Finance owing on car we bought

arcon5

bobbymotors wrote: »

Yep. Indisputably clear: that what you said was incorrect.

The dealer is compelled to settle the finance, even if he doesn't the buyer will get title to the car, and the finance company will pursue the dealer and not the buyer. It can be no other way.

I thank God I'm out of the motor trade too: it means I no longer have to deal with armchair lawyers wanting a car.

:rotfl:

Brilliant. Your just brilliant.

arcon5

motorguy wrote: »

The O/P was told by the dealer the finance was cleared or would be cleared. They bought it in good faith that there was no other company that would have an ongoing financial interest in the car.

The finance company would have recourse with the dealer, NOT with the innocent private buyer in this case.

He bought in good faith that the dealer would honour an agreement to settle it. He didn't buy not knowing of any outstanding finance.
The law doesn't say your innocent if you only know of one or less parties with an interest in the vehicle

bobbymotors

arcon5 wrote: »

:rotfl:

Brilliant. Your just brilliant.

it's still 'you're' not 'your'

bobbymotors

arcon5 wrote: »

He bought in good faith that the dealer would honour an agreement to settle it. He didn't buy not knowing of any outstanding finance.
The law doesn't say your innocent if you only know of one or less parties with an interest in the vehicle

You just don't get it do you. Google all you like, it's a waste of time.

The dealer bought the car with knowledge of the finance - he is deemed to have that knowledge whether he HPI checked the car or not: if he didn't HPI it then that's his lookout.

As a motor trader he is legally bound to settle the finance on disposal of the car.

Since the dealer was the first purchaser AND a motor trader, he therefore HPI'd the car BEFORE the op did. This is important, he owned it before the buyer did, and on resale it's his job to settle it and no one else's.

A buyer buying from the motor trade is entitled by buying in good faith that the dealer will settle the finance as promised and as obliged to.

It's for the dealer to settle and no one else, any argument the finance company has is with the dealer and not the op.

Been there, done that, a very similar but not identical case a number of years ago. As a dealer, it's all down to you, and quite rightly so.

Although.....

Would I have bought the car as a member of the public while the finance company still said they had an interest in it? No I wouldn't, because it's aggravation, and if the dealer didn't pay it off and then went skint it would be loads of form filling and grief to ultimately get clear title.

But clear title would be had in the end.

arcon5

Lol it's you that doesn't get it.

The dealer buys it with finance and gets no rights... finance company still own it.
If an innocent purchaser buys it from the dealer they get title.
To be an innocent purchase you must meet two bits of criteria: be a private buyer and have no knowledge of the finance.
The net result being the dealer has breached the agreement with op and the finance company still have title. The dealers requirements to settle is contractual with op.

arcon5

bobbymotors wrote: »

it's still 'you're' not 'your'

Well done :T.

About the only thing you've been right about in the last two pages. Pat on back for you.

arcon5

Ok I'm not going round in circles anymore. The laws pretty clear about this. I've posted a quote of the actual law. There's legal advice pages out there clearly covering this.

Take from it what you will. Force the dealers hand and have them stick to the agreement and settle it.

bigadaj

arcon5 wrote: »

Ok I'm not going round in circles anymore. The laws pretty clear about this. I've posted a quote of the actual law. There's legal advice pages out there clearly covering this.

Take from it what you will. Force the dealers hand and have them stick to the agreement and settle it.

Any case law or precedent?

The terms quoted seem aimed to stop any dodgy dealings between connected parties rather than a true independent buyer.

atrixblue.-MFR-.

The moral thing to do as a trader is sort this out so both the persons credit rating can be sorted and the good clean title can be given to the buyer. That's the moral and honest thing to do as a trader is put admin things right.


As the law stands, Its clear, There is no recourse for the OP in this case, he knew there was finance owed, therefore protection is nullified. You really really shouldn't take a car from the forecourt without confirmation that the finance bill is fully paid if this isn't possible due to weekends or bank holidays, then leave the car with the dealership retain full payment (minus your deposit) and arrange collection that is within a reasonable time scale for the dealer to clear the finance and get you the evidence this has been done. I always check HPI I ALWAYS ask for evidence the finance is cleared (and a cheque in the post sent via recorded delivery wont cut it for me) Ive seen repossessed cars from people who trusted a dealer to pay a car on finance off only not to and have it reported stolen recovered by finance co, recovered back to finance holding yard, and not released until someone pays off the bill or a court decides who holds legal title.

Warwick_Hunt

atrixblue.-MFR-. wrote: »

The moral thing to do as a trader is sort this out so both the persons credit rating can be sorted and the good clean title can be given to the buyer. That's the moral and honest thing to do as a trader is put admin things right.


As the law stands, Its clear, There is no recourse for the OP in this case, he knew there was finance owed, therefore protection is nullified. You really really shouldn't take a car from the forecourt without confirmation that the finance bill is fully paid if this isn't possible due to weekends or bank holidays, then leave the car with the dealership retain full payment (minus your deposit) and arrange collection that is within a reasonable time scale for the dealer to clear the finance and get you the evidence this has been done. I always check HPI I ALWAYS ask for evidence the finance is cleared (and a cheque in the post sent via recorded delivery wont cut it for me) Ive seen repossessed cars from people who trusted a dealer to pay a car on finance off only not to and have it reported stolen recovered by finance co, recovered back to finance holding yard, and not released until someone pays off the bill or a court decides who holds legal title.

No you don't.