Disposal of Assets? Help please.

tinkerbellisposting

Hi all, I would like to ask your advice if I may? A friend is looking at buying a car and he has £5000 cash to spend, lucky him! But I am a bit worried about what they are doing, aside from the fact I think they could be better going to a dealer and getting a better deal there with more protection, they are looking at a private sale.
The thing is they seem to think this car is a bargain and if what he has told me is true, he is getting it for less than the parkers list price. Now also I gather this person he is interested in buying from, is disposing of other assets at bargain prices as they are in severe financial trouble, with severe negative equity, redundancy, etc, etc.
My point is if the seller were to go bankrupt anytime soon, (which sounds possible) could the OR come after the "real" value of the car off my friend. As it appears these people owe a fair whack. I know a lot of this is OR discretion, but I was sure there would be some possible comeback on my friend, he thinks not. So who is right as I feel it's a risk and they don't
Please any advice welcome, so I can direct him to this thread, it's money he can't afford to chuck away, and he thinks I am wrong. I hope I am, so if he buys it tonight it's not potentially wasted.
Any help appreciated:o

Rylynn

Tough one to reply to, have you any idea that this person selling will go BR? or are they selling everything to stop going BR. Is it someone your friend knows really well, or a relative.

I have read that the OR can claim the asset back if it has been undersold, ie the market value was not the actual price sold for.

I hope someone with more knowledge can help you.

As I have said if it is someone your friend knows well or a relative does he think this person is going to go BR?

skylight

Yes and no.

Technically the OR can come back within a certain time frame (if someone dispossed of assets within 6 months of BR for example) and ask for the rest of the money from the person who now has the asset or money. But thats the limit of their actions. Your friend would write back and express his disgust at an honest transaction for a fair price on the vehicle he bought legally (cos of the condition or something etc) and so on. Ensure that your friend has a signed reciept outlining the price the vehicle was bought for though to cover all eventualities.

Its the person who dispossed of the asset in the first place who will be in big poo.

peachyprice

The OR wouldn't come after your friend for the real value, but he could, if he so wished undo the sale and take the car back off your friend. But that would depend on how much the car was undervalued by. If it's a £20k car being sold for £5k this could well happen. If it's an £8k car it's less likely.

tinkerbellisposting

No it's a private sale advertised from a private seller. A complete stranger to them. They will be buying the car under value and when they asked questions of this person, as he was suspicious, he got the reason.
They said one had lost thier job, and had been living on CC for a few months, they were in massive negitive equity, and selling another very, expensive car for well, well under list price:( .
We all know here that living on CC is a slippery slope and it does seem from what he says they are in dire straits, so it is possible. But I was sure if the OR had a bad day or there were large sums involved they had the right to claim back stuff like this, but he thinks not

tinkerbellisposting

Ok thanks, must type quicker, I will direct him here!

Rylynn

I can see where you are coming from on this question, and as has been explained they could take the car back, I imagine they have to pay back your friend the amount he paid, and then re sell the vehicle for the correct amount, so yes if it is worth a huge amount more I would be wary of the transaction.

He needs a bill of sale, dated and signed by the seller and himself and a witness if possible.

Rylynn

Having read your post, I think he is wrong, the OR could take the asset back, especially if we are talking several thousand pounds under its value and especially if he is selling two the same way, an OR would have a fit to be honest with you. Even more so if they then go BR in the next 6 months.

Having said that car prices are plummeting right now, they must be in a very bad way to have to sell two cars at a loss like this, but there are many people out there in the same boat.

tinkerbellisposting

Thanks all, sorry it took me so long to type my reply, I had only one reponse when I started:rotfl: . I will pass the thread to them, with all your replies so he can make an informed decision.

tinkerbellisposting

Rylynn that's what concerned me, they do seem in very desperate need. It's the other car that was concerning me. I can imagine that if they did go BR the OR would have a fit and then try and get everything back. As the car my friend is looking at is £2000 under max, the other is more like x20 that, a very expensive car.

pink-lint_2

also they would have to check that this car has no out standing hp on it !