Dealer not paying off finance

Dealer not paying off finance

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Discussion

Lee540

Original Poster:

1,586 posts

145 months

Sunday 26th October 2014
quotequote all
After part exchanging my bike into dealership back in September with outstanding finance and taking out a new deal with a new bike and new finance house the dealer didn't use the funds they received to clear the finance on my part exchange.

It's gone two months un-noticed till I was browsing a bank statement today.

Called up finance company of original bike and they are unaware of anything.

Called up dealer and no one could talk to me till tomorrow.

How do I calculate the refund due? Is it just going to be the months I've paid extra? Obviously settlement figures changed, I've been paying two finances when first one should have been cleared.

Has this happened to anyone else before? My p/x was sold within a few days so that new owner is unaware his bike isn't HPI clear.

Cheers

Lee

surveyor

17,839 posts

185 months

Monday 27th October 2014
quotequote all
This did happen to us.

The dealer decided that he was just doing us a favour trying to sell the car via another trader and had given up. Car came back with low oil, no water, stinking of smoke and with a couple of thousand more miles on it.

It went a little legal, but his guys were more frightening than ours, so we ended up stuck with the thing.

Hopefully your guys are better and it's just an oversight to be corrected.

OttoJ9221

34 posts

124 months

Monday 27th October 2014
quotequote all
I would also suggest forwarding this matter to the financial ombudsman.


PurpleMoonlight

22,362 posts

158 months

Monday 27th October 2014
quotequote all
Did you actually tell the dealer there was outstanding finance?

HTP99

22,576 posts

141 months

Monday 27th October 2014
quotequote all
Probably an oversight or a salesman that isn't too hot with his paperwork.

Obtain an up to date settlement figure, present it to the garage who will clear it with the finance company and ask for a cheque from the dealer to cover the two months payments that you have made since trading the bike in.

papa3

1,415 posts

188 months

Monday 27th October 2014
quotequote all
It's not uncommon and, assuming a reputable dealership, will be resolved. If the dealer settles the amount quoted at the time of the deal then the finance house will refund the extra payments. Otherwise the dealer will settles the new figure and refund you as mentioned.

The new owner may have paid £££ so be unaware of the issue.

Lee540

Original Poster:

1,586 posts

145 months

Monday 27th October 2014
quotequote all
An oversight I'm sure, the dealership are an agent for both old finance company and new one. They are aware of outstanding finance, this was made clear and deal was done with that in mind.

I just wanted to know how to calculate refund given deal was done from end of August, two months have past so that settlement figure now out of date is what I borrowed in the deal.

Thanks

Lee

G-Rich

209 posts

215 months

Tuesday 28th October 2014
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Simple lesson learnt here - if a dealer is paying off your finance, make sure you actually see them do it / fax the paperwork / make the call and get paperwork for yourelf to support the fact. I expect you'll be ok, but if dealers are on the edge (i.e. they are 1 car out) I would imagine 'forgetting' to pay someones finance off is a first port of call.

DocSteve

718 posts

223 months

Tuesday 28th October 2014
quotequote all
papa3 said:
It's not uncommon and, assuming a reputable dealership, will be resolved. If the dealer settles the amount quoted at the time of the deal then the finance house will refund the extra payments. Otherwise the dealer will settles the new figure and refund you as mentioned.

The new owner may have paid £££ so be unaware of the issue.
This has happened to me twice with main dealers but was resolved as above. Don't cancel your DD with the previous finance company until it's been sorted or that will add another layer of complexity to it.