Buying a car - paying balance to another company - is this legal?

marluc

Hi
Don't know whether this is in the right forum, but wondered if anyone could give me any advice? I put a £50 deposit on a car on Friday. I am meant to be paying over £2000 later today by banker's transfer. I went to see the owner at the garage yesterday, to see how the minor repairs were getting on. He told me that as he was a new business, he wanted me to put an auction house name on the cheque, not his. Is this legal? Surely I am buying the car off him, not an auction house. The car comes with 12 months warranty, but if he goes bust or something, then I will not have any recourse as I have paid the auction house for a car that I have not bought from them.
Any advice please?

rodenal

Sounds...oddd - maybe he hasn't paid the balance to said auction house for this week. Anyway I wouldn't be doing that - if he wants to send the money elsewhere and needs it same day he can pay the £20 to send it chaps from his own business account

scheming_gypsy

You'll still have a receipt / invoice from him for the sale of the car including 12 months warranty. Also if he's covering the warranty himself rather than through a third party company, you probably won't have any comeback on the warranty if he goes bust.

if you're worried about it, just turn up waving cash and let him give it to the auction house if he owes them anything. You'll get a receipt saying you've paid £2000 for a car with 12 months warranty.

marlot

Don't think it really makes that much difference. But I'd be checking the car thoroughly as he may not be the sort of dealer who is around in 12 months time.

colino

Well done that trader! He has got the car from auction, sold it to you and all before he has paid his weekly/monthly account to the auction house. Not much difference to you (though get a detailed invoice from HIM) but excellent cashflow management.

atrixblue.-MFR-.

why make a cheque out to the auction house? wheres his profit gone? unless he's got some debts to pay he aint going to be there long.

maninthestreet

I suspect his business is significantly overdrawn, and he needs to pay the auction house. If the cheque is made out to this business, it will just reduce his overdraft, and will have no way of paying the auction house the monies owed to it.

vax2002

ALARM BELLS
Now is the car his title to sell, is it under some contract that it belongs to the auction house until they are paid.
I would want to know.

vaio

I think I'd certainly be trying to work a credit card payment into the deal somewhere

[Deleted User]

I'd walk away. Plenty more cars for sale.

iolanthe07

It sounds very iffy imho. I think I would be happy to write off the £50 deposit - could save you a lot of grief.