How to ensure finance cleared on car when buying from trade?

[Si_man306]

My Dad’s due to get a new (to him) 911 GTS Targa on Tuesday (well earned retirement treat after a lifetime of slaving). The car has finance at the moment which the dealer claims will be cleared once he’s paid at the time of purchase. This apparently will take 4-5 days to clear/ show on HPI after the car is delivered.

Although I know it’s common for dealers to use credit to buy cars, is this right, what’s to stop him taking the money and not paying my dads new car off? Shouldn’t the HPI be clear at time of purchase?

Car is being delivered with £50k part ex collected at that time and £50k bank transfer.

Thanks in advance.

[Nickp82]

Request a clearance confirmation by email from the finance company.
I.e, find out which company it is that has the interest and ring them directly.

[fwaggie]

I did this with a motorbike (in the US).

Never again.

Don't care if I have to pay more for the same thing, or wait a while longer, just don't do it.

Problems? We talked about me paying off the finance directly, but then the seller could still keep the bike.

What we decided to do was I would go to the sellers and then make out the sales paperwork, get them notarized (which makes it a legal document so he can't back out of sale) and then both visit the finance office and I give seller cashiers cheque and he pays off finance there and then.

That's what we planned on but the day we picked to do it turned out to be a national holiday so al notaries and the finance office weren't open.

All I could do was back out of the whole deal (which would be a right pain as I'd hired a car to get there) or trust the guy which was what I did in the end.

Trnasferring the registration documents was another royal pain as it was between two states (think France to the UK).


Anyway, never again. Get the dealer to pay off the finance with their own money while you're there waving cash under his nose, or forget about it and wait for the right one to come along.

[anonymous-user]

It’s normal, don’t worry about it.

It’s called unit stocking finance and tons of dealers use it.

[Wilmslowboy]

charltjr said:

It’s normal, don’t worry about it.

It’s called unit stocking finance and tons of dealers use it.

This - as long as it is stocking fininace and not a dealer selling via SOR.

[Si_man306]

Thanks- it’s a trader (rather than private sale) so a bit more confident but I’m not 100% sure if it’s SOR or not (although it’s a well established garage).

I assume the difference is one has the garage owing the finance and the other is the original owner has the finance (and would clear once paid by the garage?). Will check.

[Si_man306]

Nickp82 said:

Request a clearance confirmation by email from the finance company.
I.e, find out which company it is that has the interest and ring them directly.

Contacted them some time ago- it won’t clear until 4-5 days after paying the money to the garage....hence the issue and wanting to check.

[Nickp82]

Si_man306 said:

Contacted them some time ago- it won’t clear until 4-5 days after paying the money to the garage....hence the issue and wanting to check.

It won’t clear from HPi for that period but the finance company can provide you a letter of clearance as soon as (Or shortly after) the funds have been received. I have done it many times when working in main dealers.

[Si_man306]

Nickp82 said:

It won’t clear from HPi for that period but the finance company can provide you a letter of clearance as soon as (Or shortly after) the funds have been received. I have done it many times when working in main dealers.

Great- thanks for this, appreciate the follow up!

[Chris32345]

Get them to do it online while you are there or alternatively on speakers phone and ask if they can also email you the confirmation and transaction receipt