Main dealer hasn't settled outstanding finance
Discussion
I'm after some advice as I have never been in this situation before.
I purchased a car from a main dealer and picked it up on the 27th May. My part ex still had some outstanding PCP finance (never again) on it, which they were sorting out (I said that I would clear it, but they insisted it was more straight forward for them to sort it).
I found out today that a finance payment has gone out as the finance is still live, as they hadn't process the payment for some reason.
The dealer is paying the old higher settlement figure (which was valid until June 3rd) and apparently I will get the difference between the higher settlement and the new settlement figure back from the finance company, however, I am out of pocket because of this. Now it's only £50, but I don't see why I should be £50 out of pocket due to the dealer's tardiness.
What would you do in this situation?
I purchased a car from a main dealer and picked it up on the 27th May. My part ex still had some outstanding PCP finance (never again) on it, which they were sorting out (I said that I would clear it, but they insisted it was more straight forward for them to sort it).
I found out today that a finance payment has gone out as the finance is still live, as they hadn't process the payment for some reason.
The dealer is paying the old higher settlement figure (which was valid until June 3rd) and apparently I will get the difference between the higher settlement and the new settlement figure back from the finance company, however, I am out of pocket because of this. Now it's only £50, but I don't see why I should be £50 out of pocket due to the dealer's tardiness.
What would you do in this situation?
I would contact
The CEO of the garage and complain lots.
The garage manager and complain ,
The sales person that told you they would sort it and complain,
The finance company and tell them you have sold the car and the garage haven't paid it off and ask them to contact them.
A solicitor for advice .
Go in to the garage ( be polite) and demand they pay it now while you are there and don't take no for cannot do it now.
Keep us informed what happens
The CEO of the garage and complain lots.
The garage manager and complain ,
The sales person that told you they would sort it and complain,
The finance company and tell them you have sold the car and the garage haven't paid it off and ask them to contact them.
A solicitor for advice .
Go in to the garage ( be polite) and demand they pay it now while you are there and don't take no for cannot do it now.
Keep us informed what happens
ts. But it's £50... Discount on next service?
I've never had finance before, so I am not accustomed to this happening.
Every main dealer I have purchased from you get a survey from the Head Office asking how your experience went.
I believe the dealers commission/bonus can often be linked to the results of the survey.
Maybe go in be polite and see what they are going to do. £50 is irrelevant in my eyes. They messed up they should put it right.
If there not happy to play ball mention that you have the survey and you would hate to have to mark the survey due to this spoiling the experience.
I’m sure they can find a way to sort it out. Free mats, money off a service etc.
I believe the dealers commission/bonus can often be linked to the results of the survey.
Maybe go in be polite and see what they are going to do. £50 is irrelevant in my eyes. They messed up they should put it right.
If there not happy to play ball mention that you have the survey and you would hate to have to mark the survey due to this spoiling the experience.
I’m sure they can find a way to sort it out. Free mats, money off a service etc.
There is no issue. It's quite normal for this to happen, your finance isn't settled the minute you drive your new car away and you did advise in your post the dealer informed you you'd get a rebate should the finance house take the payment.
Once the finance house have worked out the figures, you'll be reimbursed your payment. Why would you expect compensation?
Once the finance house have worked out the figures, you'll be reimbursed your payment. Why would you expect compensation?
Hold your breath and pray that they do settle the finance..... If they do I'd wrote off the £50, mop my brow and vow not to make the same mistake again.... It'll be a cheap education if you get away with it.
Consider the reason they haven't settled the finance..... Maybe just crap organisation, but more likely cashflow and that smacks of a barrel that is nearly empty.... You don't want to find yourself one of their creditors, still owing your finance company, if they close the doors.
I'd be making a proper pain in the arse of myself down there until you know that finance has been cleared - unfortunately when it gets close to the wire it's generally he who shouts loudest that gets heard....
I could be way off the mark and they fall over themselves apologising and offering free inducements, but usually the most obvious explanation is the right one and all the risk is on you. Don't forget they can happily promise to make sure you are fully recompensed safe in the knowledge it'll make bugger all difference when the barrel is empty... so long as it keeps you off their back long enough to pay the people who really matter.
I think if I were in your position I'd being doing what I could to make myself one of the people that matter.
Consider the reason they haven't settled the finance..... Maybe just crap organisation, but more likely cashflow and that smacks of a barrel that is nearly empty.... You don't want to find yourself one of their creditors, still owing your finance company, if they close the doors.
I'd be making a proper pain in the arse of myself down there until you know that finance has been cleared - unfortunately when it gets close to the wire it's generally he who shouts loudest that gets heard....
I could be way off the mark and they fall over themselves apologising and offering free inducements, but usually the most obvious explanation is the right one and all the risk is on you. Don't forget they can happily promise to make sure you are fully recompensed safe in the knowledge it'll make bugger all difference when the barrel is empty... so long as it keeps you off their back long enough to pay the people who really matter.
I think if I were in your position I'd being doing what I could to make myself one of the people that matter.
OP, I had the same thing happen to me when I traded in a Lady-Rover with Land Rover Finance on it with a BMW main dealer for an M135i. A good swap!
But 2 months after I had traded the Evoque in (and after the BMW dealer had retailed it!!!!) I twigged that two payments had been taken post trade in. I rang L-R finance to give them a rocket, only to be told that S@@@r BMW hadn’t settled the finance. They put me through to a team of 12 - 12 people!!!! At one finance company that was called the “Dealer non-payment team”. A really good guy there was very reassuring and said it happens all the time because a) hardly anyone at a main dealer / group is authorised to pay money out and b) often the big dealers will only settle payment in payment runs every couple of weeks and c) sometimes the dealer FDs decide to make the books look better so don’t pay out for a few weeks.
When I got on to the main dealer for what - to me- felt like a major breach of contract, they were totally nonchalant about it. I didn’t even get an apology.
As others have said, just keep checking it has been sorted so your credit rating isn’t impacted.
But 2 months after I had traded the Evoque in (and after the BMW dealer had retailed it!!!!) I twigged that two payments had been taken post trade in. I rang L-R finance to give them a rocket, only to be told that S@@@r BMW hadn’t settled the finance. They put me through to a team of 12 - 12 people!!!! At one finance company that was called the “Dealer non-payment team”. A really good guy there was very reassuring and said it happens all the time because a) hardly anyone at a main dealer / group is authorised to pay money out and b) often the big dealers will only settle payment in payment runs every couple of weeks and c) sometimes the dealer FDs decide to make the books look better so don’t pay out for a few weeks.
When I got on to the main dealer for what - to me- felt like a major breach of contract, they were totally nonchalant about it. I didn’t even get an apology.
As others have said, just keep checking it has been sorted so your credit rating isn’t impacted.
Yup. Make a big but polite fuss immediately!
I was encouraged to do a VT on a B!W by the finance lady at a BMW dealership.
I only found out some time later, that I had two black marks for non payment on my credit file, as it took over two month for them to clear the finance.
I later knew other members of staff, who told me that finance is only cleared, after the cars are traded, or have deposits on them from their new owners / buyers.
I called the dealership when I first discovered and asked the dealer principle how this could happen.
Perhaps they would help me clear / expunge the black marks
He just shut me down and had smart arse answers to anything I asked.
I was encouraged to do a VT on a B!W by the finance lady at a BMW dealership.
I only found out some time later, that I had two black marks for non payment on my credit file, as it took over two month for them to clear the finance.
I later knew other members of staff, who told me that finance is only cleared, after the cars are traded, or have deposits on them from their new owners / buyers.
I called the dealership when I first discovered and asked the dealer principle how this could happen.
Perhaps they would help me clear / expunge the black marks
He just shut me down and had smart arse answers to anything I asked.
TBH, I didn't expect it to be done on the Friday but Monday or Tuesday is more than reasonable IMHO,. especially when they had the official settlement figure before I had collected the car.
I will "gently" pester them, as I am buggered if I am carrying on paying for a car that I don't even own anymore.
I will "gently" pester them, as I am buggered if I am carrying on paying for a car that I don't even own anymore.
The big yin said:
I would contact
The CEO of the garage and complain lots.
The garage manager and complain ,
The sales person that told you they would sort it and complain,
The finance company and tell them you have sold the car and the garage haven't paid it off and ask them to contact them.
A solicitor for advice .
Go in to the garage ( be polite) and demand they pay it now while you are there and don't take no for cannot do it now.
Keep us informed what happens
Christ alive, it’s £50 currently at issue, and in the context of buying a car from a main dealer. Whatever the marque, it’s almost certainly a negligible sum in context. And OP has been told he’ll get it back.The CEO of the garage and complain lots.
The garage manager and complain ,
The sales person that told you they would sort it and complain,
The finance company and tell them you have sold the car and the garage haven't paid it off and ask them to contact them.
A solicitor for advice .
Go in to the garage ( be polite) and demand they pay it now while you are there and don't take no for cannot do it now.
Keep us informed what happens
As to contacting a solicitor for advice about this, the sum at stake would probably buy around 12 minutes’ worth of advice - i.e nothing, and wouldn’t be anywhere near enough to cover the minimum fee to open a file.
Perspective is needed.
OP, go to the dealer and politely but firmly tell them the finance needs to be settled promptly. Then follow up to make sure it’s actually done. If you then get £50 back in cash or in kind then all good but if not, have a good think about if you really want to spend your time or energy chasing and arguing re such a minimal sum.
Firstly, did you contact the finance co to tell them the garage would be clearing the finance on your behalf? I had to do that when I sold my car to WBAC with outstanding finance with MB Finance. If you haven’t they may be stuck in red tape hell trying to sort it.
Secondly, in my case it took 4 business days for everything to go through, if this is normal procedure then today is actually the 4th business day since you collected your car assuming you didn’t pick it up towards the end of the day on the 27th. If you did I wouldn’t count the 27th as one of those days. Also factor in that a lot of people took last week off as it was half term and “cheap” annual leave so there might be a backlog of paperwork at the dealer.
Regarding the overpayment, the settlement figure wouldn’t have included the last £50 payment coming off, they’re usually fixed for 30 days from when you requested it. You were always going to have to make that payment and the finance company should have that in their terms when you requested the settlement figure. Once they have the final payment from the dealer your account will show an overpayment and you will be refunded.
If you didn’t request the settlement figure that’s yet more red tape the dealer is going to be stuck in.
I sold my car to WBAC Friday 13th May, the same day a payment was taken. Finance was settled the following Thursday and this morning on checking my bank I had received my refund from MB Finance. These things can take some time.
Call the dealer, mention your concerns and ask them for a time frame for completion. If they give you anything other than a rough semblance of the above, escalate. But not to the CEO, don’t be one of those people.
Secondly, in my case it took 4 business days for everything to go through, if this is normal procedure then today is actually the 4th business day since you collected your car assuming you didn’t pick it up towards the end of the day on the 27th. If you did I wouldn’t count the 27th as one of those days. Also factor in that a lot of people took last week off as it was half term and “cheap” annual leave so there might be a backlog of paperwork at the dealer.
Regarding the overpayment, the settlement figure wouldn’t have included the last £50 payment coming off, they’re usually fixed for 30 days from when you requested it. You were always going to have to make that payment and the finance company should have that in their terms when you requested the settlement figure. Once they have the final payment from the dealer your account will show an overpayment and you will be refunded.
If you didn’t request the settlement figure that’s yet more red tape the dealer is going to be stuck in.
I sold my car to WBAC Friday 13th May, the same day a payment was taken. Finance was settled the following Thursday and this morning on checking my bank I had received my refund from MB Finance. These things can take some time.
Call the dealer, mention your concerns and ask them for a time frame for completion. If they give you anything other than a rough semblance of the above, escalate. But not to the CEO, don’t be one of those people.
Edited by Robberto on Monday 6th June 23:34
Mr Spoon said:
In further consideration, I'd be going nuclear. What if you needed that money?
Once again, it’s fifty quid, and the guy has just bought a car from a main dealer. If £50 is a sum which will make or break him then probably shouldn’t have been changing cars, and certainly in the manner he chose. bladebloke said:
Mr Spoon said:
In further consideration, I'd be going nuclear. What if you needed that money?
Once again, it’s fifty quid, and the guy has just bought a car from a main dealer. If £50 is a sum which will make or break him then probably shouldn’t have been changing cars, and certainly in the manner he chose. 
bladebloke said:
Once again, it’s fifty quid, and the guy has just bought a car from a main dealer. If £50 is a sum which will make or break him then probably shouldn’t have been changing cars, and certainly in the manner he chose.
£50 certainly won't break me, as I bought the car cash, I'm more annoyed that I've just made a payment on a car that isn't mine anymore and I'm having to spend my time chasing it. I'm definitely kicking myself for not just paying the damn PCP off (if you want something doing and all that). The settlement figure was valid until June 3rd and this was clearly stated on the document they received. I told the finance company that a dealer was going to be clearing it, and they said that they would only email the settlement figure to the dealer's email address (which I provided).
Fingers crossed it's all a storm in a tea cup, I am probably more paranoid about this stuff due to some dealers struggling ATM.
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