Advice- buying a car with outstanding finance
Discussion
Would welcome some thoughts on this.
We saw a car we want to buy yesterday at a dealers (long-established, many cars etc). The car showed as having outstanding finance on the HPI check, which the dealer told us about before we saw the report. The finance is with the dealer though, so the dealer needs to pay the finance off.
To prove this he logged into his account and showed me a list of his cars which he had finance on, including the car we wanted. So for that part I was satisfied that all should be well, as for him and his business it's not a good plan to default.
My one niggle was that he would pay the finance off after we have paid him, assuring us that the finance company would confirm this a couple of days later. Therefore potentially exposing us to a problem if, for some reason, he didn't clear it.
I haven't come across this before, so wanted to check with the knowledgeable people of PH. Is this common for dealers? I'm assuming that he bought the car from someone and so borrowed the money to do so. It's not a small amount of money, so from a business perspective it seems legit. How would you advise we proceed? We want the car, it's a fair price and is exactly what we were after.
We saw a car we want to buy yesterday at a dealers (long-established, many cars etc). The car showed as having outstanding finance on the HPI check, which the dealer told us about before we saw the report. The finance is with the dealer though, so the dealer needs to pay the finance off.
To prove this he logged into his account and showed me a list of his cars which he had finance on, including the car we wanted. So for that part I was satisfied that all should be well, as for him and his business it's not a good plan to default.
My one niggle was that he would pay the finance off after we have paid him, assuring us that the finance company would confirm this a couple of days later. Therefore potentially exposing us to a problem if, for some reason, he didn't clear it.
I haven't come across this before, so wanted to check with the knowledgeable people of PH. Is this common for dealers? I'm assuming that he bought the car from someone and so borrowed the money to do so. It's not a small amount of money, so from a business perspective it seems legit. How would you advise we proceed? We want the car, it's a fair price and is exactly what we were after.
StuTheGrouch said:
Thanks. My thinking though, is that we shouldn't pay the full price until the finance is cleared.
Well it takes time to come off the HPI, so what's your thoughts? He clears it, then you wait until HPI is updated then pay him?I don't think he'll go for that, cashflow is the name of the game with selling cars and stocking finance is 100% legitimate.
I'm not concerned at the finance showing on HPI, but will speak to the finance company to ensure that it is cleared. Our preference is to pay the finance company directly.
Your comments are reassuring though, so thank you. This practice is new to me (I normally buy from private sellers, with the cars being HPI clear). Everything else checks out with this car, but there was this niggle.
Your comments are reassuring though, so thank you. This practice is new to me (I normally buy from private sellers, with the cars being HPI clear). Everything else checks out with this car, but there was this niggle.
Butter Face said:
Well it takes time to come off the HPI, so what's your thoughts? He clears it, then you wait until HPI is updated then pay him?
I don't think he'll go for that, cashflow is the name of the game with selling cars and stocking finance is 100% legitimate.
I completely see it from his point of view too, I just wanted to be clear about the risks to us. I don't think he'll go for that, cashflow is the name of the game with selling cars and stocking finance is 100% legitimate.
Its really normal to be honest.
I use stocking finance in my used car dealership.
The aim for us is to sell the car and pay it off straight away so we can use the funds on the stocking plan to go and buy more stock.
We are audited very regularly and there are harsh financial penalties for not settling cars and taking the mick with it.
Proceed without any worry and I hope you enjoy your new car and all goes well.
I use stocking finance in my used car dealership.
The aim for us is to sell the car and pay it off straight away so we can use the funds on the stocking plan to go and buy more stock.
We are audited very regularly and there are harsh financial penalties for not settling cars and taking the mick with it.
Proceed without any worry and I hope you enjoy your new car and all goes well.
Alucidnation said:
Need_A_Username said:
When you buy the car, pay £150 on a credit card
That way, if something were to go wrong (he disappeared, as if by magic), you can claim the entire purchase price from your credit card co.
Really?That way, if something were to go wrong (he disappeared, as if by magic), you can claim the entire purchase price from your credit card co.
I can't imagine that is correct.
As long as it is over £100, and less than £30,000.
Forums | Speed, Plod & the Law | Top of Page | What's New | My Stuff