Used Car Purchase. Deposit needed for VRT?

Delissimo

Hi all,

Has anyone heard of car dealers asking for a ±1000 euro deposit in order to have the VRT done on a UK car they had received into stock, but had not yet advertised for sale? (The car just came in and was being valeted in the shop when it caught our eye).

I paid a 200 euro deposit to hold the car, but I don't even have a license plate to check the car's history/transfer insurance.

The dealer is a member of SIMI and I can see it from his side that he needs a decent deposit, kinda!

Any suggestions/insight?

Thanks.

keithclancy

Delissimo wrote: »

Hi all,

Has anyone heard of car dealers asking for a ±1000 euro deposit in order to have the VRT done on a UK car they had received into stock, but had not yet advertised for sale? (The car just came in and was being valeted in the shop when it caught our eye).

I paid a 200 euro deposit to hold the car, but I don't even have a license plate to check the car's history/transfer insurance.

The dealer is a member of SIMI and I can see it from his side that he needs a decent deposit, kinda!

Any suggestions/insight?

Thanks.

Don't see how VRT comes into it, it would have to be VRT'd anyway.

Why pay a deposit on a car if you still have outstanding items to check that could affect your decision to purchase ?

Delissimo

I agree that the VRT needs to be done anyway and this is the part that's confusing.

Furp

Do garages have to VRT a car on import? I thought they can wait until they sell the car?

Maybe they want a committed buyer before doing the VRT.

Compton

Not sure if they have to VRT it once they get it straight away? Because obviously VRT decreases over time and they will have dead money getting it VRTd before sale?

nxbyveromdwjpg

I suppose they will register it straight into your name at the registration office if you pay the higher deposit to cover the VRT?

MidlandsM

well, I import cars and sell them here and I don't seek 1k in advance.

A deposit of 2 or 300 suffices.

on another point OP, you're INSANE not to do a data check on the car. Seek the UK REG now, and do a check.
Also seek the MOT test no from the current mot cert and do a free MOT HISTROY check on the direct.gov website site.

coylemj

The money is a cash flow issue, he doesn't want his own money tied up in the VRT on the car in case you change your mind and it takes a couple of months to find another buyer so I can see it from his perspective.

But the registration number is a whole different ball game - why can't you get this information from him? Is he hiding something?

The problem is that if you hand over the money for the VRT, then discover that it's an ex rental or write-off, what do you do?

Get the reg. no. first, do your research and then give him the cash for the VRT.

MidlandsM

coylemj wrote: »

The money is a cash flow issue, he doesn't want his own money tied up in the VRT on the car in case you change your mind and it takes a couple of months to find another buyer so I can see it from his perspective.

But the registration number is a whole different ball game - why can't you get this information from him? Is he hiding something?

The problem is that if you hand over the money for the VRT, then discover that it's an ex rental or write-off, what do you do?

Get the reg. no. first, do your research and then give him the cash for the VRT.

cash flow me bollix.......he could put the vrt cost on his credit card for a day or 2 till he gets the full amount ofr the car.:rolleyes:

coylemj

MidlandsM wrote: »

cash flow me bollix.......he could put the vrt cost on his credit card for a day or 2 till he gets the full amount ofr the car.:rolleyes:

Fair point and obviously we both agree on the history check.

OP, the VRT money is just a smokescreen to lock you into the deal, do the history check before parting with any more money.

I don't see why you needed to hand over €200 to 'hold' the car when he hasn't even paid the VRT yet. If it's such a hot deal that he was able to pressure you into paying a deposit, how come he hasn't forked out the VRT money himself and advertised it as ready to go?

unkel

coylemj wrote: »

The money is a cash flow issue, he doesn't want his own money tied up in the VRT

That's his problem

Imho it's pretty pathetic to tell your customer that your cash flow is bad. That means that your business is not running well. Why would a customer buy from a poor business? Chances are the company won't be around to honour any warranty claims...

As others said, don't pay any deposit until you've HPI checked out the car with the UK reg number. And do not put any value on any warranty he is giving you

That said, maybe it's a better idea to forget about him and buy privately.

lifer_sean

Like MidlandsM I bring in cars from UK for resale. Being an authorised dealer and not having to pay the VRT until sale does help cash flow, and also the reducing VRT over time can help if a car stays in stock for a long period. However cash flow over a few days isn't an issue.

The main advantage of a big deposit is making sure the customer doesn't change their minds. The problem is that if the car is VRT'ed in their name, and they don't follow through on the deal, not only would I be down the VRT money (cash flow !) but there is also a lot of explaining to be done when trying to sell the car to a different buyer (no it's not registered to me it's registered to joe bloggs who was going to buy it but then changed their minds etc etc).

Normally I'd look for a few hundred euro deposit, or sometimes none at all if I know the person. However, I recently insisted on a 1000 euro despoit from a buyer who was doing my head in by constantly re-negotiating the deal (he even was trying to leave me 100 euro short of the agreed price when paying the balance / collecting the car). The big deposit was my way of making sure he wasn't going to jerk me around.

@OP, on the registration number, you have been told the UK reg, yes ? So you can do your history checks ? And as always with a UK car, make sure it has a service history (and don't fall for the "it's in the post" line !!!).

coylemj

lifer_sean wrote: »

@OP, on the registration number, you have been told the UK reg, yes ? So you can do your history checks ? And as always with a UK car, make sure it has a service history (and don't fall for the "it's in the post" line !!!).

Nope...

Delissimo wrote: »

but I don't even have a license plate to check the car's history/transfer insurance.

lifer_sean

Okay, I missed that.

Having the UK reg is a fairly basic requirement and I can't see any reasonable circumstances where the seller would withold such basic information.

A good seller would be forthcoming with UK reg, chassis number, exact mileage, and show the UK documents and service history. Doesn't eliminate the need for a history check !

Delissimo

Thanks for all the input, people.

I got the UK reg details, done a motorcheck report; the car's grand, nothing outstanding and no red flags.
I think that's a good point that the VRT will be in my name: it makes the large deposit seem more reasonable now.

bazz26

Delissimo wrote: »

Thanks for all the input, people.

I got the UK reg details, done a motorcheck report; the car's grand, nothing outstanding and no red flags.
I think that's a good point that the VRT will be in my name: it makes the large deposit seem more reasonable now.

After that I would have very little trust in the seller, did he tell you the UK reg over the phone or did you see on the V5 reg document and compare the VIN on the car with the VIN on the V5 document. Not trying to scare you but you need to have your eyes wide open, the seller could potentially have given you the UK reg of a similar car that was "clean".

Also if it is a case he does actually have a cash flow problem then any warranty might be worthless if he folds. BTW being a SIMI member means sweet feck all, it just means he paid his membership fees. They are a loby group made up of their own members with their own vested interests at heart.

og2k7

Hi there,

Need some advice - would you buy the car with no VRT done and do it yourself?

Want to buy this car http://www.carzone.ie/search/Saab/9-3/Vector-S/6513373694304460/advert?channel=CARS

and its still on UK reg plates. Really like the car, test drove it and run the UK reg plates check - all seems legit. No reds flags on anything.

I basically want to trade in my old car and pay the difference minus the VRT cost. I have alredy prebooked the VRT but its on the 31st of July (nothing available earlier). Will call my insurance comapny to transfer the whole lot onto the new car. Can I drive the car before teh actual VRT is done? The car has been imported about 3 months ago.

Does this make sense or sounds dodgy? Would prefer buying a car with proper reg plates, but VRT seems easy enough to do.

Any advice more then welcome

Anan1

Delissimo wrote: »

Thanks for all the input, people.

I got the UK reg details, done a motorcheck report; the car's grand, nothing outstanding and no red flags.
I think that's a good point that the VRT will be in my name: it makes the large deposit seem more reasonable now.

Have you verified the service history? A clean motorcheck doesn't necessarily mean that the car hasn't been clocked.

lifer_sean

og2k7 wrote: »

Hi there,

Need some advice - would you buy the car with no VRT done and do it yourself?

Want to buy this car http://www.carzone.ie/search/Saab/9-3/Vector-S/6513373694304460/advert?channel=CARS

and its still on UK reg plates. Really like the car, test drove it and run the UK reg plates check - all seems legit. No reds flags on anything.

I basically want to trade in my old car and pay the difference minus the VRT cost. I have alredy prebooked the VRT but its on the 31st of July (nothing available earlier). Will call my insurance comapny to transfer the whole lot onto the new car. Can I drive the car before teh actual VRT is done? The car has been imported about 3 months ago.

Does this make sense or sounds dodgy? Would prefer buying a car with proper reg plates, but VRT seems easy enough to do.

Any advice more then welcome

It is against the law for an Irish dealer to sell a UK car to you without registering it and putting Irish plates on it first. Dealers have TAN authorisation for holding cars on UK plates, and can lose this authorisation for this behaviour.

While this doesn't directly affect you (at worst it could come down to "aiding and abetting"), do you really want to do business with this type of dealer ? If they are that free and loose with the rules, can you be sure of the quality of the car you are buying ?

MidlandsM

If he does'nt VRT the car for you, he's not worth dealing with.

166man

unkel wrote: »

That's his problem

Imho it's pretty pathetic to tell your customer that your cash flow is bad. That means that your business is not running well. Why would a customer buy from a poor business? Chances are the company won't be around to honour any warranty claims...

As others said, don't pay any deposit until you've HPI checked out the car with the UK reg number. And do not put any value on any warranty he is giving you

That said, maybe it's a better idea to forget about him and buy privately.

I'd say cash flow is a problem in many firms these days... I see your point though.

lomb

Have you checked it fully for crash damage/ mileage/condition? Get the VIN number off the registration document, check the numbers match carefully on the other documents like service book and car and run the free mot check for starters then a full history check. Also if he goes bust in the meantime with your 1k you wont have a leg to stand on as you would be an unsecured creditor and not have any any share in the car.

I would give him the 2-300 and tell him take it or leave it...