Car purchased from dealer, had finance on

SWN123

Hiya, I bought a car from a dealer back in March, someone wrote it off in September  and then it come back it had finance on, basically what I’m asking is can I apply for a county court rit against this dealer ? 

Grumpy_chap

SWN123 said:

Hiya, I bought a car from a dealer back in March, someone wrote it off in September  and then it come back it had finance on, basically what I’m asking is can I apply for a county court rit against this dealer ? 

Did you undertake your own HPI check prior to purchase?
Was the finance consumer finance or stocking finance?
How did you pay for the car?

retiredbanker1

My understanding is that if you buy from a  dealer then you are given 100% good title.
(As long as you are a private buyer not in any way associated with the motor trade)

So you should inform your insurers of this showing the bill of sale as proof. There is no reason after this that they should not pay out. The finance company can take it up with the dealership.

[Deleted User]

SWN123 said:

Hiya, I bought a car from a dealer back in March, someone wrote it off in September  and then it come back it had finance on, basically what I’m asking is can I apply for a county court rit against this dealer ? 

You bought it in March.

You let someone else drive it, had an accident in it, and it was a write-off by the insurance company as not financially worth the repair etc ?

Or you were driving it, had an accident and the insurance company deemed it as a write-off etc ?

When it was returned back to you you discovered it wasn't legally yours as it had an existing finance package still in place ?

The dealer is a main dealership ?
A multi national budget organisation ?
Or a sole trader ? 
In any of those circumstances they should have, already, sorted out those legalities before selling, i would have thought the onus was on the dealer.
It's them that haven't carried out their due diligence, which seems incredulous really.

MrFrugalFever

Depending on what type of finance is still remaining on the vehicle, you may or may not need to direct your efforts towards the dealership. As mentioned above, if the finance is a consumer finance (such as Personal Contract Purchase or Hire Purchase/Conditional Sale) then the dealership need to be involved as - if a mina dealer - they will be authorised debt adjusters and should have settled the finance prior to sale of goods.

If the finance is Business Unit Stocking or similar then its a lot easier to deal with although this should have been removed as part of the sale. This type of finance is used widely across large dealership groups because they aren't necessarily cash-rich and can have thousands of cars in stock at any one point which will need to be financed in some way to maintain such a level of stock.

From my experience, there are quite a few brokers I work with who still don't understand Business Unit stocking finance and assume this is consumer finance....

Perhaps you can clarify?