HPI check shows "Unit Stocking" finance on dealer car

[aww999]

Hi all,

I have just run an RAC HPI check on a car I'm viewing at the weekend. The report says that there is outstanding finance on it, where the "Agreement Type" is "Unit Stocking" and the provider is "Next Gear Capital Ltd". The dealer is an independent specialist with approx 10 cars in stock, between £10k and £40k each in value. The car I'm interested in is in the middle of that range. (Not trying to be mysterious, just trying to avoid name & shame especially when I doubt anything dodgy is going on!)

Googling the finance provider suggests that this is a form of stock loan available to the trade, and I assume this type of arrangement is quite common. If this is correct, how should I proceed with the sale? Should I insist on transferring funds directly to the finance provider? I was planning to use an electronic bank transfer for payment on the day I choose to collect the vehicle, as I assumed it would be the safest option for me; will that still be possible?

This is all new territory for me (approx 10 times the amount I usually spend on a car!) and although the trader has a very good reputation, I want to take every step to protect myself. Any advice would be much appreciated.

[Butter Face]

Completely normal.

You won't be able to pay it off like a normal finance agreement on a normal car.

If you're that worries just get a letter from the dealer to confirm the stocking finance will be paid off when you take possession.

We have around 30% of our cars on stocking finance.

[N8CYL]

Very normal, buy away. 90% of car forecourts are financed on stocking loans. When sold the dealer is debited.
I used to provide stocking loans, and there is no comeback on customer.

[TVR1]

In addition, you have full protection under current consumer law in the event that the dealer goes bust before settling- a not widely known benefit of buying from a dealer. The finance company cannot persue you or the car. Also, i's fairly automatic to settle unit stocking as part of the invoice process. We carry (at my branch) nearly £5 million of funded cars, with around £30k of interest charges a month-nightmare! Hence why sometimes, overage cars have to go, at seemingly insane prices. They cost more in interest then you can ever recoup in profit.

[aww999]

That's exactly the sort of reassurance I was looking for. Thanks very much all. While I have some knowledgeable people reading the thread, I have not been able to get the online MOT history site working - the car has just come off a private plate but neither the old nor new plate comes back with any records. Is there any other way of viewing past fails / advisories?

[Butter Face]

Not until the system updates back to the old reg.

[marktmorgan]

I know an old post but worthwhile doing a rough calculation on the interest they will pay per month.

Appreciate that 'stocking loans' are usually for a 90 day period (as they're supposed to turn them over fast)

So for instance (as I am) buying a RWD sportscar in Sept 18 in white

When you factor in:

1) Who buys a sportscar with Winter approaching and a new reg out in March
2) Who can afford to spend £40k on a car with no trade-in/finance
3) Who would want a white car?
4) Who can afford the 50E insurance?
5)Who can afford the £550 road tax

Then I can 'take the urine' when it comes to an offer starting off at 20% off the ticket price and settling for between 12-15%, secure in the knowledge that their car will still be in their possession come Spring and they'll be about £2k worse off from the finance!

Same reason I buy 4x4's in August, everyone thinks of getting one in Nov/Dec and I pay 20% less.

Oh the joys of being (self procalimed) savvy

[Butter Face]

marktmorgan said:

I know an old post but worthwhile doing a rough calculation on the interest they will pay per month.

Appreciate that 'stocking loans' are usually for a 90 day period (as they're supposed to turn them over fast)

So for instance (as I am) buying a RWD sportscar in Sept 18 in white

When you factor in:

1) Who buys a sportscar with Winter approaching and a new reg out in March
2) Who can afford to spend £40k on a car with no trade-in/finance
3) Who would want a white car?
4) Who can afford the 50E insurance?
5)Who can afford the £550 road tax

Then I can 'take the urine' when it comes to an offer starting off at 20% off the ticket price and settling for between 12-15%, secure in the knowledge that their car will still be in their possession come Spring and they'll be about £2k worse off from the finance!

Same reason I buy 4x4's in August, everyone thinks of getting one in Nov/Dec and I pay 20% less.

Oh the joys of being (self procalimed) savvy

Whilst your post makes sense in theory, dealers aren't (in the main) stupid and if they've bought a white, 50k, expensive to tax, expensive to insure, undesirable car into stock at a time that isn't ideal, they will have factored all of this into the price they paid for the car.

[Mubashir mahmood]

Hello i checked a car on two websites after that i linked with owner private seller, i also checked HPi but not cheked from offical HPI site, It was showed that car is cleared no any damages or accident. Then i bought the car from owner i paid cash. We made a receipt by handwriting,not computerized. I bring back car from 130 miles to my place. Next day my mate suggested me that checked full HPI when i checked again then HPI alert finance “unit stocking finance” Owner did not tell me that the car is on finance and i am worried to much, and owner mobile phone is off as well, can any one is suggest me what can i do. I link to finance company as well they told me wait we contact to company.