Sale or return

[Steve92 80]

Apologies if this is in the wrong section, but have you more experienced traders got any advice with regards to sale or return vehicles. We have sold a couple for friends and we have had some come back. Obviously we cannot sell them as a sold as seen sale but if we marketed them on behalf of a private customer, got the private customer to issue a receipt but we were responsible for the marketing and insurance for test drives could we cover ourselves enough ? Any monies paid would go direct into the customers account and we would charge them a set fee upon completion of sale.

 

thanks

steve

[jimreidvehicle 255]

Hi Steve, it's a shame it spent quite work like that! If you are selling the car on your forecourt and on your website it is deemed as being your car! The fact that you are selling it on behalf if a friend is irrelevant with vat being due and prep work etc having to be carried out prior to sale! 

We have sold customers cars on their behalf before, but always agree what they will get back once the car has been sold and the funds are in our bank ,as for come backs you just have to deal with them like any other retail deal! 

We always get the customer to sign a basic agreement , like a contract which works nicely and allows you to be open and honest about what potential profit you are to make! I can forward this basic document to you if you wish? Jim

[Steve92 80]

Hi Jim, thanks for the reply, so regardless of whether it's your stock or not you are liable for it.  As it stands we have had someone contact regarding an Audi a1 that they would like to sell, they don't want to have issues with insurance and test drives etc which we can understand. We would charge them a fee for this + vat.  They would set the sales price and be paid direct by the actual purchaser. 

But if we are still liable for the car then what we are charging for the service potentially wouldn't cover the problems further down the line. In this instance i wonder if it's actuall worth going ahead with ? We have never retailed an Audi a1 so it was a chance to do this with little financial liability.

if you could email a copy of the contract you use that would be very much appreciated.

 

steve

[jimreidvehicle 255]

Hi Steve, I'm currently on holiday but happy to share on email once I get back

Jim 

[umesh 336]

Sale or return can work for both parties , done a few over the years! 

Steve, as Jim says you are liable once you've sold it, just make sure you have enough profit should anything happen and I suppose if the car's not up to your standards then no point in getting involved , only yesterday I declined to do a SOR Deal as the profit potential against liability didnt stack up- but once I explained to the customer in plain English he understood the implications. 

[Steve92 80]

I guess that's the thing, striking the balance between a figure the customer is prepared to pay and what the seller wants, usually the seller expects more than it's a actually worth. We have charged the seller a set amount, I guess it works out around 5% of the advertised price. 

[LawJaw 50]

Good News Car Dealer Forum members... and you heard it here first... you can 'help' sell a customers’ or fellow motor dealers’ vehicle on a 'sale or return' basis and NOT be liable under the Sales of Goods Act. 

You (the dealer) will act as an agent for client (the seller), if you advertise the car on your forecourt or website it must clearly state... ‘This is a sale or return vehicle, we are selling it on behalf of a client and it will be invoiced accordingly’.

When you sell the vehicle DO NOT invoice it from yourself (the dealer), the invoice should be from your client (the seller).

You will not be responsible for any sale of goods issues however you will be jointly and severally liable for any misdescription AND in the event that the vehicle is a clients vehicle and the client misdecribes it, you (the dealer) may be in the unfortunate position whereby you become liable while the client, not being in a trade or business, is not! So make sure any descriptions are correct.

Interestingly, if the client (the seller) is a fellow motor trader they will be liable for any sale of goods issues NOT YOU.

Any sale or return agreement should be strictly controlled and any agreement put in writing... make sure your name logo etc are not on the invoice... you are only an agent working on commission... AND make sure your customer is aware of this from start to finish of the sale process.

You can buy Lawgistics Sale or Return Agreement Pads on both AMAZON and EBAY.

Hope this helps

[Fixedgear 4]

On 09/07/2015 at 2:55 PM, LawJaw said:

Good News Car Dealer Forum members... and you heard it here first... you can 'help' sell a customers’ or fellow motor dealers’ vehicle on a 'sale or return' basis and NOT be liable under the Sales of Goods Act. 

You (the dealer) will act as an agent for client (the seller), if you advertise the car on your forecourt or website it must clearly state... ‘This is a sale or return vehicle, we are selling it on behalf of a client and it will be invoiced accordingly’.

When you sell the vehicle DO NOT invoice it from yourself (the dealer), the invoice should be from your client (the seller).

You will not be responsible for any sale of goods issues however you will be jointly and severally liable for any misdescription AND in the event that the vehicle is a clients vehicle and the client misdecribes it, you (the dealer) may be in the unfortunate position whereby you become liable while the client, not being in a trade or business, is not! So make sure any descriptions are correct.

Interestingly, if the client (the seller) is a fellow motor trader they will be liable for any sale of goods issues NOT YOU.

Any sale or return agreement should be strictly controlled and any agreement put in writing... make sure your name logo etc are not on the invoice... you are only an agent working on commission... AND make sure your customer is aware of this from start to finish of the sale process.

You can buy Lawgistics Sale or Return Agreement Pads on both AMAZON and EBAY.

Hope this helps

 

Is this still valid even after the sale of goods act 2015?

[LawJaw 50]

15 hours ago, Fixedgear said:

Is this still valid even after the sale of goods act 2015?

Hi Fixedgear, I can confirm my advice still stands even though we have said goodbye to the Sales of Goods Act... however I would like to clarify, a private seller 'could' be liable for mis description (just not satisfactory quality, fitness for purpose etc).

[Fixedgear 4]

On 16/03/2017 at 10:30 AM, LawJaw said:

Hi Fixedgear, I can confirm my advice still stands even though we have said goodbye to the Sales of Goods Act... however I would like to clarify, a private seller 'could' be liable for mis description (just not satisfactory quality, fitness for purpose etc).

 

Many thanks LawJaw