Can the dealer take the car back?

Hintza

drdaz123 wrote: »

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

Good question. Sounds like a total shambles and I imagine nobody will stick their hand up and admit to !!!! up.

Which might make it a bit trickier to sort out.

LandyAndy

drdaz123 wrote: »

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

When I've bought cars on dealer arranged finance I've always paid the deposit to the dealer.

I thought the dealer was paid for the car from two sources, 1 The purchaser via a deposit and 2 the finance house via the financed amount.

standupguy

What has probably happened here is that the father was accepted on Finance and the dealer went ahead and delivered the car.

When the Finance company received the proofs, ie driving licence, they spot it is not a full licence and decline the deal- so the dealer has to get their car back as soon as possible and unwind the deal.

Your friend should get back her old car or the p/x value placed on it if it has been sold or traded.

The original deal should not have taken place as clearly it was a ruse to fool the Finance company of which the dealer became involved - it is probable your friend has bad credit and was unable to obtain finance in her own name and what has taken place is known in the trade as an "accommodation deal", the outcome if the Finance company wanted to proceed further is place a cifas marker against the friend/fathers credit record.

drdaz123

standupguy wrote: »

What has probably happened here is that the father was accepted on Finance and the dealer went ahead and delivered the car.

When the Finance company received the proofs, ie driving licence, they spot it is not a full licence and decline the deal- so the dealer has to get their car back as soon as possible and unwind the deal.

Your friend should get back her old car or the p/x value placed on it if it has been sold or traded.

The original deal should not have taken place as clearly it was a ruse to fool the Finance company of which the dealer became involved - it is probable your friend has bad credit and was unable to obtain finance in her own name and what has taken place is known in the trade as an "accommodation deal", the outcome if the Finance company wanted to proceed further is place a cifas marker against the friend/fathers credit record.

but a ruse to which my friend was not party i.e. she wasn't aware that this would be an issue. has the salesman done this in order to earn a commission?? do you think she is owed any kind of compensation from the dealer. she is very hurt by this... it was her dream car!

flea72

all cars go out before the final finance docs are received by the loan company

you dont sign to finalise the finance, until you collect the car, at which point you drive away, and the dealer then sends the docs to the finance company, and once signed off, the dealer gets their money

the only way finance would have been granted, would be if at proposal stage, the dealer put down the dad as having a full licence, and its only been picked up it was a provisional now that the finance company has a copy

however, im surprised they are asking for the car back, rather than suggesting other finance options

F

colino

I've never put a car out without having confirmation that the deal has been done, usually by fax, and I doubt if there is anyone at fault here other than the garage.

Lemonade_Pockets

A bit of stupid one this.

It is the dealers responsibility to make sure the finance company is happy with the documents before they release the car. This is why most dealers these days require you to sign finance documents prior to collection.

I would guess that the dealer hadn't made it clear to the finance company that the father only had a provisinal license and therefore this proof wasn't accepted. The finance company has probably sussed that the car isn't for the father so is refusing to lend him money secured against the car (quite rightly).

I'm almost 100% certain however the dealer cannot just turn up and collect your car with out your permission or without a court order and the baliffs.
Whether they would get the court order is different question, but my guess would be either the dealer or the finance company would at some point.

If it was me i would sort it amicably by explaning to the dealer that you are happy to give the car back but only if they suitably reimburse you.
I.e. The old car, plus deposit, plus any lost money on RFL, insurance etc. Or if the old car has been sold on the equivalent (retail) value.
Or (this is what i'd be doing if i was the dealer) just get them to re-arrange the finance with somebody else.

I would be very surprised if you can get away with a "free" car, so don't get your hopes up on this front, equally you are unlikely to compensated for shattered dreams.

Lemonade_Pockets

drdaz123 wrote: »

but a ruse to which my friend was not party i.e. she wasn't aware that this would be an issue. has the salesman done this in order to earn a commission?? do you think she is owed any kind of compensation from the dealer. she is very hurt by this... it was her dream car!

No and no. The dealer (salesman) will of recieved the bo11ocking of their life for doing this (and no commission).

Lemonade_Pockets

LandyAndy wrote: »

When I've bought cars on dealer arranged finance I've always paid the deposit to the dealer.

I thought the dealer was paid for the car from two sources, 1 The purchaser via a deposit and 2 the finance house via the financed amount.

100% Correct

motorguy

Lemonade_Pockets wrote: »

100% Correct

There seems to have been a trade in involved here. Maybe that covered the deposit?