Dodgy RFO's Deals

The Boring Bit That Could Save you Thousands!

There are many companies in the marketplace who will offer significant discounts on new cars and vans, stating that they are getting fleet discount terms. A few are genuine, but increasingly there are some who are leasing or renting these vehicles, and then selling them to the general public.

Buyers will be able to choose their own specification just like buying from a main dealer, but are typically told that as part of the discount the V5 has to be retained for 6, 9 or 12 months to prevent it being sold onwards.

There have been a number of incidents recently where the buyers have been contacted by a leasing company months after the original purchase, seeking the return of their vehicles, and the original supplying company has ceased trading. The leasing company has title of ownership, and even if the vehicle was purchased in good faith, the buyer has no legal right to keep it.

This could be a local builder or a Fish & Chip shop, they might only have one van themselves but have had a "Fleet" policy generated on their behalf to abuse this scheme. If that business closes, they would have their assets claimed. That could be your van!

If you are in looking to buy a discounted vehicle, please ensure that the V5 is in your own name, or at least see the V5 n the name of the company you are buying the vehicle from. Try to find out who the supplying dealer is, and check with them that the company is permitted to resell the vehicle to you. Even a HPI check will not protect you as there is nothing untoward showing on the vehicle history it will show as new, with no finance, not stolen and no keeper changes. Consumer protection laws may give you some recourse against the supplier, if they are still trading, but Title of Ownership cannot pass to the buyer, if it was never the suppliers to sell in the first place.

If the supplier will not show you the V5, or the dealer states that it is supplied on leasing or rental terms, then please walk away from the deal. There are plenty of legitimate discounted vehicles available on genuine fleet terms that will not put you at risk. Typically any main dealer can offer up to 10-12% discount on retail price, so anything more than this should be questioned to protect yourself.

If you do suspect that you have been sold a vehicle in this way, please contact the UK Head Office of the manufacturer, and ask to speak to the fleet supply team with your registration and VIN number. They will be able to confirm if the vehicle has been supplied on legitimate terms, or if it is not meant to be sold on.