Pitfalls of Sale or Return (S.O.R)

Contigo

Sponsor
Messages
18,376
Had a long chat with a friend about S.O.R with a specialist or MD and the horror stories came up of unfortunate people who have in the past been burnt by the bankruptcy or liquidation of a car salesroom whilst they had many peoples cars on S.O.R basis and resulted in folk actually losing the full value of the car or a large portion of it.

We don't know how close any garage is to closing their doors and filing for bankruptcy so do make sure if you go down the route of S.O.R that there is a valid agreement signed which mitigates any risk of losing your vehicle. If you have any doubts about the authenticity and validity of said agreement then seek legal advice.

On the other hand it also pays to do due diligence on anything we are buying to prevent us from buying stolen goods. These crooks have no conscience and would willingly sell us someone else's car! :(

Here's one story which needs to be a lesson for all.

http://www.manchestereveningnews.co...ockport-police-seized-stolen-porsche-12038164

http://www.manchestereveningnews.co...video-luxury-cars-including-ferraris-10333193


Also a steal back scam from a BMW main dealer salesperson.

http://www.dailymail.co.uk/news/article-4792988/BMW-salesman-steal-scam-jailed-5-years.html
 

hilts uk

Member
Messages
945
I bought an Aston DB7 20 yrs ago from a dealer. A week later I was arrested and my car impounded. The owner had placed it as SOR and the dealer shut down before he got the cash. He triggered the tracker and I was pulled. 6 month legal fight but I got the car back from the police lock up minus the badges and with an empty tank. The garage owner did a runner after seeing dozens of cars this way and was jailed. Technically the title should remain with the seller but there is a loophole as he had finance on the car so he lost £75k and not me. I always ask before buying if it's SOR and would want to see proof they have authority to sell.

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mjheathcote

Centenary Club
Messages
9,033
Didn't we have a thread running on SK Performance Cars with a forum owners car going missing that was on SOR?
 

Contigo

Sponsor
Messages
18,376
Yes but I don't want to dig all that up for said member thanks.

This isn't aimed at anyone just a reminder of what can happen!
 

Wack61

Member
Messages
8,764
On pistonheads a guy bought a Bentley for 25k then found out the service history has been fabricated so he's gone back to the dealer who is attempting to wash his hands of it as it was a customers car on SOR

I wonder how your consumer rights work in these situations, unless they specifically tell you it's not their car how would you know
 

CatmanV2

Member
Messages
48,557
On pistonheads a guy bought a Bentley for 25k then found out the service history has been fabricated so he's gone back to the dealer who is attempting to wash his hands of it as it was a customers car on SOR

I wonder how your consumer rights work in these situations, unless they specifically tell you it's not their car how would you know

My guess would be the dealer is liable Especially if the buyer has a receipt from the dealer.

C
 

iainw

Member
Messages
3,386
Another advert for main dealer purchases - or personally well known such as RG and Nareman.
Following my recent purchase from a main dealer in birmingham , I have to say the service has been exemplarly and really reinforced the need for high value prestige purchases to be via such people.
Their prices are actually very competitive vs other trade sales, and come with 2 year warranty. I have been converted.
 
Messages
1,687
Another consequence would be difficulties with US immigration, should you want to travel to the US. I'm not an expert and I don't speak from experience, but I wouldn't like to have to choose between declaring the arrest and attempting to persuade the US authorities to set it aside. Or not declare it and risk it being on their database, being detained on entry, deported via the next plane home and permanently refused entry.
 

voicey

Member
Messages
660
SoR can be a real minefield. Before placing your car with an agent, you really need to sure of their solvency. There should also be a written agreement detailing how the sale process is going to work. Also ask to see proof of insurance.

A couple of additional things that we do are..

a) Provide remote access to our workshop security camera so the client can actually see their car.
b) Operate a separate client money account (that we can show the statements if people are interested). The deposit and payment are placed in this account. Once the car ownership has been transferred the money is paid to the seller and then we take our fee from what is left. This means that there is no co-mingling of funds between the sale money and our business operating cash.

If you're buying an SoR car then be sure how it is being sold. I know of a few well known Ferrari specialists that sell them as private sales! Needless to say, all of our cars are sold with the full protection of consumer law.
 

allandwf

Member
Messages
10,958
Spoke to a garage about a possible deal once, when asked if I wanted them to sell my car for me, or take it in px. I said no to sor. That was the end of that.
 

hilts uk

Member
Messages
945
It's high risk and I would only SOR with a long established dealer or franchise. If it goes wrong someone will lose the value of a car and even if u get the car money back the stress and cost is massive.

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JonW

Member
Messages
3,259
I’ve sold two of my former cars on a SOR Scheme with a local car dealer, and in both cases it definitely saved me a bunch of hassle, and it probably meant I got a little bit more for the car than I would have got if I’d sold them privately.

Having said that, I was pretty nervous about doing it with the 2nd car, which was a 335i convertible, and I don’t think I would would have done if I didn’t completely trust the dealer (based on my experience the first time, and their local reputation)....
 

rockits

Member
Messages
9,167
WBAC doesn't sound so bad sometimes for some people looking for a quick sale.

I think all ways of buying & selling have a certain amount of risk. Even a new car direct from a main dealer does. Nothing is perfect but some are certainly better than others. I have mainly bought cars privately or from dealers I know or where it was for a value of car that was so low it was less relevant. When buying it has often been a car I have done a fair amount of research on. It is amazing how much info you can find out on the public internet these days.

SOR does seem very high risk if you don't know or trust the dealer. They could disappear tomorrow with your car & it can be out the country in 24 hours. Doesn't really matter what the law is as you then have a shed load of litigation hassle.

I wonder if it would be better if you SOR a car you had finance on.
 

CatmanV2

Member
Messages
48,557
SoR can be a real minefield. Before placing your car with an agent, you really need to sure of their solvency. There should also be a written agreement detailing how the sale process is going to work. Also ask to see proof of insurance.

A couple of additional things that we do are..

a) Provide remote access to our workshop security camera so the client can actually see their car.

Great idea, Voicey, but highly risky depending on what else you have connected to that network. Like the computer you use to do you banking, for example.

If you'd like I can give the setup a quick once open, and possibly suggest something a little harder?

C
 

hilts uk

Member
Messages
945
The irony is that if u buy a SORN car and it has finance which u didn't know about then the car is yours even if the seller doesn't get paid and didn't approve the sale. You are protected under consumer credit rules. This is why I got my car back. If I had carried out a credit search the car would have gone back to the seller. It's a minefield really.

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