Dealership Stock Financing
Discussion
Anyone familiar with car dealers financing the purchase of their used car stock? I’m looking at a used vehicle through a well-known dealership and having done an HPI check, it reveals there to be outstanding finance on the car. I’ve had it confirmed by the finance company the loan is in the name of the dealership in respect of the stock purchase and the dealership claims this to be normal industry practice to aid cash flow etc. etc. Obviously my worry (should I decide to go ahead) is that if I shell out a not inconsiderable amount of money to buy the car should I take any precautions? e.g. if the dealership decides (for whatever reason) not to clear the finance then technically the finance company could have “my” car repossessed and I’d then have to sue the dealership; probably with little chance of success as an unsecured creditor if it actually came to it. Should I ask the dealer to clear the finance before I hand over my money – or get a written undertaking from them that they will clear the finance – or pay via a bank draft or BACS payment in the name and account number of the finance company or am I just really being too paranoid. Any views from the PH massive gratefully received.
>> Edited by keithyboy on Monday 16th January 19:13
>> Edited by keithyboy on Monday 16th January 19:13
keithyboy said:
Thanks for the prompt response Smokin'. Effectively then if I pay the balance when i collect the car providing its a working day (M - F) and not a weekend this could be cleared up whilst I wait and before I drive away?
Ask the dealer about his procedures. I always cleared mine off at the earliest point, in case the new client wanted to finance the vehicle. It took three days between pushing the button, and the direct debit hitting.
not sure about the details from a dealers perspective, but as a bank manager, if they send the funds via BACS (most payments are) then it take 3w/d to hit the recipients account (as per previous post). However, it could take the finance co a period of time to tie up the funds in their internal account system, but that academic as long as the payment has been made. You could ask for proof that the payment has been made, but that might be abit pendantic
Depends on individual terms of garage stocking plan.some settle 30 days after car is sold, never in my life heard of finance co insisting stocking plan loan is settled prior to them paying out...........common practice for garages to have stocking loan, wouldnt be too hung up about it
Selected a 2017 Jaguar XE on 31st May. Left a deposit and arranged to collect car a week later. Dealer asked me to pay for the car rather than leave a deposit. Not prepared to do that and agreed to pay the balance on collection.
A week later sat with salesman and went through the paperwork including the HPI certificate only to see Experian had this car down as financed. Asked if I had paid for the car in full a week earlier would the HPI certificate show it was now clear a full week later.
Dealer said yes. I said I was not comfortable leaving the dealer in a car that I had no legal title to, as in the eyes of the law the Finance Company have first call on title till the debt is cleared. The dealer said all retail dealer's cars are on finance . No dealer can afford to have stock that is paid for awaiting sale. The dealer said it will come off the finance register in a day or two but as a weekend didn't count I am currently waiting for the dealer to tell me when it has cleared and the vehicle is actually mine. It's a well know Jaguar dealer but feel duped that I and many other retail customers are being sent out in cars with debt attached despite meeting the full cost of the car without any other finance arrangements being needed.
A week later sat with salesman and went through the paperwork including the HPI certificate only to see Experian had this car down as financed. Asked if I had paid for the car in full a week earlier would the HPI certificate show it was now clear a full week later.
Dealer said yes. I said I was not comfortable leaving the dealer in a car that I had no legal title to, as in the eyes of the law the Finance Company have first call on title till the debt is cleared. The dealer said all retail dealer's cars are on finance . No dealer can afford to have stock that is paid for awaiting sale. The dealer said it will come off the finance register in a day or two but as a weekend didn't count I am currently waiting for the dealer to tell me when it has cleared and the vehicle is actually mine. It's a well know Jaguar dealer but feel duped that I and many other retail customers are being sent out in cars with debt attached despite meeting the full cost of the car without any other finance arrangements being needed.
Gassing Station | General Gassing | Top of Page | What's New | My Stuff