I am part-exchanging my car for a Skoda Yeti. What happens if the dealer goes bust before the deal is concluded?

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I am part-exchanging my car for a Skoda Yeti. What happens if the dealer goes bust before the deal is concluded?

With retirement and a move to the Highlands coming soon, I have placed a factory order for a new Skoda Yeti Elegance 140bhp DSG, expected delivery in November/December. The dealer wants to take my 2006 Audi A6 3.0TDI Quattro (78,000 miles) in p/x in November, complete with V5, as apparently he has agreed a price of £9250 to sell it on in November.

They have agreed to lend me a car until my new one arrives, but how do I stand legally if the dealer goes bust between the time of receiving my old Audi and me taking delivery of the new Yeti? My cash deposit would be protected by Visa but how do I ensure I do not lose the £9250 value of my car?

Asked on 24 August 2010 by Boony

Answered by Honest John

You would simply be one of a long line of creditors, after HMRC and the banks. But you might be able to arrange something whereby the loan car is a 'swap' for your Audi, so therefore is yours if the dealer goes pop.

Tags: legal and consumer advice part exchange dealers

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