Garage refusing to pay outstanding finance without V5

deaquire

Hiya, please can someone offer advice?

We recently traded in our car which has a value from the garage of £4250 with circa £2,000 outstanding finance on it. We used the £2250 equity as deposit for the new car (which we have financed the remaining balance of through said garage).

When we went to collect the new car and leave the old car, we didn't have the V5 with us (our mistake). The garage attempted to pay off the finance there and then, by this time it was after 5pm on Friday and we had a 2 hour drive home - the garage couldn't get through and said he would transfer the money to us for us to pay off. 

Come Monday morning he said he wouldn't pay off the outstanding finance until we sent him the V5. We sent the V5 in the post 1st class (but not recorded), a week later (today) and it still hasn't arrived. We have spoken to DVLA who say we need to fill out a V62 form (i think?) - we spoke to the garage who said that this is incorrect and that we need to apply for a replacement V5 and that he still will not pay off the outstanding finance, or transfer us the balance, until he has the V5.

Someone pleeeease please help, this is all waaaay over our heads and we don't understand. Is he right?

At no point (up until the Monday morning) did he tell us that he would not pay off the finance until he had the V5 in hand. The garage has excellent reviews. I've been as thorough as possible with all available info in the above

waamo

The DVLA are correct in that the form is a V62. It will cost you £25. It can be done over the phone which may be slightly quicker but costs the same.

KimJongUn88

Seems like the garage are just playing by the book which I applaud.  Why would they pay the finance off on a vehicle who's registered keeper has not yet been confirmed. This is your mistake and you'll have to rectify it by either waiting for the V5c to arrive at the garage or apply for a new one.

facade

deaquire said:

At no point (up until the Monday morning) did he tell us that he would not pay off the finance until he had the V5 in hand.

Surely it is obvious that he isn't going to buy a car without the V5? That must have been in the T&Cs of the sale agreement. Maybe if he had pointed this out, you might have taken the V5 round yourself, but it is too late for that now.

At the moment, it is your problem that you didn't give him the V5, you need to sort something out.

You could take the old car back, but you will have to make up the shortfall in the finance.

It could arrive tomorrow in the post, it is all over the place at the moment (due to Covid- every problem is down to Covid now)

Otherwise getting a replacement one is going to take a week at least.

AdrianC

V62 is the form to apply for a replacement V5C.

I don't think he's being at all unreasonable in refusing to pay off £2k of finance until the V5C is available...

foxy-stoat

You could of taken out a Log Book loan on the car, so the garage are going by the book.  I couldn't think of a situation where I would of gone to the garage which was 2 hours away to chop my current car in without the V5C.

MinuteNoodles

Given the advice to private buyers is to never buy a car that doesn't have the V5 present why would a business who has an even greater duty of care under law to ensure a vehicle's authenticity? I would never buy a car that didn't have a V5, I wouldn't sell one until I had it.