Sale or return - finance
Discussion
A quick word of warning following a call we took this morning:
Chap calls with a view to selling us his car, it's currently with a dealer on sale or return but hasn't sold so he's getting a bit fed up and wants to get our views on buying it off him.
In the course of the conversation it transpires the man has cancelled his finance payments because the garage said they would take care of his finance. Be very careful. Dealers selling your car on sale or return won't settle your finance when the car is delivered to them, neither will they make your monthly payments.
S.O.R works on the basis that once the car has sold and the dealer has received cleared funds they will settle your finance (assuming you aren't in negative equity / the amount being returned after commission is sufficient to clear your finance).
It is essential that you maintain payments on any finance you have outstanding and I would suggest you also keep the car insured. You may find that a trade insurance scheme is limited to trade value rather than retail replacement cost.
I'm not going to go down the route of non settlement after sale / lack of insurance etc I'm assuming that is all above board but just to avoid anyone else making the same mistake of the chap who called us and inadvertently getting themselves into trouble with the finance company !
Henry
Chap calls with a view to selling us his car, it's currently with a dealer on sale or return but hasn't sold so he's getting a bit fed up and wants to get our views on buying it off him.
In the course of the conversation it transpires the man has cancelled his finance payments because the garage said they would take care of his finance. Be very careful. Dealers selling your car on sale or return won't settle your finance when the car is delivered to them, neither will they make your monthly payments.
S.O.R works on the basis that once the car has sold and the dealer has received cleared funds they will settle your finance (assuming you aren't in negative equity / the amount being returned after commission is sufficient to clear your finance).
It is essential that you maintain payments on any finance you have outstanding and I would suggest you also keep the car insured. You may find that a trade insurance scheme is limited to trade value rather than retail replacement cost.
I'm not going to go down the route of non settlement after sale / lack of insurance etc I'm assuming that is all above board but just to avoid anyone else making the same mistake of the chap who called us and inadvertently getting themselves into trouble with the finance company !
Henry
it certainly sounds like it.
- it is MOVEMBER after all!
matc said:
Incredible to think that someone so stupid would earn enough money to buy a Porsche in the first place!
Well not really. The person finanaced it, probably amounted to the same as a normal saloon car in up front money but with longer repayments and a bigger balloon at the end.Koing
I'm not sure the chap was necessarily as stupid as you're making out. I certainly didn't post to make him out as such.
When he was discussing the sale or return option with the garage they "promised" a good figure returned and said they would deal with the finance. He took that to mean it would be paid off and thought nothing more about it.
Unfortunately a few months down the line he's realised that it wasn't quite the knight in shining armour he was hoping for.
A very good salesman who knew which buttons to push.
Henry
When he was discussing the sale or return option with the garage they "promised" a good figure returned and said they would deal with the finance. He took that to mean it would be paid off and thought nothing more about it.
Unfortunately a few months down the line he's realised that it wasn't quite the knight in shining armour he was hoping for.
A very good salesman who knew which buttons to push.
Henry
Henry-F said:
I'm not sure the chap was necessarily as stupid as you're making out. I certainly didn't post to make him out as such.
When he was discussing the sale or return option with the garage they "promised" a good figure returned and said they would deal with the finance. He took that to mean it would be paid off and thought nothing more about it.
Unfortunately a few months down the line he's realised that it wasn't quite the knight in shining armour he was hoping for.
A very good salesman who knew which buttons to push.
Henry
Surely after the first missed payment the finance company would have been on the case?When he was discussing the sale or return option with the garage they "promised" a good figure returned and said they would deal with the finance. He took that to mean it would be paid off and thought nothing more about it.
Unfortunately a few months down the line he's realised that it wasn't quite the knight in shining armour he was hoping for.
A very good salesman who knew which buttons to push.
Henry
We haven't seen the car yet but you can imagine a dialogue along the lines of we've got a guy literally about to pop a depo on it, leave it with us, I don't know why the office haven't sorted it out, etc etc.
I would imagine it takes a couple of weeks for the finance company to register a missing payment, they normally want 14 days from receipt of payment to issue clearance / confirm the money is in their account. Then you've got instances of lost payments, etc, etc. I suspect our call today was prompted by a communication from the finance company.
I'm not sure the dealer was entirely whiter than white in this instance.
The fact remains don't stop paying any finance and keep it insured. To be fair quite a lot of people wouldn't realise that the dealer's insurance may only cover them to a trade value and if the garage has everything on SOR they may not have the ability to make up any difference even if they wanted to.
Forewarned is forearmed.
Henry
I would imagine it takes a couple of weeks for the finance company to register a missing payment, they normally want 14 days from receipt of payment to issue clearance / confirm the money is in their account. Then you've got instances of lost payments, etc, etc. I suspect our call today was prompted by a communication from the finance company.
I'm not sure the dealer was entirely whiter than white in this instance.
The fact remains don't stop paying any finance and keep it insured. To be fair quite a lot of people wouldn't realise that the dealer's insurance may only cover them to a trade value and if the garage has everything on SOR they may not have the ability to make up any difference even if they wanted to.
Forewarned is forearmed.
Henry
Thom987 said:
scarebus said:
Can I bit a bit naive.... but would an HPI check indicate this finance problem?
HPI check would just show outstanding finance.I did a check for someone 6-8 weeks ago for a car that they'd bought privately a while earlier and the previous owner hadn't paid the finance off, nor kept up with payments. It came up on the Security Watch register with the message "We will be alerting the interested parties of your check, if you have not been contacted within one working hour regarding this interest please call HPi on 0845.....". They never did call though.
The reason for such urgency is that if someone's on a dealer's forecourt trying to trade a car in, there's a chance the finance co can get the dealer to keep the customer there long enough for them to turn up and repossess it, something they've clearly been unable to do prior. I've heard tales of rewards being offered too for information leading to the recovery of vehicles (worth it for them to pay £500 to get a £XX,000 car back).
Some finance houses put car's on the security register as a matter of course, and usually forget to take them off again once settled !
I know of one instance where a sub-prime lender had a Tracker fitted to the car without the client's knowledge. I can't remember the exact APR figure but it was eye watering.
What's actually more scary are the number of cars on finance but not listed as such with HPI. A company who shall remain nameless suffice to say their name starts with a famous German Marque who have had a bit of success at Le Mans over the years and ends in Financial Services have been notorious for it. I've lost count of the number of times agreements haven't been registered.
All this is a off track though, you know your car is on finance when you drop it off on sale or return.
Henry
I know of one instance where a sub-prime lender had a Tracker fitted to the car without the client's knowledge. I can't remember the exact APR figure but it was eye watering.
What's actually more scary are the number of cars on finance but not listed as such with HPI. A company who shall remain nameless suffice to say their name starts with a famous German Marque who have had a bit of success at Le Mans over the years and ends in Financial Services have been notorious for it. I've lost count of the number of times agreements haven't been registered.
All this is a off track though, you know your car is on finance when you drop it off on sale or return.
Henry
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