Robertb said:
What is the legal position on buying a car in good faith on SOR when the money has not been passed to the seller by the dealer?
Effectively the car has been stolen, no?
This is the trouble with SOR arrangements.
When the dealer sells, the end user can be exposed as the dealer does not have clear title at the point of sale. Same principle applies with car finance. The finance company owns the vehicle so if the vehicle is traded in as a part exchange but the dealer fails to settle the finance, when the car is sold it still belongs to the finance company and can be recovered. Difference is an HPI due diligence check will flag up a car on finance but not a car on SOR (unless it is manufacturer supplied to dealer in which case they mark it with an alert).
With regards to brokers, paperwork/contracts are key. A broker is effectively acting as a 'middleman' and assisting with the sale from the seller to the new owner, a percentage of the sale price or a fixed fee is factored within the broker's/seller's contract. They handle the transaction on behalf of the seller.
People have been caught wide open on this from legitimate dealers purchasing stock within the trade (from other traders) which hasn't been paid for to customers being able to display their cars on a dealers forecourt on SOR basis with no paperwork.
Have come across it loads of times even helped a customer who was being taken to court by a finance company for non payment of arrears when their car was displayed on an independent trader's forecourt and he had 'promised' to settle her finance..
Unless they are absolutely dependable I would steer well clear personally
:thumb: