Car finance

SJ007

Hi all,

Does anybody know where I stand with this issue?

7 months ago I traded in our car for another model. The garage, which we have used for the past 7 years, agreed to the swap and said they would clear the outstanding finance and any negative equity that was owed on the previous car. We swapped the cars, log books etc and went away happy with our new car.
Then the problems started...the finance company contacted us the following month asking for payment. I explained the situation to them and they were happy that the garage needed to settle the bill. This situation carried on up until Christmas with the garage constantly telling us, and the finance people that they were settling the bill. Just before Christmas we were once again sent a letter, this time detailing that if we didn't pay then we would have proceedings started against us. I rang the garage who informed me that they were sure that the account had been settled and would, once and for all, sort this mess out. We never heard anything back from any party and then last week we received the same letter. I chased that up again with both parties and was assured that it would be dealt with. I went into the garage on Sunday demanding that they sort this issue out and clear all of the finance and they replied that they had sent the Standing Order out and it would be sorted. I then received a letter on Tuesday saying proceedings had started against us as we had not fulfilled our agreement? I drove down to the garage to see what was going on......when I got there it was deserted!!!All cars had gone off the forecourt and the offices were empty with the contents on the forecourt.
All through this I kept updating the finance company, with them understanding that the garage was not paying the amount.
Where do I stand on a legal ground? I am booking into a solicitor today as we have the agreement to swap the cars and the finance company were informed that we had swapped the car over 7 months ago, we have the log book for the new car and the Green tear off V5 from the old car. The garage did send a cheque to the finance company in December but, for whatever reason, it never went through. Does that class as their liability to clear the finance? I did have a text message from the garage saying they had sent the cheque before Christmas...

That is all the information that I have got..

Any help???

Cheers,

SJ

Hintza

Can't really help but good luck (think you will need it).

Start researching the legal entity that was the garage. Wasw it a company or a sole trader etc.

SJ007

Thanks Hintza....i have just had a conversation with the finance company and it had been noted on my account that they had spoke to the Salesperson who was dealing with our car and he agreed that they were going to pay the settlements in January...i have asked for that in writing off them..

SJ007

The website is motormall.tv
This is the site for the garage...took me a while to find!! Is anybody else in the same position??

choc_mouse

SJ007 wrote: »

The garage, which we have used for the past 7 years, agreed to the swap and said they would clear the outstanding finance and any negative equity that was owed on the previous car.

Is that in writing? If not, I think you will have to pay up. If it is, then if the garage went down (legitimately) then you might be able to pass on the debt but you'll need to consult someone with legal experience to clarify it.

You should also find out what happened to the garage.

SJ007

Hi Choc Mouse,

we have the agreement all signed and countersigned...the agreement is noted on the Finance Companies record of the case...the salesperson is qouted as saying that they will settle the account on January 4th...they are sending me the proof of that today.
I have tried to see what is going on at with the garage but i can't find anything out?

choc_mouse

It seems strange the garage just disappeared. (Mind you, the garage I got my car from also "disappeared".) You could ask around the locals to see what happened - it's possible they've just moved.

Good luck anyway.

SJ007

I did that when i went there...it turns out they were loading up all of the cars through the night...until the early hours!! What is more annoying is the fact i was at the garage on Sunday and nothing was said!
What was the outcome of your case?

standupguy

This sort of thing happens a lot where motor dealers do not settle outstanding finance debts straight away - they use the money to buy more cars to make more profit for as long as they can get away with it.

Its free cash flow money for them.

This is why you should never rely on a dealer telling you he has or will settle outstanding finance - you should always keep in contact with the Finance company until it is settled as it is your responsibility alone.

It looks like in this case the Dealer was having cash flow problems of his own which is why he was hanging on to the money and now if he has gone bust he has left you still holding the outstanding liability which the Finance company will pursue you for.

It may be worthwhile to ask the Finance company if they will do a dvla check on the current keeper to find out how they came by the vehicle and whether there is any new HP on the car - if there is then the Finance company have a claim against the new HP provider and that is an easier route for them to recover their money rather than pursuing you.

SJ007

Thanks Stanupguy!
I did keep in constant contact with the finance company throughout and, in general, they have been excellent and supportive. I spoke to them again today and they said this has happened a lot lately, with the current climate and all.
I have emailed Trading Standards and i will see if they will perform that check for me. they did say if the car was still on the forecourt then i could just take it, if only!

SJ007

I have now found out that the garage are in insolvency..and have the name of the company who are dealing with the case...