Is my motorhome safe?

[myland rose]

I have my motorhome on sale or return basis with small dealer but am now concerned about what will happen if they go to the wall? we plan to go to spain for the winter leaving it with them but am now wondering if this is the right thing to do? any help, views appreciated.

[breakaleg]

Don't want to frighten you, but it wouldn't be the first time a firm went bust and took customers motorhomes with them, I don't think the laws changed and you will be at the botttom of the pile for getting any money out of it.

Pete

[Brock]

Much depends on the contract you have with the dealer. A small dealer is no more likely to go bust than a large dealer. Most at risk are dealers with large overheads, including debt, and insufficient cashflow to meet their day to day expenses.

 

Assuming your contact is straight forward, then in the event of the dealer going bust without selling your van, you may be OK. If they have sold the van and are holding the money, then it is goodbye to the money as it goes into their pot in the event they go bust.

 

If you are risk averse, don't do it. The likelihood of the dealer going bust is probably small, but possibly growing, but the consequences of the dealer going bust will probably cost you your van.

 

 

[Brian Kirby]

You need a simple, written, declaration from the dealer that the motorhome is your property, and that the proceeds of any sale are also yours, saving the agreed commission to which the dealer is entitled.  This must be signed by a director of the firm, preferably the company secretary, and by you, and it must be dated, and make clear how the commission is to be calculated if a percentage, or the level of flat rate fee payable if that is the agreement.  You should both retain copies, with original signatures on both: i.e. do not take copies of the signed document, you should both sign both copies of the blank document.

The dealer should indemnify you against any damage while the vehicle is in his care, and this should also be stated in the agreement.  As your vehicle is on his premises on offer for sale your insurance is invalid, so should be/have been cancelled.  The vehicle must then be insured under the dealer's insurances.

The dealer must take responsibility for cleaning and maintenance of the vehicle, as he would with his own stock.  He will probably offer a warranty on sale.  This should also be stated, and it should be made clear that any consequent risk lies with the dealer, and is deemed covered within his commission.

You should retain the V5C registration document until the sale is made on your behalf, when the "change" parts must be completed by you.

The means of payment of the balance due to you on sale, and the timescale for same, must also be written in.

All this can be clearly stated in a few short sentences: the shorter the better, provided the meanings are adequately clear.  Fewer words = less scope for misunderstandings.  This should be adequate to satisfy any receiver/administrator that the van is not part of the dealer's assets.

Because you will need to complete the change section of the V5C on sale, I doubt if it is wise to leave the country before the van is sold.  It may also be wise just to drop by from time to time, or at least phone, just to show continuing interest, and remind the dealer you are still around!

[ron.]

The most critical time is between the time your vehicle is sold on and you actually receiving the proceeds. If your dealer goes bust and there is no money left in the kitty to pay you then you will have a job on your hands to get recompense, legal documents or not.

 

So why take the chance? In the present climate I would personally avoid these schemes like the plaque.

[trooper]

One simple thing, all monies in dealers account when they go bust goes into same pot, mostly to government.

[enodreven]

Hi, I have to agree with the last 2 posts, it doesn't matter what paperwork you have if it all goes sideways and there is nothing left you can't get something from nothing.

 

Have you looked at putting in an auction have a look at BCA at Measham they have a motorhome/caravan auction every couple of months I think, you may not get as much as you would like but you should get your money, as long as they don't go bankrupt as well

[myland rose]

Thanks for replys, difficult one for us as we do want to go to spain for winter and it certainly will not sell in our driveway! perhaps we will just have to take the gamble! thinking ebay at the moment although i know it will not return me what i would like but sometimes something is better than nothing? Appreciate everyones thoughts.

[Guest JudgeMental]

myland rose - 2008-10-29 9:55 AM

 

Thanks for replys, difficult one for us as we do want to go to spain for winter and it certainly will not sell in our driveway! perhaps we will just have to take the gamble! thinking ebay at the moment although i know it will not return me what i would like but sometimes something is better than nothing? Appreciate everyones thoughts.

 

E*ay can be a quick and easy way to advertise your van, as long as you are sensible and use the same precautions as you would with any sale.

 

Personally, I would take the van back and if you have a few weeks try e*ay.

if this does not work, leave it safe and secure on your own drive and try and sell again on your return. The run up to Christmas must be one of the most difficult times to sell a vehicle, let alone under the current economic problems. *-) So I doubt you will lose anything by waiting.......

 

tell the dealer you have had a change of heart and are traveling to Spain in it next week....

[Brian Kirby]

myland rose - 2008-10-29 9:55 AM Thanks for replys, difficult one for us as we do want to go to spain for winter and it certainly will not sell in our driveway! perhaps we will just have to take the gamble! thinking ebay at the moment although i know it will not return me what i would like but sometimes something is better than nothing? Appreciate everyones thoughts.

As Ron says above, the danger is in the period between the dealer banking the buyer's cheque and you getting clearance on the dealer's cheque to you.  During this period the money will be in the dealer's account, and will be liable to be used to pay off his creditors if he goes bankrupt over that period.

If you still want to pursue this avenue, why not talk to a solicitor to see if there is a way round?  Some will allow such payments to be made into their clients' escrow account, and may even be prepared to release the dealer's commission back to him on receipt of the full amount.  They'll charge, of course, and you'll need to be confident the buyer's cheque will get into that account and not just be banked with others, but a sale sooner rather than later will probably get you a better price so it may be worth seeing what can be arranged and at what price.

Possible alternative: can you insure the risk for the value of the van?  That is to say, can you get insurance against loss of the capital value of the van, or any portion of it, in the event the dealers goes bust, or otherwise contrives to lose some, or all, of its value?  May also be worth considering, you'll need a decent broker, though.