Picture a scenario where a trader has sold a vehicle to a customer under a finance agreement (Finance A), accepted a part exchange vehicle as part of the transaction, and settled the outstanding finance on the part exchange vehicle (Finance B).
Subsequently, the customer seeks to reject the new vehicle, and Finance A agrees to the rejection.
The trader is considering whether to retain and resell the part exchange vehicle or attempt to return it to the customer, arguing that all parties should be restored to the position they were in prior to the contract.
If Finance A refuses to accept the return of the part exchange vehicle, it is recommended that the trader retain the vehicle and resell it, rather than insisting on returning it to the customer. If the part exchange vehicle was returned to the customer, Finance B would need to reapply a finance marker to the vehicle to restore the parties to their original position. However, Finance B would be unable to do so.
Therefore, it is recommended that the trader retain the part exchange vehicle and proceed with its resale.
If you are dealing with a rejection where part-exchange finance has been settled, our legal team at Lawgistics can help you navigate the practical steps and reduce the risk of a dispute.
One of the largest independent specialist motor trade brokers in the UK. Our extensive history of supplying insurance to the motor trade means we understand your business needs. By partnering with a specialist insurance broker like us, you get exactly what you need to protect your business.
