Buying car with outstanding finance.

skylight · 12 January 2017 at 10:12AM

Quick help please - my mother has bought a car and didn't hpi first (yes I did tell her to...). Her car insurance company had done that for her this morning and she's found out it has finance outstanding.

She is buying it from a Vauxhall garage, paid for it all and is collecting it this afternoon.

What does she need from the garage to prove its AOk and what can she do if they don't/can't? Is she in her rights to get all her £10k back???

AdrianC · 12 January 2017 at 10:16AM

Don't panic. If it's from a main dealer, it WILL have been HPId. It may well be what's called "stocking finance", where the dealer themselves finance the cars they have in stock, and it'll be cleared on sale.

But a few quid on HPI'ing it yourselves NOW would not be a bad plan, would it?

skylight · 12 January 2017 at 10:21AM

Mum wouldn't pay for hpi as it was too expensive (!) but had paid the insurers over the odds to do it instead. The only thing on the report was finance with GMAC (UK) plc but not a value.

Thanks Adrian

AdrianC · 12 January 2017 at 10:31AM

skylight wrote: »

Mum wouldn't pay for hpi as it was too expensive (!) but had paid the insurers over the odds to do it instead. The only thing on the report was finance with GMAC (UK) plc but not a value.

The question isn't the value, but the purpose and the borrower.

If it's a Vauxhall franchise dealer, then GMAC (GM's own finance house) may well be involved in stocking finance. It seems very unlikely that GM's own finance house would have a previous keeper's outstanding finance on a car being sold by a franchise dealer.