Before signing a car Sale or Return agreement: 18 questions to ask

A Sale or Return (SOR) arrangement often lets a motor trader advertise and seek a buyer for a privately owned car. The contract, not the marketing name alone, determines the arrangement. A trader may be acting as a broker rather than buying your vehicle.

Who am I dealing with?

Check the legal company name, company number, physical address and trading name. Who will hold the vehicle, keys and documents? Who has authority to approve a price reduction or sign sales paperwork?

What will I actually receive?

Ask for a written minimum net amount payable to you, the commission, expected retail price, VAT treatment, who clears finance and the precise date by which proceeds will be paid after a completed sale.

What if there is no sale?

Ask whether there is a fixed marketing term, an automatic extension or an unlimited term. Can you end it and collect the car? What notice is required? Can the trader refuse release while a charge is disputed? On what legal basis?

What charges could build up?

Ask specifically about cancellation fees, daily storage, advertising, marketing, photography, cleaning, repairs, collection, administration, sourcing and transaction charges. When do they start? Are they fixed tariffs or reimbursement of actual expenses? Is there a cap? Ask for worked examples for withdrawal after 30, 90 and 180 days.

How will the car be safeguarded?

Ask who insures the vehicle, what happens during test drives, where it is stored, whether it may be moved or driven, who pays for damage, and how condition and mileage are recorded at both handover and return.

Which terms have I received?

Save the full signed agreement, every linked set of terms, the signing email and any audit certificate. If signing electronically, open and save the exact terms before you sign. Never assume that all car SOR contracts automatically expire after 90 days.

Official guidance: https://www.gov.uk/guidance/writing-a-fair-contract-for-customers

Reviewed 23 October 2026. General information for England and Wales, not legal advice. This independent website is not a regulator or law firm. Legal rights depend on the particular contract and facts.