Trade in problems - Honda with holding finance cheque

kiddsters12

A friend's boyfriend took his BMW to Honda to trade in. He told the salesman that there was a slight knocking but had no idea what it was and it had passed all it's MOT etc with flying colours, how much will he get if he trades it in.

The salesman gave him a good price and he asked if he wanted to take it for a test drive. The salesman didn't even bother, sorted out the paperwork for paying of the finance on the BMW and also did the finance for the new Honda car. My friends boyfriend drove away in the honda, had all the paperwork for the finance and the take over of the BMW finance - all happy.

About a week later Honda called him and said he owes them £2000.00 relating to repairs on the BMW? He told Honda no - you took the car and as far as he was concerned anything after that is down to Honda.

Honda have said if he dosent pay they are going to hold the finance cheque to clear the BMW. My friend told them to put it in writing and see what a solicitor has to say about it.

The new finance has come out of his bank for the Honda, no letters received from Honda. Then yesterday the BMW finance company called to say he has missed a payment and needs to pay now. He told them that Honda now has the finance and to call them. They did and called him to say that Honda has said to them that untill he pays them for the repairs, they are not going to pay off his finance.

Surely this is a breach of contract, they cant call up and demand £2k and hold the finance cheque. Honda was told about the knocking yet decided not to take it out for a drive to see, instead sorted out new finance and contracts and agreed to pay off the finance.

Sorry it's such long winded

atrixblue.-MFR-.

i dont think think they can do this, they took it off him they sealed the deal, and they knew about the knock and was offered to have a look to wich they declined. it's theirs now (he has all documents to say they will pay it off), their problem to deal with, all was disclosed to the salesman on point of exchange. your friends boyfriend, needs to contact the FOS, or better still go into honda's nice sales room ask to speak to the manager and if gets nowhere contact the FOS infront of them and thie potential customers.

harveybobbles

It's upto the Honda garage to settle the finance on the BMW and then start again with the new finance deal. It sounds like they have half done this - as the new finance has come out of the bank.

They obviosuly havent sent off the cheque to the finance compnay that was used for the BMW. Which is why BMw are saying there is a missed payment.

I'd contact the finance company used for the BMW and explain that you have PX'd the BMW to a Honda dealer and they should be contacting the Honda garage for payment.

It's the Honda garages problem they didnt inspect fully the BMW and they are trying to claim some money back.

I wouldnt worry too much be honest.

kiddsters12

Thaks for the replys. Believe it or not Honda have told the BMW finance company that they are holding on to the settlement money and will not be sending it until the £2k is paid to them. My friend contacted the DVLA today and the car is in the name of Honda.

harveybobbles

To be honest, the issue lies with the Honda garage for not checking the BMW out correctly.

atrixblue.-MFR-.

kiddsters12 wrote: »

Thaks for the replys. Believe it or not Honda have told the BMW finance company that they are holding on to the settlement money and will not be sending it until the £2k is paid to them. My friend contacted the DVLA today and the car is in the name of Honda.

Tell him to contact the FOS. they should be able to help him resolve the matter.