Car purchase possible outstanding finance

MalMonroe

DjangoUnchained said:

From what ive read, it seems that it is illegal to sell a car with outstanding finance, as they are not the owner?

Hi, I just wanted to thank you for raising this because I didn't even know it was a thing. I don't think you're being paranoid, you are being careful.

And, in your position, I'd also want to see proof that the finance has been cleared before I collected the car. It isn't an unreasonable request and any dealer should know that.

They should be able to show you proof - and in your position I also would want to see it.

You actually DO have the right to reject the car if the seller hasn't told you everything about it in advance - they didn't tell you about the outstanding finance (even if it IS common practice - not everyone knows about it and we don't have crystal balls) so you didn't have an opportunity to reject it before you agreed to buy it.

You wouldn't be entitled to return it if you were told about any problem or fault when you bought the car and someone fully explained what it meant. You weren't told, so you would be entitled to return it.

If you can't get any sense out of the dealer, you may be able to appeal to the motor ombudsman, link here -

https://www.themotorombudsman.org/consumers/make-a-complaint

But I don't think it will get that far. The dealer will probably be able to show you the proof you need - most dealers really do want to have happy and satisfied customers - and all will be well. I do hope so, anyway. 

Good luck.

Nearlyold

DjangoUnchained said:

From what ive read, it seems that it is illegal to sell a car with outstanding finance, as they are not the owner?

In the case of dealer stock finance the finance companies who technically own the cars they've financed are permitting the dealers to sell the cars, (effectively on their behalf) so there is no problem. 

DjangoUnchained

Nearlyold said:

DjangoUnchained said:

From what ive read, it seems that it is illegal to sell a car with outstanding finance, as they are not the owner?

In the case of dealer stock finance the finance companies who technically own the cars they've financed are permitting the dealers to sell the cars, (effectively on their behalf) so there is no problem. 

In that case im entitled to see proof that it is owned by the dealer stock finance company, rather than a private finance deal? And should be able to have written confirmation/email from the finance company that the dealer is allowed to sell it?

Alderbank

In that case im entitled to see proof that it is owned by the dealer stock finance company, rather than a private finance deal?

 A finance company can tell you whether they have a financial interest in a vehicle. They don't know whether any other company or individual has an interest in it.

 And should be able to have written confirmation/email from the finance company that the dealer is allowed to sell it?

Not from an individual finance company. The car might not belong to the dealer. It might be unroadworthy. They don't know.

DjangoUnchained

well, the dealer has emailed me to say they have prepared the car, MOTd it and done the work needed. When i pressed them about the outstanding finance they said that it will take 7-10 working days to clear, and thay will put that on the invoice. Not sure if i should accept this or tell them I'll wait before collecting /paying for the finance to clear or tell them im cancelling the deal. tbf we all know that once the car has left the dealer they dont do anything to help if they can get away with it.

Penguin_

DjangoUnchained said:

well, the dealer has emailed me to say they have prepared the car, MOTd it and done the work needed. When i pressed them about the outstanding finance they said that it will take 7-10 working days to clear, and thay will put that on the invoice. Not sure if i should accept this or tell them I'll wait before collecting /paying for the finance to clear or tell them im cancelling the deal. tbf we all know that once the car has left the dealer they dont do anything to help if they can get away with it.

I'll be honest, I would totally understand your point of view & agree if you were buying from a private individual. But given you have indicated this is a big dealer with a large forecourt, the odds are it is financed using a stocking company who they will pay off as soon as the process is completed. 

From memory, our sales admin would mark the car as sold on the portal once the customer had paid. From there the system would take a couple of days to update & then the funds would be taken electronically on the next direct debit. 

Penguin_

Also to add, it is in the dealers interests to clear the finance as they get audited every 2 months or so & if a car is showing as live on the stocking agents list but the car isn't in stock with the dealer they will get black marked. If they get x amount of black marks they can have funding withdrawn for the whole of their stock.