Outstanding Finance

[RustyH]

Just looking for some advice

Was planning on picking up a car tomorrow I have seen from a company called V12 Sports and Classics.

It's a BMW, that apparently was an ex Lex Auto car (posted about its wheel in another thread)

I've just ran a vehicle check on it and it's come up that it apparently has outstanding finance with "Partner Finance" and a date of 11/10/2021 (Term: 4, Type: Unit Stocking)

What should I do to investigate this more?

[fourstardan]

Ask who you are buying it off?

[RustyH]

When I went to view the first time round, the guy told me they couldn't do it for the price I was asking cause V12 Classic and Sport had bought it for more, so I assume its from them. But I will definitely ask that question specifically

Just noticed as well, Millage has been recorded as BVLRA and RMI, so Lex Auto Lease would seem right

[fourstardan]

RustyH said:

When I went to view the first time round, the guy told me they couldn't do it for the price I was asking cause V12 Classic and Sport had bought it for more, so I assume its from them. But I will definitely ask that question specifically

Just noticed as well, Millage has been recorded as BVLRA and RMI, so Lex Auto Lease would seem right

Not a situation I've been in before tbh.

Important thing I guess is someone doesn't turn up to take the car you've been paying for as it's outstanding on payment?

[georgeyboy12345]

I went to look at a BMW 330e from this dealer chain, they gave me a very bad gut feeling so I swerved them.

[Auto810graphy]

This is very common with most dealers as it’s a stocking plan, basically dealers can borrow money to buy stock but it is secured against the car. The stocking lender will not want any dealers selling a car on stocking unless it is settled the same day. You just need to ask or proof of settlement before you purchase as the HPI market sometimes takes a few days to be removed.

The stocking lender will have done checks on the dealer and they are quick to remove funding from any that are bending the rules.

[RustyH]

Thanks all

That seems to make sense given the type of finance on the reports say "unit stocking".

When you say ask for proof the finance has been cleared, will they clear it there and then when I make the payment for the car, or should they do it before I buy it?
What form should the proof be in?

[anonymous-user]

https://www.hpi.co.uk/guides/types-of-finance.html

That’s what HPI have to say about it.

It’s very common. Just get it in writing that they will clear it (or already have) and you’re covered.

[Auto810graphy]

RustyH said:

Thanks all

That seems to make sense given the type of finance on the reports say "unit stocking".

When you say ask for proof the finance has been cleared, will they clear it there and then when I make the payment for the car, or should they do it before I buy it?
What form should the proof be in?

I would expect most garages would clear it when you are there give you a copy of the payment receipt. Some will get nervous as the amount of finance is often a fair bit lower than the car is being sold for but most stocking lenders only give up to CAP trade value or often 5-10% less so a £25k retail car will often have just over £20k of stocking (this can also reduce if they take small capital payments as part of their terms).