SOR - Risk if dealer has my car and goes bust?

[Edmundo2]

As per the title. If selling a car via SOR, what happens if the dealer you use goes into administration whilst in procession.of your car?

I'm contemplating this option and obviously will choose a reputable outfit but have heard of the odd situation where this has happened and customers have struggled to get their car/money back, ( Specialist Cars of Malton being an example ).

Are you covered in anyway?

I assume I need to notify my insurer even.tjough my car would be covered for damage/theft etc by the dealers I surface whilst in.their procession?

Thanks for any info.

Ed

[Monkeylegend]

The safest way is for you to keep the car and take it in for viewing when they have somebody interested..

I have seen companies advertise this for SOR, to remove the risk of you having issues getting the car back if they did have trading problems.

[Hoofy]

The problem is when reputable dealers don't reveal that they're struggling. I guess you can check their accounts on Companies House.

You may not lose the car if a business goes under but you may find it difficult to get your car back.

Monkeylegend said:

The safest way is for you to keep the car and take it in for viewing when they have somebody interested..

I have seen companies advertise this for SOR, to remove the risk of you having issues getting the car back if they did have trading problems.

That's a good idea assuming they would do that. I guess then the company is essentially charging an introduction fee. Wonder how it works with insurance for the test drive.

[Monkeylegend]

Hoofy said:

The problem is when reputable dealers don't reveal that they're struggling. I guess you can check their accounts on Companies House.

You may not lose the car if a business goes under but you may find it difficult to get your car back.

Monkeylegend said:

The safest way is for you to keep the car and take it in for viewing when they have somebody interested..

I have seen companies advertise this for SOR, to remove the risk of you having issues getting the car back if they did have trading problems.

That's a good idea assuming they would do that. I guess then the company is essentially charging an introduction fee. Wonder how it works with insurance for the test drive.

I assume the insurance situation is the same as a private buyer looking and test driving.

I seem to remember a thread on here some time ago about a company doing that very thing but can't recall who it was now.

[Hoofy]

Monkeylegend said:

I assume the insurance situation is the same as a private buyer looking and test driving.

I seem to remember a thread on here some time ago about a company doing that very thing but can't recall who it was now.

Really? How does it work for normal SOR where the owner isn't present?

[Monkeylegend]

Hoofy said:

Monkeylegend said:

I assume the insurance situation is the same as a private buyer looking and test driving.

I seem to remember a thread on here some time ago about a company doing that very thing but can't recall who it was now.

Really? How does it work for normal SOR where the owner isn't present?

Kerridges sold my Griffith on SOR and the car was covered on their trade insurance while they were selling it so effectively treating it like any other car they had for sale.

[Hoofy]

Monkeylegend said:

Hoofy said:

Monkeylegend said:

I assume the insurance situation is the same as a private buyer looking and test driving.

I seem to remember a thread on here some time ago about a company doing that very thing but can't recall who it was now.

Really? How does it work for normal SOR where the owner isn't present?

Kerridges sold my Griffith on SOR and the car was covered on their trade insurance while they were selling it so effectively treating it like any other car they had for sale.

Ah, right, I'm with you now.

[alscar]

As you say picking the right dealer is paramount.
They should insure your car and quite possibly depending on value there may not be even be test drives to worry about.
I would notify your insurer in any event of the cars change in location.
However if the dealer goes into admin or whatever just because it’s insured via yourself may not protect you financially.
You could just obviously check this aspect with both Insurers but I guess remains the biggest worry of SOR.
Do your own research carefully.
I’ve done it twice with absolutely no issues or regrets but knew both companies well.

[Some Gump]

I wouldn't with a long pole.

Remember Verdi?

From memo of that thread, that was worse than going into receivership and struggling to get the car back from the forecourt - more that cars had been sold (so new owner has legitimate title) but money gone so person with car on SOR becomes part of a long list of creditors hoping to get 20p in the pound or whatever.

Strangely, much if it seems to have been scrubbed from the web but i recall the posts from people who were in pretty dire places because of it - it was really uncomfortable reading

[Monkeylegend]

I wouldn't do it again.

I dealt with Kerridges about 12 years or so ago and they were very honest and upfront, and never in my thoughts did I think they would eventually go under.

I read somewhere in the administrators report that they found questions re car ownership when they dealt with their liquidation. Not sure if this was SOR related but it seems that not all was absolutely clear at the time.

[samoht]

Some Gump said:

Remember Verdi?

From memo of that thread, that was worse than going into receivership and struggling to get the car back from the forecourt - more that cars had been sold (so new owner has legitimate title) but money gone so person with car on SOR becomes part of a long list of creditors hoping to get 20p in the pound or whatever.

^ this

If the car's at the dealer's when they go into administration, it'll be clear that the car is still your property, and eventually you would get it back.

However most SoR dealers which are starting to struggle financially will try to keep going by extending the window between being paid for a car, and paying the previous owner, to ease cashflow. "Forget" to notify the DVLA of the change of ownership for a month, then forget to tell the owner for another month, then when they call you, promise the money and then forget to send it for another month and you're sitting on a quarter's worth of sales revenue in the bank at any one time.

The problem is that if you do then slide into bankruptcy, that's a quarter's worth of sellers who have no car and no money.

[Mr Tidy]

After reading a few horror stories I would never try SOR.

I've nearly always sold privately and never had problems doing that, apart from the usual calls from people asking what's the least I'll take! But I'm sure it's worked out better financially than paying an SOR charge.