Vehicle Stocking. Limited.

[LHRFlightman]

Saw a car last Saturday which I've put a deposit down on. I've asked the guy about any existing finance on the car and was told

'"I have HPI’d the car its all clean other than finance which is down to us as all our cars are financed through Vehicle Stocking Ltd, Once the car is paid for I have 4 Days to clear the finance on it so then it is completely HPI Clear"

Has anyone heard of this practice? What happens if he doesn't pay the finance off in 4 days?

Cheers all.

[vikingaero]

Quite a few dealers use "dealer/stock finance". Some routinely use it for all their stock, others use it to help when cashflow is tight. I bought a used car that had dealer finance on it and it wasn't a problem althought the dealer folded a few months later....

[LHRFlightman]

Ta. Anyone else?

[h0b0]

Normal practice for dealers who can't have millions tied up in stock.

[Deerfoot]

LHRFlightman said:

Ta. Anyone else?

Yep. My Accord was the same, I HPi'd the car prior to placing a deposit and found out it was financed through vehicle stocking. The salesman explained the situation and the finance was cleared once the car was delivered.

[Meltham Terrier]

Also call Floor Plan, it is a way for dealers to put stock in their show rooms without using capital, they usually will get something like 120 days at a very cheap rate may be interest only , they will be set up to be able to pay of the finance quickly.

Most plant dealers operate this way , we certainly did with our plant dealers, I think that we used GE for the finance

In short, it will not cause you a problem, make sure that the contract states that you have clear title and that there is no outstanding finance if it makes you happier