HPI Check

SilasMarner

Hello,
I would welcome the views of someone "in the trade" who knows. I have just put a deposit down on a 2 year old car from a large main dealer. I have done an HPI check which says "Outstanding Finance - Unit Stocking" It suggests this is common, as a way of a motor dealer financing their stock and I should discuss it with the dealer. However it makes me nervous and I would appreciate an independent view of this. Given the size of the dealership I'm fairly sure it isn't an issue but.....Thanks for your help on this.

motorguy

SilasMarner wrote: »

Hello,
I would welcome the views of someone "in the trade" who knows. I have just put a deposit down on a 2 year old car from a large main dealer. I have done an HPI check which says "Outstanding Finance - Unit Stocking" It suggests this is common, as a way of a motor dealer financing their stock and I should discuss it with the dealer. However it makes me nervous and I would appreciate an independent view of this. Given the size of the dealership I'm fairly sure it isn't an issue but.....Thanks for your help on this.

Its common enough.

Check with the dealer, but they'll clear the finance when the car is sold.

Nothing to worry about.

AdrianC

It should be fairly obvious that dealers do not own all the cars on their forecourts themselves without borrowing the money. Apart from the obvious - just total up the retail prices on all the windscreens - it would be incredibly poor business sense.

Stocking finance is how they do it.

loskie

AdrianC. with a smart !!!! answer like that one can easily guess what the "C" stands for.

SilasMarner

Thank you for your your replies. Yes, a further cyberspace blitz shows that this is a fairly common query. However....it doesn't alter the situation that the car technically belongs to the finance company. I'm not sure what would happen if the dealer went bust a couple of days after the transaction. I shall make my Meldrewistic point to the dealer then forget it! Adrian C. - I always thought that this type of financing may be covered by a floating debenture over the cars. Thanks guys.

motorguy

SilasMarner wrote: »

Adrian C. - I always thought that this type of financing may be covered by a floating debenture over the cars. Thanks guys.

Whilst i was aware they did it on a car by car basis, yes i would have thought it would have been done across stock as a whole rather than car by car.

Maybe even the finance companies dont trust car dealers.... :eek:

AdrianC

AIUI from the loans I see on various P2P platforms, the lender covers a certain amount, and the dealers roll the vehicle identities in and out.

SilasMarner

As a postscript to this one - I let the sales guy have a copy of the sheet on my HPI check which had the "Outstanding finance - unit stocking" alert. He hadn't come across it before....but pulled in a colleague who said it had come up from time to time. They agreed to let me have a memo confirming it will be paid. Ah big dealers eh? Don't you just love 'em? Interestingly enough, as I'm paying cash they expect an inter bank electronic faster payment 24 hours prior to collection. Well I've sent them £300 for starters. We'll see if that arrives before hitting the button on the big one.

Nodding_Donkey

f you buy from a bona fide motor trader you have clean title anyway. Any finance shown is the dealers problem.

System

motorguy wrote: »

Whilst i was aware they did it on a car by car basis, yes i would have thought it would have been done across stock as a whole rather than car by car.

How the hell would that even work when stock changes daily and the value of what is on the forecourt can go up and down like a yo-yo? As a lender you'd be recalculating the entire loan on a daily basis as a fresh one. How would you say what vehicles it was secured on?

It would be an administrative and legal nightmare.

n217970

SilasMarner wrote: »

I'm not sure what would happen if the dealer went bust a couple of days after the transaction

Exactly this happened to me 3 months ago, stocking finance on car, bought it, week later dealer did a moonlight flit. Worried I ran a new HPI but the finance had been cleared. Guess its something dealers take seriously about repaying.

This is why you always put at least £100 on a credit card, thankfully the car seems a good'un and has not needed the now none existent warranty supplied with the car. On the plus side there are some bargains to be had when a dealer is about to go bust