SOR Type Deals?)

[Cathedral Automotive 2]

Since friends/family have become aware of my new venture a couple have asked me to sell a car for them. Different reasons, one is moving and house and flat out busy running a plumbing business and the other lives away and not here much.

I was happy to help, it visually adds to my stock without me having to actually spend any money and there nice cars.

They both said from the off, don't expect me to do it for nothing, however I am struggling to work out what to charge? 

Does anyone on here have any advice, do you do a flat fee or charge a % or do I charge nothing and bank the favour and hope they send some punters my way?

Si

[MrC 142]

I stopped doing them after the new sale of good act. 

What happens 2 months down the line when the punter comes back screaming with a fault. You could end up buying back the car. 

 

Tell them to sell it themself but maybe offer advice. 

[metcars 397]

I'm with MrC. I'd spend half my time selling/sourcing cars for family and friends at "mates rates" so I don't get involved any more.

[CGF 3]

Another vote from me...it really is a potential nest of vipers that you don't need under any circumstances.

Not to mention the potentially quickest way to lose friends and make enemies.

As an aside, assuming the cars are viable retail stock for you, why not encourage them to get a valuation from WBAC, then look to step in with a (slightly) higher offer as a 'friend in the trade'?

[trade vet 703]

That's what we do.WBAC are generally easy to beat.If it's a 5 grand car e.g.,we explain and emphasise  the downside to the sales process and how we need an £800 mark up to net £250 etc.

[Trident 24]

We don't do it anymore, but when we did, we offered them trade rate when it sold, that way it was a no risk car on the forecourt for trade money, worked ok, but as usual people now want you to do all the hard graft and reap all the rewards from it... 

[Phil H 124]

You can sell SOR stock with no comeback to yourself as long as you inform the potential buyer that it's SOR and that they are buying it directly from the owner and the invoice is from the owner to the buyer and not from yourselves, then you invoice the seller whatever fee that you've agreed. 

[It's me 615]

they see it for sale and think you've trousered all the profit

not worth it

left hand and right hand never the twain to meet

guy i know sold one like this and rang his brotherinlaw up to confirm he would take a dipper on it to make a sale and car came back 3 months later with his brotherinlaw on his pitch chewing the cud

quickest way to get a broken leg i reckon

[have a word with the wife 299]

lawgistics fought one of these quite recently i recall ? bought from the sales pitch, salesmans wifes car ? car came back, bloke screamed i bought it off your sales pitch ! only thing that saved the day really is salesman proved it was his wifes by showing in court finance agreement in his wifes name [ paid] !

dont, if you could, all cars could be sold this way as a way of getting away from consumer rights......

[Cathedral Automotive 2]

Thanks gents and apologies for my delayed acknowledgement, for some reason my notifications haven't been reaching my email account?!? Anyway some valid points I hadn't considered, that being the case I am going to have a chat with them and reach a mutually beneficial agreement taking into account what you have said.

Interesting the point made about lawgistics as they actually have an SOR template in their members area for download?

Si

[Rory RSC 596]

I have just done an SOR deal for a family member on a car with manufacturer warranty on it never again for family as it has caused me far more hassle than it was worth, when I was actually trying to do them a favour. 

Sometimes you can't win 

[metcars 397]

On 18/05/2017 at 9:42 AM, Rory RSC said:

I have just done an SOR deal for a family member on a car with manufacturer warranty on it never again for family as it has caused me far more hassle than it was worth, when I was actually trying to do them a favour. 

Sometimes you can't win 

It's funny how ordinary people that no nothing about how the motor trade works still have very strong ideas about how they 'think' it works?

[Daylight 28]

I've done quite a few. What I will say is either go down the route as suggested from Lawgistics above and act as a legal agent then the CRA doesn't apply (won't stop the angry customer knocking on your door though) or take enough money out of the deal that you can back it up should you need to

[have a word with the wife 299]

On 17/05/2017 at 9:51 PM, Cathedral Automotive said:

Thanks gents and apologies for my delayed acknowledgement, for some reason my notifications haven't been reaching my email account?!? Anyway some valid points I hadn't considered, that being the case I am going to have a chat with them and reach a mutually beneficial agreement taking into account what you have said.

Interesting the point made about lawgistics as they actually have an SOR template in their members area for download?

Si

he didn't use the template maybe ?

[Fixedgear 4]

We do a lot of SOR. Normally speaking we charge £1500 inc vat based on the car selling in 30 days.

 

I have however now moved to a "we can achieve this figure for you" approach. Netting us more margin and taking the pressure off a little.

 

For the purposes of the thread, these are £40-£120k cars

[grant8064 219]

28 minutes ago, Fixedgear said:

We do a lot of SOR. Normally speaking we charge £1500 inc vat based on the car selling in 30 days.

 

I have however now moved to a "we can achieve this figure for you" approach. Netting us more margin and taking the pressure off a little.

 

For the purposes of the thread, these are £40-£120k cars

Sounds brave to me selling a 120k car to earn £1500?

[Fixedgear 4]

4 minutes ago, grant8064 said:

Sounds brave to me selling a 120k car to earn £1500?

A lot of companies are doing it for this figure. With manufacturer warranty and zero outlay, £1200 is ok.

 

We have a car at the moment, promised the customer a return of £41 and aiming to sell for 45. That's the new strategy we're now moving to.

[SC Derby 259]

The only issue with that is if you ever have a rejection under CRA - would you then have to stump up £40-£120k to buy the car back?

[Fixedgear 4]

9 minutes ago, SC Derby said:

The only issue with that is if you ever have a rejection under CRA - would you then have to stump up £40-£120k to buy the car back?

There is always risk. I guess fortune favours the brave and so far any issues we have encountered we have ironed out. A lot of our customers become friends strangely enough, it's not like we go to battle with each other like you would over a banger. In my experience, the higher value the car, the easier someone is to deal with.

[SC Derby 259]

Yeah that makes sense. I have also done a few deals like this but has been on sub £15k cars and always worked out okay so far.

At least you can give them a good going over/drive before you advertise them!

[metcars 397]

I had a family member sounding me out about getting him a car. Has to be less that 50k, no more than 2 owners, black red or silver, full history, 2008/2009. Other than that he doesnt care? I suspect sadly the search will take too long!

[Fixedgear 4]

3 hours ago, metcars said:

I had a family member sounding me out about getting him a car. Has to be less that 50k, no more than 2 owners, black red or silver, full history, 2008/2009. Other than that he doesnt care? I suspect sadly the search will take too long!

Does he fancy a Nissan GT-R?

[metcars 397]

13 minutes ago, Fixedgear said:

Does he fancy a Nissan GT-R?

He's not very 'fast & furious' and like most young guys he has insurance issues

I think Grande Punto is what he's after