Outstanding finace - paid deposit

akkers

I looked at a car that I liked and paid a deposit of £1000 on it, the rest to be paid on collection. In the advert it said that the car was clean free of all problems and free of finance. However, just before collection I did a HPI check myself and it came up with Finance on the car. The finance company is shut now until Mon so cant get any further details.

It may be that the finance had been paid and not cleared on HPI or maybe it hasnt been paid at all. But nevertheless I am not going ahead until I can clarify the situation.

I am realy afraid to go ahead now knowing that they have been less than honest. Can I backout based on this fact? Will I be able to get my deposit back legally?


What should I do really?

sheslookinhot

Talk to car seller.

akkers

Yes, I will talk to them.


In the meantime I have done some digging and it appears that the finance is the one taken by this garage to buy the car. Its called Partner Finance and is used by dealers to finance cars when they buy from auctions.

AdrianC

Stocking finance? Many dealers have it - and it's cleared before sale. They basically borrow money against the value of all the cars on their forecourt. Think about how much money they'd have tied up in stock otherwise...

System

There are very few dealerships who own the cars they sell outright. You'll often find on HPI checks that it'll show as being on finance. Black Horse is a common one.

If it were a private seller I'd walk away but not from a business. Even if they don't clear the finance after you bought it as long as you have a receipt there is nothing the finance company can do to reclaim the car from you.

akkers

Yes but the finance company have a charge and title to the car. So if after the sale, the garage do not pay off their debt for the car then the finance company could legally come and take the car away.

akkers

Technically they lied on the advert and at the point of sale saying car was 100% HPi clean. Doesnt this mean the contract is null and void?

bobbymotors

akkers wrote: »

Yes but the finance company have a charge and title to the car. So if after the sale, the garage do not pay off their debt for the car then the finance company could legally come and take the car away.

No they can't.

This keeps coming up on the forum.

If the garage don't pay off the finance(they will) then the finance co chase the garage not the person that bought the car.

MEM62

akkers wrote: »

Technically they lied on the advert and at the point of sale saying car was 100% HPi clean. Doesnt this mean the contract is null and void?

If the finance is only stocking finance then you have not been mislead. You already understand how this works so why do you have an issue with it?

Are you really worried about the finance or are you having second thoughts about the car and are looking for an out?

debtdebt

Don't listen to Akkers.

System

akkers wrote: »

Yes but the finance company have a charge and title to the car. So if after the sale, the garage do not pay off their debt for the car then the finance company could legally come and take the car away.

If you can prove good title they can't take it.

You often have a right to keep the car - called 'good title' - even if it's still on outstanding hire purchase or conditional sale. You have the right to own the car if all these apply:

1) you didn't know the car was subject to a hire purchase or conditional sale agreement
2) you bought the car honestly and had no reason to think there was a problem - this is called buying 'in good faith'
3) you're a 'private buyer' - this means you don't buy cars to sell or hire them on
4) you're the first private buyer to buy the car from the person who has the hire purchase or conditional sale agreement