Selling a Van via a Broker

[starvin marvin]

I'm trying to sell our current van with no takers so far. I've contacted the converter, who are a well regarded and leading small manufacturer. They are willing to put my vehicle on their forecourt, along with other vans they have converted and taken in part exchange and some, like mine, that they are selling for a percentage fee.

 

The difficulty with selling privately reasonably high value vehicles at the present time appears to hinge on being able to offer a guarantee. The buyer will pay more for the vehicle than they would pay me for it, but if thats what they want so be it

 

Couple of questions:-

 

Has anyone else done this? and what advice would you give me about doing this, right down to how the money, if they obtain a sale is transferred.

 

However well regarded they are companies still go under, how do I guarantee that I retain clear ownership?

 

Many thanks

[Brian Kirby]

I would ask them for a sample of their "Sale or Return" agreement.

I think, as a minimum, it should give the full vehicle details (Make and Model, Reg No, VIN, recorded mileage, and assessed value).

It should clearly state that the agreement is for sale or return, and be signed and dated by you, as owner, and by an authorised signatory on behalf of the selling agent.

It needs to state that you agree to leave the vehicle with them for the purpose of sale or return, and the percentage fee to be paid to the seller once sold.  It should state either that no offer to buy will be accepted by the seller without your agreement, or an agreed price below which you must be consulted before an offer to buy will be accepted.

It should clarify whether any additional charge will be made for preparation for sale, advertising, and cleaning the vehicle while in their care.  (If no charge, it will probably need to specify a minimum period of time during which you agree to leave the van with them.)

It will need to state the point at which a sale is considered to have been made (probably delivery to the eventual buyer), and how soon thereafter you will be paid by them, less the agreed percentage.  You will need to agree how that payment should be made - probably a company cheque - and how it is to be delivered to you.  (Ideally, you then need to take that cheque directly to a branch of your bank and request express clearance).

To offer a warranty on the vehicle, they will need to buy it from you, and you to complete the "change" part of the V5C.  Until this time, you retain the V5C.  It might be easiest if this is done at their premises once the sale is agreed.  It may be best if the buyer is not present at the time, since the subsequent liability will lie with the seller, and not with you.  Expect to have to wait for any payment made by the buyer to clear to the seller's account, before they will write a cheque to you (3-5 days, unless express clearances are part of the agreement).

It will need to clarify if there is outstanding finance.  However, the seller will be aware of this, and will almost certainly run an HPI check.

It needs to state that while the vehicle is on test drive or in the care of the seller, it will be covered by the seller against any loss or damage.

It will need to state that the agreement is made freely between the buyer and the seller.

The agreement should be on the seller's headed notepaper, showing their company name, registration number, address, and telephone number.

Once the vehicle is on the seller's forecourt, you must cancel your insurance.  The vehicle will, in any case, not be covered by your insurer while on their premises.  Agree with the seller whether to leave the benefit of any unexpired vehicle tax for a buyer, or whether you will surrender the tax to DVLA for a refund.

Keep in touch with the seller, to maintain their interest in selling it.  If you don't, someone else's will sell first!  If you want a quick sale, try offering an increased percentage if it is sold within 4 weeks, or whatever.

Main risks.  That the seller has no insurance cover for his stock, or does not add your vehicle to his stock insurance list, and it is subsequently stolen or damaged.

That he sells below the agreed price without your agreement.

Both the above would leave you with a good case against the seller (subject to the clarity of the agreement) but a legal mess if they refused to compensate you for your loss.

That the seller goes bankrupt between banking a buyer's cheque, but before you get clearance on their's.  Here, I think you might have a real problem since you would, by then, have agreed to sell to the seller, so could no longer claim the vehicle remained yours.  A receiver/administrator would, I think, be inclined to cite the sale agreement as evidence that the vehicle was part of the companies general assets at the time of bankruptcy, and at best say you would just have to accept whatever settlement in the pound, if any, was eventually payable to creditors.  Otherwise, I think he may just say "tough"!  But, I'm not a lawyer, so this is not legal advice.  :-)

Hope this helps.

[starvin marvin]

Brian,

 

Thats excellent, thank you very much indeed. You have gone straight to the top of my Christmas card list!

 

I had a private bet with myself as to who would be first with a "proper" answer, it was between Derek U and yourself.

 

Thanks once again.

[tonyg3nwl]

Hi, Would it not be safer to sell the van to the dealer, albeit you might not get such a good offer, but at least you dont have the potential aggro of waiting for buyers cheque to go through dealers books, with attendant dissappearance of dealer risk, and associated insurance confusion in the event the van were to "disappear" from dealers forecourt.

 

Also when selling via broker, who is liable for any comeback, (latent fault not discovered till after deal is done, probably not the broker, so why pay him 10% , or more .

 

I think I might go for a sale to dealer and accept inevitable financial discomfort, or use the van as px for up grade or downgrade.

 

tonyg3nwl

[starvin marvin]

tonyg3nwl - 2009-08-08 8:26 PM

 

Hi, Would it not be safer to sell the van to the dealer, albeit you might not get such a good offer, but at least you dont have the potential aggro of waiting for buyers cheque to go through dealers books, with attendant dissappearance of dealer risk, and associated insurance confusion in the event the van were to "disappear" from dealers forecourt.

 

Also when selling via broker, who is liable for any comeback, (latent fault not discovered till after deal is done, probably not the broker, so why pay him 10% , or more .

 

I think I might go for a sale to dealer and accept inevitable financial discomfort, or use the van as px for up grade or downgrade.

 

tonyg3nwl

 

Thanks for the reply, as I said the "broker" is a serious, although small manufacterer of motorhomes with a national profile, so this isn't a dubious dealer.

I accept your comment on selling to the "dealer" and this is something to consider. However a forced sale is never likely to be anywhere near financially viable. At least we're not likely to get the "nobody is buying these vehicles at the moment" comment which is what we currently get when trying to px. The dealers appear to want cash buyers and will offer discounts.

 

Isn't it funny how in the opinion of a dealer the vehicle you're are selling is of little interest to them and the one you want to buy, people are falling over themselves to get one and they could sell it many times over.