Dealer didn’t pay off trade in

[L91 EON]

I traded my car around 6-7 weeks ago now. There was outstanding finance that the dealer said they’d paid off the day we did the part exchange.

A little over a week ago I got a London congestion charge fine through the letter box. I then realised I’d not had a letter from either the dvla or finance company to say I no longer own the car.

They’d obviously sold the car as it was 420 miles away from the dealership and no longer listed on their web site. I ring the lender they confirm they’ve not had settlement and reminded me I’ve now got a late payment charge and it will be going onto my credit file. I rang the dealership they told me it had been paid and they’d chase it up. I spent 2 days chasing him for the proof of payment and I finally got a screen shot with the payment made but no date on it. I’ve yet to get confirmation from the lender that they actually have the money or not yet. I think they just paid it yesterday and were stalling all this time. Now it’s left me with a late payment marker on my credit file is there anything I can do about this or do I have to just suck it up? I know I’m responsible perhaps I put too much trust in the dealership. One just presumes a reputable dealership would take care of their customers and not do this to them. I don’t think this was an oversight as the lender says it happens a lot they like to hold onto the money for as long as possible.

[MOBB]

I had exactly the same thing happen, found out during a mortgage application!!

Speaking to the finance co sorted it pretty easily, it was obvious what had happened and they removed the marker

[MOBB]

By the way I had cancelled my monthly DD, never ever do that lol

[L91 EON]

I had cancelled my direct debit for it a mistake I know now. The lender has been pretty threatening about it to be honest. Keep repeating that it’s up to me and ultimately I need to fix it or else.

[Mikebentley]

You say you got a traffic offence ticket, the first rule of selling a car is going to DVLA online and transferring ownership.

[L91 EON]

Mikebentley said:

You say you got a traffic offence ticket, the first rule of selling a car is going to DVLA online and transferring ownership.

Normally the dealer sorts everything from previous experience. Although this time I’ve came unstuck.

[M.F.D]

L91 EON said:

I had cancelled my direct debit for it a mistake I know now. The lender has been pretty threatening about it to be honest. Keep repeating that it’s up to me and ultimately I need to fix it or else.

Ultimately it's up to you to ensure that your finance is paid off. Sounds like the dealer has been naughty though.

However, I would do my best to package up as much info/proof as you can and forward it to the credit lender and appeal to their better nature. You could try the financial ombudsmen for advice (have successfully used them before for energy company drama and they were very helpful).

I would be asking why your lender did not contact you via email or otherwise to inform you that you had a failed DD though, as if paid within the calendar month it would have not affected your credit score/file.

[HTP99]

L91 EON said:

Mikebentley said:

You say you got a traffic offence ticket, the first rule of selling a car is going to DVLA online and transferring ownership.

Normally the dealer sorts everything from previous experience. Although this time I’ve came unstuck.

It is your responsibility to do this, not the dealer, I do it for my customers but do so whilst they are still present and print off and give them the confirmation that it has been done.

[L91 EON]

M.F.D said:

L91 EON said:

I had cancelled my direct debit for it a mistake I know now. The lender has been pretty threatening about it to be honest. Keep repeating that it’s up to me and ultimately I need to fix it or else.

Ultimately it's up to you to ensure that your finance is paid off. Sounds like the dealer has been naughty though.

However, I would do my best to package up as much info/proof as you can and forward it to the credit lender and appeal to their better nature. You could try the financial ombudsmen for advice (have successfully used them before for energy company drama and they were very helpful).

I would be asking why your lender did not contact you via email or otherwise to inform you that you had a failed DD though, as if paid within the calendar month it would have not affected your credit score/file.

I’m going to first establish on Monday if they even have the money. A from then do as you say and send all the proofs of the deal and dates etc.

[L91 EON]

HTP99 said:

L91 EON said:

Mikebentley said:

You say you got a traffic offence ticket, the first rule of selling a car is going to DVLA online and transferring ownership.

Normally the dealer sorts everything from previous experience. Although this time I’ve came unstuck.

It is your responsibility to do this, not the dealer, I do it for my customers but do so whilst they are still present and print off and give them the confirmation that it has been done.

You must be up there with the better ones like I’ve had previously. They probably hope people will just leave them upto their own devices so they can avoid paying it off so soon.

[Lo-Fi]

A timely thread!

Traded my car for another, Friday last week. On the following Monday (Monday just gone) I received an email from the new car dealer confirming they had paid the old car finance. I've already got the 'no longer own' acknowledgment slip and tax refund from the DVLA but nothing from the finance co. Logged in to the account yesterday and it's still live. 5 days after receiving the finance settlement they still haven't closed the account. Was debating wether I should cancel that DD. Reading this thread, I believe I'll wait a while.

Edited by Lo-Fi on Saturday 26th October 05:41

Edited because it was a bit brand specific. No name and shame etc.

Edited by Lo-Fi on Saturday 26th October 05:43

[Mikebentley]

L91 EON said:

HTP99 said:

L91 EON said:

Mikebentley said:

You say you got a traffic offence ticket, the first rule of selling a car is going to DVLA online and transferring ownership.

Normally the dealer sorts everything from previous experience. Although this time I’ve came unstuck.

It is your responsibility to do this, not the dealer, I do it for my customers but do so whilst they are still present and print off and give them the confirmation that it has been done.

You must be up there with the better ones like I’ve had previously. They probably hope people will just leave them upto their own devices so they can avoid paying it off so soon.

Leon? I do this routinely as relying on someone else is fraught with personal risk. The DVLA site will give you an option to screenshot /save the details showing the exact time and date you informed them you no longer have any responsibility for the vehicle and who now does. This particularly with the “trade” as they will sell on your former vehicle to someone else and then you are having to resolve a more complex situation relating to possible motoring offences.

I had this last year when I sold my Duster via Motorway. The dealer sent a trade plate driver from an agency and they paid for the car. I then went online and transferred ownership at 2000hrs on Friday night. The following day at 0130hrs the driver went through speed cameras on the M1. I had the proof of non ownership.

[papa3]

Lo-Fi said:

A timely thread!

Traded my car for another, Friday last week. On the following Monday (Monday just gone) I received an email from the new car dealer confirming they had paid the old car finance. I've already got the 'no longer own' acknowledgment slip and tax refund from the DVLA but nothing from the finance co. Logged in to the account yesterday and it's still live. 5 days after receiving the finance settlement they still haven't closed the account. Was debating wether I should cancel that DD. Reading this thread, I believe I'll wait a while.

Edited by Lo-Fi on Saturday 26th October 05:41

Edited because it was a bit brand specific. No name and shame etc.

Edited by Lo-Fi on Saturday 26th October 05:43

5 days is a bit different from 6-7 weeks!

In the 5 days case it is likely just processing time.

7 weeks is extracting the urine.

We have a clear process for handling PX Settlements. Using a valid settlement letter from the funder, on receipt of your funds (direct or financed) we settle the outstanding balance immediately or on the next business day (Saturday handovers etc). Transfer to trade is the same, on the day or next business day.

Most large dealers will be the same give or take a day. We cannot re finance the PX (72% of all sales are financed) with an outstanding finance marker.

Less scrupulous dealers can see a significant cashflow advantage by delaying your settlement payment.

I have seen dozens of instances where a customer has lost out to a scumbag dealer who simply never settles the agreement. Both parties, the new owner and the previous, end up on the hook in this instance and the dealer phoenix's the business.

When we buy stock directly that is subject to a finance balance we pay off the net difference in front of the customer.

NEVER cancel the DD until you have a clearance letter.

[surveyor]

This does remind me of a Passat the the family firm part exchanged

It came to light that the finance had not been settled

Trader decided to run with a bullst story that he had merely agreed to sell it on our behalf and had passed it on to a trader mate to sell. His lawyer was better at bullst than ours and we eventually ended up taking it back.

When I collected it it stank of fags, and needed oil and water. Not best pleased!

[Leon525]

I’ve managed to get in touch with the buyer of my old car. He was told by them the car had no outstanding finance and he paid cash for it. This would be laughable if I wasn’t on the hook for it.

[Lo-Fi]

papa3 said:

Lo-Fi said:

A timely thread!

Traded my car for another, Friday last week. On the following Monday (Monday just gone) I received an email from the new car dealer confirming they had paid the old car finance. I've already got the 'no longer own' acknowledgment slip and tax refund from the DVLA but nothing from the finance co. Logged in to the account yesterday and it's still live. 5 days after receiving the finance settlement they still haven't closed the account. Was debating wether I should cancel that DD. Reading this thread, I believe I'll wait a while.

Edited by Lo-Fi on Saturday 26th October 05:41

Edited because it was a bit brand specific. No name and shame etc.

Edited by Lo-Fi on Saturday 26th October 05:43

5 days is a bit different from 6-7 weeks!

In the 5 days case it is likely just processing time.

7 weeks is extracting the urine.

We have a clear process for handling PX Settlements. Using a valid settlement letter from the funder, on receipt of your funds (direct or financed) we settle the outstanding balance immediately or on the next business day (Saturday handovers etc). Transfer to trade is the same, on the day or next business day.

Most large dealers will be the same give or take a day. We cannot re finance the PX (72% of all sales are financed) with an outstanding finance marker.

Less scrupulous dealers can see a significant cashflow advantage by delaying your settlement payment.

I have seen dozens of instances where a customer has lost out to a scumbag dealer who simply never settles the agreement. Both parties, the new owner and the previous, end up on the hook in this instance and the dealer phoenix's the business.

When we buy stock directly that is subject to a finance balance we pay off the net difference in front of the customer.

NEVER cancel the DD until you have a clearance letter.

Yeah, I'm not panicking.
It's a bit galling though. The monthly on the old car is due in a few days. I'd rather it didn't go out, then have to wait for it to be refunded when they finally process the settlement.
It's a bit like buying something in a shop on a debit card; payment is taken instantly. Refunds you have to "allow 3-5 days to be processed". Bit one-way for my liking.
Just for the record, the new car is an approved one from a Japanese company (the biggest one). The old car is financed by one of the German companies (the biggest one).

[NikBartlett]

My daughter test drive a car a few days ago. The info sheet from the dealer had a big red outstanding finance check marker on it. When she queried this the dealer tried to fob her off saying to ignore it as it something to do with his company, or words to that effect. I told her to run away very quickly from that deal

[HTP99]

NikBartlett said:

My daughter test drive a car a few days ago. The info sheet from the dealer had a big red outstanding finance check marker on it. When she queried this the dealer tried to fob her off saying to ignore it as it something to do with his company, or words to that effect. I told her to run away very quickly from that deal

If the dealer has a stocking plan then yes a car financed under that stocking plan can flag up as having finance outstanding on it.

[ADJimbo]

Exactly this. The vehicle will be sitting on a dealer-funded stocking plan and is nothing to worry about.

[Tommo87]

HTP99 said:

NikBartlett said:

My daughter test drive a car a few days ago. The info sheet from the dealer had a big red outstanding finance check marker on it. When she queried this the dealer tried to fob her off saying to ignore it as it something to do with his company, or words to that effect. I told her to run away very quickly from that deal

If the dealer has a stocking plan then yes a car financed under that stocking plan can flag up as having finance outstanding on it.

I was going to say the same.
Dealers often buy stock under a loan. Which will show up as finance that typically says that it’s a stocking policy.

The last time I bought a car under finance, the seller obtained a settlement figure, we jointly called the lender, I paid the finance value off over the phone and when the email confirmation was received and copied to me, I paid the small remaining balance of funds to the seller.

It took a good 90mins from start to finish, but the seller had given the finance company prior warning what would occur on the day.