HPI check and finance.

[groucho]

The missus has just done a HPI check on a car from a dealer and I have pasted the first couple of pages here. Is this a problem?


Report Summary
VRM currently recorded as having outstanding finance
Alert Details
Outstanding finance
Recorded against VRM
Description HATCHBACK 16 COOPER 3DR
Date 30/10/2014
Finance house BLACK HORSE LTD
Finance house telephone [phone]
Agreement reference 18201202
Agreement type Unit Stocking
If you are buying from a dealer, you may come across this type of finance on your HPI report. Talk it over with your
dealer, check their liability and get confirmation in writing that they will clear the finance on the car you are buying.
Unit Stocking is a common type of finance agreement used by motor dealers to enable them to fund the vehicles on
their forecourt.

Apologies, copied from PDF.

[E30M3SE]

No, no problem so long as it's cleared. Many dealer groups use stocking loans.

[lemonslap]

When I purchased the wife's Audi S4 from a main dealer the same thing was showing when I HPI'd it. It was explained to me that this is the way they finance their stock, it hasn't caused an issue and the finance marker has now been removed.

[confused_buyer]

This is quite normal. Even if in the unlikely event the dealer does not pay the finance company they will go after the company for the money - not your car. If the company has no money the Director's will probably have to have given personal guarantees for the stocking agreement so the finance company will go after them, their houses, assets etc.

The finance companies who run these schemes are not stupid and make sure they are covered.

[MoelyCrio]

confused_buyer said:

This is quite normal. Even if in the unlikely event the dealer does not pay the finance company they will go after the company for the money - not your car. If the company has no money the Director's will probably have to have given personal guarantees for the stocking agreement so the finance company will go after them, their houses, assets etc.

The finance companies who run these schemes are not stupid and make sure they are covered.

Whats the point of recording it against the car then?

[confused_buyer]

MoelyCrio said:

Whats the point of recording it against the car then?

Because dealers may well have multiple stocking plans. They are recorded so when a car is loaded onto one the finance company can check no other stocking finance company has an interest.

Otherwise, an unscrupulous dealer could generate double funds against the same car which would pass the audit test (the car being present) and as long as never the twain meet would be none the wiser about the other.

No stocking finance company would chase a retail customer as otherwise confidence in the entire system would be lost and put them out of business.

[groucho]

Cheers guys.