Buying a used car, does this sound dodgy?

Ectophile

The fact that they are operating using a whole string of companies, mostly newly formed, is a very bad sign.

When you but a car from a dealer, your consumer rights are against the dealer who sold it to you.  But who is actually selling the car?  Does the company have any assets should something go wrong and the car is a lemon.  Will they wind the company up, and start a new one, the moment you launch a court case against them?

ontheroad1970

I would walk away.  Screams dodgy.

Billxx

Sounds like a money laundering operation to me.  Keep well clear.

marlot

Lizmoretti said:

user1977 said:

Lizmoretti said:

We’ve seen a car at an independent dealer which I’ll call X Cars Sales ltd.  I’ve driven past them many times, they’ve been there for years.

Inside their showroom I saw a notice saying they were actually Y Car Sales ltd.

Are they actually trading as "X Car Sales Ltd" though? Or just "X Car Sales"? 

Yes, all ltd companies.
The premises is X Car Sales Limited, which according to companies house is owned by 50yr old Mr A.
The notice I saw within the premises says they’re Y Car Sales Limited, which according to CH is owned by  38yr old Mr A.
The V5 says the car is owned by Z Car sales Limited, which is owned by Mr B.

I'd be very concerned about a dealer who uses phoenix companies - if you were ever to sue them, would the company you sued just disappear without paying its debts.

You can use the companies house website to see which other companies the Mr A, Mr A and Mr B have been associated with in the past.

NBLondon

Is this the same car you have £80K in cash to spend on?  At that price point - I'd be very wary...  

Ditzy_Mitzy

In all likelihood this is a VAT dodge: operate two small companies instead of one large one and stay below the relevant threshold.  It's all part of the ducking and diving that goes on at the grubbier end of the commercial world.  Is it right?  No.  Are the City moguls in their glass towers doing worse?  Of course they are.  

We have bought cars from places where the name on the sales invoice differed from that on the name-plate on the forecourt canopy; but that was in the good old days where a grand would get the car, the tax, a full tank of petrol and twenty St. Moritz, and leave one with enough change for a slap-up meal on the way home.  If you are buying at the bottom end and if the checks come back clear, I wouldn't worry too much about it.  

ontheroad1970

Sounds like a way of spending many thousands of pounds and having no protection to me.  Far worse than just a VAT scam.  

Grumpy_chap

Ditzy_Mitzy said:

In all likelihood this is a VAT dodge: operate two small companies instead of one large one and stay below the relevant threshold.  It's all part of the ducking and diving that goes on at the grubbier end of the commercial world.  Is it right?  No.  

In their other thread, the OP said:

Lizmoretti said:

I’m buying a car for £80k.  

https://forums.moneysavingexpert.com/discussion/6380124/for-saving-money-is-pcp-ever-a-good-idea/p1

At that price point, the trader would need a new Ltd Co. for each car if it was to avoid the VAT-registration threshold.

FWIW, buying a car at that price level and outside the reliable larger dealer networks is what I'd consider a risk - all the very best cars of this level will be in the franchised Dealers.  The others are the few that the franchised Dealers night have missed, or, more probably IMO, the ones that the franchised Dealers did not want.

jimjames

If it's registered to a company yet the dealer claims they are selling on behalf of a friend then something doesn't add up. 

Lizmoretti

NBLondon said:

Is this the same car you have £80K in cash to spend on?  At that price point - I'd be very wary...  

No, that was a different car I bought through a legitimate branded dealer.  This is a older, more unique car (classic?) car for just over £30k.

We’re still doing our due diligence as we very much want it and there isn’t another one like it.  But there are some serious alarm bells ringing.