Buying a car from a dealer without seeing V5C

[JBlogs]

I'm considering buying a car from a used car dealer.

The dealer said he doesn't have the V5C for the car. He apparently bought it from a dealership who got the car in a part exchange. The dealership hasn't sent the V5Cs despite the seller/dealer chasing.

The seller/dealer insists this is no cause for worry, as he has called the DVLA who have informed him that their records show the car is with the vehicle trade at the moment.

I have called DVLA too and they've confirmed that their records do show that the vehicle is with the trade, and have shared information on how the car can be taxed without a V5C, and on how I can register as the new keeper/get a new V5C by applying with a V62. The V5C will be delivered in 4 weeks apparently (seller/dealer says 10 days - but he would say that . DVLA confirm I can drive away with the car as long as it's insured and taxed.

Is there any risk involved in buying a car without a V5C given the circumstances? What could go wrong?

Another bit of information that would be very relevant is that the seller/dealer tells me the HPI check will come up with finance outstanding since he buys these cars with a loan from a financing company, but again he says this finance will be cleared when I pay him and he settles the loan right away.

[Nickp82]

This is a very common occurance so whilst of course you should take necessary precautions such as HPi, I don’t think you should be put off. Sounds like the dealer is being honest.

[Wooda80]

Stocking Finance ( as the funding for stock is called ) is common place and entirely normal. Everyone from independent dealers to big plc dealer groups use it. Stock funding facilities are only offered to properly run, financially strong businesses.

With the exception of the previous owner's name and address all the information shown on the V5 is available from other sources so if there is something in particular that you wanted to look for on the V5 then talk to the dealer and he should be able to demonstrate that info from another source.

DVLA have already confirmed that there is no issue with taxing the car on a V62 form, so I don't believe the absence of a V5 is anything to be concerned about. ( I've got 5 in stock out of 25 for which Im still waiting for V5s for various reasons.)

[Astacus]

does the HPI Check show insurance right off status?

[JBlogs]

Nickp82 said:

This is a very common occurance

Thanks Nickp82. Do you mean the missing V5C is a common thing or for the HPI to show finance because the dealer bought it on finance himself or both?

Also, how can a dealer buy a car/stock with a loan (and having the financing co. own the vehicle) without his details/finance company's details showing up in the V5C as owner/keeper?

[JBlogs]

Astacus said:

does the HPI Check show insurance right off status?

I haven't run a HPI check yet but the dealer told me the HPI check will come up with the finance co. as the owner

[JBlogs]

Wooda80 said:

.With the exception of the previous owner's name and address all the information shown on the V5 is available from other sources so if there is something in particular that you wanted to look for on the V5 then talk to the dealer and he should be able to demonstrate that info from another source.

Thanks Wooda80.

Is there a risk that the V5C may have been pledged for a log book loan without the lender showing up on the HPI?

The DVLA worryingly says "Don’t buy a vehicle without a V5C" (https://www.gov.uk/government/news/dont-buy-a-vehicle-without-a-v5c-logbook)

This article says, "You can reduce the risk of buying a stolen vehicle by making sure it has a V5C logbook and by following these steps."

Does a clear HPI check eliminate the potential risks of buying without seeing a V5C?

Also, assuming the seller has stock financing like you've explained, how do i get this cleared at the time of purchase so that I can remove the financing co.'s ownership and become the sole owner? Is it possible to do this before money has changed hands?

[Nickp82]

JBlogs said:

Thanks Nickp82. Do you mean the missing V5C is a common thing or for the HPI to show finance because the dealer bought it on finance himself or both?

Also, how can a dealer buy a car/stock with a loan (and having the financing co. own the vehicle) without his details/finance company's details showing up in the V5C as owner/keeper?

I was mainly talking about the lack of v5 but it applies to both.
A v5 is not required for stocking finance in my experience (it may differ depending on financier), it is usually set up using the vehicle invoice. Some of the stocking funders are owned by the same company who own the auction/auction website so it can be done pretty much at the click of a button.

[stevemcs]

JBlogs said:

Thanks Nickp82. Do you mean the missing V5C is a common thing or for the HPI to show finance because the dealer bought it on finance himself or both?

Also, how can a dealer buy a car/stock with a loan (and having the financing co. own the vehicle) without his details/finance company's details showing up in the V5C as owner/keeper?

Dealer stocking doesn't require a V5 to be sent or held, some stocking companies request the registration number, the purchase price a picture of the chassis number and of the front of the vehicle. They then loan a percentage of the invoice value, charge a loading fee, charge interest ad charge a removal fee. They usually limit the time on stocking. They can do spot checks and expect to see the car and V5. If a car is sold that on stocking it should be cleared before the car is handed over. They do allow a little bit of give if its sold over a weekend. If the car is being financed then stocking should be cleared before it can be financed by the customer.

It should show up on a HPi check as dealer stocking

[JBlogs]

stevemcs said:

It should show up on a HPi check as dealer stocking

Thanks stevemcs, will run a HPI and confirm this

[JBlogs]

stevemcs said:

It should show up on a HPi check as dealer stocking

Should a HPI check be specifically bought from https://hpicheck.com/ or will one from say Autotrader (https://www.vehiclecheck.co.uk/) be equally rigorous?

[stevemcs]

I'd always use HPi but others are available. Vcheck is also another good site for very different reasons

[JBlogs]

stevemcs said:

I'd always use HPi but others are available. Vcheck is also another good site for very different reasons

Thanks stevemcs. Just saw your response but had already bought vcheck a bit earlier. The dealer has shown the report from HPI so it's belts and braces really

[JBlogs]

stevemcs said:

Dealer stocking doesn't require a V5 to be sent or held, some stocking companies request the registration number, the purchase price a picture of the chassis number and of the front of the vehicle. They then loan a percentage of the invoice value, charge a loading fee, charge interest ad charge a removal fee. They usually limit the time on stocking. They can do spot checks and expect to see the car and V5. If a car is sold that on stocking it should be cleared before the car is handed over. They do allow a little bit of give if its sold over a weekend. If the car is being financed then stocking should be cleared before it can be financed by the customer.

It should show up on a HPi check as dealer stocking

Thanks stevemcs - I've now done a vehicle check and as expected, the report flags that there is adverse data about the car.

In the detailed sections, the only one not green is the 'Finance Details' section.

Here's what it says:

Finance Details
Finance agreement recorded
Finance Company <mentioned in the report, matches the name the dealer told me>
Contact number <mentioned in the report>
Agreement number <mentioned in the report>
Agreement type UNIT STOCKING
Finance vehicle description <mentioned in the report>

I've also spoken to the finance company and they confirm they have an interest in the car and that it's normal for the HPI report to show up with their name and that their interest will be removed in 48 hours after purchase.

The DVLA have confirmed that their records show the car was sold into the motor trade no later than 13/12/2019 (date the tax was stopped).

All things considered, does this look safe to proceed in the absence of the V5C?

Also, how would I actually complete the sale and ensure that the ownership passes to me cleanly without any complications? I'm paying cash (bank transfer)

Edited by JBlogs on Thursday 16th January 13:57

[stevemcs]

Will the dealer be paying the £25 for the new V5, is it a main dealer or a small time trader

[JBlogs]

stevemcs said:

Will the dealer be paying the £25 for the new V5, is it a main dealer or a small time trader

It’s an independent dealer but looks like he’s been in business for 7-8 years with a good (4.5*) rating on autotrader, and not a main dealer.

He will pay the £25 fee for the new V5C

[stevemcs]

JBlogs said:

It’s an independent dealer but looks like he’s been in business for 7-8 years with a good (4.5*) rating on autotrader, and not a main dealer.

He will pay the £25 fee for the new V5C

Check google reviews, the dealer where i worked has a 4.8 review on Autotrader and i would not buy a car from them.

[JBlogs]

stevemcs said:

Check google reviews, the dealer where i worked has a 4.8 review on Autotrader and i would not buy a car from them.

good point, checked google reviews - it's a 4.8 too, over nearly 40 reviews. Only a couple of 1* reviews - others are all 5*

But beyond checking if the dealer is trustworthy by looking at these reviews, is there anything else I could be doing in addition to what i've done (HPI, DVLA check that car is with motor trade, confirming with stock finance co) to reduce the risks associated with buying without a V5c?

[stevemcs]

I don't think there is anything else you can do, if you feel the dealer is being honest and more importantly the DVLA say its in the trade then i'd be happy to proceed, i'm assuming its the V63 you are going to fill out and take to the post office, they should tax it straight away and post off the form.

[JBlogs]

stevemcs said:

I don't think there is anything else you can do, if you feel the dealer is being honest and more importantly the DVLA say its in the trade then i'd be happy to proceed, i'm assuming its the V63 you are going to fill out and take to the post office, they should tax it straight away and post off the form.

Thanks stevemcs, all the inputs have been very helpful