Selling on Behalf of Third Party

[Pringle43 0]

I am to sell a car on behalf of a third party, I've been stung before so want to ensure things are done right.

I want to add a warranty, service, MOT and provide finance.

Can I do this without owning the vehicle ourselves?

[MrC 142]

Dont do it.. Just dont

 

 

 

 

Edited July 3, 2017 by MrC

[Mojo121 229]

Been through on here a thousand times. Terrible idea.

You can do all that you're proposing. Just think of the car like a normal piece of stock. Make sure you have the finances to buy the car and that your selling fee/ margin is very healthy/ worthwhile because in the event it all goes wrong you could end up owning it.

[Pringle43 0]

I was to be clear with the buyer the sale was on behalf of a customer, but wasn't sure how it would work out in terms of finance and liability

[MrC 142]

Its 100% your liability 

[LISL 7]

MrC took the words right out of my fingers 

[grant8064 219]

If it's a nice lump buy it off Mr Customer 1 and then retail it to Mr Customer 2. If it's not nice enough to buy yourself for the right money and retail like any other bit of stock then, as everyone else has suggested, run for the hills. Why bother is my question?

 

[Pringle43 0]

The appeal is I don't have to pay for the item until it sells, appreciate I can MOT it but can I put a warranty and offer finance or would I need to have ownership first.

note all the cautions and may not progress but looked like a good proposition

[MattGM 12]

I've no experience doing this, but from an outside perspective I can see the potential appeal. I mean it's a potential mark-up with no, or little capital investment.

That said, I can appreciate the pitfalls also.

[metcars 397]

A few years back I knew a guy that was into everything, an Arthur Daley type character. Would buy and sell anything. If he ever sold it car he would describe himself as acting as an "agent" for the seller, in the same way as an estate agent sells a house. Obviously estate agents can sell houses, earn money from houses but have no obligations as far as "issues" with those houses; not so with the motor trade!

[Pringle43 0]

That was my thinking as above

[Cornish Guy 45]

Their is a already a long thread on here where someone did what you are suggesting. They came on here asking for advice because the car has become a problem and they have found out that they are liable for it.

[Max Branning 149]

11 hours ago, Pringle43 said:

The appeal is I don't have to pay for the item until it sells, appreciate I can MOT it but can I put a warranty and offer finance or would I need to have ownership first.

note all the cautions and may not progress but looked like a good proposition

If you can arrange with the person you are buying the car from to pay them after it sells then that is an option, but you should only be paying what you would for any other piece of stock you had bought yourself. 

Once you sell the car on it is your responsibility so make sure there is profit in the deal to make it worthwhile.

[Pringle43 0]

Hi, yes they would be happy if I paid them after I sold it for them. My concern is could I then still add warranty etc and would comeback still be on myself?

[Max Branning 149]

Yes you will be 100% liable for the car if you are selling it. The fact you have a deal in place with the person you are buying it from is irrelevant.

You should treat the car exactly the same as you would with any other vehicle in stock.

 

[Pringle43 0]

Thanks for all of the replies, warranty is with warranty 2000.

I think that the analogy similar to an estate agent is a good one, but I guess different rules apply.

[It's me 615]

Only greed would make anyone even consider such a crazy idea as to selling an unknown quantity on consignment

[Pringle43 0]

1 hour ago, s and b said:

Only greed would make anyone even consider such a crazy idea as to selling an unknown quantity on consignment

Not sure I'm following what you mean?