"sold" car to motor trade - cheque bounced

Jazzking

Hi,

I sold my car to a motor trader at the weekend (not a part ex as I'd already got a new car) and he gave me a business cheque - "concrete, will clear in 2 days". Dealer took the car for a test drive, I told them there was a engine management light on, offered to show under the bonnet etc but seemed happy after checking on his phone that he'd got a good price.
Filled in the V5 to transfer the vehicle to their name, they kept the V5, I had the yellow slip, signed by both of us and I walked off with the cheque and left the dealer with the keys.
Paid the cheque in on Monday, posted the yellow slip off on Monday, saw that the dealer had already listed the car on their website (nice 150% mark up from them!)

4 days later, cheque returned unpaid :mad:

Contacted dealer and they now state the car has a faulty gearbox that they were not aware of and no longer wish to purchase car at the price agreed.

What do I do given that:
1) DVLA already been informed that car has been sold to motor trade?
2) I don't really want the car back and the hassle of having to sell again
3) It's been 5 days and who knows what the trader will have done with the car in between then and now?

Tried googling but many of the results have been around what to do as a buyer if a car you buy goes wrong, not if you sell (albeit not having received cleared funds) is then deemed unacceptable.

My view is that the motor dealer, in the trade, carried out a satisfactory enough inspection of the vehicle in order for them to offer a price and subsequently offer it for sale (it's since been removed from their website) and it is their responsibility. However, given I have not actually received any money from them, it's going to be rather hard to enforce the "sale" if they no longer wish to proceed.

I don't expect that the trader was intentionally trying to commit fraud by obtaining a vehicle and cancelling the cheque, more that, if a fault has now occurred, they feel they paid more for the vehicle than they would have done, if they had done a full inspection at the point of sale.

Any advice?

patman99

Payment failed to clear. The car is still yours. You can simply go to the trader and demand your car back. If he wants to sell it, he has to buy it from you in the first place.

They took it for a test drive, so had the chance to spot any mechanical faults with it. They did not notice (or chose to ignore) the gear box issue (if there was actually one in the first place).

They now need to re-process the V5 to put it back in your name.

Mercdriver

Were you aware of an issue with the gearbox before you sold it?

forgotmyname

Get your vehicle back or see what offer they are now making.

The V5C is the registered keeper it doesnt prove ownership. The vehicle is still yours.

consumers_revenge

If he is in the motor trade he can get the gearbox sorted at low cost. They also test drove it and they should be able to spot a fault ( as said if there was one )

Car_54

I'd disagree with most of the above.

You have a contract. You have fulfilled your part. He has not.

Sue the b*stard! Send him a letter before action and then go to MCOL if necessary.

unholyangel

I'm with car 54.

He is a business, he was expected to do due diligence before entering the contract. Plus, a cheque is a promise to pay. If you search for more information you'll likely find a wealth of advice saying there is no defence to a bounced/cancelled cheque.

But with that being said, just because a court finds in your favour doesn't guarantee you'll get your money back. Is he a limited company? What do the company accounts look like (check on companies house)? Are there any charges against the company? Are they a long standing company (not just a new one)?

loskie

Make sure any small claims is watertight, name the individual directors and the company very thouroughly

arcon5

Id pay a visit to his premises with a view of leaving with the car and/or disrupting his business if he has customers.

Failing that there a limited defences if you sue for the value of the cheque... faulty goods is not one of them

http://www.darlingtons.com/blog/bounced-cheques-the-legal-position

AdrianC

Jazzking wrote: »

...saw that the dealer had already listed the car on their website (nice 150% mark up from them!)

Yes, and...?

4 days later, cheque returned unpaid :mad:

Contacted dealer and they now state the car has a faulty gearbox that they were not aware of and no longer wish to purchase car at the price agreed.

Tough. They have failed to pay for the car they purchased - it's a simple financial debt. Re-present the cheque, and it may clear. If not, then court claim for the debt.

Jazzking

Hi all,

Thanks for taking the time to respond.

I'm aware that as no money has exchanged that I am still the "owner" of the vehicle and rightfully *could* take it back, get the V5 transferred back into my name and then go through the hassle of trying to sell it again - notwithstanding the fact he is now stating it has a broken gearbox.

I'm pleased to see that the general consensus is that though there was an intention to pay, hence issuing the cheque and therefore the contract has been formed, is that correct and legally I could pursue this through the small claims? I issued no receipt as a private individual selling to a motor trader which, in hindsight I should have done (car sold as seen, no warranty provided or implied etc etc) but figured as a trader and the fact he signed and provided me with the yellow slip of the V5 that would suffice.

I've not followed this back up with the trader yet as I wanted to know where I stand, but if I go back now and he tries to give me the keys back do I just refuse?

Happy to go down the small claims route, the company is a limited company and the last companies house return shows they have funds so could get it back but it's a lot of hassle for a grand. Having said that, if I take back a car that now has a broken gearbox, I'd be lucky to get a few hundred quid for it.
What a mess.