Dealer 'loans' car from manufacturer to sell?

[DaveCWK]

Does anyone know about this practice?

Told by a dealer that a car is 'on loan' to them by the manufacturer, which the HPI paperwork supports (showing outstanding stocking finance).
I take it they have to settle this before they sell it/release car to the customer? How long does this process normally take?

[Butter Face]

It'll be paid off when it's sold.

Same day payment.

HPI may take some time to show clearance but dealers are audited regularly (spot checks) and if found to still have a car on stocking finance that has been sold will be fined so it will be paid as soon as sold (so another car can be put on stocking in it's place)

[GoneAnon]

I used to do those stock audits for a living. The registration triggers a payment to the manufacturer if it hasn't been done already and repeat "offences" can lead to the removal of stocking finance entirely so retailers won't take the chance.

[confused_buyer]

As per above, most are done online these days. The dealer has to notify the finance company immediately the transaction takes place.

Most are audited once a month and they check the paperwork as to when cars were sold and when they were notified. It can take 2-3 days for HPI to clear it off.

Obviously from the finance company's point of view they have to make sure that the dealer is actually in posession of the cars they say they hence the physical audits.