance as the finance company would contact you. This of course would be fraud and the individuals would be open to a criminal prosecution regardless of whether it was done through a limited company.
As is clearly stated on the V5 form it is not proof of ownership and in the circumstances I have outlined above you would recover the car from the unfortunate purchaser who would then have to claim against the garage/individuals that "sold" the car to them
However, if they apply for a new V5 behind your back and sell it, then there could be issues in recovering the car/monies. In some ways, if there was a finance agreement on the car you would be altered as soon as someone tried to clear or make enquiries on the finance as the finance company would contact you. This of course would be fraud and the individuals would be open to a criminal prosecution regardless of whether it was done through a limited company.
As is clearly stated on the V5 form it is not proof of ownership and in the circumstances I have outlined above you would recover the car from the unfortunate purchaser who would then have to claim against the garage/individuals that "sold" the car to them
Best way to protect your car is to not put it on SOR in the first place, unless they are a main dealer or extremely well respected indy. I speak from personal experience having almost lost a car...
Even the reputable dealerships have gone under and ran away with the sale proceeds, check out Gmund.
Even the reputable dealerships have gone under and ran away with the sale proceeds, check out Gmund.
Shaoxter said:
Best way to protect your car is to not put it on SOR in the first place, unless they are a main dealer or extremely well respected indy. I speak from personal experience having almost lost a car...
Even the reputable dealerships have gone under and ran away with the sale proceeds, check out Gmund.
Personally I’m the same. I just don’t take the risk. Especially in the current climate if not be taking a risk. Even the reputable dealerships have gone under and ran away with the sale proceeds, check out Gmund.
Chamon_Lee said:
Shaoxter said:
Best way to protect your car is to not put it on SOR in the first place, unless they are a main dealer or extremely well respected indy. I speak from personal experience having almost lost a car...
Even the reputable dealerships have gone under and ran away with the sale proceeds, check out Gmund.
Personally I’m the same. I just don’t take the risk. Especially in the current climate if not be taking a risk. Even the reputable dealerships have gone under and ran away with the sale proceeds, check out Gmund.
So I negotiated a slightly lower purchase price so the dealer could buy it from me.
May have lost out on a potential grand or two in my pocket, but happy to avoid the faff, risk, delays etc with a clean deal.
Baldchap said:
jason61c said:
they never own the car, its the same as having your own car parked at a dealer. Just keep the V5, a letter stating that they have zero ownership of the car.
This. At no point is it theirs so any administrators can't take ownership of it/sell it/whatever. Gassing Station | Car Buying | Top of Page | What's New | My Stuff