Car bought from official main dealer - outstanding finance
Discussion
Bit of a pickle this one.
I recently purchased a pretty much new car that was SOR from a main dealer. Due to the cost I've had to take an amount of finance to get the car, but the dealer finance is a crazy % so I was always going to switch to another company once the car was mine.
So I've had the car a few weeks and all of the finance has been agreed with the new company, docs all signed etc but they have flagged that there is outstanding finance on the car!
So I am not sure where I stand, surely the supplying dealer who all my dealing have been with, and finance etc should have sorted all of this.
The finance co have contacted the dealer who have said it's in hand, but where do I stand?
I recently purchased a pretty much new car that was SOR from a main dealer. Due to the cost I've had to take an amount of finance to get the car, but the dealer finance is a crazy % so I was always going to switch to another company once the car was mine.
So I've had the car a few weeks and all of the finance has been agreed with the new company, docs all signed etc but they have flagged that there is outstanding finance on the car!
So I am not sure where I stand, surely the supplying dealer who all my dealing have been with, and finance etc should have sorted all of this.
The finance co have contacted the dealer who have said it's in hand, but where do I stand?
2020vision said:
Did you take finance from the dealer that you are now paying off with your new load, is this the outstanding finance?
Or did you pay cash then intended to borrow cash to spread the cost?
If the second case then who is owed the cash?
The car was SOR through the original supplying dealer. I've bought the car from them and all my dealings are with the dealer directly. I have taken an amount of finance through the same dealer and paid cash/plus my part exchange to cover the rest.Or did you pay cash then intended to borrow cash to spread the cost?
If the second case then who is owed the cash?
The finance from the dealer isn't competitive so I have requested a settlement figure from their finance company and then proceeded to change that finance to a more competitive lender, at that point the new lender has identified that the car has outstanding finance.
Freakuk said:
The car was SOR through the original supplying dealer. I've bought the car from them and all my dealings are with the dealer directly. I have taken an amount of finance through the same dealer and paid cash/plus my part exchange to cover the rest.
The finance from the dealer isn't competitive so I have requested a settlement figure from their finance company and then proceeded to change that finance to a more competitive lender, at that point the new lender has identified that the car has outstanding finance.
Surely the outstanding finance is the finance you took out from the dealer on the car?The finance from the dealer isn't competitive so I have requested a settlement figure from their finance company and then proceeded to change that finance to a more competitive lender, at that point the new lender has identified that the car has outstanding finance.
carl_w said:
Freakuk said:
The car was SOR through the original supplying dealer. I've bought the car from them and all my dealings are with the dealer directly. I have taken an amount of finance through the same dealer and paid cash/plus my part exchange to cover the rest.
The finance from the dealer isn't competitive so I have requested a settlement figure from their finance company and then proceeded to change that finance to a more competitive lender, at that point the new lender has identified that the car has outstanding finance.
Surely the outstanding finance is the finance you took out from the dealer on the car?The finance from the dealer isn't competitive so I have requested a settlement figure from their finance company and then proceeded to change that finance to a more competitive lender, at that point the new lender has identified that the car has outstanding finance.
Freakuk said:
The car was SOR through the original supplying dealer. I've bought the car from them and all my dealings are with the dealer directly. I have taken an amount of finance through the same dealer and paid cash/plus my part exchange to cover the rest.
The finance from the dealer isn't competitive so I have requested a settlement figure from their finance company and then proceeded to change that finance to a more competitive lender, at that point the new lender has identified that the car has outstanding finance.
I am probably being nieve or stupid, but isn't the "outstanding finance" that the new lender has identified, the finance that you have already taken with the dealer? The finance from the dealer isn't competitive so I have requested a settlement figure from their finance company and then proceeded to change that finance to a more competitive lender, at that point the new lender has identified that the car has outstanding finance.
119 said:
carl_w said:
Freakuk said:
The car was SOR through the original supplying dealer. I've bought the car from them and all my dealings are with the dealer directly. I have taken an amount of finance through the same dealer and paid cash/plus my part exchange to cover the rest.
The finance from the dealer isn't competitive so I have requested a settlement figure from their finance company and then proceeded to change that finance to a more competitive lender, at that point the new lender has identified that the car has outstanding finance.
Surely the outstanding finance is the finance you took out from the dealer on the car?The finance from the dealer isn't competitive so I have requested a settlement figure from their finance company and then proceeded to change that finance to a more competitive lender, at that point the new lender has identified that the car has outstanding finance.
Freakuk said:
595Heaven said:
Same. So the new finance will clear the old finance and you have negotiated a better deal. Or was there finance outstanding on the car from previous owner when the retailer sold it to you?
ThisSurely when you bought the car on the dealer finance this should have been flagged?
Freakuk said:
So I am not sure where I stand, surely the supplying dealer who all my dealing have been with, and finance etc should have sorted all of this.
The finance co have contacted the dealer who have said it's in hand, but where do I stand?
If you are worried about the process, you could do your own car check on it to find out the details of the current outstanding finance (so could your finance company....) At the end of the day, if you're buying it on finance its not your problem, its your finance company's problem, because they are paying the capital (to somebody or some other finance firm) to become true owner (you aren't the owner until its eg a concluded HP or PCP which is fully paid).The finance co have contacted the dealer who have said it's in hand, but where do I stand?
Edited by paul_c123 on Friday 22 August 12:51
mmm-five said:
Why did you take the crap dealer finance if you were always going to get external financing at a better rate?
Why not sort out the external financing before you bought the car?
Good question, because of the deal I got (a very good deal) and as it was a SOR they wouldn't let me use any other finance than there's (they were hoping for the commission I guess on the finance as there wasn't a big pay cheque being an SOR).Why not sort out the external financing before you bought the car?
Whilst it does look bad, this in not a huge concern. An SOR car could still have outstanding finance, a dealer will only settle it once the car is sold. wheels turn slowly and HPi only updates every two weeks. As you bought from a dealer, you have recourse with them and it stops with them as that is part of the advantages of buying through a dealer.
I expect the finance will show as settled fairly soon.
I expect the finance will show as settled fairly soon.
- used to work at dealers (over 25 years) and settling finance was part of my role.
Freakuk said:
Good question, because of the deal I got (a very good deal) and as it was a SOR they wouldn't let me use any other finance than there's (they were hoping for the commission I guess on the finance as there wasn't a big pay cheque being an SOR).
Wouldn't they let you pay cash...which is effectively what you'd be paying with if you got an external unsecured loan? They'd not even know if you'd got a loan if you didn't tell them...you might have got a sudden inheritance/windfall.As a SOR deal, did you get any dealer benefits such as warranty, CRA, or were they simply acting as a selling intermediary and it's effectively a private sale/purchase with zero consumer rights?
Edited by mmm-five on Friday 22 August 13:32
mmm-five said:
Why did you take the crap dealer finance if you were always going to get external financing at a better rate?
Why not sort out the external financing before you bought the car?
I did last year with VWFS..Why not sort out the external financing before you bought the car?
As I got £1000 off & 2 services for taking out their finance.
Withdrew within few days & could keep the perks as in the t&c’s
Cost me around £5 a day for the 3 days, then had 30 days to settle up (with cheaper finance or cash)
Which finance company allows you to refinance a car already on finance (as opposed to buying a car from a dealer - eg Zuto)?
ETA inadvertently answered my own question!! (Zuto do refinancing). However, is it the case that the OP's independent-from-dealer finance was expecting to 'buy' the car from the dealer, not do a refinance eg buy out another finance company - hence the surprise at it already being on finance?
Maybe the deals for refinancing aren't quite as good as independent (but not re) financing?
ETA inadvertently answered my own question!! (Zuto do refinancing). However, is it the case that the OP's independent-from-dealer finance was expecting to 'buy' the car from the dealer, not do a refinance eg buy out another finance company - hence the surprise at it already being on finance?
Maybe the deals for refinancing aren't quite as good as independent (but not re) financing?
Edited by paul_c123 on Friday 22 August 19:58
Gassing Station | Speed, Plod & the Law | Top of Page | What's New | My Stuff