Avoiding risk at sale time ?

[Tony333]

[FONT=calibri"]Hi All,

[FONT=calibri"]When you have been selling your car for a six figure price tag, how have you protected the transaction?

[FONT=calibri"]Imagine the hypothetical situation where a dealer has your car in their showroom, is trying to sell your car on your behalf, finds a buyer, the buyer pays the dealer in full and drives the car away then… the dealer goes bankrupt (or runs off with the dosh) BEFORE he pays you. In that scenario you would end up with no car and no money.
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[FONT=calibri"]Is there any type of insurance which can be taken out to protect against this kind off loss or fraud?
[FONT=calibri"]
[FONT=calibri"]Is there any kind of legal mechanism – a bit like when you sell and buy a house – where a solicitor can act as a middle man in the car sale transaction?
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[FONT=calibri"]or is it just a case of finding a dealer who is 100% trustworthy?
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[FONT=calibri"]Any ideas?
[FONT=calibri"]
Tony.

 

[clubsport]

I think you need an escrow!

I bought a car once this way where I had to pay for it before delivery, the escrow service was less than £100 from memory.

Basically, you need to receive payment before the car is taken away, so the funds are transferred via a solicitor rather than direct to the selling dealer.

Here is a link; I have no connection to the company or ever heard of them, but it should give you a better idea of the process.

https://escrow.com/services/vehicle-escrow.aspx

 

[Essential]

But that still requires the dealer to be trustworthy?

Dealer selling the the car can advise where the funds are to be sent to?

im

 

[clubsport]

I assumed you would wait until the solicitor had received the cleared funds before you surrendered the ownership of the vehicle, with the V5 to receive payment.
Isn't this similar to a UK house purchase, they won't let you have the keys unless you have actually produced the funds, again with the conveyancing solicitor as the intermediary.
I can see potential problems if you leave the car with a dealer and especially the V5 (why?). If he sells the car, takes the money directly and says the V5 is on it's way that could be an issue!
It's not easy, clearly some used car dealers are not as honest as others! Reputation is not set in stone, but in this instance past practice is about as much as you can go with.
Selling through a reputed specialist, an escrow and common sense should help to minimize, rather than eliminate the risk.

What happened to Tony333, asks a question and disappears?[8D]

 

[Essential]

V5 is not proof of ownership

 

[clubsport]

Agreed, V5 shows registered keeper.

Again common sense required, I always ask if the person selling the car has title to do so.I would suggest that an Hpi would show any outstanding lien on the vehicle.

I only responded to this thread on the basis that I had used an Escrow myself and it could well reduce some of the risk, which was the original question.

Mike as a trader is second hand Porsche and a respondent to this thread maybe you could add some value with how you
approach SOR?

 

[Essential]

Hobby business and rather not SOR cars. Usually more hassle than it's worth. seller wont usually want to prep the car before sale and harder to agree a deal if have to go back to the owner with any offers etC. Prefer to own the stock.