Just over 12 years ago( following on from the 2008 financial, crash) I had a Mercedes E Cabriolet in storage and on consignment for sale with a well known and respected Mercedes classic dealer. I read very carefully the T&C's and had a retention of title clause added so that title did not pass from myself until I received cleared funds in my nominated bank account. Despite all the due care etc......within a short period of time my car plus 15 others also on consignment had been sold without our knowledge, DVLA was not notified and the dealer went into bankruptcy. Many of the cars had been sold to a sister company and then on sold to private individuals, mine had been sold abroad to Ireland. First I knew of what had happened , was an invitation from the liquidator to supply vehicle details etc and prove my claim as an unsecured creditor in the administration/bankruptcy of the company.
The Creditors Meeting the company had no funds and massive debts, and it was clear that fraudulent /wrongful trading had been going on and goes without saying some pretty pissed off former car owners' creditors. not only did the company have no funds to pay out but all the various individuals (creditors) car insurance companies refused to pay as the vehicles were on RTA policies and the owners' had supplied the keys to the company. The Police weren't interested as they saw it as a civil matter even though fraud could clearly be demonstrated. I had however put my car on a storage policy not RTA policy and was the only vehicle on a retention of title contract, my insurers did pay out, so much so, that my car had gone up in value and they paid out 60% more than I had for the car only 2 years earlier.
No matter how careful you are, things can and do happen very quickly and often beyond your control to rectify. I was very fortunate in putting my car on a storage policy and not relying upon the vehicles RTA policy.
Last edited by JohnHarris; 29/04/21 10:20 AM.
