Protecting Your Investment in Luxury Cars

As luxury cars, both classic and modern day marvels, increase in value, car enthusiasts are keen to protect their investment in any way they can. However, there is little in the way of legal safeguards when it comes to protection from buyers or sellers of cars. Cars, like all goods and commodities, can be sold through a variety of ways and to make matters more confusing, there is usually no way for buyers to complete due diligence. That is, unless buyers go to the lengths of using the services of a car-buying solicitor. This of course comes at a price and usually requires a sizeable deposit to be paid up front. In this instance, lawyers are required for advice, guidance and sound legal knowledge. For those who seek a much simpler method of car buying, whether classic or state of the art, there is a great solution that car enthusiasts are learning about – comprehensive protective covenants agreements.

A protective covenants agreement is a legally binding contract that will protect the buyer of a motor vehicle (in this case a TVR car) for a given period of time. In this specific case, the protective covenants – which is entered into between the buyer, seller and the TVR club, will span a period of three months. Three months is long enough to cover the time spent by a buyer to legally claim ownership of a car. This can then be appealed or objected to. Protective covenants agreements are important because they can be used for both valuable vehicles as well as regular automobiles. Cars today can carry a heavy price tag and many enthusiasts rely on protective covenants agreements to protect their valuable investment, whether it is a new modern day car or a classic vintage car. Investment in cars can carry to hundreds of thousands of pounds or they can be worth millions, so legal protection is paramount in the event of disputes, because as anyone passionate about cars will tell you, cars and the world they inhabit are certainly one of the best ways to invest money and earn great returns.

Three months is considered plenty of time to allow for legal ownership. All cars must be registered with DVLA and buyers and sellers must keep in mind that they are not allowed to pass off cars as being what they are not – that is, they cannot sell an Audi as a TVR. Car enthusiasts looking to get involved in the classic car community and buy a TVR car now have the ability to secure protection for their prized vehicle.

It is entirely normal for car enthusiasts to buy and sell cars regularly, even frequently. They do this either because they want to upgrade or because they want to release the pressure on their finances through having obtained either a sizeable deposit or money for a whole car. In order to protect themselves from unscrupulous buyers or sellers, car enthusiasts have the option of entering into a protective covenants agreement. The success stories of everyday car buyers who have gone on to purchase highly expensive and luxurious cars are endless. However, can you imagine if the car was sold to someone else who sold it on to a third person, without the original buyer aware? This risks valuable money down the drain. Therefore protective covenants are worthwhile and logical.

Classic car enthusiasts like Selby TVR are invaluable for those who seek the ultimate experience when it comes to driving and owning cars that are bound to make heads turn. Vehicles like the TVR range provide a great opportunity to own a piece of history in the making – the Moggy to the millionaires’ vehicle. We can all stop drooling now and head over to the garage to wash and wax our precious car.