Car finance troubles - bank haven't paid garage now garage is threatening me

louis_b

Hi, I'm currently having big problems with my car finance and would like someone to explain the legalities of this.

I financed a car on Saturday, with my dad as a guarantor (I'm only 19), they asked us to bring proof of id in, which we did and had photocopied and signed off by a member of staff, and everything was good and signed off and I drove home in my new car.

Unfortunately, unknown to us, my dads driving license had expired (he's already applied for a new one), so the bank that was going to lend us the money, have refused until they get proof of ID. However, me and my dad are both working away (separately) so there is no chance in the next week of us getting to them.

I've told the garage this, and they are not happy. They are harassing me with 5+ phone calls a day (while I'm at work) and they are now threatening repossession and contact with the police if we don't go back in to sort the documents out, but this isn't doable.

Do the garage have any right?
Who is legally in the wrong?
If the police are contacted what will happen?

Thank you

AdrianC

Short version :-
* You owe the money for the car.
* You had arranged payment to be made by the finance company.
* The finance company won't pay, because you haven't kept your end of the deal.

Right now, you are driving around in a car that you have caused not to be paid for. Sorry, but the ball is firmly in your court. Find a way to sort it ASAP.

Stooby2

The police won't be in the slightest bit interested, it's a civil matter.

Ring the garage. Tell them in no uncertain terms, that your Dad made a simple mistake (which their salesman should have spotted), you are trying to rectify the situation asap and if they carry on harrassing and threatening you, you'll cancel the whole deal as you are legally allowed to within 14 days of taking out a credit agreement.

Does your Dad have a passport and utility bills he could use instead?

I've found that car salespeople generally like to bully and pout, but when faced down, give in and shut up - especially if it's going to cost them money.

rexmedorum

I've never used car finance but I'd have thought that the finance would have paid the dealer and you'd then be paying the finance (more) so not sure what the garage involvement is but I could be totally wrong.

Would they accept scans by the way? Otherwise you could use a courier company though that'll cost

AdrianC

rexmedorum wrote: »

I've never used car finance but I'd have thought that the finance would have paid the dealer and you'd then be paying the finance (more) so not sure what the garage involvement is but I could be totally wrong.

The finance haven't paid the garage, because the finance company haven't got all the documentation they require - specifically, they've not got valid proof of ID of the father.

'course, the dealer are also at fault here, for not checking that the finance company had everything they needed before releasing the car.

But, at the end of the day, the OP has a car that hasn't been paid for, because his father hasn't provided valid proof of ID.

agrinnall

I'm rather surprised that the garage allowed the car to be taken until they had confirmation of payment. But I think they would be within their rights to repossess, you are driving around in a car that you don't own and that they do. They probably won't actually follow through with the threat, but you really need to get your dad to sort this out asap.

colino

Happens all the time, trader pulls together all the paperwork for a deal on a Saturday, the IDs aren't strong enough, but let the car off the forecourt without the confirmation of payment. What are they like?

redux

I think you're going to have to take some time off work to sort this out.

If the father is working somewhere else, and if the proof of ID must be produced in person, maybe an arrangement could be made to witness this at a nearer branch of the bank.

arcon5

Surely even an expired driving license is valid ID? It's still not like its fake, assuming its not many years expired therefore picture being out of date.

Can't he scan and email them? That's what the car company would probably do.

I think it was good of them to release the car in good faith, little wreck less they didn't check. But can see why they're worried.
It shouldn't take long to sort out, can he possibly take it in to a different dealership and ask them to forward it on? Might work if he's working away (assuming away isn't out of the country anyway).

Or possibly offer them a token payment which they will agree to refund when the finance comes through.?? Might settle their nerves..

Maybe their big worry is the finance is approved and they have a time limit before a new application needs submitting?? Whilst in the meantime your totting up mileage on the vehicle.

As for repossessing it, presumably they don't have a key so would need a recovery truck, not exactly an easy quick in out repossession.
But it could be the finance company don't own the vehicle yet as the deal hasn't been completed, so if they tried repossessing the police are unlikely to get involved if they are still the legal owner

Nodding_Donkey

arcon5 wrote: »

Or possibly offer them a token payment which they will agree to refund when the finance comes through.?? Might settle their nerves..

Offer a stealer money and expect to get it back? :rotfl:

Do you have copies of the finance agreement OP? ISTM this is just an admin cockup caused by the dealer not filling in the paperwork properly. Call them and arrange a time for you and your Dad to go and sort it out as a favour to them, you've done nothing wrong unless your dad had changed the date on his licence which doesn't seem very likely.

If they are panicking that much it does make me wonder what is wrong with the car. Are they frightened you will find something and use this as an easy way out?

motorguy

Nodding_Donkey wrote: »

Offer a stealer money and expect to get it back? :rotfl:

Do you have copies of the finance agreement OP? ISTM this is just an admin cockup caused by the dealer not filling in the paperwork properly. Call them and arrange a time for you and your Dad to go and sort it out as a favour to them, you've done nothing wrong unless your dad had changed the date on his licence which doesn't seem very likely.

If they are panicking that much it does make me wonder what is wrong with the car. Are they frightened you will find something and use this as an easy way out?

They are panicking because the customer has the car and the finance company wont pay for it until the customer provides valid ID, so currently they have no car and no money.

O/P, please dont take Donkeys approach that you're "doing the dealer a favour" - get your dad to sort this ASAP, before it all gets silly.