New purchase what to do about payment ??

[cornish boy]

Just out of interest.
Has anybody been in the situation where the motorhome dealer has gone bust after agreeing a deal and then lost their deposit ?
If nobody can claim that, does anybody know of anybody at anytime who has lost their deposit on a motorhome deal because the company went bust ?
I m not saying it isnt a concern, but i dont think (and i may be wrong) it is much of a concern.

In the marine world, the industry was shaken to the core following a case of a dealer/broker going under and lots of people lost out even though there was a client account in operation. It was made worse by the fact the dealer had sold some peoples part exchange and then went bust before their new boat arrived, those people pretty much lost everything.

I sensed things were not good and managed to get our money out for the boat they had just sold on our behalf on the Friday before they went belly up. We did lose out as they were the UK distributor for our new boat we had just taken delivery of, so lost all the warranty cover. No matter how hard I tried, the German manufacturer or the new UK distributer wouldnt help out.

Do a websearch on Peters Opal if you are interested.

 

[SpeedyDux]

It seems to me in this situation, where the new MH is available that the solution is to drive the PX vehicle to the Dealer, pay the balance and drive the new on home on Trade plates, maybe with a stop near the Dealer to check out systems. This way there is no period during which anything is at risk, except the deposit prior to collection.


For anyone worrying about a dealer holding a deposit, one solution is to pay it into an Escrow account at a Solicitor. The money is held for the benefit of the dealer but can only be released on the production of certain agreed documents e.g. Bill of Sale to the buyer of the vehicle being sold. Certain provisions can be written in for return of the deposit to thebuyer in the event of, for example, dealer going into administration/bankruptcy, or failure to perform the contract within a set period.

There will be a charge for this but can be viewed as a form of 'insurance'

Speedydux may wish to comment in general on this Escrow idea.

Geoff

I agree with Geoff that getting a solicitor to hold the deposit in escrow (or as "Stakeholder") is one possible solution that seem to be rarely used. Another benefit would be a clear agreement in writing that states who gets the deposit and in what circumstances. If there is a dispute the Court sorts it out. The main obstacle is probably the cost involved in setting it up although if the deposit is £5k that might be worth doing.

 

[SpeedyDux]

Noted.
I found the post and you have educated me in how to find the numbered post eg#48
I must have got bored by page 2 and missed yours !
Cheers

The biggest recent example was probably Discover Leisure. That dealership went into administration in the middle of the October 2011 NEC show and closed its stand without warning. A quick interwebby search fails to say how many customers lost deposits for motorhomes and caravans.

https://www.outandaboutlive.co.uk/motorhomes/news/discover-leisure-hotline-opened

 

[jemhorn]

When I bought my new Frankia and part exchanged my Laika, SMC had a deposit from me and then gave me the part exchange value when they sold my Laika. I then released the log book to them and everybody was happy. I then paid the balance on collection of the Frankia. Very fair all round I thought.

 

[nicholsong]

In the Marine world things are somewhat mor clear cut.

For a vessel which is on the full British Register of Shipping(not the Small Ships Register) and any vessel can be registered there for a fee, the paper issued(laminated card now) is proof of a Right 'in Rem' i.e. is a document of title.

Unlike a V5C which legal status seems only to be to identify who should pay the VED. It might also fool a few foreign authorities, but for example French Law requires that one should carry proof of ownership(or permission from the legal owner to drive the vehicle) so one should carry a Bill of Sale.

Back to Marine: when I bought my boat, from an ex-Ship's Master, we went to the Registry in Portsmouth and he signed the transfer form, I handed him a Banker's Order, Registrar issued new certificate in my name - job done in 10mins.

Pity the motor law cannot be changed.

Geoff

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[cornish boy]

In the Marine world things are somewhat mor clear cut.

For a vessel which is on the full British Register of Shipping(not the Small Ships Register) and any vessel can be registered there for a fee, the paper issued(laminated card now) is proof of a Right 'in Rem' i.e. is a document of title.

Unlike a V5C which legal status seems only to be to identify who should pay the VED. It might also fool a few foreign authorities, but for example French Law requires that one should carry proof of ownership(or permission from the legal owner to drive the vehicle) so one should carry a Bill of Sale.

Back to Marine: when I bought my boat, from an ex-Ship's Master, we went to the Registry in Portsmouth and he signed the transfer form, I handed him a Banker's Order, Registrar issued new certificate in my name - job done in 10mins.

Pity the motor law cannot be changed.

Geoff

I agree, however most boats bought with a marine mortgage are only registered on the Small Ships Register, so no proof of ownership.

 

[Tim Forsey]

Pay a small amount by credit card and wait till new one is available, you will be covered by the double indemnity guarantee for the whole amount of the contract to purchase the new motorhome even if you only pay a small amount.

 

[Lenny HB]

Pay a small amount by credit card and wait till new one is available, you will be covered by the double indemnity guarantee for the whole amount of the contract to purchase the new motorhome even if you only pay a small amount.

No you won't as said eairler in the thread only applies if the total purchase price is under £30k.