Buying Car With Outstanding Finance From Dealer???

[whatxd]

This situation seems a bit bizarre to me, wondering if anyone is able to help. I just went with my brother to buy a used car. its a 2016 BMW 2 series, taken in as part exchange at a Honda dealer or one of their sister companies.

It is now being sold by another company within the same grounds who I won't name at this point, who deal with selling the used cars. Think Honda on the right of the entrance, these guys are on the left.

All is good with the car, he wants it, we do a hpi check and it comes back with outstanding finance. The commencement date was June 1st 2021. When we asked the guy about this, he said that it is them who took out this finance "due to number of cars on the forecourt" and that it will be settled on purchase.

Is this a normal thing? Are there any assurances he should be asking for or just avoid altogether to be safe?

[sortedcossie]

This happened to my dad when buying a 5 series BMW a couple of years back. The finance was settled on the day of handover with proof given before the balance was paid.

I think some independent dealers buy stock on finance for cashflow reasons.

[vikingaero]

sortedcossie said:

This happened to my dad when buying a 5 series BMW a couple of years back. The finance was settled on the day of handover with proof given before the balance was paid.

I think some independent dealers buy stock on finance for cashflow reasons.

Agree. As much as consumers have HP, so do many dealers - dealer finance.

[HTP99]

Sounds like the car is on a stocking plan, basically as opposed to the dealer/garage owning the car outright it is effectively financed, so as to aid cashflow, nothing sinister, it is very common.

[Drive Blind]

as above sounds like stocking finance - very common.