Can the dealer take the car back?

drdaz123

hi,
i'm posting for a friend who recently bought a car from a honda dealer.
she sat with the salesman who arranged the finance in her dads name and part exchanged her old car.
she paid the deposit and drove the car off the forecourt.

3 weeks later the dealers have phoned to say that the finance could not be arranged as her dad only had a provisional license.
the salesman was told this at the time of the sale and assured her that it wasn't an issue.

now they want to come back tomorrow and take the car... and they say they can't find her old car!!

does she have any legal right to the car, or to keep it until they get her old one back?
do they owe her some compensation, will she get her deposit back?

has anybody heard of having finance refused for having a provisional lisence?

sorry about all the q's... they're coming for the car tomorrow and need some advice quick!!

drdaz123

vikingaero

They should put her back in the position that she was in before. Even if they can't find her old car or have disposed of it, have they not made any financial offer for the part-ex'ed car.

I would be inclined to "go out for the day" until they resolve this matter or provide you with a valid reason.

drdaz123

thats what we all said today.
do you think she can hold onto the car whilst she seeks some legal advice, or can they just roll up and take it? she has the log book and documentation in her name!

vikingaero

Well doing a bit of Googling has brought up this:

http://www.ukbestcarfinancedeal.com/2010/01/03/no-full-driving-license-can-i-get-car-finance/

saying that you may be able to get finance.

But on a Fiat thread they refused finance at collection day:

http://www.fiatforum.com/grande-punto/78702-beware-1-fiat-dealership.html

Seems that you need to be a joint hirer with the provisional licence holder. From the Fiat forum it seems to be a salesman/finance guy/finance house error. However what happens in your situation where the car has been delivered and in use I do not know.

malnik

They have to be joking!!!!
So they let someone drive away in a brand new car and didnt have any finance on it? Silly boys.
I would be out. Its registered in your name, it has to be by now, so i guess as far as you are concerned, its yours.
If you did decide to let them have it back, take it away for a weekend somewhere nice. Lands End is very nice at this time of year, then demand your old car back or suitable compensation to replace like for like, not at trade value.
Dealers are notorious for not letting people have new cars before being paid, or a decision from finance company. Someone has made a bad mistake...i'd suggest they no longer work there!
They made the error when they let you drive away....make them pay for it.

drdaz123

useful links, thanks. will pass them on.

vikingaero

malnik wrote: »

They have to be joking!!!!
So they let someone drive away in a brand new car and didnt have any finance on it? Silly boys.
I would be out. Its registered in your name, it has to be by now, so i guess as far as you are concerned, its yours.
If you did decide to let them have it back, take it away for a weekend somewhere nice. Lands End is very nice at this time of year, then demand your old car back or suitable compensation to replace like for like, not at trade value.
Dealers are notorious for not letting people have new cars before being paid, or a decision from finance company. Someone has made a bad mistake...i'd suggest they no longer work there!
They made the error when they let you drive away....make them pay for it.

I agree and disagree with Malnik. The car may be registered in your name but until the final payment is made it belongs to the finance company. The fact is that the finance company does not want to give finance and that the car effectively has not been paid for.

The "being out" scenario I agree with. And possibly being uncontactable on the mobile. It will give more power to the consumer in negotiating a settlement as they cannot return your the part exchanged car. Thinking about it overnight I would not return the car until they have paid you the amount due to you as some of your money is tied up in the new car. If they want the car back they should pay you immediately.

Hintza

But if the finance company have refused finance then it probably has nothing to do with them and surely it is the dealer that will be short one car at this stage?

LandyAndy

Hintza wrote: »

But if the finance company have refused finance then it probably has nothing to do with them and surely it is the dealer that will be short one car at this stage?

My thoughts too. The dealer has allowed someone to drive away without paying. Why can't the father just take out a normal unsecured bank loan, unconnected with the car, and use that to pay the dealer?

colino

I've never came across a deal where the car has gone and there isn't as much as a fax from the finance company clearing the finance. Has something else gone on? Is the car faulty? Otherwise if you have signed the paperwork (and have copies) and havent defaulted on payments, sounds like a problem between the garage and the finance house.

drdaz123

Hintza wrote: »

But if the finance company have refused finance then it probably has nothing to do with them and surely it is the dealer that will be short one car at this stage?

if this is the case, who recieved the original deposit??