"Outstanding finance"
Discussion
I'm looking for a second hand car.
I've seen a couple that tick all my boxes, and spent a car check voucher on each, for them both to come back with "Fail - outstanding finance".
The first one, I rang the finance company and they were able to confirm they still had an interest in the car (and were quite interested in which garage was advertising it...).
I can understand if one garage was a bit dodgy/ missed a due diligence check on taking a car into stock, but to have the second one come up the same feels to me like I'm missing something that's going on and isn't actually a problem.
With the second car, it's the manufacturer's HP that ties with the original registration date, and it's been for sale for a month now on AT without that marker being cleared. Harder to pin down the dates with the first car, but it's been for sale at least 2-3 weeks since I started vaguely looking, looks like the 2nd owner took finance. I don't think it's a problem with the car check service as the first car's finance company confirmed the info.
All the internet advice is to walk away from a car with outstanding finance, which I already mentally have with the first one, but the second one is very perfect otherwise and I don't want to walk away when there's a perfectly reasonable explanation or mechanism going on here I'm not aware of.
I've seen a couple that tick all my boxes, and spent a car check voucher on each, for them both to come back with "Fail - outstanding finance".
The first one, I rang the finance company and they were able to confirm they still had an interest in the car (and were quite interested in which garage was advertising it...).
I can understand if one garage was a bit dodgy/ missed a due diligence check on taking a car into stock, but to have the second one come up the same feels to me like I'm missing something that's going on and isn't actually a problem.
With the second car, it's the manufacturer's HP that ties with the original registration date, and it's been for sale for a month now on AT without that marker being cleared. Harder to pin down the dates with the first car, but it's been for sale at least 2-3 weeks since I started vaguely looking, looks like the 2nd owner took finance. I don't think it's a problem with the car check service as the first car's finance company confirmed the info.
All the internet advice is to walk away from a car with outstanding finance, which I already mentally have with the first one, but the second one is very perfect otherwise and I don't want to walk away when there's a perfectly reasonable explanation or mechanism going on here I'm not aware of.
Often an outstanding finance on a car for sale is stocking finance, very common.
I sell ex hire vehicles that we have owned from new, they are financed from new and we don’t clear the finance until they are sold.
It’s quite a simple process and the way forward is to have a dealer clear the finance and supply a clearance letter/clear HPI before you pay for the balance. Might take a few extra days but that’s the best way to do it IME
I sell ex hire vehicles that we have owned from new, they are financed from new and we don’t clear the finance until they are sold.
It’s quite a simple process and the way forward is to have a dealer clear the finance and supply a clearance letter/clear HPI before you pay for the balance. Might take a few extra days but that’s the best way to do it IME
Agree that stocking finance isn't a problem, but that's not the case here as the second car was financed from first registration.
In any case, there's nothing inherently wrong with a process where you agree to buy a car for £10k which has £5k outstanding finance on it. Essentially you need to pay £5k to the finance co and £5k to the seller, in exchange for full title to the car, i.e. a written confirmation from the finance co that they've been paid off, and a receipt from the seller that they've sold you the car.
The charitable interpretation is that if you express interest in buying the car, the seller would explain that it has outstanding finance on and invite you to go through the above process. (Obviously, less charitable interpretations are available).
If you check out the selling garage of the second car and feel ok about them, you could try saying, I'm interested in this car, I understand it has outstanding finance, what would be the process for buying it? And see how they respond.
davek_964 said:
I'd assume they're SOR
Seems quite plausible.In any case, there's nothing inherently wrong with a process where you agree to buy a car for £10k which has £5k outstanding finance on it. Essentially you need to pay £5k to the finance co and £5k to the seller, in exchange for full title to the car, i.e. a written confirmation from the finance co that they've been paid off, and a receipt from the seller that they've sold you the car.
The charitable interpretation is that if you express interest in buying the car, the seller would explain that it has outstanding finance on and invite you to go through the above process. (Obviously, less charitable interpretations are available).
If you check out the selling garage of the second car and feel ok about them, you could try saying, I'm interested in this car, I understand it has outstanding finance, what would be the process for buying it? And see how they respond.
The Rotrex Kid said:
Often an outstanding finance on a car for sale is stocking finance, very common.
Not in these 2 cases, looking at the timelines.The Rotrex Kid said:
It s quite a simple process and the way forward is to have a dealer clear the finance and supply a clearance letter/clear HPI before you pay for the balance. Might take a few extra days but that s the best way to do it IME
samoht said:
In any case, there's nothing inherently wrong with a process where you agree to buy a car for £10k which has £5k outstanding finance on it. Essentially you need to pay £5k to the finance co and £5k to the seller, in exchange for full title to the car, i.e. a written confirmation from the finance co that they've been paid off, and a receipt from the seller that they've sold you the car.
The charitable interpretation is that if you express interest in buying the car, the seller would explain that it has outstanding finance on and invite you to go through the above process. (Obviously, less charitable interpretations are available).
If you check out the selling garage of the second car and feel ok about them, you could try saying, I'm interested in this car, I understand it has outstanding finance, what would be the process for buying it? And see how they respond.
The second garage give me a much less sketchy feeling than the first, and the car is better again... I'll give them a ring in the morning The charitable interpretation is that if you express interest in buying the car, the seller would explain that it has outstanding finance on and invite you to go through the above process. (Obviously, less charitable interpretations are available).
If you check out the selling garage of the second car and feel ok about them, you could try saying, I'm interested in this car, I understand it has outstanding finance, what would be the process for buying it? And see how they respond.
From a used car dealer side we often take cars in as Px and then advertise straight away.
Sometimes a customer gets in touch and asks if it still on finance after several weeks and it’s the first we know the marker hasn’t been lifted.
Quite a lot of calls with finance companies again when we buy from auction aswell.
Sometimes a customer gets in touch and asks if it still on finance after several weeks and it’s the first we know the marker hasn’t been lifted.
Quite a lot of calls with finance companies again when we buy from auction aswell.
defblade said:
The dealer had checked and they bought it into stock from BCA... so this should be ok to proceed with??
I'm very set on this one now, and I guess having that info in writing on email from the dealer would be enough to show I bought it in good faith?
I don't think anything the dealer says will help you - in writing or not. I'm very set on this one now, and I guess having that info in writing on email from the dealer would be enough to show I bought it in good faith?
I would not be buying a car from a dealer with outstanding finance that wasn't SOR. The finance company will come after it if the owner stops paying - which doesn't seem that unlikely!
defblade said:
The dealer had checked and they bought it into stock from BCA... so this should be ok to proceed with??
I'm very set on this one now, and I guess having that info in writing on email from the dealer would be enough to show I bought it in good faith?
I don't think so.I'm very set on this one now, and I guess having that info in writing on email from the dealer would be enough to show I bought it in good faith?
I suggest trying to avoid being too set on buying this particular car, as it quickly becomes a strong motivation to gloss over issues (at least, it has done for me several times!).
To the best of my knowledge you want a written confirmation from the finance company that they've had their loan repaid in full, before you hand over the cash for the car. I don't believe that "bought it into stock from BCA" clears the finance company's interest in (part-ownership of) the car.
Ideally the dealership should sort this written confirmation out before the point at which you pay for the car. If not, it should be part of the purchase transaction.
Autotrader said:
If you find out there’s outstanding finance owed on the car, you can walk away and leave it, or ask the seller to settle their debt with the finance company.
If you choose the second option, make sure the seller provides you with a clearance letter or other proof. Even then, you might want to check with the finance company to confirm.
Ultimately, they can only sell the car when it’s theirs to sell.
If you know the car has outstanding finance and buy it anyway, you could be liable as the seller. If the finance company can prove that, they could repossess the vehicle.
Unless the seller agrees to pay off the debt and provides you with absolute proof that the car no longer has outstanding finance, buying a car with outstanding finance is best avoided.
https://www.autotrader.co.uk/content/advice/should...If you choose the second option, make sure the seller provides you with a clearance letter or other proof. Even then, you might want to check with the finance company to confirm.
Ultimately, they can only sell the car when it’s theirs to sell.
If you know the car has outstanding finance and buy it anyway, you could be liable as the seller. If the finance company can prove that, they could repossess the vehicle.
Unless the seller agrees to pay off the debt and provides you with absolute proof that the car no longer has outstanding finance, buying a car with outstanding finance is best avoided.
defblade said:
The dealer had checked and they bought it into stock from BCA... so this should be ok to proceed with??
I'm very set on this one now, and I guess having that info in writing on email from the dealer would be enough to show I bought it in good faith?
As a dealer you pay your indemnities. I'm very set on this one now, and I guess having that info in writing on email from the dealer would be enough to show I bought it in good faith?
I’d wager it’ll be fine however just ask the dealer to chase bca and get the marker removed leave a deposit and pay the balance when they show it’s clear of finance. Easy as that.
defblade said:
The dealer had checked and they bought it into stock from BCA... so this should be ok to proceed with??
I'm very set on this one now, and I guess having that info in writing on email from the dealer would be enough to show I bought it in good faith?
BCA take in a lot of ex-lease and ex-PCP cars so in theory it should normally be okay. By their remarketing it, effectively they are acting as agents for the finance firm who have taken back ownership then sold it via auction. the finance marker should normally drop off in a few days after its auctioned, if not before.I'm very set on this one now, and I guess having that info in writing on email from the dealer would be enough to show I bought it in good faith?
However for some reason, its a month on and if the marker is still there, it shows some kind of admin issue has occurred and BCA or the finance company have messed up. If the car is good (some of the ones from BCA make it through unscathed...) then tell the dealer you're interested/can leave small deposit, but they'd need to chase up BCA and sort out the finance marker ASAP.
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