Dealer not yet settled old finance

dcouponzzzz

Hi All,

So I purchased a car on Monday last week and traded in my old one. During the sale it was agreed that the new finance deal which was set up (cost of new car + negative equity on trade-in) would be used to settle my old personal loan with Tesco bank. I've had the car a week now, the new finance was confirmed as set up on Wednesday, and the first payment is 01/08.... but Tesco bank haven't received a settlement.

My concern is that the salesperson advised he was taking my word on the settlement figure, as the request for a paper copy from Tesco bank is processing and will arrive in the post this week. Am I going to end up paying 2 loans on the 01/08? Or are the car dealership not allowed to drag their feet. I would assume that as soon as they received the funds on Wednesday they should settle my previous loan immediately?

Thanks

meer53

No one here knows whether you will end up paying 2 loans, you need to contact the dealership to make sure they settle the finance. Also if you pay your old loan by direct debit, it will probably already be in the system to be claimed on 1 Aug so you need to check your account. If it is claimed and the finance has been settled, they should refund any over payment.

The dealership might be waiting for the actual settlement figure before clearing your old loan. When i've bought cars before, the dealership usually rings the finance company for the correct figure so theres no need for a written copy.

dcouponzzzz

Thanks Meer, in this case Tesco wouldn't speak to the dealership to discuss settlement for whatever reason. They asked for a cheque or direct payment to the acc # + sort code. Worst case scenario if I speak to them today and they say it's not going to be sent, I can push back the date of the new loan payment as far as the 21st with no charge.

molerat

Tesco should have told you that they need £x to be received by xx/xx/2015 (usually the due date of the next payment), what info did they give you ?

meer53

dcouponzzzz wrote: »

Thanks Meer, in this case Tesco wouldn't speak to the dealership to discuss settlement for whatever reason. They asked for a cheque or direct payment to the acc # + sort code. Worst case scenario if I speak to them today and they say it's not going to be sent, I can push back the date of the new loan payment as far as the 21st with no charge.

But if you were at the dealership, Tesco would have spoken to you and given you the settlement figure over the phone.

dcouponzzzz

The dealership wouldn't accept it over the phone saying they need a hard copy, If it doesn't arrive by tomorrow evening I'll call the new finance company and push the start date back, didnt really want to though!