Car Finance - Late settlement by dealer

butlerpeter

Hi guys,

On April 11th this year I bought a new car. I part exchanged my old one and, as has happened before, expected the outstanding finance to be settled, by the dealer, as part of the deal for the new car.

This past weekend I discovered that the old finance company (Black Horse) have been continuing to take payments for the last 4 months, at the same time I've been making payments to the new finance company (Ford Credit).

Obviously I know I should have spotted this sooner - I just missed it when going through my bank statements. I also should have cancelled the direct debit myself but I've not had to do that in the past so didn't give it a thought. I will be sure to do that n the future though.

Anyway 4 months of payments adds up to over £1000, so this morning I phoned Black Horse expecting to be able to get a simple refund. I was told that they hadn't received the settlement cheque until the 19th of June - over 2 months after I did the deal for the new car!

They are going to reimburse me for some of the money but they said I would have to go to the dealer or new finance company to get the rest.

I got straight on the phone to the dealer and am waiting for a call back from their business manager to discuss it.

Obviously I'd like my £1000 back ASAP.

Does anybody have any experience of a similar situation? Can anyone give me any advice on where I stand and what I should do?

Cheers

Peter

LinasPilibaitisisbatman

You can't contract out of your liability to Blackhorse without their permission, therefore until you settle the contract yourself or receive confirmation you have no further liability then you are liable to make further payments

You need to speak to the dealer to return the money they will not have paid due to their incompetence/delay

I just hope your contract with them stated a figure and not "settlement"

standupguy

This happens so often.

The dealer is simply using the non settlement as free money which gives him time to sell the p/x without costing him money.

You are entitled to receive the settlement on the agreement at the time you part exchanged the vehicle so the dealer must pay you your losses.

If they try to fob you off you need to quote section 56 of the Consumer credit act where the dealer acts as agent to the Finance Company - that is if the dealer fails to pay you have recourse against your new Finance company Ford Credit as the dealer was acting as their agent.

If you need to, then phone Ford Credit and advise them they are liable under section 56 of the CCA and the amount they need to pay - follow up in writing if you need to.

For anyone part exchanging their vehicle it is always wise to check that the agreement is settled after the new deal is done - never rely on a dealer to pay promptly - until it is paid you are still liable to the old Lender.